On March 25, 2024, Thailand’s Securities and Exchange Commission (SEC) published an amendment to its Notification re: Public Digital Token Offering to strengthen governance for initial coin offerings (ICOs). The amendments took effect on April 16, 2024, and reflect the SEC’s commitment to creating a safer and more transparent ICO environment, enhancing investor protection, and building confidence in ICOs as a fundraising tool. The key changes are outlined below: New Checks and Balances Requirements The new regulations require digital token issuers to implement checks and balances to protect investor rights—including an annual audit requirement and measures to prevent and manage conflicts of interest. These measures must be clearly disclosed in the ICO filing documents. In addition, certain project-related decisions must be approved by the issuer’s board of directors, which is also responsible for the accountability of such decisions. Improved Rules Concerning Voting Rights The SEC has introduced rules concerning voting rights and procedures for digital token holders, particularly for token types that previously lacked regulatory clarity. These rules specify the procedures for soliciting votes, the rationale behind vote requests, and the criteria for determining voting outcomes. The new rules, however, do not apply to real estate-backed tokens or infrastructure-backed tokens. Enhanced Advertising Regulations The SEC has revised advertising guidelines to ensure that investors receive essential information. The updated rules now require all ICO advertising to be fair and informative and to avoid misleading content. Advertisements must include appropriate risk warnings and a credible source for any claims made. The notification also stresses that it is the responsibility of digital token issuers to strictly supervise and ensure that those who create advertisements with or for an issuer comply with all relevant advertising regulations, including the following: Warning of investment risk: Advertisements must include warnings about investment risks and contact information for further inquiries. Reference to third-party information: If an advertisement

On November 4, 2021, Cambodia’s Ministry of Mines and Energy (MME) issued a Prakas No. 0305 on Management of the Steam Energy Subsector within the Energy Sector. The prakas aims to regulate steam energy operations, and requires companies wishing to develop, build, install, or operate steam energy to apply for a steam energy license. As this is the first prakas regulating steam energy operations in Cambodia, all relevant companies operating in steam energy must apply for a steam energy license with the MME. Prakas 0305 discusses permits for three types of activities: Development, Construction, Installation, and Operation of Steam Energy. Companies wishing to develop, build, install, and operate steam energy production facilities must first apply for a permit from the MME. Steam Energy Service Provision. Companies wishing to develop, build, install, and operate steam energy for the purpose of supplying steam energy to consumers must apply for a permit for steam energy service provider in addition to a permit for development, construction, installation, and operation of steam energy. Two-in-One Steam Energy and Electricity Production. Companies wishing to develop and operate both steam energy and electricity production activities must also apply for a permit for two-in-one steam energy and electricity production. Companies operating without the necessary permits are subject to a daily fine of KHR 400,000–4,000,000 (approx. USD 100–1,000). In addition, they may face other penalties, including: An order to halt business activities; Permit suspension; Permit revocation; Judicial action; and Other legal measures as the MME deems fit. For more information on regulations and requirements for steam energy licenses in Cambodia, please contact Tilleke & Gibbins at [email protected].

Trademark disputes in Thailand have undergone a significant transformation with the recent implementation of streamlined procedures aimed at expediting legal proceedings. This article explores the traditional process for resolving noncomplex trademark cases and introduces the latest regulatory amendments designed to enhance efficiency within the Thai legal framework. Traditional Process Overview The trademark registration process in Thailand involves several steps, including filing, examination, and granting registration. If the trademark registrar rejects an application on substantive grounds, applicants can appeal to the Board of Trademarks. If the board upholds the registrar’s decision, applicants can then pursue a civil suit with the Central Intellectual Property and International Trade Court (IP&IT Court) to revoke the trademark registrar’s and the board’s orders. Previous Regulations and Practice Historically, civil cases concerning trademark registrations followed standard procedures outlined in Thailand’s Civil Procedure Code, with specific adaptations for intellectual property matters under the Act for the Establishment of and Procedure for Intellectual Property and International Trade Court B.E. 2539 (1996). Proceedings entailed various stages, including settlement of issues, evidence hearing, and judgment hearing, culminating in the opportunity for appeal. New Regulations and Practice In 2023, a pivotal development emerged with the issuance of Regulation for Intellectual Property and International Trade Cases B.E. 2566 (2023). This regulatory update introduced section 18, which deals with cases related to the revocation or appeal of Board of Trademarks decisions, such as those concerning trademark nondistinctiveness or opposition cases against Thailand’s Department of Intellectual Property. Section 18 grants the IP&IT Court the authority to order parties to submit documents and evidence without the need for witness examination, thereby streamlining proceedings. Below is a comparison of the trademark procedures for cases related to the revocation or appeal of Board of Trademarks decisions: Traditional Approach Streamlined Approach Implementation and Implications In practice, the implementation of section 18 has significantly expedited the resolution of trademark disputes.

In-court arbitration is an alternative dispute resolution (ADR) tool provided in the Civil Procedure Code (CPC) for cases that have already been submitted to the court. Historically, in-court arbitration has not been a popular method of resolving disputes. Instead, out-of-court arbitration, as prescribed by the Thai Arbitration Act B.E. 2545 (2002), is far more utilized in practice. The popularity of out-of-court arbitration is demonstrated by the fact that presentations on arbitration in Thailand almost exclusively focus on out-of-court arbitration; in-court arbitration is rarely even a topic of discussion. This situation is partly because in-court arbitration has not been encouraged by the courts in the past. Further, it is also not common for parties to agree on arbitration clauses after a dispute arises and also after it has been submitted to the court. Instead, arbitration clauses are generally discussed and crafted during the negotiation of the contract, which will most likely provide that any dispute arising out of the contract is to be resolved by out-of-court arbitration. Nonetheless, the Thai Courts of Justice have recently started to support this in-court ADR tool as a viable option and to encourage parties to agree in-court arbitration clauses before proceeding with a case through trial. This article is not meant to assess whether in-court arbitration is preferable to either out-of-court arbitration or to having the case heard by professional judges of the Courts of Justice. Instead, the purpose of this article is to discuss certain key provisions of the CPC that parties should carefully consider before agreeing to an in-court arbitration clause. On this point, the CPC specifically states that out-of-court arbitration is prescribed by arbitration law, the Arbitration Act, which is an entirely separate piece of legislation drafted specifically to apply to out-of-court arbitration. In contrast, in-court arbitration is completely regulated by the CPC,

Intellectual property rights holders pursuing legal actions in Vietnam have faced various challenges related to document formality in recent years. For example, in two different disputes at the Ho Chi Minh City Court, we have seen the judge request the claimants to re-prepare the civil dossier due to a lack of documentation proving the authorization of the signer—despite the fact that the cases had been ongoing for long time. Meanwhile, many domain names have been unable to be registered and transferred in recent months. Third-party representatives cannot handle the work as they normally would, as Vietnam’s domain name authority has required all documents to be signed by the domain name holders themselves, instead of the law firms representing them. Such demands have created unnecessary complexities and obstacles for IP holders seeking to protect their rights in Vietnam. Legal Formalities in the Court System Vietnam’s judicial landscape presents unique hurdles for IP holders to enforce their rights. One significant challenge is the requirement for the claimant’s legal representative (typically the CEO/president), as explicitly displayed on the company’s business license, to sign all documents related to a lawsuit. This requirement clashes with the operational practices of many foreign companies, where multiple individuals may have the authority to represent the company. It is extremely impractical, especially in a large multinational conglomerate, for the CEO/president to personally execute all documents and transactions. Instead, authorized staff within these organizations, such as department heads or general counsel, typically handle these tasks. In this situation, Vietnamese courts often demand additional documentation to prove the officers’ authority, necessitating specific authorization documents that may not always be readily available. The courts sometimes remain unconvinced by declarations from the CEO/president affirming the authorization of these officers, and despite such assurances, they may still demand tangible proof of authorization, adding layers of complexity for IP

On April 10, 2024, new minimum wage rates for workers in certain hotels in Thailand were published in the Government Gazette, taking effect on April 13, 2024. Under the Notification of the National Wage Committee on Minimum Wage Rate for the Hotel Industry, the new minimum wage rate is THB 400 per day, applicable to employees working in four-star (and above) hotels that have at least 50 employees and are located in the following specific areas: Bangkok: Pathumwan and Wattana districts Krabi: Ao Nang Subdistrict Administrative Organization areas Chon Buri: Pattaya city Chiang Mai: Chiang Mai municipality Prachuap Khiri Khan: Hua Hin municipality Phang-nga: Khukkhak sub-district municipality Phuket: Whole province Rayong: Phe subdistrict Songkhla: Hat Yai municipality Surat Thani: Koh Samui municipality Rationale The increase in the minimum wage is to drive and stimulate the economy in Thailand’s tourism industry, which is critical to the overall economy of the country. The ten areas identified above are those that earn a significant portion of their revenue from tourism. The decision underwent a public hearing process involving stakeholders. Although there were objections from some hotels claiming they were not yet ready to bear the increased costs, the law was enacted, taking effect on April 13, 2024. For more information on Thailand’s minimum wage regulations, or on any aspect of employment law in Thailand, please contact Pimvimol (June) Vipamaneerut at [email protected], Ketnut Pukahuta at [email protected], Dusita Khanijou at [email protected], or Chomanut Arif at [email protected].

Costly and time-consuming litigation can cause entrepreneurs to lose a lot of money, leading to cash flow problems and even threatening their ability to continue their business operations. One alternative to these financial challenges is litigation funding. This can be an option for people intending to file a lawsuit or those being sued to address potential financial liquidity problems caused by the financial demands of litigation. Litigation funding refers to financial support provided by an unrelated third party with no interest in the dispute who agrees to fund the costs a party incurs during the dispute resolution process in exchange for a portion of any money potentially awarded to the party being funded. If the funded party loses the case, the third party (i.e., the funder) is solely responsible for the costs. Although litigation funding is available in various countries, Thailand considers it to be contrary to public order and good morals, which renders litigation funding agreements void and unenforceable. Recognition and Enforcement in Thailand There are no laws or regulations in Thailand that specifically mention litigation funding. However, the Supreme Court has consistently ruled that litigation funding is not recognized and is not legally enforceable under Thai law. These Supreme Court precedents have established that agreements to receive benefits in return for pursuing litigation in which the funding party is not involved would be an act of seeking benefit from the litigation of others. As noted above, this purpose has been viewed as contrary to public order and good morals, which results in the agreement being void and unenforceable by other Thai courts (Supreme Court Judgment No. 7014/1999). Therefore, if a litigation funding agreement were in place in a Thai dispute and the funded party won, the funding party would most likely not be legally entitled to any portion of the award or

On March 15, 2024, Thailand’s Board of Investment (BOI) updated its investment incentives for software development and data centers by issuing a regulation replacing the previous categories of software or platforms for digital services or content (category 8.1) and data centers (category 8.2.1). The new and updated categories are detailed below. Software and Platform Development Under the new promotion policy, the BOI has made separate subcategories for “development” and “improvement” of software or platforms, each with its own set of incentives. The BOI is expected to clarify the characteristics of these two activities in a forthcoming announcement. Qualifying development activities are eligible for a corporate income tax (CIT) exemption for eight years (capped), while improvement activities are not eligible for any CIT exemption. A number of adjustments have been made to the eligibility criteria for development of software and platforms for digital services or content. These include the following: Salary expenditures for Thai information technology (IT) personnel hired temporarily after applying for investment promotion can now be included in the calculation of total salary expenditures for Thai IT personnel hired subsequent to applying for investment promotion. Previously, only salary expenditures for permanently employed personnel could be included in this figure. The minimum salary expenditures for each project remain unchanged at THB 1.5 million per year. Similarly, salary expenditures for temporary hiring of Thai IT personnel can be included in calculating the actual expenditures in the year that the project would like to benefit from the CIT exemption. Projects must commence operations within 12 months of the promotion certificate being issued. No extensions are allowed. Projects are no longer allowed to extend the machinery importation period. The other eligibility criteria for development of software and platforms for digital services or content remain unchanged. Projects in the new BOI subcategory for improvement of software and platforms for digital services or content