The question nobody asks until it is expensive
Foreign founders setting up in Thailand usually treat incorporation and brand protection as separate errands — the company first, the trademark "when we have time".
By the time the trademark gets attention, three things have often already happened: the brand has been trading, a distributor has been appointed, and somebody has filed something.
This guide covers the structural decisions worth making before the incorporation papers are filed.
General information only, not advice on a specific matter. Money moving out of Thailand under a licence has tax consequences that must be modelled before signing — bring the draft licence to your tax adviser and to us together, and see our foreign investor guide.
1. The decision: who owns the mark
Offshore holding company owns it
- Keeps the brand out of the trading entity, which matters if that entity is sold, restructured or faces claims
- Keeps control with the founders where the Thai company has local shareholders
- Requires a licence chain down to the operating company, and cross-border payments if royalties are charged
The Thai operating company owns it
- Simpler; no licence chain, no cross-border royalty question
- Can sit better with promotion or local investment structures
- Ties the brand to an entity you may one day want to sell, restructure or wind down
There is no universally right answer. There is a universally wrong one: leaving it undecided while the brand starts trading.
2. What happens when nobody decides
Three failure patterns, all common, all avoidable:
- Founder-held marks. Registered in an individual's name because that was fastest. Becomes a problem at the first investment round, and a serious one if the founders later fall out.
- Agent- or distributor-filed marks. Your local partner registers "to help". They now hold leverage over your access to the market, most acutely on termination.
- Squatting. A third party files a mark matching yours before you do. Recovering it is possible but slow, costly and uncertain — and meanwhile your launch is blocked.
3. First-to-file, and what it means for you
Thailand works on a first-to-file basis. Rights here generally follow registration in Thailand, not use elsewhere.
Reputation built abroad can matter in a dispute, but relying on it is slower, more expensive and less certain than having filed.
Practical consequences:
- The filing decision belongs at the start of market entry
- File before appointing distributors, before trade shows, and before any public launch
- Consider the categories your business will actually need, including adjacent ones you plan to expand into
- Check what is already on the register before you commit to the name — a rebrand before launch is inconvenient; a rebrand after is expensive
4. Licensing the mark down to your Thai company
If an offshore entity owns the mark, the Thai company needs a written licence — and it should exist before revenue does.
What the licence should settle:
- Scope: which marks, which goods and services, which territory
- Exclusivity, and whether the Thai company can sub-license
- Quality control, which is what preserves the owner's control over the brand
- Term, termination, and what happens to stock and materials on termination
- Whether it is royalty-bearing, and on what basis
Two failure modes we see: no licence at all, and a licence signed years after the Thai company started using the mark. Both create problems on a future sale, an investment round, or a dispute with a local shareholder.
5. IP created by your Thai team
Do not assume ownership defaults to the company. The position differs between employees and independent contractors, and between categories of intellectual property. Contractors are where foreign companies most often find a gap — the designer who made the logo, the agency that built the packaging, the developer who wrote the app.
The reliable fix is contractual and cheap if done early:
- Assignment provisions in employment contracts
- Assignment in every contractor, agency and freelancer engagement, executed before work starts
- A record of what was created, when, and by whom
Retro-fitting an assignment after a relationship has ended is a negotiation, and the other side knows you need it.
6. What a diligence lawyer will look for later
When you seek promotion, raise investment or sell, the IP chain gets traced:
- Who owns each mark, and is the registration in the right name?
- Do the registrations cover the goods and services actually sold?
- Do licences exist, are they signed, and are they consistent with how the business actually operates?
- Are employee and contractor assignments in place?
- Are there disputes, oppositions or third-party rights that were never resolved?
Gaps found at that stage are fixed under time pressure with the other side aware of the weakness. Fixed at incorporation, the same work is routine.
7. Founder checklist before incorporation
- Decide who owns the mark, and write the decision down
- Search the register before committing to the name
- File in Thailand in the categories the business will actually use
- Never let a distributor or agent register in their own name
- Prepare the licence if an offshore entity will own it
- Put assignment clauses in employment and contractor templates from day one
- Keep a register of marks, filings, renewals and licences in one place
Summary
| Decision | Get it wrong and |
|---|---|
| Who owns the mark | It sits in the wrong entity when you sell or restructure |
| When to file | Someone else files first and blocks your launch |
| Distributor registration | Your partner holds leverage over market access |
| Licence to the Thai company | Goodwill accrues to an entity with no documented right |
| Employee and contractor IP | You do not own the logo, the packaging or the code |
All of this is cheap at incorporation and expensive at diligence. Nothing on this list gets easier by waiting.
We handle trademark filing and IP structuring alongside company formation, so the ownership decision is made once and documented properly. Initial consultation is free — call +66 92 254 2045 or send us the details. See also intellectual property services and company registration.
This guide is published by Suwanvara Law Firm — a Khon Kaen law firm established in 1986. General information only, not legal advice on a specific matter.