Insurance specialists from Tilleke & Gibbins’ Bangkok office have provided an update to the Thailand chapter of Thomson Reuters’ Practical Law guide to insurance and reinsurance. The guide is a Q&A-style overview of insurance and reinsurance law in dozens of jurisdictions worldwide. The Thailand contribution provides a detailed overview of the legal framework for the insurance and reinsurance market in Thailand, covering the following issues: Market trends; Regulatory framework; Authorization for insurers and reinsurers and insurance intermediaries, exemptions and foreign insurers, fronting, legal forms, and restrictions on insurance activities; Ownership restrictions; Ongoing requirements and penalties for noncompliance; Sales and marketing; Transfer of risk; Reinsurance contracts and risks; Contracts and policies, including content requirements and common clauses, implied terms, customer protections, and standard policies or terms; Dispute resolution; Insovency; Tax; InsurTech; and Reform. Practical Law produces a number of guides to key legal practice areas around the world for business lawyers. Tilleke & Gibbins contributes many overviews to these guides for all of the firm’s jurisdictions in Southeast Asia. To read the full Thailand insurance and reinsurance chapter, please visit the Practical Law website.

The commercial real estate sector in Southeast Asia is a dynamic and innovative space, but businesses also face an array of complex legal challenges. With real estate investments transcending borders and regulations, businesses in the region confront a legal environment that demands a clear understanding of the rules and procedures in each jurisdiction. Authored by legal experts at Tilleke & Gibbins, Commercial Real Estate Law in Southeast Asia is a comprehensive resource that addresses the legal issues relevant to enterprises involved in the commercial real estate sector. The guide explores the nuances of commercial real estate law in Cambodia, Laos, Myanmar, Thailand, and Vietnam, providing an overview of the regulatory framework and legal environment governing property transactions in these countries. Within the guide, readers will find detailed sections dedicated to each country, offering in-depth insights into the legal instruments, regulatory authorities, and procedural requirements that shape the commercial real estate landscape. Each section outlines the real estate activities that are permissible, those that are restricted, and the associated liabilities and penalties for noncompliance. The full Commercial Real Estate Law in Southeast Asia guide is available through the button below.

A Resounding Victory The last days of October brought some excitement for one of the leading pharmaceutical companies in the world, Novartis, when its patent litigation case in Vietnam against a local generic manufacturer, which had stretched over more than eight years, finally came to an end. The background of this case is quite simple. Novartis was the owner of a patent protecting the active ingredient vildagliptin, which was commercialized through its Galvus® product, a medicine used to treat type 2 diabetes. In 2015, the company found that a drug manufacturer in Vietnam’s Binh Duong province on the outskirts of Ho Chi Minh City was producing a medicinal product containing the vildagliptin active ingredient—an infringement of its patent. Novartis first submitted a request to the Ministry of Science and Technology (MOST) to apply administrative sanctions on this infringer. Subsequently, the MOST Inspectorate concluded in July 2015 that the defendant had committed patent infringement and ordered them to stop producing the infringing drugs and recall them from the market. However, the defendant did not comply with the conclusion, and sought an appeal while it continued to produce the infringing medicine. Realizing that administrative sanctions were not strict enough to deter the defendant, Novartis continued to protect its legitimate rights and interests by initiating a lawsuit at the provincial court where the defendant was headquartered, Binh Duong. Novartis claimed that the defendant had infringed the patent and requesting the defendant to compensate for damages at the highest level allowed by law, pay attorney fees, and publicly apologize to Novartis in specialized newspapers. This began a long journey full of challenges that finally ended with the second appellate judgment declared by the High People’s Court of Ho Chi Minh City on October 17, 2023. The court accepted all claims raised by the plaintiff, Novartis, that

In its ongoing efforts to enhance Indonesia’s intellectual property e-filing system, the country’s Directorate General of Intellectual Property (DGIP) has consistently introduced improvements to the online system. In recent months, the DGIP has implemented several noteworthy changes that differ from previous versions of the system. These changes bear significant importance for applicants who intend to file IP applications, and include the changes highlighted below for designs, patents, and trademarks. Designs File format and view limitation. Under current rules, all design drawings must be submitted in JPG format, and only one view is permitted per page. No refund requests. Once the application payment has been made, refund requests are no longer an option. Figure limitation. Only one figure is allowed for each design view, with an exception made for reference and perspective views. Patents Title consistency. If an invention is already registered outside Indonesia through the Patent Cooperation Treaty (PCT), the title in the Indonesian registration application must match the title registered with the World Intellectual Property Organization (WIPO). Bibliographic data matching. In national phase applications, it is essential for all bibliographic data to mirror the information from the PCT international phase as listed on WIPO’s website. This conformity is crucial for a seamless application process. Excess claim fees. A new requirement stipulates that excess claim fees must be paid at the time of filing the patent application. Trademarks Goods and services selection. The DGIP requires applicants to choose their desired goods and services from a predefined list, and the provided list is not editable. The DGIP periodically updates this list, but there is no fixed schedule for these updates. Moreover, these updates can sometimes entail removal of items from the list, and requesting the addition of goods or services is often challenging, especially if a similar alternative already exists in the list. Therefore, it is imperative for applicants to

On October 9, 2023, Laos issued Presidential Decree No. 003, which raised excise tax rates for certain goods, effective immediately. The move to increase excise tax rates comes amid the marked depreciation of the Lao kip (LAK). The Lao government is trying to monitor and discourage imports of non-essential products in order to reduce the outflow of foreign currency from the country. Increasing the tax rate for some of these products is part of these efforts. The specific products and excise tax rates are listed in the table below.   This new rate policy is also in line with recent government efforts to encourage avoiding payment in foreign currency to prevent the depletion of foreign currency reserves in Laos. In this regard, commercial banks have already taken action to ration the supply of foreign currency by prioritizing imports of essential goods, such as fuel. The products listed above formalize this impetus to prioritize certain imports and discourage others deemed not essential. In addition, the increased excise tax rates on fuel-powered vehicles show the commitment of the Lao government to move toward electric vehicles, which would also lessen the country’s dependence on fuel imports. For more information on these excise tax changes, or on any aspect of Laos’ international trade regulations, please contact Tilleke & Gibbins at [email protected].

Indonesia and South Korea have opened a patent prosecution highway (PPH) mechanism that allows applicants to seek patent protection in Indonesia by basing their application on a granted Korean patent. The PPH was opened following the conclusion of two memoranda of understanding (MOUs) between Indonesia’s Directorate General of Intellectual Property (DGIP) and the Korean Intellectual Property Office (KIPO) on September 8, 2023. One of the MOUs is about comprehensive cooperation in the field of intellectual property, while the other spells out the details of the PPH mechanism. When requested, the PPH will help applicants speed up the examination process for their patent applications in Indonesia using the substantive examination results issued by the KIPO. This can substantially shorten the amount of time required for the examination process period from approximately two years (from the substantive examination request) to less than one year (from the PPH request). Similar to a PPH request under Indonesia’s existing PPH agreement for Japanese patents, applicants can file a PPH request based on a granted Korean patent after the Indonesian patent application is published and before the issuance of the first office action. Requests must be accompanied by the official fee of IDR 5 million (approx. USD 315) for filing a PPH request. The scope of cooperation between the DGIP and KIPO, as described by the other MOU, includes increasing the countries’ capacity, framework, protection, inspection, and utilization of intellectual property, as well as other cooperative activities. The countries will also exchange information on how to increase public awareness about the importance of protecting intellectual property. For more information on this new bilateral cooperation, or on any aspect of patent protection in Indonesia, please contact Tilleke & Gibbins at [email protected] or +6221 2971 8088.

Cambodia’s Ministry of Health (MOH) continues to increase awareness among the public and private sector of the need for strict healthcare regulations and strict enforcement to advance the quality of the country’s healthcare sector. In April 2023, the MOH issued a notification letter reminding advertisers of health products that they need to obtain a permit before advertising their products in Cambodia. On October 12, 2023, the MOH issued two press releases on continued noncompliance in the healthcare sector. The two press releases address the illegal advertising of both healthcare products and private healthcare services. The releases also address unlicensed healthcare professionals and general noncompliance by private healthcare services. These releases indicate that the MOH, in cooperation with local authorities, will substantially increase its enforcement efforts across Cambodia. Since October 12, several private healthcare clinics have had their operations closed and licenses suspended or revoked, signaling the ministry’s intent to enforce the legal framework. Noncompliant Advertising of Health Products The first press release focuses on the continued illegal advertising of health products and the advertising of unregistered health products. Health products include modern medicines, traditional medicines, health supplements, medical devices, cosmetics, and other products that prevent or treat diseases. The release highlights that the MOH has noticed ongoing unauthorized and illegal advertising, commenting that these are often found online and on social media. The noncompliant advertising referenced in the release includes advertising of health products without the required advertising permit, advertising products that are not properly registered with the MOH, and advertising by unlicensed companies and individuals. The MOH also states in the release that some advertisements are using inappropriate and noncompliant content that is not based on medical science and exaggerates the qualities of the health products—specifically mentioning skin-whitening cosmetics. The ministry’s press release also informs the public of the dangers of noncompliant products and advertising, asking

One significant development in the health sector in Indonesia is the use of information technology and communication in the implementation of health efforts—particularly digital health services such as telehealth and telemedicine integrated into the country’s National Health Information System. This development was addressed in a major new piece of legislation for the healthcare sector in Indonesia. Enacted in August 2023, Law No. 17 of 2023 concerning Health (the “Health Law”) provides the updates needed to support the development of healthcare services in Indonesia. Under the Health Law, health information system (HIS) providers must: Carry out processing of data and health information in the territory of Indonesia, except for certain limited and specific processing activities that may be conducted outside Indonesia when permitted by the relevant authorities and in compliance with relevant regulations. Ensure the reliability of its HIS, including availability, security, maintenance, and integration with Indonesia’s National Health Information System. Provide quality health data and information. Process data and health information, which includes planning, collection, storage, inspection, transfer, utilization, and destruction. Record its data- and information-processing history. Protect every person’s data and health information. Obtain approval from the relevant personal data subject or comply with relevant regulations if the processing of data and health information involves an individual’s health data. Inform the data owner if there is a failure to protect data and individual health information. The Health Law’s personal data protection requirements listed above appear to be aligned with the provisions in Law No. 27 of 2022 concerning Personal Data Protection (the “PDP Law”). Under this law, data and information relating to health are identified as “specific personal data,” the processing of which carries a high potential risk of impacting the relevant personal data subject. In the implementation of digital health services, patients’ personal data or medical records must be generated by a health service facility. Health service facilities are