Laos has updated its Intellectual Property (IP) Law, introducing significant changes that impact how international businesses—especially SMEs—operate in the country.
The 2023 Law on Intellectual Property marks a critical step in aligning the Lao IP framework with international standards. With a focus on enhancing protection and improving the business environment, the updated law brings opportunities—but also new responsibilities—for SMEs operating in or entering the Lao market.
This article outlines the key updates introduced by the 2023 Lao Law on Intellectual Property and what they mean for international SMEs looking to safeguard their IP rights when doing business in Laos.
A Brief History of IP Law in Laos
Laos has been gradually developing its intellectual property landscape since enacting its first comprehensive Law on Intellectual Property in 2007. That law laid the foundation for protecting various IP rights, including trademarks, patents, industrial designs, and copyrights.
Over the years, amendments have addressed emerging challenges and kept pace with global developments. The most recent amendment—the 2023 Law on IP—was published in the Lao official gazette on March 1, 2024, and introduces several important updates.
Key Changes in the Latest IP Law
1. Trademarks: Simplified Recognition of Well-Known Marks
One significant update relates to the recognition of well-known trademarks. Previously, trademarks needed to be “widely recognized within the territory,” a phrase that lacked a clear definition and caused difficulties for foreign SMEs.
The new law removes vague terms like “territory” and “country” from the criteria. Now, global recognition and product circulation can be used to establish a mark as well-known in Laos. This is a welcome change that helps reduce the risk of trademark squatting. However, the law still leaves some uncertainty about the specific criteria required for a trademark to qualify as well-known.
2. Mandatory Trade Name Registration
Under the new law, trade names must be registered to receive legal protection against third-party infringement. This is a change from the previous regime, which did not require registration.
For international SMEs, this means it is now essential to formally register business names to prevent unauthorized use in the Lao market.
3. Clarified Disclosure Rules for Industrial Property Rights
The law clarifies public disclosure rules for patents and industrial designs. Previously, it was unclear what constituted public disclosure.
The 2023 update explicitly includes electronic media—such as websites and social media—as recognized forms of disclosure. This means SMEs must be especially mindful of how and when they share information about new designs or inventions online, as premature disclosure could impact their IP rights.
4. Introduction of the Concept of Exhaustion of Rights
The law introduces the principle of exhaustion of rights, meaning that once a product bearing a trademark is sold, the trademark owner can no longer control its resale or further distribution.
This has major implications for parallel imports—the practice of importing genuine goods for resale without the trademark owner’s permission. While Laos has previously tolerated parallel imports, the new law introduces contradictions. It allows rights to be considered exhausted after sale, yet also permits trademark owners to prevent unauthorized sale or import of their goods.
This ambiguity may require future clarification, and SMEs involved in cross-border or secondary sales should closely monitor how Lao authorities interpret this provision.
5. Expanded Copyright Protection
The updated law broadens the scope of copyright protection to include “other works of art” and electronic creations. This reflects the rising importance of digital content and ensures protection for online and multimedia works.
In addition, the protection period for applied art has been extended from 25 to 30 years, offering creators longer-term value for their designs.
6. Earlier Protection for Geographical Indications
Geographical indications (GIs) now receive protection starting from the filing date, rather than the registration date. This change provides earlier legal safeguards for SMEs whose products rely on distinct geographic qualities—such as specialty foods or agricultural goods.
7. Stronger Prohibition Against Unauthorized Use
A general prohibition against counterfeiting, unauthorized use, or modification of intellectual property for commercial purposes is now embedded in the law. This provision improves enforcement mechanisms and gives foreign SMEs clearer legal grounds to take action against IP infringement in Laos.
Conclusion
The 2023 Lao Law on Intellectual Property is a major step toward modernization and international alignment. Key benefits for international SMEs include:
- Simplified recognition of well-known trademarks
- Mandatory protection of trade names
- Clearer rules for public disclosure
- Broader copyright protection
- Earlier protection of geographical indications
That said, legal uncertainties remain—particularly in how authorities will interpret the exhaustion of rights provision and enforce protections around trademark and patent registration.
Understanding these developments is essential for any SME looking to expand operations into Southeast Asia, especially those in sectors like manufacturing, e-commerce, technology, and digital media.