Exemption of Surcharge for Trademark Renewal and Patent Annual Fee for the year 2022
On 24 January 2022, Cabinet has approved Draft Ministerial Regulations in relation to the exemption of official surcharge fee of trademark and patent which the owner/holder will have to pay additional charges in case the trademark registration is not renewed and patent annual fee is not paid within the time stipulated by law. This aims to reduce the burden and to relieve the suffering economic effect caused by COVID-19.
| No. | Details | Exemption of Surcharge | Effective date |
|---|---|---|---|
| First Draft | Trademark, service mark, certification mark, and collective mark renewal fee | Exempts 20 percent of the surcharge for late filing of renewal in the grace period. | Effective from the day following the date of its publication in the Government Gazette until 30 September 2022. |
| Second Draft | Patent and petty patent annual fee | Exempts 30 percent of the surcharge for late payment of the patent/ petty patent annual fee in the grace period. |
Remark:
1. These two ministerial regulations have no effect on extending the application submission period and the payment of renewal/annual fees.
2. Trademark owner and patents and petty patents’ holder must submit renewal/ annual fee application form and the renewal/annual fee must be paid within the time specified by law.
Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.
ILAWASIA is currently a part of membership of Cambodia Business Council (CBC) in Thailand.
ILAWASIA is currently a part of membership of Cambodia Business Council (CBC) in Thailand.
This is an honour to be welcomed as new member. We are looking forward to working and collaborating with fellow committee members, professionals, investors, entrepreneurs, business corporations for the year 2022.
ILAWASIA is a legal consultant and business advisory in various areas such as commercial contract, legal protection, labor management, dispute resolution, as well as legal compliances and risk management under laws and regulations of two countries.
We believe that our identity would bring benefit to the business and industry; and strengthen and facilitate the business and trade across Cambodia and Thailand.
New move to prescribe infringed trademark and copyright products as prohibited products
The Cabinet has approved the Draft of Notification of Commerce Ministry Re: prescribes infringed trademark and copyright products as prohibited products to be exported, imported and prohibited to be brought through the Kingdom.
The new draft aims to update the law for practical usage to the current situation, facts, and relevant international laws and obligations, i.e., Agreements on Trade- Related Aspects of Intellectual Property Rights (TRIPS); and Regional Comprehensive Economic Partnership (RCEP). The draft also aims to uplift protection level of controlling on pirated protection policy at cross-border efficiently.
The essential terms are as follows.
1. To restrict infringing products as “Pirated products” that prohibited to be exported, imported and brought through the Kingdom, except in the case of carry-on items that are not unreasonably large and without commercial nature.
2. To assign the trademark owner or copyright owner to be able to report trademark or copyright information to a customs officer in accordance with the rules, procedures and conditions prescribed by the Customs Department, for the purpose of inspecting products with suspected trademark infringement or copyright infringement.
Moreover, the announcement of the Ministry of Commerce will come into force after 90 days from the date of its publication in the Government Gazette.
The cabinet will pass on committee to review the draft law for consideration and announce in the Government Gazette to be enacted when the draft has been passed by the public hearing session already.
Self-Declared Regime of Workplace Inspection via Automated System for Factories, Enterprises in the Textile, Garment, Footwear, Travelling Goods and Bag Sectors in Cambodia
In Brief
On 28th September 2021, Cambodia Ministry of Labor and Vocational Training issued the Notification No. 042/21 in relation to Testing Implementation of Self-Declared Regime of Workplace Inspection via Automated System for Factories, Enterprises in the Textile, Garment, Footwear, Travelling Goods and Bag Sectors.
The purpose is to modernize and digitalize workplace inspection regime, which normally is done by personal visit by inspector from the Ministry. This is a move to reduce the risk of spreading of COVID-19 in the factory and/or enterprise during the current situation.
Quick facts
³ Process: Labors of mentioned industries could undergo self-declared workplace inspection via this website: https://sicms.mlvt.gov.kh
³ Effective date: The regime is to begin from 30th November 2021 onwards.
³ Penalty: Any employers who fail to implement this Notification will be financially penalized, in accordance with the regulations in force.
³ Remark: The Ministry of Labor and Vocational Training will set up a Telegram Group, enabling employers to ask questions related to how to implement the system.
Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,
Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co.,
Vicheka Lay
Partner
Vicheka.Lay@ilawasia.com
ILAWASIA Co., Ltd.
Huyching Cheang
Associate
ILAWASIA Co., Ltd.
Long-term Resident Visa
On 14 September 2021, the cabinet had approved the economic stimulus and investment promotion packages including 'long-term resident visa' concept which aims to attract four group of overseas applicants. Benefits of the package include automatic work permit for applicants and also visas for their spouses and children; and same rate of income tax as Thai citizens.
The enactment of law on long-term resident visa, will be scheduled during December 2021 to March 2022. We will keep on monitoring the progress and update futher.
Fair Trade Practices Relating to Period of Credit Term in the Case SME Operators are Sellers of Goods or Providers of Services
In brief
Government has a policy on sustainably reducing gap and creating fairness in business operation for small and medium enterprise (SME) operators, it is then deemed suitable to prescribe standard criteria on credit term for a period of 30 days to 45 days for SME operators as proposed by the National Economic and Social Development Council and the Bank of Thailand.
On 18 June 2021, the Government Gazette website has published the Notice of Trade Competition Commission Re: Guidelines on Consideration of Fair Trade Practices Relating to Period of Credit Term in the Case SME Operators are Sellers of Goods or Providers of Services, dated 24 May 2021, issued under Trade Competition Act, B.E. 2560 (2017).
This Notice shall be enforced after the lapse of 180 days from the day following the date of its publication in the Government Gazette onwards, which is on 15 December 2021.
Nature of SME business
Small and Medium Enterprise (SME) operators means business operators whose natures of business are as follows:
|
No. |
Matters |
Details |
|
| 1. | Manufacturing goods | Employment: |
Not exceeding 200 persons |
| Income: |
Not exceeding 500,000,000 Baht per year |
||
| 2. | Providing of services, wholesale, or retail business | Employment: |
Not exceeding 100 persons |
| Income: |
Not exceeding 300,000,000 Baht per year |
||
Definition
|
Terms |
Definition |
| Trade Credit | An agreement on granting trade credit between a SME operator who is a seller of goods or services and a buyer of goods or services, including consignment or buying/selling of any other description, and there will be made payment for the goods or services thereafter according to the conditions and the period of time agreed upon in writing. |
| Credit Term | A period of time given by a seller of goods or services to a buyer of goods or services within the period of time agreed upon as evidenced in writing. |
The Fixing of Credit Terms
Any business operator who is a trading partner and a small and medium enterprise (SME) operator is subjected to the guidelines on consideration of fair trade practices as follows:
|
No. |
Matters |
Details |
|
| 1. | Credit terms | a) Trade sector, production sector, and service sector |
Not exceeding 45 days, unless already agreed in lesser credit term |
| b) Trader sector, production sector, and service sector, especially those concerning agricultural produces or initial processed agricultural products |
Not exceeding 30 days, unless already agreed in lesser credit term |
||
| 2. | Counting of Credit Terms | a) Regularly |
Counted from the date of delivery of goods or the providing of services according to the quantity, category, quality/standard of the goods or services duly agreed upon and the documents thereof have been handed over correctly and completely |
| b) In the case of consignment |
Counted as from the date of sale of goods in full quantity or at the rate agreed upon according to normal trade practices. |
||
| 3. | Payment of Trade Credit | a) Any business operator (trading partner) |
Must be shown clear steps of payment according to normal trade practices. |
| b) SME Operator |
Must present documentary evidences of labour employment; or documents showing incomes to confirm its status as a SME operator to any business operator who is its trading partner for information |
||
Unfair Trade Practices
Any acts involving the granting of credit term which may be described as unfair trade practices are:
|
No |
Detail |
| 1. | Delaying payment of goods or services exceeding the specified credit term without reasonable grounds therefor. |
| 2. | Change of credit term or other conditions under the contract without reasonable grounds therefor, or no prior notice is given at least 60 days in advance. |
| 3. | Other acts which are unfair enforcements by any business operator who is a trading partner of a small and medium enterprise operator, such as, setting special conditions concerning the granting of trade credit which may cause a burden to the contractual party unnecessarily, etc |
Yours sincerely,
Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.
Nannapas Phatcharakeatkanok
Associate
Nannapas.P@ilawasia.com
ILAWASIA Co., Ltd.
Chananya Yongmunkongkul
Associate
Chananya.Y@ilawasia.com
ILAWASIA Co., Ltd.
Lease Business License in Laos
In brief
On 30 July 2021, the Lao Official Gazette website has published the Decree on Lease Business No. 417/GOV Dated 2 July 2021. The main reason of this issuance is to ensure that the lease business in Laos will be operated in accordance with the law, it is also aimed at accessing sources of capital and facilitating business operation, contributing to economic and social development.
This Decree sets out that both Lao investors or foreign investors, whether in form of individuals or legal entities who wish to operate the lease business must apply for an Enterprise Registration Certificate at Ministry of Industry and Commerce (MOIC); then apply for Lease Business License at Bank of Laos (BOL), this business shall be operated under the name of “Leasing Company” but not allowed to operate in the form of the Sole Limited Company.
The capital for the lease business is 5 Billion Kip or over (approximately 522,100 USD), the capital can be in cash or in kind, but the capital in kind must not more than 10% of the registered capital. Moreover, this Decree does not set out the minimum of shares for foreign investors and it might set out in the relevant laws and regulations.
Documentation
The documents must be in the Lao language, if the documents are in English, they must be translated and certified by a Notary Public. The documentation to be prepared for filing the License are as follows:
| No. | Details |
|---|---|
| 1. | A completed of Application for Lease business License from Bank of Laos (BOL) |
| 2. | Enterprise Registration Certificate |
| 3. | Feasibility Study |
| 4. | A copy of the Enterprise Registration Certificate from the shareholders (if the shareholders are a legal entity) |
| 5. | Financial certificate, Deposit bank account from the shareholders |
| 6. | Agreement on Establishment of Leasing Business |
| 7. | Meeting Resolution for Establishment of Leasing Business |
| 8. | Regulations for Leasing Company |
| 9. | List of Shareholders and the description of their equity participation |
| 10. | Proof of source of the registered capital, in case if the investor is individual, 2 years Financial Statement Report from the external audit company |
| 11. | Letter of Consent that authorized the Bank of Laos (BOL) to check the source of registered capital |
| 12. | Proof of Residence, Criminal Record, Curriculum Vitae (CV), a copy of Identification Card or Household Registration book of the majority Lao Shareholders; if the majority shareholders are foreigner, a copy of the passport is required |
| 13. | Proof of Education and Proof of Experience in Financial area, Banking or another relevant fields; and the Curriculum Vitae of Directors |
| 14. | If the representative of the legal entity is Laos, the appointment letter for the representative of the shareholders is required, and if the representative legal entity is a foreigner, a copy of the passport is required |
| 15. | Letter of Guarantee from the relevant authorities of the investor’s country which can be proof that the foreign individual and legal entity are allowed to invest in Lease Business in Laos |
| 16. | Proof and Map of project location or site where the company will be located and that must be approved by the Chief of Village |
| 17. | Power of Attorney (if the representative of the business owner is not available to process the registration) |
Durations and Procedures
| Procedure #1 | Procedure #2 |
|---|---|
| After receiving the documents -mentioned above, officer of the Bank of Laos will take 15 working days to consider and check the accuracy of the application | After that, officer of the Bank of Laos will take 45 working days to issue the License |
| Conditions | Conditions |
| - The capital must be enough to invest and the source of capital must be clear and in accordance with this Decree - The description of the Feasibility Study must be complete, appropriate and actionable - The Directors must have an education background and experience in Financial, Banking, or another relevant fields - The shareholders have never been convicted of intentional criminal mischief |
- The registered capital has been paid completely - Employ the appropriate number of employees - The materials and location must be provided to ensure the facilities of business operation - The internal operating system that’s included the inspection and management system must be fully prepared. |
If the applicant does not meet any conditions mentioned above but the applicant informs the Bank of Laos with the appropriate reason, the officer will extend 45 working days to consider the application. After 45 working days of extension, if the applicant still not meets the conditions, the Bank of Laos will issue the rejection letter accordingly.
Yours sincerely,
Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.
Viphavanh Syharath
Associate
Viphavanh.S@ilawasia.com
ILAWASIA Co., Ltd.
Lao E-commerce Business License
In brief
On 12 April 2021, the Lao Government has issued the Decree on E-Commerce No. 1296/GOV. The main reason of this issuance is to uplift the safety of the E-commerce transaction as a reliable activity; and to allow foreign individual or legal entity to operate E-commerce business in Laos, the foreign investor is able to hold the share maximum 90 per cent of shares, with the capital of ten billion Kip or over.
Currently, The Ministry of Industry and Commerce (MOIC) is now working for the registration on this issue, they are now setting up the regulation and fees.
Moreover, the investor who process E-commerce business before this Decree has issued, they shall get the notification at the MOIC within 90 days.
Documentation
Required documents for filing the E-Commerce Business License are as follows:
1. E-Commerce Registration Application from Ministry of Industry and Commerce (which is not available yet);
2. A copy of Enterprise Registration Certificate;
3. Business plan;
4. Technical Standards of Electronic Channel Certificate (at Ministry of Technology and Communication);
5. Electronic Payment Service Provider License (at Bank of Lao PDR).
Duration
Ministry of Industry and Commerce shall consider and issue the license for E-commerce business registration certificate within 5 working days after receiving the application. However, the E-commerce Business Registration system is not available yet.
In this regard, a copy of Enterprise Registration Certificate and Business Plan are required in obtaining this license, as stated on Decree.
Yours sincerely,
Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.
Viphavanh Syharath
Associate
Viphavanh.S@ilawasia.com
ILAWASIA Co., Ltd.
Vanisha Chaidee
Associate
Viphavanh.S@ilawasia.com
ILAWASIA Co., Ltd.
The Temporarily Closure of the Department of Intellectual Property (DIP) and the availability of service during the pandemic
In Brief
Due to high numbers of COVID-19 infection in Bangkok and other 12 provinces that mentioned in an Emergency Decree in relation to recent wide spread of COVID-19 cases around Thailand, the extreme measure of remote working from home or residences has implemented and started on 20th July 2021 until 3rd August (or further revised notice) in order to decrease the spread and infection by public affairs.
Recently, The Department of Intellectual Property (DIP) has issued Notification of Department of Intellectual Property (DIP) Re: Availability of Service undertaken by DIP during COVID-19 pandemic, dated 20th July 2021, to inform on adaptation of the extreme implementation of remote working from the distance; to decrease possibility of infection among peoples through the transportation away; to temporarily close physical receiving office; and to set temporary shifted-staff to proceed the advanced appointments. In this regard, DIP informed available channels during this period as follows:
| Method | Details of Service |
|---|---|
| 1. Online Channel | 1. Electronic filing 2. Electronic payment of the official fee 3. E-certificate issuance (only patent and petty patent) |
| 2. Postal Box | - |
Extension of Patent Application
The Department of Intellectual Property (DIP) has issued Notification of the Department of Intellectual Property (DIP) Re: Extension of Document Submission and Additional Revision of Application for Patent and Petty Patent Filing during COVID-19 pandemic dated 12th July 2021 to prevent and decrease the infection risk of COVID-19 by public affair and to relieve the inconvenience of applicants. In this regard, DIP informed the extension period for patents and petty patents which deadlines have already met their due, as follows:
| Matters | Details |
|---|---|
| 1. Office Action of patents | Between 12 July 2021 and 31 August 2021 will be treated as ending on 31 August 2021. |
| 2. Extension | Responses to these office actions can be filed from 1 to 30 September 2021. |
Other Exception
The Department of Intellectual Property (DIP) has also set measure to extend period and process for trademark renewal, revise application, submit additional documents, etc. specially for applicant by proceed under Notification of Department of Intellectual Property (DIP) Re: Extension of period and process along with the law and regulation that undertook by DIP during COVID-19 pandemic, dated 24th March 2020.
| Matters | Details |
|---|---|
| 1. Preparation of Form | Prepare application form for extension submission. The form can be accessed by the mentioned notification. |
| 2. Evidences | Enclose evidences showing the effect you had from COVID-19, i.e., Hospital Admission Documentation, or Home Isolation Order by Hospital Documentation. |
| 3. Submission of Place | File the application form for extension of the period to DIP or Provincial Commerce Office within 15 days as of the last day as date effected from COVID-19. |
| 4. Further Action | File the application of various trademark matters within 30 days from the approval date by officers. |
Yours sincerely,
Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.
Thailand's Top 50 IP Experts 2021 revealed
As the founder of ILAWASIA, Mr. Somphob has led the firm’s accelerated growth in the field of IP, litigation, and trademark prosecution, he has been consistently recognized as a prominent legal professional, and business-savvy advisor in intellectual property law.
More than his outstanding knowledge, Mr. Somphob is praised for his services not only of the legal aspects but also of the upcoming business trends which are likely to impact the client’s transaction.
Currently, ILAWASIA has affiliated companies which are continuously operating the legal services in Greater Mekong Sub-region countries for many years, such as Cambodia and Myanmar, and is known as Intellectual Property Consulting Firm. At the moment, we are certified as the Intellectual Property Agency officially by the Intellectual Property Department of Laos.
For more details, please visit at https://bit.ly/2TcWhoD
