Database

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THAILAND

N/A

Pillar Telecom infrastructure and competition  |  Sub-pillar Passive infrastructure sharing obligation
Requirement of passive infrastructure sharing
It is reported that passive infrastructure sharing in Thailand to deliver telecom services to end users is mandated, and it is practiced in the mobile sector and in the fixed sector based on commercial agreements.
Coverage Telecommunications sector

THAILAND

Since November 1999
Since November 2001, amended in January 2006
Since January 2006

Pillar Telecom infrastructure and competition  |  Sub-pillar Maximum foreign equity share for investment in the telecommunication sector
Telecommunications Business Act 2001 (amended in 2006)

Telecommunications Business Act (No.2) 2006

Foreign Business Act 1999
Foreigners can operate telecoms businesses provided that they do not have their own telecommunications network, and the characteristics of their businesses are appropriate to provide services on the basis of liberalization or telecommunications Type 1. Nevertheless, according to Art. 8.1 of the foreign business act, if the telecommunications business has its own network (Type 2 and Type 3 telecoms business), it is prohibited from being acquired by a foreigner. The National Telecommunications Commission (NBTC) regulates the merger in the telecommunication sector. According to the Telecommunications Business Act, the Commission has the power to prescribe specific measures to prevent monopoly in the telecoms market (Section 21). Moreover, the licensee acts or is acted upon in such a manner as the business takeover shall be reported.
Coverage Telecommunications sector

THAILAND

Since April 2002, amended in February 2015

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Mandatory disclosure of business trade secrets such as algorithms or source code
Trade Secrets Act 2002
According to Trade Secrets Act, trade secrets can be in any means or any medium which conveys statement, story, fact in formula, form, compilations, or assembled works, programs, methods, techniques, or processes (Section 3). The disclosure or use of trade secrets by a governmental agency that supervises the maintenance of trade secrets shall not deem as an infringement of rights in trade secrets, in the following cases:
- When it is necessary to protect the health or safety of the public, or;
- When it is necessary for the benefit of the public, not for a commercial purpose, the governmental agency must proceed under the procedure to protect such trade secrets from being used in unfair trading activities (Section 7 (2)).
Coverage Trade secrets

THAILAND

Since April 2002, amended in February 2015

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Effective protection covering trade secrets
Trade Secrets Act 2002
The Trade Secrets Act (TSA) provides a framework for effective protection of trade secrets. Any “trade information”, such as an instrument of statements, facts, or other information that meets the following three requirements is protected as a trade secret:
- It is confidential, i.e. the trade information is not being publicly known to or accessible by persons who are not related to the trade information;
- It has a commercial value derived from its secrecy;
- Its secrecy is protected by its owner/controller has taken appropriate and sufficient protection measures to maintain its secrecy.
In practice, a non-disclosure agreement is commonly used to safeguard and maintain the secrecy of a trade secret.
If there is a dispute concerning the trade secret because a person infringes its secrecy, the trade secret owner can submit the dispute to the Trade Secret Committee for mediation and settlement. Alternatively, they can file a lawsuit in court against the infringer for interim and permanent injunction orders and compensations for actual damages and punitive damages. The lawsuit must be filed within three years from the date on which the infringement act and the infringer are known, or within 10 years from the date of the infringement act.
Coverage Horizontal

THAILAND

N/A

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Signature of the WIPO Performances and Phonogram Treaty
Lack of signature of the WIPO Performances and Phonograms Treaty
Thailand has not signed the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal

THAILAND

Reported in 2020

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Enforcement of copyright online
Lack of adequate enforcement of copyright online
Copyright is not adequately enforced online in Thailand. It is reported that counterfeit and pirated goods continue to be readily available, both in physical markets and online. Moreover, the widespread use of unlicensed software in public and private sectors, lengthy civil IP enforcement proceedings, low civil damages, and extensive cable and satellite signal theft is concerns. It is also reported that the Department of Intellectual Property (DIP) is in the process of amendment to the Copyright Act in order to increase the efficiency of protection of copyright work on the internet and prepare for Thailand’s accession to the WIPO Copyright Treaty (WCT). In addition, Thailand has established a voluntary and cooperative mechanism to continue its effort to fight against online IPR infringement.
Coverage Horizontal

THAILAND

N/A

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Signature of the WIPO Copyright Treaty
Lack of signature of the WIPO Copyright Treaty
Thailand has not signed the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

THAILAND

Since September 2009, entry into force in December 2009

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Participation in the Patent Cooperation Treaty
Patent Cooperation Treaty
Thailand is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal

THAILAND

Since December 1994

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Copyright law with clear exceptions
Copyright Act 1994
Thailand has a copyright regime under the law Copyright Act 1994. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Art. 32 lists the exceptions, which include research or study of the work provided that such not for profit; the use for personal benefit or the family benefit including close relatives; review, accompanied by an acknowledgment of the copyright owner; among others
Coverage Horizontal

THAILAND

Since March 1979, amended in March 1999
Since September 1999

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Practical or legal restrictions related to the application process for patents
Patent Act 1979 (amended in 1999)

Ministerial Regulation (No.21) Prescribing by Virtue of the Patent Act 1999
Section 14 of the Patent Act 1979 (amended since 1999) provides that an applicant for a patent shall possess one of the following qualifications:
- a Thai national or a juristic person having its headquarters located in Thailand;
- a national to a convention/international agreement on patent protection, which Thailand is also a party;
- a national of a country which allows Thai nationals/juristic persons having headquarters to apply for patents in that country;
- domiciled or an industrial or commercial establishment in Thailand or a country party to a convention or an international agreement on patent protection to which Thailand is also a party.
To file patents, the Ministerial Regulation states that if the patent applicant does not reside in the Kingdom of Thailand, the applicant shall authorize an agent or patent attorney registered with the Director-General of the Department of Intellectual Property to act on his behalf (Clause 13). Moreover, the Power of Attorney (POA) shall be attached with the revenue stamp of 30 Thai Baht (around 1 USD) for each patent agent/patent attorney/application. The POA document if not in a foreign language is required to translate to the Thai language (Clause 15).
Coverage Horizontal

THAILAND

Since May 2010
Since September 2014

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Screening of investment and acquisitions
Notification of the National Telecommunications Commission regarding Criteria and Methods of Merger & Acquisition and Cross-Shareholding in Telecommunication Business 2010

Notification of the National Broadcasting and Telecommunications Commission regarding the Criteria and Method to Determine the Significant Market Power in Telecommunication Business 2014
Foreign acquisition of a domestic locally incorporated entity is allowed. The merger in the telecommunication industry is regulated by the National Telecommunications Commission (NTC or the NBTC). Regarding the notification, the following circumstances are considered a merger:
(1) a licensee or its controlling shareholder mergers with other licensees (when one licensee will cease to exist);
(2) a licensee or its controlling shareholder acquires wholly or partly the assets of other licensees;
(3) a licensee or its controlling shareholder acquires more than 30% of the total voting rights of another licensee or significant control over another licensee (Clause 2(5)).
Therefore, the acquirer must file a merger review petition to the NBTC at least 60 days before the execution. The NBTC may only grant permission to the acquirer to execute a merger that does not cause market dominance. In addition, the NBTC authorizes to examine the effect on competition of a permitted merger.
Regarding the notification of the significant market power, the significant market power (SMP) defines as operator capability may pose a barrier to competition in the relevant market. The NBTC shall assess the markets that are non-competitive and the market that have barriers to competition. Moreover, the NBTC shall identify the significant market power operators as the requirements laid down in this notification.
Coverage Telecommunications sector
Sources

THAILAND

Since November 1999

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Screening of investment and acquisitions
Foreign Business Act 1999
Pursuant to Art. 14 of the Foreign Business Act, any initial foreign investment is subject to a minimum capital requirement of THB 2 million (approx. USD 56.000). In the case of restricted businesses (including advertising), the requirement is equivalent to 25% of the total three-year average expected annual expenditure, but not less than THB 3 million (approx. USD 84.000).
Coverage Horizontal

THAILAND

Since November 1999

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Screening of investment and acquisitions
Foreign Business Act 1999
Section 5 of the Thai Foreign Business Act (FBA) states that in granting permission to foreigners for the operation of businesses under the Foreign Business Act, regard shall be given to advantageous and disadvantageous effects on national safety and security, economic and social development of the country, public order or good morals, national values in arts, culture, traditions and customs, natural resources conservation, energy, environmental preservation, consumer protection, sizes of undertakings, employment, technology transfer and research and development.
Section 8 of the FBA provides three categories of controlled business activities:
- List 1: Business activities which are prohibited to foreigners for special reasons;
- List 2: Business activities related to national safety, security, or which have an impact on arts, culture, traditions, customs, folklore handicrafts, natural resources, and the Environment;
- List 3: Business activities in which Thai nationals are not yet ready to compete with foreigners, including the telecommunications sector (the Annexed of the FBA includes the detailed information of the businesses in List 1, 2, and 3).
Coverage Horizontal

THAILAND

Since November 1999

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Nationality/residency requirement for directors or managers
Foreign Business Act 1999
Section 16(2) of the Foreign Business Act (FBA) 1999 prescribes that a foreigner who intends to apply for a business license in Thailand must have a residence in the Kingdom or have permitted to temporarily enter into the Kingdom. The Minister empowers to issue Ministerial Regulations prescribing any of the following conditions to be observed by foreigners who are license grantees: the number of foreign directors who must have a domicile or residence in the Kingdom; or the period for maintaining the minimum capital in the country (Section 18).
Coverage Foreign businesses

THAILAND

Since November 1999

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Maximum foreign equity share
Foreign Business Act, B.E. 2542 (1999)
List 3 of the Foreign Business Act includes industries in which "Thai nationals are not yet ready to compete with foreigners". These are open to foreign investors provided they receive a licence from the Director-General of the Department of Business Development of the Ministry of Commerce and approval from the Foreign Business Committee. A wide range of businesses are covered under List 3, including advertising businesses. A foreign company can engage in List 3 activities if a majority of the limited company’s shares are held by Thai nationals. Any company with a majority of foreign shareholders (more than 50%) cannot engage in List 3 activities unless it receives an exception from the Ministry of Commerce under its Foreign Business License application.
Coverage Advertising sector