Southeast Asia has experienced a significant increase in foreign investment, which has not only brought innovation but also raised questions about protecting such innovation. Investors are increasingly interested in patenting the proprietary technology that plays a vital role in numerous businesses today. Recently, particular interest has been shown in innovations related to artificial intelligence (AI) technology and software. Are these types of innovations patentable, and if so, how? When it comes to Southeast Asia, the answers to these questions are not straightforward, due to the lack of uniform patent laws across the region. Issues of Patentability The patentability of computer software has long been a topic of discussion, predating the emergence of AI tools. Many jurisdictions have specific rules regarding the patentability of software. Pure software, defined solely by source code, may not qualify for patent protection but can be safeguarded under copyright laws. AI-related software often involves intricate algorithms, datasets, and training methodologies that pose challenges when it comes to satisfying the enablement requirement for disclosure. However, algorithms, mathematical methods, and abstract ideas are generally considered non-patentable subject matter in many jurisdictions. Although software implementing AI may incorporate innovative algorithms, obtaining patents solely for algorithms can be difficult in certain countries. For instance, Indonesia, Myanmar, Thailand, and Vietnam explicitly exclude computer programs from patentable subject matter. However, a potential workaround in these countries is to describe the software as being connected to a tangible medium. This approach could overcome rejections based on subject matter during substantive examination. Moreover, in Indonesia, a computer program can be eligible for patent protection if its characteristics (i.e., instructions) have a technical effect and serve to address a tangible or intangible problem. Among Southeast Asian countries, Singapore has the most lenient patent regime, even explicitly addressing AI innovations. The country has implemented a

On May 25, 2023, Laos published Decision on the Registration of Importers and Exporters of Goods No. 0752, which requires importers and exporters to register their activities and the related goods with the Ministry of Industry and Commerce (MOIC). The MOIC’s goal is to create a database to monitor imports and exports and collect data on the flow of goods in and out of Laos. The decision also aims to regulate the import and export of goods to and from Laos by foreign traders who do not have a local presence. Once the decision takes effect on July 6, 2023, import and export of goods will be possible only upon registration by the importers or exporters with the MOIC. This registration requirement is in addition to the current mandate that importers and exporters operating in Laos obtain a Business Operating License from the MOIC. Activities Subject to the Decision Under the decision, the obligation to register applies to individuals and entities that import or export goods for which the revenues and payments are controlled by the government as well as “goods that have a quick impact on the lives of the population.” Although it is not yet clear which products the MOIC has in mind, further clarifications are expected. Under the current regulatory framework in Laos, some goods need an import-export permit prior to crossing the Lao border, in accordance with a 2022 regulation listing goods subject to the permitting requirement. It is possible that the goods regulated by the new decision could be the same as those defined in the 2022 list (see here for a Lao-language list)—such as drugs, medical products, land vehicles, petrol, and hazardous chemicals—but further confirmation and clarification will be necessary to determine this. Importers and Exporters Subject to the Decision The decision applies

Southeast Asia’s remarkable growth as a destination for foreign investment—including a 42 percent increase in 2021, according to a joint ASEAN-UNCTAD report—has brought with it innovation as well as the desire to protect that innovation. Investors are increasingly seeking to patent the proprietary technology that is a crucial component of so many businesses today, and a burning question for patent applicants is whether artificial intelligence (AI) technology and software are patentable in Southeast Asia. The short answer is that it depends, as the patent laws in Southeast Asia are not uniform. Is it Patentable? While AI tools tend to be newer, the older and more familiar question is whether computer software is patentable, and many jurisdictions do have specific rules on this issue. Pure software, or software characterized only by source code, may not be patentable, but it can be protected under copyright laws. AI-related software may involve complex algorithms, datasets, and training methodologies that can be challenging to disclose in a manner that satisfies the enablement requirement in practice. Algorithms, mathematical methods, and abstract ideas are often considered non-patentable subject matter in many jurisdictions. While software implementing AI may involve innovative algorithms, securing patents for algorithms alone can be challenging in some jurisdictions. Also, the patent laws of Indonesia, Myanmar, Thailand, and Vietnam specifically list computer programs as unpatentable subject matter. However, a possible workaround would be to describe the software as connected to a tangible medium. This method could overcome an unpatentable subject matter rejection during substantive examination. Furthermore, in Indonesia, a computer program can be patentable if its characteristics (i.e., instructions) have a technical effect and function to solve a tangible or intangible problem. The most liberal of Southeast Asia’s patent regimes—Singapore’s—even addresses AI innovations. The country has a special fast-track scheme for examining AI patent

The significance of artificial intelligence (AI) is rapidly increasing worldwide, and Southeast Asia is no exception, as it plays a leading role in the technological development of many industries. AI has already proven its importance for driving business growth in areas such as e-commerce, finance, and healthcare, but its remarkable potential also raises concerns around privacy. As AI systems are designed to collect and process large amounts of data to improve their operation, it is necessary to balance the development of technology with the protection of individuals’ privacy. Current Frameworks in Southeast Asia This concern has been on regional policymakers’ agendas for many years. The ASEAN Framework on Personal Data Protection, which was adopted in 2016, is not legally binding and has no enforcement mechanism, but it serves as a guide for ASEAN member states in developing their own data protection laws and regulations. Domestic data privacy laws are currently in force in five ASEAN member countries—Indonesia, Malaysia, the Philippines, Thailand, and Singapore—while Vietnam’s Personal Data Protection Decree is scheduled to take effect on July 1, 2023. This presents a challenge for ASEAN members, as adopting AI-related technology can further complicate data protection efforts due to the amount of personal data AI systems collect, as well as the complexity of the data used to train the AI algorithm. Some ASEAN members have also made progress in regulating AI. For instance, Singapore released the Model AI Governance Framework in 2019 and launched the AI Governance Testing Framework and Toolkit in 2022—the world’s first such framework. Similarly, Thailand issued the Artificial Intelligence Ethics Guideline in 2019 to help government agencies in the development, promotion, and use of AI, and in 2023 adopted the Thailand Artificial Intelligence Guidelines to help the private sector develop AI-related work. These guidelines primarily focus on principles