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February 3, 2025

The Intellectual Property Implications of Thailand’s Entertainment Complex Bill

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Thailand’s aim of hosting entertainment complexes that include casinos is moving forward with the cabinet’s approval in principle of the draft Entertainment Complex Business Act on January 13, 2025.

In fact, Thailand has studied the pros and cons of allowing the operation of entertainment complexes since March 2019. Though the initial surge of global interest died down during the COVID-19 pandemic, the country renewed its efforts with the recent draft law. This is part of the government’s aim of bringing parts of the informal economy (or shadow economy) and the underground economy—estimated to be more than 50% of Thailand’s GDP—into the revenue system.

While many authors have provided analyses of the bill’s contents, this article explores how the enforcement of the Entertainment Complex Bill after its passage would relate to various aspects of intellectual property (IP) in the casino business in the context of Thai law. Below are some examples of the potential effects of the draft legislation on IP rights in Thailand.

Public Order and Public Policy

Under Thai law, contradiction of public order, good morality, or public policy is grounds for denying IP protection. With the eventual passage and enforcement of the Entertainment Complex Bill, IP rights related to gaming that used to be regarded as contrary to the public order and received no protection under the current law would become eligible for legal protection and considered registrable under the law. This is similar to what happened recently with cannabis in Thailand. Legalization of cannabis opened up pathways for trademark and patent protection in this industry.

IP in the casino industry encompasses a wide range of assets, including patents, trademarks, copyrights, and trade secrets. These IP rights protect the unique features of casino games, gaming machines, software, and branding elements. For instance, in Thailand patents can cover technical solutions when connected to innovative hardware, while trademarks protect the names and logos of casinos, resorts, games, and retail offerings in these locations. If the change in Thai law makes possible the registration of this IP, it would benefit not only the entertainment complex or casino operator but also inventors, artists, and the general public by allowing them to receive IP protection for their creations or inventions related to casinos and gambling.

IP Licensing and Technology Transfer

The casino industry is a dynamic and rapidly evolving sector that relies heavily on IP to protect its innovations and maintain a competitive edge. As casinos expand their digital presence and introduce new gaming technologies, finance and accounting solutions, and loyalty programs, the importance of IP licensing becomes increasingly significant. IP licensing allows casino and integrated resort operators to use and commercialize third-party IP. This is particularly crucial in the casino industry, where the process of adopting new games and technologies often involves collaboration with third-party developers and manufacturers. Licensing agreements ensure that all parties involved can benefit from the use of IP while protecting the rights of the original creators.

Legalization of the gaming industry will foster technology transfer to Thailand, which could involve various IP rights. For example:

  • Patent licensing: Patents protect the technical aspects of gaming machines. For example, a patent for a new slot machine mechanism can be licensed to multiple casinos, generating revenue for the patent holder through royalties.
  • Trademark licensing: Licensing trademarks enables casinos to use well-known brands and logos, attracting customers and building trust. For instance, a local casino developer may license the trademark of a well-known casino brand or license a popular game to offer it exclusively at their venue.
  • Copyright licensing: Copyrights protect the software, artistic works, and musical elements of casino games. Licensing copyright allows casinos to legally use copyright content, such as game graphics, user interfaces, and soundtracks.
  • Trade secret/know-how licensing: Unregistered IP, such as trade secrets and know-how in the gaming industry, could include proprietary operations systems, ongoing technical services, and consultancy services provided by experienced operators.

Other areas of IP protection include design protection for the unique design of the machine or equipment and trade dress protection for the distinctive elements of gaming machines or casino decorations.

Thailand’s Entertainment Complex Bill stipulates that the gaming machines used in casinos must be up to the standard set by the Entertainment Complex Policy Board, in good shape, and able to operate without errors. The operator must also assist government officials in inspecting and testing the gaming machines in the casino. Any operator who fails to resolve an issue within the given time could face a penalty of up to THB 500,000 (approx. USD 14,380) per day until the issue is resolved.

Noting the necessity of complying with these potentially complex standards for gaming machines, it is therefore important to use machines with proven reliability. As the associated intellectual property rights have not been registrable in Thailand (as discussed above), technology transfer will be required for entertainment complex operators in Thailand, and the focal point for this technology transfer will be patents, copyright (computer programs), and trade secrets.

IP Clearance

Operators will also need to ensure they are not infringing on others’ IP rights. It is thus necessary to conduct IP clearance or freedom-to-operate searches before launching operations or using any content or technology, especially when it is not owned or invented by the entertainment complex operator.

Conducting an IP clearance search can prevent costly legal disputes and the potential need to rebrand or cease operations after the launch of the business. This proactive step saves time and resources and guards against the reputational damage that could arise from an infringement suit.

Data protection and compliance

The collection, use, and protection of players’ personal data is a growing concern within the gaming and integrated resort industries. Thailand’s Personal Data Protection Act of 2019 (PDPA) sets out a regulatory framework for this. Investigations into and enforcement of the PDPA are progressing in Thailand. Recently, a major company was fined THB 7 million for its noncompliance, highlighting the importance of adhering to PDPA requirements. Additionally, the regulator has introduced a new “compliance checklist” with ten key areas of focus, indicating a shift toward more stringent regulatory requirements and oversight.

The Entertainment Complex Bill would also regulate other aspects related to casinos, like advertising and promotion, casino licensing requirements, minimum investment requirements, taxation, allowed types of gaming machines, operating times, time and place restrictions on selling alcoholic beverages, and casino entry requirements. We have discussed some of these requirements in another article.

Outlook

The Entertainment Complex Bill is preparing to open up various types of business opportunities to investment from both domestic and international actors, whether directly as an entertainment complex operator or as a licensor of IP or transferor for technology. Emerging technologies, such as virtual reality and blockchain, are set to revolutionize the gaming experience, creating new opportunities for IP licensing.

Gaming operators and integrated resorts that effectively manage their IP assets and establish strong licensing agreements will be well-positioned to thrive in this competitive market. For companies considering an entry into the prospective Thai market for entertainment complexes, preparing now for future IP filings will provide a strong foundation that will facilitate efficient operations, assuming the Entertainment Complex Bill is passed in a form similar to the existing draft.

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