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​ 

March 6, 2026
Myanmar’s Trademark Law 2019 introduced a modern framework for the registration, enforcement, and protection of trademarks. However, due to the high volume of applications filed during the soft-opening period of the Intellectual Property Department (IPD), marks submitted from 2022 onward remain pending as the IPD works its way through the applications filed in 2021, which it has been publishing on a monthly basis since May 1, 2024. During this period, businesses should adopt proactive strategies to protect their brands, monitor conflicting marks, and ensure a smooth registration process. Practical Steps for Safeguarding Pending Marks While a pending application does not confer full trademark rights, brand owners can take several practical steps to strengthen their position: Monitor IPD publications. Businesses should regularly review the IPD’s monthly gazette to identify any identical or confusingly similar marks at an early stage and prepare timely oppositions in accordance with the Trademark Law’s provisions allowing “any interested party” to file an objection to a trademark application. Monitor market activity. Early detection of potential infringement enables swift action, such as cease-and-desist letters and opposition proceedings. Businesses should monitor competitors, distributors, and retailers for unauthorized use of their marks. Collect evidence of use. Maintaining evidence of use strengthens claims of distinctiveness and supports enforcement efforts. Businesses should keep records of commercial activities, distribution, brand promotion and development, marketing communications, product packaging and labeling, and sales demonstrating brand recognition in Myanmar and internationally, particularly in Southeast Asian markets. Although the Trademark Law 2019 establishes a first-to-file system, evidence of use provides considerable practical support for distinctiveness claims and enforcement actions. Pursue Interim Enforcement Options. A pending trademark application can be relied upon to oppose or refuse other marks on absolute and/or relative grounds of refusal. In addition, marks with established reputations may be protected under passing-off principles
Read More
February 27, 2026
On January 26, 2026, Vietnam’s Ministry of Finance issued Circular No. 06/2026/TT-BTC (Circular 06), amending and supplementing Circular No. 13/2015/TT-BTC, which provides guidance on dossiers and procedures for customs recordal and customs supervision in relation to intellectual property rights (IPR). Circular 06 has an effective date of March 1, 2026. Some notable points of Circular 06 include the following: Simplified Documentation for Customs Recordal Applications Circular 06 reduces some documentary requirements for IPR owners: A power of attorney is no longer required to be legalized. Applicants are no longer required to submit title or registration certificates if such documents are issued in digital form. In such cases, it is sufficient to declare comprehensive information on the relevant IPR, enabling customs authorities to verify the information through publicly accessible databases. In practice, this amendment is particularly beneficial for international trademark registrations designating Vietnam. IPR owners may no longer need to obtain a confirmation letter from the Intellectual Property Office of Vietnam regarding the validity of a trademark registration in Vietnam. Instead, they may rely on registration status information available from the World Intellectual Property Organization (WIPO) database, reflecting that the international registration has been granted protection in Vietnam. Clearer Mechanism for Ex Officio Suspension of Suspected Infringing Goods Although ex officio suspension has been referenced in earlier regulations, Circular 06 provides clearer guidance on the circumstances and procedures under which customs may proactively suspend customs procedures for consignments suspected of being counterfeit or pirated goods. Accordingly, customs authorities may initiate the suspension of clearance without waiting for a formal request from IPR owners. Enhanced Supervision of Imported/Exported Goods in E-Commerce Circular 06 also supplements provisions on the inspection of imported and exported goods transacted through e-commerce channels. Customs authorities may apply risk management measures to assess goods traded via e-commerce
Read More
February 26, 2026
Thailand is preparing to offer new tools for intellectual property enforcement as the Electronic Transactions Development Agency (ETDA) recently released for public consultation a draft notification requiring social media platforms to verify user identities and conduct know-your-customer (KYC) checks on advertisers. The draft Notification of the Electronic Transactions Commission on Measures to Prevent Technological Crimes for Social Media Service Providers, which is to be issued under the Emergency Decree on Measures for the Prevention and Suppression of Technological Crimes B.E. 2566 (2023), as amended in 2025, primarily aims to combat online fraud and technology-related crimes. However, its new obligations also provide IP owners with valuable tools to identify anonymous infringers. Key Regulatory Mandates The draft notification imposes several verification requirements on social media platforms operating in Thailand. These requirements also strengthen IP rights holders’ ability to identify anonymous infringers, as platforms must: Verify user identities through registered phone numbers and link all accounts to verifiable identities. Conduct KYC checks on advertisers, including individuals, companies, and any third-party payers. Perform heightened identity checks for high-risk or repeat offenders before publishing advertisements. Promptly remove content flagged by the Anti-Technology Crime Division and prescreen advertisements for prohibited or high-risk content. How IP Owners Can Use This Notification for Enforcement The phone number–based verification requirement enables IP owners to work more effectively with enforcement authorities in tracing individuals or entities responsible for infringing content. The comprehensive advertiser KYC obligations, including mandatory disclosure of third-party payment sources, create a clear audit trail even when bad actors attempt to obscure their identity through intermediaries or shell accounts. This traceability is essential for pursuing damages and dismantling organized counterfeit operations. The ETDA is now considering adjustments to the draft notification after receiving comments during the public consultation period, which ended on February 2, 2026. Following finalization
Read More
February 25, 2026
Tilleke & Gibbins has updated the Vietnam chapter in the newly released Licensing 2026 guide, published by Lexology Panoramic. The comparative guide provides companies and other interested readers with information on licensing law and practice in various countries around the world. Licensing 2026 provides detailed information on the following topics: Restrictions, laws and licensing arrangements Intellectual property issues: Paris Convention for the Protection of Industrial Property, contesting the validity of licensor’s IP rights, invalidity and expiry of IP rights, security interests, proceedings against third parties, sublicensing, jointly owned IP, first to file, scope of patent protection, trade secrets, copyright Software licensing: Perpetual licensing, legal requirements, user restrictions Royalties and payments, currency conversion, and taxes: Relevant legislation, restrictions, taxation of foreign licensors Competition law issues: Restrictions on trade, legal restrictions, and IP-related court rulings Indemnification, disclaimers, and damages: Prevalence and enforceability of indemnity provisions and contractual waivers of damages Termination: Right to terminate, impact of termination Bankruptcy: Impact of licensee or licensor bankruptcy Dispute resolution: Governing law, arbitration, enforceability, injunctive relief, contractual waivers The Vietnam chapter is available below as a PDF. Readers can gain 30 days of complementary access to the full Licensing 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More