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Licenses                                                                    
A business may license the use of its intellectual property rights, including its name, trademark, copyright, patent, trade secret or technology.

Licensing agreement pertaining to inventions designs, trade or service marks that are patented or registered in Thailand, must be made in writing and registered with the Registrar of the Department of Intellectual Property, the Ministry of Commerce. The Registrar can refuse those prejudicial to the public or conflict with public policy or morality.

The Registrar may refuse to register a patent license agreement that contains a term or condition that could be deemed to violate anti-monopoly or unfair competition stipulations of a relevant Ministerial Regulation. The Board of Trademarks is empowered to revoke registration of a trademark licensing agreement if the licensors are not realistically able to control the quality of licensed products.

Although it is not necessary to obtain regulatory approval to enter into a licensing agreement with a foreign party, there are tax and exchange control ramifications that need to be considered. Thai income tax is levied on license fees paid to a foreign company or partnership by withholding at source at specified rates. Moreover, if the transfer of technology under a licensing agreement is related to the purchase and importation of tangible goods, the fees may be included in the value of the imported goods for the purpose of assessing customs duties.

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