Two of Tilleke & Gibbins’ life science specialists in Bangkok have contributed the Thailand chapter to the newly issued Licensing 2023, a comprehensive guide from Lexology Getting the Deal Through to licensing in various jurisdictions around the world. The Thailand chapter covers the following topics: Laws and licensing arrangements: Unfair Contract Terms Act, Trade Competition Act, pre-contractual disclosure, registration of international licensing, implied obligations, Civil and Commercial Code, Trademark Act, Patent Act, Trade Secrets Act Intellectual property issues: Paris Convention for the Protection of Industrial Property, contesting the validity of licensor’s IP rights, invalidity and expiry of IP rights, security interests, proceedings against third parties, sublicensing, jointly owned IP, first to file, scope of patent protection, trade secrets, copyright Software licensing: Perpetual licensing, legal requirements, user restrictions Royalties and payments, currency conversion, and taxes: Relevant legislation, restrictions, taxation of foreign licensors Competition law issues: Restrictions on trade, legal restrictions, and IP-related court rulings Indemnification, disclaimers, and damages: Prevalence and enforceability of indemnity provisions and contractual waivers of damages Termination: Right to terminate, impact of termination Bankruptcy: Impact of licensee or licensor bankruptcy Dispute resolution: Governing law, arbitration, enforceability, injunctive relief, contractual waivers The full Thailand chapter is available below as a PDF. Tilleke & Gibbins also contributed the Vietnam chapter to Licensing 2023. To browse all jurisdictions covered by the guide, please visit the Getting the Deal Through website.

In Cambodia, the Ministry of Commerce takes the lead on many consumer protection matters, issuing and enforcing regulations that contribute greatly to a fairer and more transparent legal framework. The regulations protect consumers while simultaneously creating a more a level playing field for businesses. On September 2, 2022, the ministry issued a new regulation concerning household chemical products. The regulation, named Prakas No. 192 on the Requirements for the Labeling of Household Chemical Products, is another big leap forward in light of the consumer protection framework that the Cambodian government has been rapidly updating in recent years. Interesting issues in the regulation include household chemical product classification, labeling and language requirements, product storage requirements, recall requirements, and obligations for companies engaging in business activities related to household chemicals. In addition, the regulation reminds household chemicals businesses operating online of the need to obtain additional e-commerce licensing. Cambodia’s consumer protection authority, the Consumer Protection, Competition and Fraud Repression Directorate-General—commonly known as the CCF—has already started to enforce the new regulation, as the three-month transition period under the regulation has now passed. Classifying and Defining Household Chemicals The regulation classifies household chemicals into three groups based on the product’s purpose—namely detergents, pesticides, and substances for home and garden protection. There is also a separate list of household chemicals identified as “chemicals not allowed for use in food.” This list is just a reminder, as existing legislation already prohibits the use of the identified chemicals in food. The regulation defines household chemicals as finished chemical products, or chemical additives to products, that can be harmful to health and that have one of the three purposes mentioned above. The regulation further states that the products are for use in “normal life,” such as in homes, workshops, or gardens, or for other public use. The regulation lists many examples of household chemicals—including

Influencer marketing and the creation of sponsored content is an increasingly popular way for brands to reach their target audience. Although there is no universal definition of an “influencer,” the term is broadly used to describe people who are able to affect purchasing decisions of others through their relationship with their audience. In the context of social media and the creator economy, influencers are usually people with significant followings on platforms such as Instagram, TikTok, Twitch, or YouTube who are viewed as celebrities, opinion leaders, trendsetters, or experts in their respective field. Based on a study conducted by Nielsen in 2022, 80% of social media users in Asia who follow influencers are likely to purchase products recommended by the influencers. Brand owners should be aware of five key legal considerations when entering into influencer marketing agreements. 1. Making informed decisions through due diligence Every collaboration with an influencer is a business relationship. Brands must conduct thorough due diligence on potential influencers prior to engaging them. This may include deep dives into the individual’s old social media posts, as well as requests for disclosure of prior controversial incidents and existing brand associations. For example, a health and fitness brand may not want—for both legal and commercial reasons—to be publicly associated with an influencer who is a brand ambassador of electronic cigarettes, no matter how impressive the latter’s Instagram following or deadlift record is. Brands should also ensure that their influencer marketing agreements include relevant representations and warranties that the influencer has not and will not commit a crime or act in a way that may cause negative publicity for the brand. This may include racist, extremist, homophobic, violent, or misogynistic acts, or any other acts that are obscene or against public order. 2. Clearly defining the scope of engagement Brands must first ensure they are

For most in-house counsel, the thought of defending a civil case brought against the company is typically an unpleasant proposition—even more so when the matter is proceeding in a foreign or unfamiliar jurisdiction in which the substantive law and court procedures differ from those in one’s home jurisdiction. But different procedures, even if unfamiliar, can sometimes be advantageous to a defendant. This is particularly true with respect to certain aspects of the discovery process in Thai civil court proceedings. For in-house counsel in certain jurisdictions, the specter of litigation not only entails the potential risks posed to the company and the time and financial costs inevitably incurred, it can also mean lengthy and costly discovery battles. However, as discussed in more detail below, due to the nature of Thai discovery procedures, these types of discovery battles are typically rare in Thai civil court proceedings. Further, due to the limited scope and mechanisms for discovery practice in Thailand, the whole discovery process tends to be rather expedient and straightforward, particularly when compared to that in jurisdictions with extensive discovery practice. In this article, the authors provide an overview of some of the more notable features of the process for discovery under the Thai Civil Procedure Code (“CPC”), particularly those that may differ from those in jurisdictions with a more vigorous and wide-reaching discovery process. (We note that this article addresses only discovery procedures in civil proceedings in Thai courts; the discovery process in criminal proceedings is subject to the Thai Criminal Procedure Code and differs from the process in civil courts in some respects.) Rules of Evidence Before taking a closer look at some of the discovery provisions in the CPC, it is important to understand a few fundamental principles of Thai evidence law, as these provide the general guidelines that a Thai court

Vietnam’s Ministry of Information and Communications (MIC) has been working to replace the outdated 2009 Telecom Law with a new version more suited to today’s digital economy. A draft Telecom Law was made available for public consultation from October 27 to December 27, 2022. On January 17, 2023, the MIC submitted an amended draft (the “Draft”) to the Ministry of Justice for appraisal (the Vietnamese version of the Draft and accompanying documents in the dossier can be accessed here). The Draft is scheduled to be discussed by the National Assembly in May 2023 and submitted for approval in October 2023. The key content and changes of the Draft as compared to the existing law are set out below. 1. Licensing Telecom Services For domestic enterprises, the 2009 Telecom Law only provides two types of licenses—telecom network establishment licenses and telecom service business licenses—without differentiating the conditions and licensing procedures for various types of telecom services. This no longer meets management requirements and does not encourage enterprises to participate in providing new services on already existing infrastructure. Although the Draft retains the two main types of licenses—licenses to provide telecom services with network establishment for a term of not more than 15 years; and licenses to provide telecom services without network establishment with a term of no more than 10 years—it also provides different licensing conditions for different types of telecom service provision, with three kinds of licensing: (i) individual licenses for certain enterprises with specific conditions and obligations based on telecom management objectives at the time of licensing; (ii) class licenses for businesses that meet the prescribed licensing conditions; and (iii) registration, which requires businesses only to submit registration information according to the prescribed form to be licensed. In addition, to avoid the situation of licensed telecom network enterprises delaying or not implementing telecom

On February 20, 2023, the Supreme People’s Court of Vietnam submitted a Practical Report on the Implementation of the Law on Organization of People’s Courts, as well as a Draft Amendment of the Law on Organization of People’s Courts to seek online comment from interested parties. Notably, the Supreme People’s Court has expressed a desire to establish specialized courts such as an IP court and a bankruptcy court. Practical Report on the Implementation of the Law on Organization of People’s Courts The Supreme People’s Court reviewed the implementation over the past eight years of the Law on Organization of People’s Courts (“LOPC”), which took effect in 2015. Some highlights of the implementation process, as set out in the Supreme People’s Court’s practical report, are as follows: Re-systematization of all levels of courts: The LOPC systematized the court system in Vietnam, including four levels: Supreme People’s Court Three Superior People’s Courts 765 first-instance trial courts (including 702 district courts and 63 provincial courts) 66 appellate courts (including 63 provincial people’s courts and the three Superior People’s Courts) In addition, the Supreme People’s Court established four adjudicating agencies for cassation and reopening (including three Judicial Committees of the Superior People’s Court and the Council of Judges of the Supreme People’s Court). Support departments for the court have been strengthened, and policies have been developed to train judges. Trial results: From June 1, 2015, to April 30, 2022, the courts have settled 3,187,285 cases of all kinds out of a total of 3,334,915 cases handled (95.57%). Most of the remaining cases are newly accepted and still within the time limit for settlement as prescribed by law. On average, the courts have had to deal with about 476,416 cases each year. Draft Amendment of Law on Organization of People’s Courts Despite the notable accomplishments of the past eight years, a number of weaknesses were found

Noppparat Lalitkomon, head of Tilleke & Gibbins’ data protection team in Thailand, has prepared the Thailand contribution for the Data Privacy Trends and Topics Report, published by Lex Mundi. The report provides brief overviews of recent and upcoming regulatory and legal developments concerning data privacy in the jurisdictions of Lex Mundi member firms in 53 jurisdictions around the world. Drawing on the expertise of Lex Mundi member firms from around the world, the report features local insights to help businesses handle cross-border data and cybersecurity challenges. Lex Mundi has also compiled a global overview of how firms in each region assess the likelihood of significant changes to the data protection landscape in 2023. Notably, Asia and the Pacific is identified as the region most likely to undergo changes, with 73% of reporting firms expecting significant developments in their jurisdictions. The report containing all 53 contributions—grouped by world region—is available on the Lex Mundi website or through the button below.

Many companies have moved to Southeast Asia to benefit from the advantages of this vibrant and diverse market. The region is already a manufacturing hub for a multitude of industries—computer and automotive products in Thailand, textiles in Cambodia, and footwear and electrical goods in Vietnam, to name a few—and an increasing number of companies worldwide are reconfiguring their supply chains to include regional suppliers. A key challenge is keeping up to date with employment law trends in these jurisdictions to ensure compliance with local regulations—and avoid costly, time-consuming business interruption. Here we outline trends and recent regulatory developments in Cambodia, Thailand, and Vietnam, and consider what they mean for employers. Cambodia The Ministry of Labour and Vocational Training (MLVT) is likely to pursue a more proactive enforcement strategy in 2023. Last May, the MLVT announced companies would be required to submit a twice yearly self-declaration on labour compliance through a new online system. The self-declaration form requires companies to confirm and upload evidence of compliance, and the MLVT online system—through which the ministry can easily determine if a company is compliant –generates a report that lists all fines. Companies should comply with the self-declaration requirement and carefully review the form to understand what fines will apply for non-compliance. On 1 October 2022, regulations relating to the National Social Security Fund (NSSF) pension system came into effect, and employers and employees began making NSSF pension contributions. Over the next five years, total compulsory pension contributions will amount to 4% of an employee’s wage, half of which is paid by the employer and half deducted from the employee’s salary. The contribution wage is capped at KHR 1.2m (USD 300). Employers are currently required to pay a relatively small amount (KHR 24,000, or around USD 6). This will increase to 10.75% over a ten-year period. Further, it is possible that