Enforcement of Law Against Counterfeits in Thailand

Counterfeit products have posed great problem to consumers who trust in brand owners’ products. Similarly brand manufacturers also lose their reputation and destroy consumers’ trusts. The Thailand’s government, instead of directing its efforts towards research and development, has been putting its efforts to prosecuting counterfeiters.

In order to curb the entry of fake goods into its country, the Thailand govt. has enacted a new Product Liability Law which states that in the event the rights holder is found to have been negligent in failing to police the market to eliminate or suppress counterfeit goods, he will face punishment for punitive damages and class actions.

Another step that Thailand’s government has taken to introduce a Memorandum of Understanding between its Customs Department and the Private sector IP right owners to provide intelligence, profiling of known or suspected traders involved in counterfeiting, testimony, product training, product identification and documentary support to allow Customs to interdict suspect shipments. The effect of this law has escalated the fake goods into the Thai Kingdom, mostly from China. The benefits of such step have been four-fold:

First, IP rights owners seeing a better return on investment of their limited anti-counterfeiting resources. Second, there is a higher level of systematic deterrence because fines imposed against the importers of fakes are substantial than the criminal fines. Third, the market in Thailand is seeing the positive effects of seizures of fakes and this has created a certain level of comforts for them. Last, custom seizures have allowed IP rights owners to develop a better idea of where the fake goods are coming from, who is making them and who is importing them.

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