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

April 18, 2014

Protecting Trade Secrets Essential to Stay Ahead

Subscribe to Updates
Bangkok Post, Corporate Counsellor Column

Intellectual property rights (IPR) protection is a key part of success in today’s business environment. As manufacturing companies grow, it is inevitable for corporate management—regardless of the type of industry—to shift its focus from tangible products to the intangible assets of intellectual property.

While trademarks, copyrights, and patents are a central focus in discussions of IPR among business owners, there is another important intellectual property right that can improve a company’s competitive advantage and help it differentiate its business and/or products from those of its competitors: the “trade secret.”

Trade secrets are protected in Thailand under the Trade Secret Act (TSA) B.E. 2545 (2002). The principal rule of a trade secret is that it can be protected as long as it is undisclosed.

Section 3 of the TSA states: “Trade secrets mean trade information not yet publicly known or not yet accessible by persons who are normally connected with the information, the commercial values of which derive from its secrecy and that the controller of the trade secrets has taken appropriate measures to maintain the secrecy.”

“Trade information means any medium that conveys the meaning of a statement, facts, or other information irrespective of its method and forms. It shall also include formulas, patterns, compilations or assembled works, programs, methods, techniques, or processes.”

Trade secrets can be categorized into two types:

  • Industrial secrets, which consist of trade information related to technical matters such as a manufacturing process or a chemical formula.
  • Commercial secrets, which consist of trade information related to sales methods, contract forms, customer lists, advertisement techniques, etc.

Unlike patent protection, there is no expiration date for trade secret protection and no registration procedure is required to obtain trade secret protection. Instead, trade secrets shall be protected as long as they are deemed secret. As the length of time for trade secret protection can be short or long, depending on the ability of the company to maintain the secrecy of its valuable information, it is therefore very important for the company to understand how to maintain and manage its information.

In recognition of this need, the Trade Secret Act stipulates that the controller of a trade secret take “appropriate measures” to maintain the secret. “Appropriate measures” can vary, depending on the type of information. It is recommended, however, that the company should, at the very least, implement a “confidentiality policy” among its employees, especially for those whose work relates to technical information, production, research and development, as well as sales and marketing.

A “non-disclosure term” should be standard in the company’s employment agreements. Also, special steps should be taken to ensure that employees have proper authorization to access any of the company’s important information. These steps should include such measures as passwords, fingerprint scans, and iris scans, among any other method for identification.

Under the law, the trade secret owner has the right to disclose, take, or use his trade secret, and/or permit others to use his right along with any necessary condition to maintain its secrecy. Acts amounting to infringement of a trade secret right under the TSA include disclosure, deprivation, or use of a trade secret without the consent of the owner in a manner contrary to honest trade practices. In so doing, the infringer must be aware or has reasonable cause to be aware that such act is contrary to honest trade practices.

Where there is clear evidence that a trade secret infringement has been committed or is imminent, the affected controller is entitled to apply to the Intellectual Property and International Trade Court (IP&IT Court) for the following injunctions:

  • A preliminary injunction ordering the violator to temporarily stop or refrain from infringing the trade secret, whether before or after the filing of a suit with the Court; and
  • A permanent injunction prohibiting the violator from infringing the trade secret. In addition to damages for the actual damage suffered, in trade secret litigation the court may include in the damages for the plaintiff an accounting of profits accrued from or in connection with the infringement by the infringer.

The greatest advantage of trade secret protection is that a company can maintain secrecy and know-how. Also, there is no time limitation for protection as long as the secrets are deemed secret. Therefore, if a company decides to obtain protection for its know-how through the TSA, it must ensure that it can manage and protect its secret through company capital and/or human effort.

As to whether protection is obtained through a patent or trade secret, it is recommended that a company should weigh the value of the know-how against its ability and capital to manage and maintain the secret. If it is valuable, trade secret protection may be worthwhile for the company to maintain long-term protection.

Related Professionals

Practices

Intellectual Property

Location

RELATED INSIGHTS​ 

July 24, 2026
Indonesia has updated its fee framework for intellectual property (IP)-related government services, with implications for IP owners, licensees, lenders, digital platforms, and businesses operating in the country. Government Regulation No. 30 of 2026 on Types and Tariffs of Non-Tax State Revenue Applicable to the Ministry of Law (GR 30/2026) was promulgated on July 2, 2026, and will take effect on August 1, 2026. Key Takeaways GR 30/2026, which replaces the relevant IP service fees under Government Regulation No. 45 of 2024, reorganizes the fee schedule into separate categories for copyright, industrial designs, patents, layout designs of integrated circuits, trade secrets, trademarks, geographical indications, IP enforcement, and other categories. The most commercially relevant changes include a new copyright recordation tariff exemption for songs and music, higher fees for several trademark and geographical indication services, new IP enforcement service fees, and a new fee type for registration of fiduciary security over IP rights objects. In addition, this is the first major update for trademark fees in approximately 10 years. GR 30/2026 is significant not only as a fee update but also as a further indication of Indonesia’s increasing recognition of IP as a financeable commercial asset. By expressly assigning fees to the registration of fiduciary security over IP rights objects, the regulation places IP-backed collateral filings within the Ministry of Law’s administrative service framework. While GR 30/2026 does not create a new secured-transactions regime, this development is relevant for lenders, borrowers, and IP owners structuring financing arrangements secured by trademarks, patents, copyrights, industrial designs, or other registrable IP rights in Indonesia. Copyright: New Fee Exemption for Songs and Music Recordation For copyright, GR 30/2026 creates a fee-exempt category for recordation of works or related-rights products for songs or music, while maintaining a separate category for other works and related-rights products. It
Read More
July 21, 2026
Thailand’s Ministry of Digital Economy and Society (MDES) published a notification establishing an expedited court-ordered takedown mechanism for online content in cases of “urgent necessity.” The notification, which was issued on July 17, 2026, under the Computer Crime Act B.E. 2550 (2007), as amended, took effect the following day. It significantly expands the categories of content subject to rapid government-initiated removal. Content Categories Subject to Takedown The notification defines “urgent necessity” (section 20, paragraph 5, of the Computer Crime Act) as circumstances where any delay in suppressing computer data may impact national security, religion, the monarchy, good morals, social culture, or public order. In this regard, it establishes four broad categories of content: Computer Crime Act offenses. National security offenses. IP and other criminal offenses, where it is contrary to public order or good morals and a competent officer has requested its suppression. Content contrary to public order or good morals, a broad residual category encompassing 14 subcategories approved by the Computer Data Screening Committee. The fourth category is the most expansive. Its 14 subcategories include: Content defaming, mocking, satirizing, or devaluing the monarchy. Online gambling advertising or facilitation. Offering illegal firearms for sale. Offering baraku (hookah) products or e-cigarettes for sale. Offering cannabis inflorescences or processed cannabis products for sale. Advertising or soliciting prostitution. Content inciting violence, hatred, or social division. Unauthorized overseas employment advertising. Offering boiled kratom juice for sale. Online sale or advertising of alcoholic beverages. Content satirizing or degrading Buddhism. Money lending at interest rates exceeding legally prescribed limits. Advertising or disseminating information about surrogacy services. Forgery of documents, cards, or official documents. Enforcement Procedure In cases of urgent necessity, a competent official assigned by the MDES permanent secretary must file a petition with supporting evidence to the court with jurisdiction, requesting an order to
Read More
July 15, 2026
Ambush marketing refers to a strategy in which a business associates itself with an event, campaign, or brand without paying for official sponsorship rights. The tactic is most visible in sports, concerts, and festivals, where official sponsors have invested substantially for exclusivity. Ambush marketers may use suggestive wording, event-themed imagery, athlete endorsements, venue-adjacent promotions, or social media campaigns implying a commercial connection with the event. Common Forms of Ambush Marketing Ambush marketing typically takes one of the following forms: Direct ambushing: using event names, logos, or mascots suggesting authorization Coattail ambushing: sponsoring an athlete or broadcaster connected with the event Subtle ambushing: themed advertising, venue-adjacent campaigns, or similar visual cues The legal analysis in each case turns on whether the marketing crosses from permissible event-based advertising into infringement, passing off, deception, or wrongful exploitation of goodwill, and the risk assessment is necessarily fact-specific. Thailand has no dedicated ambush marketing statute, so legality depends on execution. A campaign that merely comments on a public event may be permissible, but one that uses protected marks, creates consumer confusion, misrepresents sponsorship status, or makes unsubstantiated claims may trigger liability under various Thai laws, as laid out below. Ambush Marketing and Thailand’s Trademark Act The Trademark Act B.E. 2534 (1991) is the primary tool for addressing campaigns that use registered trademarks, event names, logos, mascots, or confusingly similar signs. The law gives registered trademark owners the exclusive right to use their mark for registered goods, and infringement risk arises when a nonsponsor uses an event mark or a confusingly similar sign in advertising. Even referential or playful use may create liability if it causes public confusion as to sponsorship or commercial connection. The law also preserves passing-off claims for unregistered marks. This matters because event names, taglines, or mascots may not always be
Read More
July 13, 2026
When Decree No. 186/2026/ND-CP (Decree 186) takes effect on July 15, 2026, it will introduce the most significant reform of Vietnam’s administrative IP enforcement framework since Decree 99/2013/ND-CP was issued in 2013. These changes are expected to make administrative enforcement faster, more accessible, and better suited to the realities of modern IP disputes. Below are the principal reforms and their practical implications for rights holders and enforcement practitioners. The End of Notarization and Consular Legalization Among the most welcome procedural changes is the abolition of the notarization and consular legalization requirement for powers of attorney (POA) submitted in administrative enforcement proceedings. Under the previous regime, foreign rights holders were generally required to execute a POA, then have it notarized and consular legalized (if seeking customs recordal). In practice, this process frequently delayed enforcement by four to eight weeks, often long enough for infringing goods to disappear before authorities could intervene. Decree 186 removes this bottleneck, now requiring only an original or certified copy of the POA. If the document is in a foreign language, a Vietnamese translation is sufficient, provided it is certified by a competent authority or confirmed by the authorized Vietnamese IP representative. Consular legalization and notarization are no longer required. For rights holders, the practical impact is substantial. Administrative enforcement files that previously took weeks to prepare can now be completed in a matter of days, allowing much faster responses in time-sensitive matters such as warehouse raids, border interventions, and trade-fair enforcement. The decree also introduces a useful administrative simplification. Where an original POA has already been submitted to the same enforcement authority and remains valid, applicants may rely on a copy of that earlier submission by identifying the previous case file. This eliminates unnecessary duplication for rights holders pursuing multiple enforcement actions before the same
Read More