The establishment of a specialized court to resolve intellectual property and international trade disputes is critical for Thailand’s innovation-driven economy and participation in global trade partnerships. The specialized focus and expertise encourage innovation, protect creators, and promote fair trade practices.
Rather than proceeding through litigation, parties can opt to settle their dispute by engaging in bilateral negotiations or arbitration.
Litigation
The establishment of the Intellectual Property and International Trade Court underlines Thailand’s commitment to foster innovation, protect creators’ rights and ensure fair competition in global trade. The court provides a specialized forum to resolve trade disputes and instills confidence among innovators and businesspeople that their investments will be protected and they will have a level playing field with foreign businesses.
Litigation in trade disputes is common in the country, especially in the energy and mining sectors, although many contracts contain a structured Thailand dispute resolution clause that favors arbitration. Chandler MHM’s team of experienced lawyers has extensive experience in litigation before various Thai courts, including specialized courts such as the Administrative Court and the Intellectual Property and International Trade Court.
Our litigation team is also experienced in arbitration and mediation proceedings in accordance with the rules of the Thailand Arbitration Institute, International Chamber of Commerce, INCOTERMs, UNCITRAL Model Law on International Commercial Arbitration and ICC Arbitration Rules. We have handled arbitrations under a variety of commercial contracts and industrial agreements.
Arbitration
The parties to a contract may stipulate in advance that any dispute will be settled by arbitration. This stipulation can also be made after a dispute has arisen, although it is preferable to make such a determination at the time of contract preparation as it is generally easier and cheaper to settle a conflict by arbitration than to litigate it in court.
Arbitration is conducted in accordance with the arbitration law of Thailand, which is based on international law (UNCITRAL model law) and the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. In addition, the Thai Arbitration Institute has established its own set of rules governing arbitral disputes.
Weerawong, Chinnavat & Partners has extensive experience in representing clients from a range of sectors in arbitration proceedings before the TAI and HKIAC. Our team includes Phisit Dejchaiyasak, who advises on power and energy, investment, international trade and transport-related cases; and Sakchai Limsiripothong, who handles commercial, bankruptcy and administrative-related matters in TAI arbitrations.
Alternative Dispute Resolution
Alternative Dispute Resolution refers to the use of different case management mechanisms other than litigation. It is widely encouraged by courts and lawyers in Thailand as it provides a faster and cheaper way to settle disputes.
Almost all court cases in Thailand are required to go through mediation before a trial. Additionally, the department of labor also sends labor disputes to a trained conciliator to mediate between both parties.
The arbitration law in Thailand is based on the UNCITRAL model law on international commercial arbitration. The viability of an arbitration clause in a contract is guaranteed by this law, making it a viable option for settling disputes in Thailand.
Unlike the conventional method of dispute settlement through arbitration, which is a more adversarial process where one party wins and loses, the conciliation process allows both parties to settle disputes in a win-win manner. This leads to a more harmonious society and a reduction in the burden on the court system.
Mediation
Many disputes between businesses can be resolved through negotiation and mediation. Mediation is a method of dispute resolution that involves the assistance of an independent and impartial third party, such as a lawyer. It is a common practice in international commercial contracts.
It is a good alternative to litigation and can save both time and money. In addition, it allows the disputing parties to come up with a mutually satisfactory settlement. It also preserves relationships between the parties that may otherwise be destroyed by years of litigation.
Juslaws & Consult has extensive experience in handling disputes and arbitration proceedings with the Thailand Arbitration Center. We advise clients on how best to settle their disputes outside of the courts, including by incorporating arbitration and mediation clauses in their commercial contracts. This is an important consideration for foreign companies of all sizes and nationalities doing business in Thailand. It can minimize the risk of costly and time consuming litigation in unfamiliar jurisdictions.
