You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

May 15, 2023

Patenting AI Technology and Software in Southeast Asia

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 applications called Accelerated Initiative for Artificial Intelligence. Under this scheme, a patent application can be granted six months from the filing date.

Patent Drafting

Drafters of patent applications in Southeast Asia need to be aware of the patentability requirements specific to AI technology and software inventions in each Southeast Asian country. When drafting AI technology and software patent applications, one option for the drafter to keep in mind is that the description should mention the connection between the software and the tangible medium. If the software can be linked to a tangible medium, the invention could be patentable.

Even if the claims of the patent application in other regions (such as the United States) do not have to show a connection with a tangible medium, when the application enters Southeast Asia, the claims can be amended to include this connection without expanding the scope of the application if the information already exists in the description.

This means that AI technology and software could be patentable as a part of a wider patentable invention.

Prosecution Strategy

In looking to patent AI innovations—or any other tools—applicants should explore possibilities for speeding up the prosecution process. For instance, ASEAN member countries have agreed to accept one another’s examination results in a scheme called the ASEAN Patent Examination Cooperation, and many Southeast Asian countries have an agreement to accept patent examination results from another country, through arrangements referred to as “patent prosecution highways” (PPHs). Cambodia has a special agreement to validate European patents without further examination. Indonesia, Thailand, and Vietnam have a PPH with Japan. Under this PPH, patent applicants can use the examination result of a corresponding patent application in Japan that has already been granted to speed up the examination process in Indonesia, Thailand, or Vietnam. Although the examiner in the other country will still examine the application to make sure it does not violate that country’s patent laws, the examination result from Japan should help speed up the examination process.

Outlook

Patenting AI technology and software in Southeast Asia requires a nuanced approach that takes into account both existing laws and procedures, as well as new considerations that arise with the advent of cutting-edge technology. As businesses continue to innovate and create proprietary technology, it is critical to develop a comprehensive strategy for protecting these valuable assets through patents. By staying up to date with the latest developments in the field and working closely with experienced legal professionals, businesses in Southeast Asia can navigate the complex patenting process and secure the protection they need in order to maintain a competitive edge in the rapidly evolving global marketplace.

RELATED INSIGHTS​ 

June 27, 2024
Thailand recently made history by becoming the first country in Southeast Asia to legalize same-sex marriage. This landmark decision recognizes the equality and dignity of all people, regardless of their sexual orientation or gender identity. It also opens up new opportunities for couples who wish to start or grow their families through adoption. One of the benefits of adopting a child in Thailand is that the law does not discriminate based on the gender or sexual orientation of the adoptive parents. As long as the married couple meets the age and legal requirements, they can adopt a child and become their loving and supportive family. This means that same-sex couples who are married can also enjoy the same rights and responsibilities as any other adoptive parents and provide a caring and nurturing environment for their adopted child. One of the main reasons why same-sex couples can adopt a child in Thailand without any discrimination or prejudice is the strong and comprehensive privacy law that protects the personal data of individuals and families. Thailand’s Personal Data Protection Act (PDPA) ensures that the personal data of people, especially children, is collected, used, and disclosed only for legitimate and lawful purposes, and with respect to their rights and dignity. The PDPA also grants the right of consent and other data subject rights to the legal representatives of children, such as their parents or guardians, regardless of their gender or sexual orientation. This means that same-sex adoptive parents can decide how their adopted children’s personal data is processed and can also protect their children’s privacy and interests from any unauthorized or harmful access. The PDPA also safeguards the personal data of same-sex adoptive parents from any unlawful or discriminatory processing that may damage their reputation or violate their rights. In these ways, the
June 26, 2024
Tilleke & Gibbins’ Fintech Law in Southeast Asia provides fintech operators and service providers with an overview of relevant regulations across all of our full-service jurisdictions—Cambodia, Laos, Myanmar, Thailand, and Vietnam.
June 21, 2024
On June 4, Thailand’s Ministry of Commerce (MOC) issued a new notification on e-commerce business registration pursuant to the Commercial Registration Act B.E. 2499 (1956) (CRA), replacing a similar notification from 2010. The new notification (officially titled “Notification Re: Business Regulations that Commercial Operators Must Register and Businesses that Are Not Subject to the Commercial Registration Act, B.E. 2549 B.E. 2567”) took effect on June 5, 2024. While the previous notification required all individuals and legal entities engaged in regulated activities, such as selling goods or services online, to register their businesses with the local district office, the new notification effectively lifts this requirement for certain legal entities. The new notification clearly states that the CRA does not apply to regulated activities conducted by: Private limited companies, registered ordinary partnerships, and limited partnerships (i.e., legal entities under the Civil and Commercial Code); and Public limited companies (i.e., legal entities under the Public Limited Companies Act). Now that the new notification is in effect, limited companies and other specified legal entities are no longer required to register their e-commerce activities and obtain an e-commerce certificate from the MOC. E-commerce certificates previously issued to these legal entities are also voided by the new notification. Nevertheless, the requirement to register for direct marketing and obtain a direct marketing certificate under the Direct Sales and Direct Marketing Act B.E. 2545 (2002) remains in effect for any online sales or e-marketplace platforms administered by legal entities. Given the recent proactive enforcement of penalties for noncompliance with direct marketing registration requirements, we strongly advise business operators to assess whether their operations fall within the scope of direct marketing regulations and require a direct marketing certificate. For more information on e-commerce and direct marketing registration in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Nopparat Lalitkomon
June 19, 2024
Vietnam’s financial landscape is set to further transform on July 1, 2024, when the government’s long-awaited Decree No. 52/2024/ND-CP dated May 15, 2024 (“Decree 52”), will officially replace Decree No. 101/2012/ND-CP dated November 22, 2012, on non-cash payments (“Decree 101”). Decree 52 marks an important milestone by introducing the country’s first-ever legal definition of e-money. In addition, the decree brings forth new updates to regulations governing payment and intermediary payment services, laying the groundwork for more comprehensive guidance that will be provided in draft circulars now being developed by the State Bank of Vietnam (SBV). Non-Cash Payment Instruments The new definition of non-cash payment instruments under Decree 52 expands upon the previous definition in Decree 101. Notably, it clearly specifies the issuing entities as payment service providers, financial companies licensed to issue credit cards, and e-wallet service providers. Additionally, the new definition further clarifies that bank cards include debit, credit, and prepaid cards, and adds e-wallets to the list of non-cash payment instruments. Unlawful non-cash payment instruments are still defined as those that are not otherwise specified. E-Money Prior to Decree 52, the concept of e-money lacked a precise legal definition, despite its growing prevalence in forms like prepaid cards and e-wallets. The absence of a clear framework for e-money led to confusion with terms like “cryptpcurrency” and “virtual currency” and left significant ambiguity on whether e-money includes certain instruments, such as online game cards and mobile money. Decree 52 addresses this issue by clearly defining e-money as value in Vietnamese dong (VND) stored electronically and prepaid by customers to banks, foreign bank branches, and e-wallet service providers. It also specifically designates e-wallets and prepaid cards as types of storage mechanisms for e-money. Non-Cash Payment Services Decree 52 categorizes non-cash payment services into services with and without client payment