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

February 26, 2016

Thailand’s Trade Secret Act: Understanding the Law and Prevailing in Disputes

Informed Counsel

In a competitive market, business owners strive to reduce production costs and increase sales volumes in order to gain an economic advantage. To achieve this, large amounts of investment are made in research and development to improve designs, techniques, and processes, among other aspects. These methods and forms, known as trade secrets if the right requirements are met, are therefore valuable intangible assets that should be closely guarded.

Trade Secret Act B.E. 2545 (2002)

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.

A dispute over a trade secret usually arises when a trade secret owner makes a claim against its employee, ex-employee, or business partner for trade secrets infringement. Despite the value of trade secrets, disputes over trade secrets are infrequent in Thailand. Based on statistics from the Central Intellectual Property and International Trade Court (IP&IT Court), only 66 trade secret cases were brought to the IP&IT Court from 2004 to 2014. And unfortunately, the majority of the Supreme Court’s decisions on trade secret disputes do not paint an optimistic picture for trade secret owners. These unsuccessful outcomes, however, may be caused by the trade secret owners themselves, who may fall victim to misunderstanding Thailand’s Trade Secret Act.

Misunderstandings of the Trade Secret Act have led to erroneous petitions in several Supreme Court cases. For example, a plaintiff mistakenly accused a defendant under Section 35 of the Trade Secret Act which is meant to punish officials for disclosure or use of another’s trade secret, instead of correctly pursuing an action under Section 33 which applies to a person who discloses another’s trade secret with malicious intent to cause damage to the trade secret controller’s business. This misunderstanding indicates that the trade secret owners’ counsel may lack knowledge in trade secret laws.

Apart from common misunderstandings, an absence of appropriate measures to maintain trade secrets is another reason for the court to dismiss a plaintiff’s claim. In a trade secret case, the most important issue for the owner is to prove the existence of a trade secret by demonstrating that the information is protected with the appropriate measures to maintain its secrecy.

Normally, an employer will require its employee to enter into a nondisclosure or noncompete agreement. But an agreement, on its own, is not considered a sufficient measure to protect a trade secret. For example, in Supreme Court Judgment 10217/2553, the plaintiff claimed that its employee had revealed information about its customers and the origin of its goods. The plaintiff claimed that there was a nondisclosure clause in the employment agreement, but it was unable to demonstrate that the documents with the list of customers and the information containing the origin of goods were protected by the appropriate measures to prevent access by an employee who is not normally connected to this information. The Court determined that the nondisclosure clause was not an appropriate measure to maintain the secrecy of the trade information, and it consequently dismissed the plaintiff’s claim. There are several other Supreme Court decisions in which plaintiffs’ claims have been dismissed for a similar reason.

On the other hand, if a trade secret owner is able to demonstrate that appropriate measures were taken to maintain secrecy over a trade secret, the IP&IT Court is more likely to render a decision in its favor. In one such case, our firm represented a world leader in bonded neo powder production and melt spinning of specialty alloys as the plaintiff. We helped our client demonstrate to the IP&IT Court that there were strong confidentiality provisions in its employment agreements and sufficient measures to protect its trade secrets, such as processes in which accessibility to the information was limited, records in hard copy form stored in a safe environment, and a stringent company policy applicable to employees who needed to access the documents containing the trade secret information. On this basis, the IP&IT Court held that our client had indeed taken the necessary measures to protect its trade secret and had incurred damage from the disclosure of the trade secret. The Court then ordered the party who infringed the trade secret to pay damages of USD 1.4 million—the highest amount ever awarded by the IP&IT Court.

In order to gain a competitive advantage in the market and ensure that resources dedicated to research and development are not squandered by leakages, business owners should ensure that they maintain an appropriate level of secrecy over their trade secrets. It is essential for businesses to familiarize themselves with the Trade Secret Act, and the time to do so is not when a dispute arises—by then, it is likely already too late. Instead, businesses need to proactively seek to understand the intricacies of the Trade Secrets Act so as to best position themselves to protect and defend their valuable assets.

RELATED INSIGHTS​ 

July 27, 2026
In March 2025, Thailand’s Central Intellectual Property and International Trade Court (IP&IT Court) issued a landmark judgment in favor of Luckin Coffee, China’s leading retail coffee chain. The judgment marked a significant turnaround following earlier trademark litigation involving Luckin Coffee from 2021 to 2023 that had generated widespread public attention and raised questions about the protection available to legitimate foreign brand owners in Thailand. In a significant subsequent development, Thailand’s Court of Appeal for Specialized Cases has now affirmed the IP&IT Court’s judgment in its entirety. The appellate decision brings clarity to one of Thailand’s most closely watched trademark disputes. Significantly, this is the first case in Thailand to formally recognize the trademark squatting principle. The Court of Appeal confirmed that Luckin Coffee has a better right to the disputed mark and ordered cancellation of the defendants’ trademark registration—a key application of the “better right” doctrine. The court also upheld the substantial damages awarded at first instance, providing important guidance on assessing harm from systematic trademark squatting. Award-Winning Judgment Affirmed in Its Entirety The significance of the first-instance judgment extended beyond the outcome for Luckin Coffee. The IP&IT Court judgment was subsequently recognized in the IP&IT Court’s Distinguished Judgment Awards in 2025, reflecting the complexity, novelty, and legal significance of the issues considered in the case. The defendants nevertheless appealed the judgment, challenging several key aspects of the IP&IT Court’s decision. Luckin Coffee continued to entrust Tilleke & Gibbins as their sole attorney to pursue the case at the appellate level. After considering the defendants’ appeal and Luckin Coffee’s submissions in response, the Court of Appeal affirmed the first-instance judgment in its entirety. The judgment was announced on July 8, 2026. Better Right to the Marks The Court of Appeal confirmed Luckin Coffee’s superior rights. The orders include cancellation
July 24, 2026
As food innovation continues to accelerate, manufacturers are increasingly introducing ingredients derived from new sources, produced using novel technologies, or lacking a significant history of human consumption. While these innovations create new opportunities for the food industry, they also raise important questions regarding consumer safety. For this reason, many jurisdictions, including Thailand, the European Union, Australia and New Zealand, Canada, and Singapore, require a premarket safety assessment for novel food ingredients before they can be placed on the market. The objective of this assessment is to ensure that each ingredient is safe for its intended use and level of consumption, does not present toxicological, allergenic, microbiological, or nutritional concerns, and will not mislead consumers. Scientific authorities typically evaluate the ingredient’s identity, manufacturing process, composition, specifications, anticipated dietary exposure, toxicological information, nutritional impact, and history of use before determining whether it can be marketed. Against this background, the Thai Food and Drug Administration (FDA) recently took an important step toward improving regulatory transparency by publishing, for the first time, a consolidated public list of substances that have successfully completed the Thai FDA’s safety assessment process, including substances determined to be novel foods and those determined not to fall within the novel food category. The list identifies the approved substances, the corresponding manufacturers or importers, approval dates, and the approved conditions of use. Although the publication does not change the existing legal framework governing novel food approvals, it provides businesses with greater visibility into the Thai FDA’s regulatory precedents and the types of substances that have previously been accepted through the safety assessment process. The full announcement is available on the Thai FDA’s website. As the list is now publicly available, it also provides useful insight into the types of substances that have successfully completed the Thai FDA’s safety assessment process.
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
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