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Trademark Squatting in Thailand: How Foreign Brands Fight Back

Q: Is trademark squatting illegal in Thailand?

There is no standalone offence called trademark squatting in Thailand. However, a bad-faith registration can be cancelled, and the genuine owner can pursue infringement and passing-off remedies. The Luckin Coffee rulings confirm that Thai courts will act against squatting where the evidence supports a better right.

Q: Can a foreign company recover a mark already registered by a squatter?

Often yes. Depending on the timeline, the owner may file an opposition, seek cancellation before the Board of Trademarks, or bring a better right petition. Recovery is more likely with strong evidence of international reputation and the squatter's knowledge of the brand.

Trademark squatting in Thailand has quietly cost foreign brands market share, negotiating leverage, and sometimes the right to use their own name in the Kingdom. Because Thailand grants trademark rights to the first party to file, opportunists can register a well-known foreign brand before the genuine owner arrives. A recent landmark appellate ruling, however, has reshaped the outlook. In July 2026, Thailand’s Court of Appeal for Specialized Cases affirmed a judgment recognising the trademark-squatting principle for the first time and awarding unusually large damages. For international businesses, the decision is both a warning and an opportunity.

What Is Trademark Squatting in Thailand?

Trademark squatting occurs when a third party registers a brand it does not own, usually to sell it back, block market entry, or trade on the brand’s reputation. In Thailand, the practice thrives because registration, not use, creates ownership. A local applicant can therefore secure a foreign company’s mark long before that company files anything itself.

The consequences are commercial, not merely legal. A squatter may demand payment to release the mark, launch look-alike products, or force the real owner to rebrand at considerable expense. Consequently, foreign investors who treat trademark protection as an afterthought often discover the problem only when they attempt to launch.

Why Thailand’s First-to-File System Fuels Trademark Squatting

Thailand applies a first-to-file system under the Trademark Act B.E. 2534 (1991). In practice, the Department of Intellectual Property grants the registration to whoever files first for a given mark and class. Moreover, an applicant does not need to prove prior use in commerce to obtain a registration. This efficiency benefits legitimate businesses, yet it also lowers the barrier for bad-faith filers.

By contrast, common-law jurisdictions often reward the party that used the mark first. Foreign owners accustomed to that logic frequently assume their global reputation protects them automatically. It does not. Instead, protection in Thailand generally begins with a Thai filing, which makes early registration the single most effective defence against trademark squatting.

Key TakeawayOwnership in Thailand follows the filing date, not the first use. Foreign brands should file their core marks in the relevant classes before, or immediately upon, entering the market, and ideally before any public announcement of expansion plans.

The Luckin Coffee Ruling: A Landmark Against Trademark Squatting

The clearest signal that Thai courts will confront trademark squatting comes from the Luckin Coffee litigation. The dispute drew wide attention after a Thai party registered marks closely associated with the Chinese coffee chain and operated look-alike outlets. Earlier rounds of litigation between 2021 and 2023 produced mixed results and raised doubts about how well Thailand protected legitimate foreign brand owners.

In March 2025, the Central Intellectual Property and International Trade Court (the IP&IT Court) issued a decisive judgment in the brand owner’s favour. The court cancelled the disputed registrations, imposed a permanent injunction against use of the name and the associated logo, and awarded substantial damages, figures reported to be unusually high for a Thai trademark case. The IP&IT Court later recognised the decision among its distinguished judgments of 2025.

The defendants appealed, as most losing parties may. On 8 July 2026, Thailand’s Court of Appeal for Specialized Cases affirmed the first-instance judgment in its entirety. Significantly, this became the first Thai case to formally recognise the trademark-squatting principle and to apply the “better right” doctrine, confirming that the genuine brand owner held the superior right to the mark. The appellate court also upheld the substantial damages, offering rare guidance on how to assess harm from systematic squatting.

Key TakeawayThe affirmed judgment shows that Thai courts will cancel bad-faith registrations and award meaningful damages. Nevertheless, outcomes remain fact-specific, and success still depends on strong evidence of reputation, prior rights, and the squatter’s bad faith.

The “Better Right” Doctrine Under the Trademark Act

The legal foundation for challenging trademark squatting in Thailand sits largely in Section 67 of the Trademark Act. Under that provision, a person who can prove a better right to a mark may petition the IP&IT Court to cancel a conflicting registration. The petition must generally be filed within five years of the registration date, so timing matters.

Historically, Thai case law required the genuine owner to show that its mark was well known and used in Thailand before the squatter filed. The Luckin Coffee decisions build on that framework and demonstrate how a foreign owner can meet the standard with disciplined evidence, including proof of international reputation, cross-border use, and the local party’s awareness of the brand. As a result, foreign businesses now have a clearer template for asserting a better right. Thai courts have handled other high-profile brand disputes involving international owners, as our analysis of the Louis Vuitton Molly Tea case illustrates.

How to Challenge a Squatted Mark: Available Routes

Foreign brand owners are not limited to a single remedy. Depending on the stage of the squatter’s application or registration, several routes may apply. The table below summarises the main options.

Route	When it applies	Forum
Opposition	Within 60 days of the mark’s publication, before registration is granted	Registrar, Department of Intellectual Property
Cancellation before the Board of Trademarks	Against a registered mark, on grounds such as non-distinctiveness or prohibited features	Board of Trademarks
“Better right” petition (Section 67)	Within five years of registration, where the petitioner proves superior rights	IP&IT Court
Infringement and passing-off action	Where the squatter uses the mark commercially and causes damage	IP&IT Court

Each route carries different evidentiary demands and deadlines. Therefore, an early assessment of the strongest available path, ideally before the five-year window closes, materially improves the odds of recovering the mark.

How Foreign Brands Can Prevent Trademark Squatting in Thailand

Prevention remains far cheaper than litigation. Foreign businesses can reduce their exposure to trademark squatting in Thailand through a few disciplined steps:

File early and broadly. Register your core marks, including Thai-script and transliterated versions, across all relevant classes before you announce or launch.
Cover the whole brand. Protect logos, product names, and slogans separately, because squatters often target the elements you leave unregistered. Related risks, such as ambush marketing in Thailand, deserve attention too.
Use international filing tools. Consider the Madrid System administered by WIPO to extend protection to Thailand efficiently from your home registration.
Watch the register. Use a trademark watch service to detect suspicious filings early, while opposition remains available.
Keep evidence of reputation. Retain dated proof of use, marketing, and sales in Asia, since a “better right” claim depends on it.
Act quickly. Challenge conflicting filings promptly, because deadlines such as the five-year cancellation window are strict.

Key TakeawayA modest upfront investment in Thai registrations and monitoring almost always costs less than buying back a squatted mark or litigating for years to recover it.

Frequently Asked Questions

Is trademark squatting illegal in Thailand?

There is no standalone offence called “trademark squatting” in Thailand. However, a bad-faith registration can be cancelled, and the genuine owner can pursue infringement and passing-off remedies. The Luckin Coffee rulings confirm that Thai courts will act against squatting where the evidence supports a better right.

How does the “better right” doctrine work?

Under Section 67 of the Trademark Act, a party that proves a superior right to a mark may ask the IP&IT Court to cancel a conflicting registration, generally within five years of the registration date. The petitioner usually needs to show prior use, reputation, and the registrant’s bad faith.

Can a foreign company recover a mark already registered by a squatter?

Often, yes. Depending on the timeline, the owner may file an opposition, seek cancellation before the Board of Trademarks, or bring a “better right” petition. Recovery is more likely with strong evidence of international reputation and the squatter’s knowledge of the brand.

How long do I have to challenge a squatted trademark in Thailand?

Deadlines vary by route. Opposition must be filed within 60 days of publication, while a “better right” cancellation petition under Section 67 must generally be filed within five years of the registration date. Acting early preserves the widest range of options.

What is the best way to prevent trademark squatting in Thailand?

File your marks in Thailand early, cover all relevant classes and brand elements, register Thai-script versions, and monitor the register for suspicious filings. Early registration under the first-to-file system is the most reliable protection.

Protect Your Brand in Thailand

Lex Bangkok advises international companies, investors, and brand owners on trademark strategy, registration, and enforcement across Thailand. Whether you are entering the market or confronting a squatter, our lawyers can secure and defend your most valuable assets.

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This article is for general information only and does not constitute legal advice. Court outcomes depend on the specific facts and evidence of each case. For advice on a particular matter, please consult qualified Thai counsel.