Laos has recently updated its Intellectual Property (IP) Law, introducing significant changes that impact how businesses, particularly foreign SMEs, operate in the country. The 2023 Law on Intellectual Property (IP) represents a critical step towards aligning Laos’ IP regime with international standards, aiming to enhance protection and create a more business-friendly environment. This article provides an overview of the key changes introduced by the 2023 Law on IP and discusses their implications for foreign SMEs operating in Laos.
A Brief History of IP Law in Laos
Laos has been evolving its IP landscape since the enactment of its first comprehensive Law on Intellectual Property in 2007. This initial law laid the foundation for the protection of various IP rights, including trademarks, patents, industrial designs, and copyrights. Over the years, Laos has periodically amended this law to address emerging issues and to keep pace with global developments. The latest amendment, the 2023 Law on IP, was published in the Lao official gazette on March 1, 2024, and brings several noteworthy updates.
Key Changes in the Latest IP Law
1. Trademarks: Simplification of Well-Known Trademark Recognition
One of the significant updates in the 2023 Law on IP relates to the recognition of well-known trademarks. The previous law required that a trademark be widely recognized “within the territory” to be considered well-known, but the term was not clearly defined. This ambiguity often led to challenges for businesses, especially foreign SMEs, trying to establish their trademarks as well-known within Laos.
The 2023 Law on IP simplifies this process by removing the ambiguous terms “territory” and “country” from the criteria. Now, this global recognition and circulation of a product can be used to establish a mark as well-known in Laos. This change is expected to make it easier for foreign brands to secure protection for their trademarks, reducing the risk of trademark squatting—a practice where local entities register well-known foreign trademarks in bad faith. However, there is still some uncertainty about the specific criteria that must be met for a mark to be considered well-known.
2. Mandatory Trade Name Registration
Another critical update under the 2023 Law on IP is the requirement that trade names must be registered to receive protection against third-party infringement. Unlike the previous law, which did not mandate the registration of trade names, the new law makes it compulsory. This change is particularly important for foreign SMEs, as it ensures that their business names are protected against unauthorized use by third parties in Laos.
3. Industrial Property Rights: Clarified Disclosure Requirements
The 2023 Law on IP also brings clarity to the disclosure requirements for industrial designs and patents. Previously, the law required that an industrial design or patent must be new and not have been disclosed to the public. However, the means of public disclosure were not clearly defined.
The new law explicitly recognizes electronic media, such as websites and social media, as forms of public disclosure. For foreign SMEs, this means that they need to be more vigilant about the timing and nature of any public disclosures they make about their designs or inventions.
4. Introduction of Exhaustion of Rights
Perhaps the most notable addition in the 2023 Law on IP is the introduction of the concept of exhaustion of rights. Under this concept, the rights of a trademark owner are considered exhausted once a product bearing their trademark is sold. This means that the trademark owner cannot restrict the resale or use of the product after the initial sale.
This change has significant implications for parallel imports—the practice of importing genuine goods into a market and selling them without the permission of the trademark owner in that market. This means that the products may be legitimate, but they are not authorized to be sold in that particular market. While Laos has historically tolerated parallel imports, the 2023 Law on IP introduces potential conflicts that could affect this practice. For instance, while the law suggests that rights are exhausted after sale, it also allows trademark owners to prevent unauthorized use, sale, or import of goods bearing their trademark. This conflicting provision may require further clarification, and SMEs involved in parallel imports should closely monitor how these changes are interpreted by local authorities.
5. Expanded Copyright Protection
The 2023 Law on IP also expands the scope of copyright protection to include “other works of art” and electronic creations. This change reflects the growing importance of digital content in the global economy and ensures that various forms of digital art, including those created and shared online, are protected under Lao law. Additionally, the protection period for applied art has been extended from 25 to 30 years, providing creators with longer protection for their works.
6. Geographical Indications and New Protections
Another significant change under the 2023 Law on IP is the adjustment in the protection of geographical indications (GIs). Previously, the protection of a GI started from the date of registration. The new law changes this, so protection now begins from the filing date of the application. This update benefits foreign SMEs by providing earlier protection for their geographical indications, which is crucial for businesses that rely on the unique qualities of products linked to specific locations.
7. General Prohibition Against Unauthorized Use
The 2023 Law on IP introduces a general prohibition against the counterfeiting, modifying, or unauthorized use of intellectual property rights for commercial gain. This provision strengthens the enforcement of IP rights in Laos and provides clearer legal grounds for action against infringers. For foreign SMEs, this change is a welcome development, as it enhances the overall protection of their IP assets in the country.
Conclusion
The 2023 Law on Intellectual Property marks a significant step forward for Laos in its efforts to modernize its IP framework and align it with international standards. The changes introduced by this law offer several benefits for foreign SMEs, including simplified trademark recognition, expanded copyright protection, and earlier protection for geographical indications. However, challenges remain, particularly in the areas of trademark registration and enforcement, patent applications, and the interpretation of the new exhaustion of rights provisions.
As Laos continues to refine its intellectual property laws, navigating these changes effectively is crucial for foreign SMEs looking to protect their assets and thrive in this evolving market. Trustiics offers expert legal services tailored to the needs of SMEs, guiding you through the complexities of Laos’ 2023 Intellectual Property Law. Don’t leave your IP strategy to chance—partner with Trustiics to ensure your business is protected and positioned for success in Laos. Visit Trustiics today to connect with qualified legal professionals who understand the unique challenges of the Lao market and can help you safeguard your intellectual property rights.