Unfortunately, Thailand is often seen as a haven for counterfeiters, with fake Gucci, Prada, Louis Vuitton and Sass & Bide abounding in certain shopping malls.
There have been several new anti-counterfeiting measures and border control campaigns initiated by the government, yet the problem persists relatively unchanged. New cases that have been brought against eBay in both the US and France recently could change this, with French courts assigning responsibility to an unexpected party. eBay is considered a ‘landlord’ of sorts for sellers, and has now been held legally responsible for the sale of counterfeit goods in France. What is happening currently with regard to Thailand laws on counterfeits, what new developments have occurred in the US and France, and what does it all mean for Thai consumers?
Thailand law actually has one of the most aggressive schemes to combat counterfeiting of any country in South East Asia, so Thailand law firms like BSA Law and Tilleke and Gibbins find it remarkable that the problem persists. The strategy for attacking the prevalence of counterfeit goods has included a public education program, showing Thais that counterfeiting is preventing their companies from moving onto the world stage, getting Thai nationals off the fields and helping them advance economically. Thailand law now recognizes that counterfeiting is not a minor crime, but part of organized crime’s diverse portfolio, alongside people-smuggling and trade in weapons and drugs.
However, the law of economics is fighting the efforts of Thailand law firms and the government itself against counterfeiting. Economic downturn makes demand for cheaper goods, and indiscriminate tourists create a further market. Thai workers have renowned skills in sewing and handicrafts, which can be applied to creating copies as easily as originals.
Recent cases involving the sale of counterfeit goods on eBay in the US and France might mean that counterfeiting is more strongly opposed by an unexpected party – the landlords who collect rent from shop owners selling the counterfeits. French law now has a precedent that eBay is responsible for the sale of counterfeit goods on its site, and French eBay has had to pay damages to major labels. Thailand business law could follow, with the landlords of malls, the equivalent of eBay in the French case.
Both French and US courts rejected the notion put forth by eBay, that they do not have any responsibility over what is being sold on their ‘premises’, whether that is virtual or real. In the US, the courts found that eBay was already taking sufficient measures to stop counterfeiting, while in France, the same measures were deemed to be insufficient. Thailand law firms and corporate legal services in Thailand like BSA Law and Baker and McKenzie could soon be seeing many clients taken to court for selling counterfeit goods who had no knowledge of this (landlords) – unless they start keeping a tighter rein on their tenants. BSA Law and other Thai law firms expect that if counterfeiting continues to have its insidious effect on the Thai economy, especially in these difficult times, the government will follow the example set in the West.
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