Rules for franchising in Indonesia were first published in 1997 through a government regulation and a ministerial decree, which was subsequently amended several times. The franchising regulations currently in effect are Government Regulation No. 42 of 2007 concerning Franchises and Regulation issued by the Minister of Trade No. 71 of 2019 concerning the Implementation of Franchising (MOT No. 71 of 2019). Franchises in Indonesia must meet certain criteria that distinguish them from other types of businesses, and franchising must be based on a franchise agreement governed by Indonesian law. Prior to entering into a franchise agreement, a franchisor must provide a prospectus (disclosure document) to the prospective franchisee at least two weeks before the execution of the franchise agreement so that the prospective franchisee has sufficient time to review the reputation and goodwill of the franchisor through the prospectus. The prospectus must contain various details about the franchise business, its management, its operations, and other relevant aspects. Both local and foreign franchisors must obtain a franchise registration certificate—referred to as an STPW—from the Ministry of Trade before offering their franchises to prospective franchisees. The franchisee is also required to obtain an STPW. The STPW for the franchisor is the proof of prospectus registration, while the STPW for the franchisee is the proof of registration of the franchise agreement. Franchisors and franchisees who have STPWs are required to submit reports on franchise business activities to the Ministry of Trade’s director of business development and distribution by the end of June each year. Up to three written warnings will be served on a franchisor or franchisee who does not comply with the registration requirements. A fine of up to IDR 100 million (approx. USD 6,400) will be imposed if the franchisor or franchisee fails to respond to the warnings. MOT No. 71 of 2019 on

As Vietnam’s newly amended Intellectual Property Law will take effect on January 1, 2023, the government has been working with related authorities to rapidly issue necessary decrees to guide the law’s implementation, including a decree on copyright and related rights. It is expected that this new decree will be released soon, to also take effect on January 1, 2023. The latest publicly available version of the new decree is the third draft (“draft decree”). Some major issues that are covered under the draft decree are discussed below. Definitions of terms The draft decree provides detailed definitions of some important terms; for example, publication of works is clarified as “issuing copies of works in a reasonable quantity sufficient for public access, depending on the nature of the work,” and the exact time is made clear for re-broadcasting (after the broadcast time) and relay of a program (at the same time as the broadcast time). Right to Perform a Work Before the Public Article 15 clarifies the definition of the right to perform a work in public, directly or indirectly, through sound and video recordings or any other technical means which the public can access but by which they cannot freely choose the time and part of the work, so as to distinguish it from distribution rights. The draft decree also specifies what constitutes the act of performing the work for each type of work.  Rights of Co-Authors and Co-Owners of Works Article 16 clearly distinguishes the circumstances in which (i) co-authors are also co-owners of a copyright and (ii) co-authors are not concurrently copyright owners. The draft decree further clarifies that co-owners of copyright have the right to waive the right to publish the work and property rights.  Exceptions to Copyright Infringement Article 26 provides that “reasonably copying a part of a work for personal study and research

On November 22, 2022, the Thai cabinet approved in principle the draft Liability for Defective Goods Act (the “Bill”) proposed by the Office of the Consumer Protection Board. While Thailand’s Product Liability Act B.E. 2551 (2008) deals with liability to consumers arising from unsafe products, the draft Liability for Defective Goods Act aims to ensure that consumers are well protected from defects in appliances and vehicles that might not initially be easily visible or noticed. Key Definitions The Bill applies most notably to business operators and consumers. In the Bill, a “business operator” who may potentially be liable is: a manufacturer (or its hirer) of goods for sale; or a consignee or importer who brings goods into Thailand for sale; or a seller or a hire purchase provider who cannot identify the manufacturer (or its hirer) or the importer. As opposed to the Product Liability Act, which clearly provides that all business operators in the supply chain must be jointly liable, the Bill lacks such clear guidance. This could be interpreted as meaning that under the current Bill only the business operator at the top of the supply chain who is sued in the same case as other business operators is responsible. A “consumer” is defined as a purchaser or hirer of goods from a manufacturer, including an assignee or successor of the goods from the purchaser or hirer. Scope and Application The Bill is intended to govern purchase or hire-purchase contracts for: electric appliances; electronic devices; personal cars and motorcycles; other goods that may be set out in a future royal decree issued under the act. The Bill will not apply to any purchase or hire purchase of used products or as-is products when this is clearly stated by the seller or hire-purchase provider or the auctioneer in an auction. A manufacturer will be liable for defects that existed at the time of delivery

The rapidly growing middle class in Southeast Asia is bringing with it increased household wealth, increased consumption, and increased investment. As a result, the commercial banking sector has seen a boom in the more economically developed countries of the region—especially in Thailand. A select few foreign banks have also been very successful in Cambodia, Laos, Myanmar, and Vietnam for many years, but as other banks seek to replicate their Thai success in these new markets, the field looks likely to become much more crowded in coming years. Six major Thai banks are active in at least one other jurisdiction in mainland Southeast Asia, with some already operating across them all, and many larger international banks also beginning to take note. Amid that background, this guide examines the legal frameworks for foreign banks seeking to operate in these jurisdictions, and addresses some current and upcoming developments that investors should note. The full guide is available as a PDF through the button below.

Experts on Vietnamese real estate law from Tilleke & Gibbins provided the chapter on Vietnam for Practical Law’s Commercial Real Estate Global Guide 2022, a high-level comparative overview of commercial real estate laws and regulations in 31 jurisdictions worldwide. The main topics include the following, among others: Real estate investment structures, including REITs Sale of real estate Liability Due diligence Warranties Real estate tax, including VAT and stamp duty/transfer tax; Climate change targets Restrictions on foreign ownership Real estate finance Commercial leases Planning law The chapter also highlights recent trends in the condominium, office, and retail sectors of the Vietnam real estate market. To read the Vietnam chapter, please visit the Practical Law website or click on the link below.

Lawyers from Tilleke & Gibbins’ labor and employment team have written the Vietnam chapter of Practical Law’s Employment and Employee Benefits Global Guide. The 2022 edition of the handbook provides a high-level comparative overview of employment laws and regulations across 46 jurisdictions around the world. Tilleke & Gibbins also contributed the Myanmar chapter of the guide. The Vietnam chapter covers a wide range of typical employment matters, such as limitations on working hours, paid leave requirements, minimum wage, and health and safety obligations. In addition, the guide provides insight on a number of topics of special interest to foreign investors doing business in Vietnam, including the following: Mandatory contents of a labor contract; Visas and permits required for expatriate employees; Employers’ obligations for protecting employees’ privacy and personal data; Procedural requirements for the dismissal of an employee; Employer and parent company liability. To read the Vietnam chapter, please visit the Practical Law website or click on the link below.

Thailand’s Department of Intellectual Property (DIP) has continued its strategy of enlisting the support of stakeholders from various sectors in the fight against infringement of intellectual property rights (IPRs) by introducing a memorandum of understanding (MOU) on advertising practices. This follows the success of last year’s MOU on Online IP Protection, which aimed to tackle issues of intellectual property (IP) infringement on various e-commerce marketplace platforms. That MOU represented Thailand’s efforts in bringing together relevant stakeholders to address online IP infringement issues in a unified and collaborative manner. The DIP’s latest such cooperative initiative is the MOU on Online Advertising and IPRs. A signing ceremony for the MOU was held on October 28, 2022. The DIP, three advertising associations, and various IPR owners all participated in the event, which took place at the Ministry of Commerce. Tilleke & Gibbins joined to sign the MOU as one of the founding signatory parties. The major parties to this MOU are: the DIP; advertising business operators (online advertisement producers and advertisement providers); associations related to advertising and media; IPR owners—particularly those experiencing IPR infringement problems in Thailand; and law firms. Objectives of the New MOU The objective of the new MOU on Online Advertising and IPRs is to build and enhance collaboration among IPR owners, advertising business operators, associations, and the DIP, with the goal of preventing and suppressing the production, distribution, and circulation of online IP-infringing advertisements and halting the income flowing to infringers from advertisements posted on IP-infringing websites or applications. This MOU addresses different issues in comparison to last year’s MOU on Online IP Protection. The latter addressed IP infringing merchandise on e-commerce platforms, whereas the new MOU tackles the issue of IP-infringing advertisements, as well as IP-infringing websites and applications, with more focus on infringing content than on infringing merchandise. Highlights of the New MOU A noteworthy practice introduced under

On November 11, 2022, Myanmar’s Ministry of Commerce (MOC) announced a pilot period for importing electric vehicles into Myanmar, which came into force with MOC Order No. 62/2022, issued under the Import and Export Law. A separate order (No. 61/2022) issued on the same day specifies rules for importation of motorcycles by companies that do not have a certificate to open a showroom, as well as rules for opening motorcycle showrooms. Electric Vehicle Importation According to the order, which takes effect January 1, 2023, “electric vehicles” includes only battery electric vehicles (BEVs) for both personal use and passenger use. In order to import electric vehicles into Myanmar without having a certificate to open a showroom, companies must: Be registered as a company, either wholly owned by nationals or a joint venture, at the Directorate of Investment and Company Administration (DICA); Be able to present the purchase and sales agreement for each brand of imported electric vehicles; Receive approval from the National Steering Committee for Development of Electric Vehicles and Associated Businesses, and import according to the quality and quantity of electric vehicles permitted by the committee; Arrange the necessary warranty, spare parts availability, and after-sales service for the imported electric vehicles; Deposit a bank guarantee of MMK 50 million at a bank recognized by the Central Bank of Myanmar; and Apply for a purchase permit at the MOC, for the purpose of registering the imported vehicles with the Road Transport Administration Department. BEV Tax Exemption Following MOC Order No. 62/2022, BEVs and their batteries are now exempted from commercial tax and special goods tax, which came into force with the Law Amending the Union Tax Law 2022 (State Administrative Council Law No. 48/2022) dated November 17, 2022. These tax exemptions will be effective from October 1, 2022, to March 31, 2023. Motorcycle Showrooms In addition to fulfilling the last three items