The popularity of the franchise business model has been growing rapidly in Southeast Asia in recent years, with some of the world’s top brands becoming common sights in the commercial districts and shopping malls of major regional cities in Cambodia, Indonesia, Laos, Myanmar, Thailand, and Vietnam. While for most countries in this part of the world, franchising has not been explicitly mentioned in legislation, well prepared franchise business operations can comfortably adapt to each country’s regulatory framework, and the growth is poised to continue even as the global retail sector redesigns and redoubles its efforts in the wake of the COVID-19 outbreak. In fact, the franchise business model, which is both global and hyper-local at once, is one of the most promising solutions that entrepreneurs are turning to in their quest to overcome the challenges of the new economic reality. The Regional Guide to Franchising Law in Southeast Asia provides key, up-to-date insights into the legal frameworks regulating franchise operations in these Southeast Asian countries, and helps brand owners understand the most relevant laws, authorities, and procedures for their business. Some of the essential topics covered for each jurisdiction include considerations in negotiating and designing franchise agreements, protecting intellectual property rights, and important information on judicial and arbitral procedures should a dispute arise between franchisor and franchisee. Practitioners from Tilleke & Gibbins’ offices in Cambodia, Indonesia, Laos, Myanmar, Thailand, and Vietnam contributed to guide—not only by providing legal expertise on the laws and mechanisms applicable in each jurisdiction, but also by examining strategies for establishing and running resilient franchise operations in Southeast Asia. The full guide can be accessed as a PDF through the button below.

On January 9, 2024, Cambodia’s Ministry of Information (MOI) issued an official notification letter reminding the alcohol and advertising industries of past directives, instructions, and the MOI’s Code of Conduct surrounding alcohol advertising. The step comes as the MOI reports that they are seeing increased noncompliance in this area of advertising. In addition, several recent high-profile traffic accidents that involved drunk driving are likely serving as a trigger for the government to review its alcohol-related policies, including on advertising. Alcohol Advertising Rules and Limits The notification letter reminds the industry that there are limits to alcohol advertising, including: Advertising alcohol alongside potential prizes or undertaking “other activities that motivate, encourage, or entice people to overindulge on alcohol”; and Using women or minors to advertise alcohol. Furthermore, all alcohol advertising must also include the phrase “Don’t Drink and Drive” or “Drink Responsibly.” The notification letter explains that media outlets failing to comply with the instructions may be subject to penalties. Although the penalties are not clearly identified in reference to a specific law or regulation, it is possible that actions could include the consequences outlined under the agreement between each media outlet and the MOI, with potential suspension of the media license being an option in case of persistent noncompliance. However, this rather strong enforcement tool would only affect the media outlet that carries out the advertising rather than the alcohol producer that instigated the advertising. Penalties for the alcohol industry are not immediately clear, although it may be that the possible suspension or taking down of noncompliant advertising is considered a sufficient penalty for the time being. Past MOI Circulars and Letters The notification letter further reminds the industry to follow Circular No. 492 on Alcohol Advertisement (2014). It also references two notifications (Nos. 1134 and 1294) on the

On December 15, 2023, the Electricity Authority of Cambodia (EAC) issued a notification requiring all owners of solar power systems to report their systems to their local electricity supplier by January 31, 2024. Systems that have already been reported under existing regulations are exempt from this requirement. Systems that remain unreported after the deadline will be deemed illegal and subject to penalties, including possible disconnection from the national grid. The rationale for the reporting requirement is that the EAC expects to adopt a new solar power regulation soon. Electricite du Cambodge (the main state-owned utility provider in Cambodia) and EAC-licensed private electricity providers are now gathering data on the current use of solar power systems in order to prepare for, adopt, and execute the upcoming regulation. The reporting requirement is to facilitate this gathering of data. The upcoming regulation, planned for early 2024 according to the notification, follows last year’s Prakas No. 159, which contained the Ministry of Mines and Energy’s guidelines and principles for rooftop solar systems. The EAC now needs to issue implementing regulations that are in line with the ministry’s guidelines and principles. Although stand-alone solar power systems that did not have a connection to the national grid were previously not regulated and did not require any authorizations, the EAC is now stating that all types of solar power systems need to adhere to the reporting requirement under the notification. According to the EAC, the upcoming regulation will address all types of systems, and the December 15 notification clearly announces that all types of solar power systems will need to obtain EAC approval under the upcoming regulation. Solar power system operators in Cambodia should report their systems to their local electricity providers by January 31, 2024, to avoid any penalties, while remaining vigilant for the upcoming

In this article originally published by World Trademark Review, Tilleke & Gibbins senior associate David Mol shares advice on how to collaborate effectively with customs officials at Cambodian border points and ports, offering a guide on how to successfully monitor for—and enforce against—counterfeit and grey market goods.   Can rights holders record trademark and brand-related IP information with Customs and, if so, how?   At present, there is no formal customs IP recordal system in place in Cambodia. However, rights holders may consider: a request letter to Customs; or recordal of an exclusive distributorship. Request letter to Customs A request letter to Customs would be an effective measure in cases where a rights holder is aware of a specific customs checkpoint that is being used to smuggle infringing goods. The rights holder may request to set up a meeting with Customs at the checkpoint to provide officials with: guidance on the issue; the IP rights involved; and information on product identification. The rights holder may further request the official’s assistance in monitoring shipments for certain goods. Customs has been open and cooperative in the past, setting up direct communication lines between rights holders and border officials. Officials then: monitor shipments; exchange sighting reports; and set up inspections where applicable. However, this option is not directly regulated under any laws or regulations, and can only be considered as an ad hoc approach in cases where the rights holder is aware of issues at a specific checkpoint. We usually do not recommend using this approach to alert all checkpoints in Cambodia, as it is rather time-intensive, requiring close cooperation and active liaison with officials. Instead, targeting specific checkpoints has proven to work in our experience. A request letter to Customs may apply to all types of intellectual property. However, a recently issued regulation that addresses suspensions