Thailand Integrated Circuit Layout-Design Law: Protection, Registration and Enforcement

Thailand integrated circuit layout-design law provides legal protection for the layout-designs of integrated circuits. The Protection of Layout-Designs of Integrated Circuits Act B.E. 2543 (2000) was enacted to encourage technological development, protect investment in semiconductor and integrated circuit design, and support the transfer of technology involving integrated circuit layout-designs.

Integrated circuit layout-designs often require substantial technical expertise, engineering work, financial investment and detailed design effort. At the same time, unauthorized copying may be possible at comparatively low cost through photography, reverse engineering or other technical methods. Thus, legal protection is crucial to protect creators, encourage innovation and support sustainable development in the integrated circuit industry.

Purpose of Thailand Integrated Circuit Layout-Design Law

The purpose of the Protection of Layout-Designs of Integrated Circuits Act is to protect creators of integrated circuit layout-designs by granting exclusive rights over protected layout-designs. The Act aims to promote innovation and investment by giving the right holder the exclusive right to reproduce, import, sell or distribute protected layout-designs, integrated circuits containing protected layout-designs, and products incorporating such integrated circuits for commercial purposes.

The Act also supports technology transfer by providing a legal framework for ownership, registration, licensing, assignment and enforcement of rights in layout-designs of integrated circuits.

Scope of Protection

The Protection of Layout-Designs of Integrated Circuits Act protects registered layout-designs of integrated circuits and grants exclusive rights to the right holder. The Act covers several key matters, including:

• The legal requirements for protectable layout-designs;
• Persons entitled to apply for protection;
• Eligibility of Thai and foreign applicants;
• Registration requirements and time limits;
• Duration of protection;
• Exclusive rights of the right holder;
• Exceptions to infringement;
• Annual fees and loss of protection for non-payment;
• Licensing and assignment of rights;
• Appeals and administrative procedures; and
• Criminal penalties and forfeiture of infringing products.

The Act is particularly relevant to businesses involved in semiconductor design, electronics manufacturing, chip development, hardware technology, advanced engineering, research and development, and technology commercialization.

Authorities Responsible for Integrated Circuit Layout-Design Matters

Several authorities are involved in the administration and enforcement of Thailand integrated circuit layout-design law, including:

Minister of Commerce

The Minister of Commerce is responsible for the administration of the Act. The Minister has authority to appoint competent officials, issue ministerial regulations, prescribe fees within the statutory limits, reduce or exempt fees, and regulate other matters necessary for implementing the Act.

Director-General of the Department of Intellectual Property (DIP)

The Director-General of the DIP has authority to issue decisions and orders under the Act. These powers include deciding disputes involving joint creators who seek to join an application for protection, ordering registration, issuing layout-design certificates, publishing registrations, notifying applicants to pay certificate and publication fees, and revoking registrations where the legal requirements are not met.

Layout-Design Board (Department of Intellectual Property)

The Layout-Design Board has advisory and appeal functions. The Board includes the Permanent Secretary of the Ministry of Commerce as chairperson and qualified experts in fields such as science, engineering, industry and law.

The Board advises the Minister on ministerial regulations, considers appeals against orders of the Director-General, considers other matters relating to layout-designs as assigned by the Minister, and performs other duties under the Act.

The Board may appoint subcommittees and may issue written orders requiring relevant persons to provide statements, documents or other materials necessary for consideration.

Competent Officials

Competent officials examine registration applications, review compliance with the legal requirements, investigate certain joint-creator issues, report to the Director-General for decision, and publish notices relating to the end of protection where annual fees and additional fees are not paid within the required period.

What is a protectable integrated circuit layout-design?

A layout-design of an integrated circuit may be protected and registered under the Act if it satisfies the statutory requirements. A protectable layout-design may include:

• A layout-design that has been independently created and is not generally known in the integrated circuit industry; or
• A newly created layout-design formed by arranging generally known components, interconnections, layout-designs or integrated circuits in a way that results in a layout-design not generally known in the integrated circuit industry.

The key issue is originality or non-commonness in the integrated circuit industry. A layout-design does not lose protection merely because it uses known elements, provided that the arrangement creates a layout-design that is not generally known in the industry.

Who may apply for protection?

The person entitled to apply for protection is generally the creator of the layout-design.

Where a layout-design is created by an employee or hired designer, the right to apply may belong to the employer or the person who commissioned the design, unless there is an agreement providing otherwise.

This issue is important for technology companies, manufacturers, research institutions and engineering businesses. Employment agreements, commissioning contracts and R&D agreements should clearly address ownership of layout-design rights and the right to apply for protection.

Eligibility of Applicants

A person applying for protection must satisfy one of the eligibility requirements under the Act. Eligible applicants may include:

• A Thai national;
• A juristic person with its head office in Thailand;
• A national of a country that is party to an international convention or agreement on integrated circuit layout-design protection to which Thailand is also a party; or
• A person with domicile or a real and effective business establishment relating to layout-design creation or integrated circuit production in Thailand, or in a country that is party to a relevant convention or agreement to which Thailand is also a party.

Therefore, foreign applicants should assess treaty eligibility, business establishment, ownership documentation and filing strategy before applying for protection in Thailand.

Registration Requirements and Filing Time Limits

Registration is important because exclusive rights under the Act arise after the layout-design has been registered and a certificate has been issued.

If the right holder has already commercially exploited the layout-design, whether in Thailand or abroad, the application for registration must be filed within two years from the date of first commercial exploitation.

If a layout-design has not been commercially exploited within 15 years from the date the layout-design was completed, it cannot be registered.

These deadlines are critical. Businesses involved in integrated circuit development should track creation dates, first commercial exploitation dates and product launch dates carefully.

Duration of Protection

Protection for an integrated circuit layout-design lasts for 10 years from the filing date of the registration application or from the date of first commercial exploitation, whether in Thailand or abroad, whichever occurs first.

However, protection cannot exceed 15 years from the date the layout-design was completed.

This means that both the filing date and the first commercial exploitation date may affect the term of protection. Businesses should therefore coordinate registration strategy with commercialization plans.

Exclusive Rights of the Right Holder

Once a layout-design has been registered and a certificate has been issued, the applicant obtains exclusive rights in the protected layout-design.

The right holder has the exclusive right to:

• Reproduce the protected layout-design;
• Sell the protected layout-design;
• Distribute the protected layout-design by any method;
• Import the protected layout-design;
• Sell, distribute or import integrated circuits containing the protected layout-design; and
• Sell, distribute or import products containing integrated circuits that incorporate the protected layout-design.

These rights apply to commercial exploitation of protected layout-designs, integrated circuits and products incorporating protected integrated circuits.

Exceptions to Infringement

The Act recognizes several exceptions where certain acts are not treated as infringement. The exceptions include:

• Reproduction for evaluation, analysis, research or education;
• Use of a layout-design created from analysis, research or study in an integrated circuit, or exploitation of a newly created layout-design resulting from such analysis, research or study;
• Reproduction for personal use without commercial purpose;
• Sale, distribution or importation of a protected layout-design or integrated circuit containing a protected layout-design where the person did not know or had no reasonable cause to know that it contained an infringing layout-design;
• Sale, distribution or importation of a layout-design or integrated circuit lawfully obtained from commercial exploitation by the right holder; and
• Sale, distribution or importation of a layout-design created independently by another person, even if it is identical to a protected layout-design.

These exceptions are important because the Act seeks to balance protection of right holders with legitimate research, analysis, personal use, good-faith transactions and independent creation.

Annual Fees and Maintenance of Rights

Annual fees begin from the second year of the protection period and must be paid within 60 days from the beginning of the second year and each subsequent year. If the annual fee is not paid within the prescribed period, the right holder must pay an additional fee equal to 30 percent of the annual fee.

If the annual fee and additional fee are not paid within six months from the end of the annual fee payment period, the right in the layout-design ends.

The right holder may also pay annual fees in advance in a single payment.

For businesses, fee monitoring is essential. Failure to pay annual fees may result in loss of rights even where the layout-design remains commercially valuable.

Licensing and Assignment

A right holder may license another person to use rights in the layout-design or may assign the rights to another person. A licence or assignment must be made in writing and registered with the Director-General. Where there are joint right holders, licensing or assignment requires the consent of all joint right holders.

These rules are important for semiconductor commercialization, technology transfer, joint development, manufacturing, supply chain arrangements, mergers and acquisitions, and cross-border licensing transactions.

Licence and assignment documents should clearly address scope of use, territory, exclusivity, royalties, sublicensing, confidentiality, technical information, improvements, enforcement rights, liability and termination.

Revocation of Registration

The Director-General may revoke a registration where the registered layout-design does not comply with the legal requirements. Revocation risk should be considered before filing and during enforcement. Applicants should ensure that ownership, eligibility, filing deadlines, design materials, commercial exploitation history and supporting documents are carefully reviewed.

Penalties and Liabilities Under Thailand Integrated Circuit Layout-Design Law

The Act imposes criminal penalties for certain violations, including 

Unauthorized Reproduction

A person who reproduces a protected layout-design without authorization from the right holder may be subject to a fine of 50,000 baht to 500,000 baht.

Unauthorized Importation, Sale or Distribution

A person who imports into Thailand, sells or distributes for commercial purposes a protected layout-design, an integrated circuit containing a protected layout-design, or a product containing such integrated circuit without authorization from the right holder may be subject to a fine of 20,000 baht to 200,000 baht.

False Statements in Registration or Rights Proceedings

A person who files an application or other document relating to registration, cancellation, assignment or licensing of layout-design rights by making false statements to competent officials or the Board may face imprisonment of up to six months, a fine of up to 100,000 baht, or both.

Failure to Comply With Board or Subcommittee Orders

A person who fails to comply with an order of the Board or a subcommittee requiring statements, documents or other materials may be subject to a fine of up to 5,000 baht.

Corporate Liability

Where an offender is a juristic person, the managing director, manager or representative of that juristic person may also be liable for the offence unless they can prove that they did not know of or consent to the offence.

Forfeiture and Destruction of Infringing Products

Where a court finds that a person has reproduced a protected layout-design or imported, sold or distributed an infringing layout-design, integrated circuit or product without authorization, the court must order forfeiture of infringing layout-designs, integrated circuits or products in the offender’s possession.

The court may also order destruction or other measures to prevent infringing products from being distributed again.

Where the infringing layout-design or integrated circuit has been removed from the infringing integrated circuit or product, the court may order forfeiture or other measures only in relation to the integrated circuit or product that continues to infringe the right holder’s rights.

Practical Considerations for Technology Businesses

Technology businesses, semiconductor companies, electronics manufacturers, and R&D organizations should treat integrated circuit layout-design protection as an important part of their intellectual property strategy. Before filing an application in Thailand, businesses should assess whether the layout-design meets the legal requirements for protection, including whether it has been independently created, is not commonplace in the integrated circuit industry, and whether the applicant is entitled to seek protection under the Act. They should also consider ownership issues, particularly where the layout-design has been created by employees, contractors, or under commissioning arrangements.

Businesses should also take into account the timing of any commercial exploitation, the applicable filing deadlines, and the maximum period of protection. Proper management of annual fees, licensing and assignment arrangements, and the preservation of evidence of infringement is equally important. As disputes involving layout-designs often require technical evidence and product analysis, obtaining legal and technical advice at an early stage can help reduce risks and strengthen the protection of intellectual property rights.

Integrated Circuit Layout-Design Protection as Part of Technology Strategy

For technology-driven businesses, intellectual property protection extends beyond patents, trademarks, and copyrights. Integrated circuit layout-design protection should also form part of a broader technology strategy, particularly for semiconductor companies, electronics manufacturers, and research and development organizations that invest in chip design and innovation. Protecting the original layout-design of integrated circuits can help preserve competitive advantages, prevent unauthorized copying, and enhance the commercial value of technological assets.

An effective technology strategy should integrate intellectual property considerations throughout the product development lifecycle. Businesses should identify protectable layout-designs at an early stage, establish clear ownership arrangements with employees and contractors, monitor filing deadlines, and develop appropriate licensing and commercialization strategies. By incorporating layout-design protection into their overall intellectual property management, businesses can better safeguard innovation, strengthen their market position, and reduce legal and commercial risks.

How We Can Help

At Skyinterlegal, we assist clients with intellectual property matters in Thailand, including integrated circuit layout-design issues, technology-related IP strategy, trade secret protection, licensing, assignment, evidence review, infringement assessment and enforcement planning.

Our legal and investigation background allows us to support clients with document review, ownership assessment, commercial exploitation timelines, evidence gathering, product comparison, supply chain review, technical fact investigation and dispute strategy.

For semiconductor, electronics, technology and R&D businesses, early legal review can help protect valuable layout-designs, reduce commercial risk and support effective enforcement in Thailand.

Contact Skyinterlegal today to discuss integrated circuit layout-design protection and related intellectual property strategy in Thailand.

Frequently Asked Questions

What does Thailand integrated circuit layout-design law protect?

The Protection of Layout-Designs of Integrated Circuits Act B.E. 2543 (2000) aims to protect registered layout-designs of integrated circuits that meet the legal requirements. Protection may cover independently created layout-designs that are not generally known in the integrated circuit industry, as well as newly arranged designs using known elements in a non-common way.

How long does layout-design protection last in Thailand?

Protection lasts for 10 years from the filing date or the date of first commercial exploitation, whichever occurs first. However, protection cannot exceed 15 years from the date the layout-design was completed.

Who can apply for integrated circuit layout-design protection in Thailand?

The creator of the layout-design may apply. In some cases, an employer or commissioner may have the right to apply where the design was created by an employee or hired designer, unless there is an agreement providing otherwise. Applicants must also meet the nationality, head office, domicile, business establishment or treaty-based eligibility requirements.

Is there a filing deadline after commercial exploitation?

Yes, if the layout-design has already been commercially exploited in Thailand or abroad, the application must be filed within two years from the date of first commercial exploitation.

What rights does the right holder have?

After registration and issuance of a certificate, the right holder has exclusive rights to reproduce, sell, distribute or import the protected layout-design, integrated circuits containing the protected layout-design, and products incorporating such integrated circuits for commercial purposes.

Are research and analysis allowed?

Certain acts are exempt, including reproduction for evaluation, analysis, research or education. A layout-design created from lawful analysis, research or study may also be used in certain circumstances, subject to the conditions under the law.

Can layout-design rights be licensed or assigned?

Yes, a right holder may license or assign layout-design rights. The licence or assignment must be made in writing and registered with the Director-General. Where there are joint right holders, consent from all joint right holders is required.

What are the penalties for infringement?

Unauthorized reproduction may result in a fine of 50,000 baht to 500,000 baht. Unauthorized importation, sale or distribution for commercial purposes may result in a fine of 20,000 baht to 200,000 baht. The court may also order forfeiture or destruction of infringing layout-designs, integrated circuits or products.