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INSIGHTS

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We provide you with all of the latest legal developments in Southeast Asia, ensuring that you have the up-to-date knowledge you need to navigate the ever-changing legal landscape affecting your business. You can browse our entire library of publications below, and email [email protected] to sign up for updates that are relevant to your interests, delivered straight to your mailbox, as they emerge.

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December 22, 2020
John McCarthy, an American computer scientist and inventor, coined the term “artificial intelligence” (AI) in 1956, and is often called the father of artificial intelligence. Now, nearly a half century later, legal professionals recognize that AI is not just a buzzword for novel computer software but, with the ability of computers to perform tasks normally requiring human intelligence, it holds great potential for technology growth. The term AI followed from research that studied and developed concepts around “thinking machines.” Today, AI is generally accepted as a branch of computer science. It concerns the ability of computers to perform tasks normally requiring human intelligence. Subsets of AI include machine learning, deep learning, natural language processing, computer vision, and neural networking. Existing Use of AI in Legal Research So far, the legal profession’s utilization of AI pales in comparison to other sectors, according to a 2019 management consultancy study by Bain & Company. It found that only about 20 to 25 percent of legal departments embrace AI in at least one area of their work, while 40 percent of finance departments and 54 percent of human resources departments do so. A survey in 2017 (on research not associated with AI) by the American Bar Association found that attorneys spend, on average, 16.3 percent of their working hours conducting legal research. Despite the transition of legal research within the last century from using traditional hardcopy materials to computerized databases, to the adoption of online research within the past few decades, little has changed in the time investment, the survey said. With clients pressuring lawyers to reduce costs, leveraging AI to conduct legal research can save time and money. A 2018 article in the Harvard Journal of Law & Technology  exemplified this point in referencing a bankruptcy lawyer who spent 10 hours searching for a key case, whereas an AI
December 21, 2020
As we continue to await the Thai Food and Drug Administration (TFDA)’s promulgation of its medical cannabis application guidelines, the Thai Ministry of Public Health (TMoPH) has helpfully issued several notifications to further clarify the 2019 amendment to the Narcotics Act that initially paved the way for cannabis liberalization in the kingdom. Cannabis (both marijuana and hemp) has been classified as a Category 5 Narcotic since the enactment of the Narcotics Act in 1979. All activities related to the plants and their derivatives had been strictly restricted until the recent rise of the cannabis legalization movement, which began in Thailand with an amendment to the Narcotics Act in February 2019 to legalize medical marijuana. The Thai government has since been working to reclassify cannabis products and lay out the regulatory pathways to accommodate these new “economic plants.” A notification in August 2019 further carved modern drugs, cosmeceuticals, nutraceuticals, cosmetics, and food containing hemp or a certain amount of CBD out of the scope of Narcotics Act. The most recent TMoPH Notification was published in the Government Gazette on December 14, 2020, and has expanded the delisting of cannabis from the Narcotics Act to include nearly all parts of the cannabis plant, as set out below. Type of Plant Detailed Components Marijuana (plants in the cannabis family) Stalks, stems, fibers, branches, roots, leaves without the tip and inflorescence, extracts comprising CBD with less than 0.2% THC by weight. Hemp Stalks, stems, fibers, branches, roots, seeds, seed oils, seed extracts, leaves without the tip and inflorescence, extracts comprising CBD with less than 0.2% THC by weight, and residues from extraction with less than 0.2% THC by weight. The Narcotics Act and its notifications must be reviewed carefully by anyone seeking to take part in his industry, and items that are conspicuous by their absence must be well
December 21, 2020
On August 28, 2020, the Ministry of Commerce (MOC) announced that the “soft-opening period” to refile trademarks under the country’s new Trademark Act would begin on October 1, 2020. This period, which is open to holders of trademarks recorded under Myanmar’s old system and to trademark owners who can prove prior use of their trademarks in the country, is expected to run for six months, though no closing date was stipulated in the MOC announcement. The date of the eventual “grand opening” of the Intellectual Property Department (IPD) will be the filing date for all applications submitted during the soft-opening period. What are the changes? Filing procedure – Under the old system, brand owners (or their agents) had to manually file an original notarized declaration of ownership and legalized power of attorney with the Office of Registration of Deeds (ORD) under the Ministry of Agriculture, Livestock and Irrigation, which would then proceed with recordation. Under the new system, online filing is now in place, the original hard copies are not required, and the authority is the IPD of the Ministry of Commerce. Priority rights – With the implementation of the Trademark Law 2019, Myanmar is changing from its former first-to-use system to a first-to-file one. In addition to the IPD, all concerned authorities, such as the police and the courts, will need to adjust to the new paradigm for defining the rights of trademark owners. Examination procedure – Under the old system as defined under the Registration Act, there was no actual examination of the registrability of a mark; rather, registration could be refused if the officer felt that the mark was likely to be morally or legally objectionable, or likely to hurt the religious sensibilities of any Myanmar citizens. This is changed under the new system, and all trademarks registered under the
December 21, 2020
October 31, 2020, marked the closing of the public comment period for Thailand’s proposed amendments to the Patent Act B.E. 2522 (1979). The Department of Intellectual Property (DIP) had published its latest draft of the amendments on September 30 for the month-long period of public feedback. The process of drafting amendments has been pending for several years, but it began to take a higher profile in February 2018 with the convening of public hearings on the proposed new legislation. After a series of committee meetings through November of that year, the cabinet approved a set of proposed amendments in January 2019. After further internal discussions, attention turned to the drafting of a companion law specifically for industrial designs, in preparation for Thailand’s accession to the Hague Agreement Concerning the International Registration of Industrial Designs. A similar process of public hearings and committee meetings was followed, but in March 2020, the cabinet requested that industrial design legislation be combined with the Patent Act amendments into a single new Patent Act. Therefore, the draft Patent Act as it currently stands covers both patents and designs. Some of the major patent matters proposed for amendment are as follows: Genetic resources (GRs), genetic material, derivative works and traditional knowledge (TK). Inventions that use GRs or TK must disclose the source, access, and benefit-sharing plan in the patent application. Disclosure grace period. Disclosure of subject matter of an invention within the twelve months before the filing of a patent application is not deemed defeating if the disclosure stems from the subject matter being obtained unlawfully or is made by the inventor, the patent applicant, or others they have authorized to do so. Dual publication. Patent applications will be published twice—first within 18 months from the application’s filing date in Thailand, and again when the substantive examination is completed. The second
December 21, 2020
A decade ago, intellectual property lawsuits were rarely handled by Vietnamese courts. They have become more common in recent years, but almost always with overseas IP owners in the plaintiff role, charging local Vietnamese entities with infringement, piracy, or counterfeiting. However, in the course of its rapid economic and technical development, Vietnam has emerged as a legitimate brand creator and content generator, and it appears that the tables may have turned. A good example of this shift is a high-profile copyright infringement lawsuit filed in mid-September at the People’s Court of Ho Chi Minh City by TV production company Vie Channel against the online streaming music giant Spotify. Vie Channel specializes in the design and development of game shows such as “Rap Viet” and “Who Is Single Vietnam,” popular programs on Vietnamese TV. The company has charged Spotify with extracting audio files from these shows—19 recordings from each—to broadcast on Spotify’s free and paid platforms without Vie Channel’s permission. Vie Channel sent several letters of notification to Spotify’s headquarters in Sweden before initiating the proceedings, and also clearly confirmed that there is no business relationship between Vie Channel and Spotify; therefore, these acts are deemed to infringe the protected moral rights and economic rights attached to the two programs. In its lawsuit, Vie Channel is requesting that Spotify terminate all acts of infringement and make a public apology, and is also seeking compensation for damages provisionally calculated at nearly VND 10 billion (USD 433,000), a massive amount in the context of Vietnam. The case presents many interesting legal issues to be settled by the court, such as the determination of the Vietnamese courts’ jurisdiction in lawsuits with foreign elements. Particularly, although the defendant in this case is “present” in Vietnam through its online music platforms, it has never been “present” in Vietnam in
December 16, 2020
Tilleke & Gibbins’ intellectual property team in Bangkok has provided the latest updates to the Thailand chapter of Practical Law’s IP in Business Transactions Global Guide, a high-level comparative overview of intellectual property laws and regulations across 37 jurisdictions worldwide. The IP in Business Transactions overview focuses on business-related aspects of intellectual property, such as the value of intellectual assets in M&A transactions, and the licensing of IP portfolios. The topics covered include the following: The main types of IP rights in Thailand and their registration, maintenance, and exploitation Assignment and licensing Taking security over IP rights IP rights in the context of mergers and acquisitions Joint ownership of IP Competition law and advertising in relation to IP Ownership of IP created by employees and consultants Tax matters, cross-border issues, and potential reforms To read the full Thailand overview, please visit the Practical Law website.
December 9, 2020
Thailand’s Trade Competition Commission (TCC) has issued new rules governing business relations between food delivery platform operators and the restaurants operating through those platforms. The guidelines identify various arrangements, that are sometimes imposed upon restaurants by digital platforms, as unfair and damaging to restaurant operators, and restrict them accordingly. This is the fourth time that the TCC has deemed it necessary to intervene in a specific industry by restricting certain unfair trade practices in accordance with the Trade Competition Act B.E. 2560 (2017) (TCA), and is indicative of the TCC’s greater drive to quell unfair practices using its powers under the TCA. It also shows their willingness to react quickly to new developments in the market—in this case, the substantial increase in restaurant operators selling their products through online platforms in recent months. The Guidelines on Unfair Trade Practices between Digital Platform Operators for Food Delivery and Restaurants were published in the Government Gazette on November 23, 2020, and take effect on December 23, 2020. Key Definitions Digital platforms mean online services which establish a trade linkage between restaurant businesses, food deliverers, and consumers—in other words, applications or websites that allow consumers to use restaurants via food deliverers. Digital platform operators for food delivery means the business operators that provide digital platform services, acting as an intermediary to accept the purchase order and deliver food between restaurant operators, food delivery service providers, and consumers; or between restaurant operators and consumers in accepting the purchase order for food. Put simply, they are the companies operating food delivery platforms. Unfair Conduct  The main principle set forth in the TCC’s food delivery guidelines is that business conduct between food delivery platform operators and restaurant operators must respect the freedom of each party; must be fair, noncompulsory, and nondiscriminatory; and must not obstruct another party’s business operations. Relevant terms and conditions
December 7, 2020
With virtually all business operations in Thailand affected by the fallout of the COVID-19 pandemic, the government has been keen to provide relief measures to limit the economic damage. In addition to implementing broad economic relief, this has also meant changes to the government’s own internal operations, and in recent months, the Public Procurement and Supplies Administration Ruling Committee has issued two circular letters prescribing guidelines on how government authorities should handle their procurement operations during this period. The circulars, which were issued under the Public Procurement and Supplies Administration Act B.E. 2560 (2017), detail the relief measures for government procurement contracts that cannot be fulfilled because of the disruptive effects of the COVID-19 pandemic. Most significantly, the circulars clarify that the impact of COVID-19 should be deemed force majeure under government procurement contracts and government procurement law, which affects the penalties levied on contractors for late performance of required duties under government procurement contracts. The Ruling Committee specified the start of the force majeure period as March 26, 2020 (the date when the government first announced a nationwide state of emergency). This official designation enables contractors to cite disruption from COVID-19 when requesting additional time to perform their duties under a contract, or exemption from or reduction of penalties incurred due to the delay. For contracts that have not yet reached their maturity date, the Ruling Committee granted relief measures by directing the relevant government authorities to count the number of days that COVID-19 has affected performance of the contract, and use this number as the basis for determining an extension of the timeframe for performing the contractual duties. For contracts that have already reached their maturity date, the contractual party that failed to perform according to the contract would normally be subject to an assessed fine for their non-performance.