How to protect trade secrets in Thailand so the law will back you Under Section 3 of Thailand's Trade Secrets Act B.E. 2545 (2002), trade information is a trade secret only if it meets three tests: it is not generally known, it has commercial value because it is secret, and its controller has taken appropriate measures to keep it secret. Miss any one and it falls outside the definition. With clear evidence of infringement, the controller can ask the court for a temporary stop order and sue for an injunction and damages under Section 8.
A sauce maker had refined its recipe for ten years, but the file sat in a shared folder anyone could open and nobody had signed a confidentiality agreement. When the head of production left for a rival, an identical-tasting sauce appeared on shelves within months. The owner's lawyer warned the case would be hard, because the company had little proof it had ever kept the recipe secret.
What you need to know
The 5 points that matter most, drawn from the law and guidance cited at the end of this guide. Read just this part and you can decide your next move.
- A trade secret must be not generally known, commercially valuable because it is secret, and protected by appropriate secrecy measures (Section 3).
- Trade information includes formulas, patterns, compilations, programs, methods, techniques and processes, in any form.
- Infringement means disclosing, taking or using the secret without the owner's consent in a way that goes against honest commercial practice (Section 6).
- Breach of contract and breach of confidence both count as practices contrary to honest commercial practice.
- You can ask the court for a temporary order before filing suit, but you need clear evidence (Section 8).
How to do it in 7 steps
Work through these 7 steps in order. Each one is written so a team in a Thai organisation can act on it without waiting for a consultant, and keep the evidence an auditor will ask for.
- Identify what your trade secrets areList the information that gives you an edge because rivals do not know it, such as formulas, production processes, source code or data you have compiled, and name an owner for each item.
- Label and classify confidential materialA good practice is to mark secret documents and files “Confidential” and keep them apart from everyday information, so everyone knows what needs care.
- Limit access to people who need itA good practice is need-to-know access, individual logins or permissions, and a record of who viewed or copied what and when.
- Have everyone with access sign an NDASign confidentiality agreements with employees, contractors and partners before you disclose anything, because Section 6 treats breach of contract as a practice contrary to honest commercial practice.
- Remind people when they join and when they leaveA good practice is to explain confidentiality duties on day one and, when someone leaves, collect documents, revoke access and restate the obligations in writing.
- Keep evidence of every measureKeep signed agreements, access logs and proof of access restrictions where you can find them, because Section 8 requires clear evidence before the court will act.
- Move fast on a leakCall a lawyer at once about asking the Intellectual Property and International Trade Court for a temporary order, which can come before a suit for an injunction and damages.
What counts as a trade secret under Thai law?
Trade information that is not generally known or accessible among people who normally deal with it, has commercial value because it is secret, and is protected by appropriate measures taken by its controller, under the definition in Section 3 of the Trade Secrets Act B.E. 2545 (2002).
Trade information is defined broadly: anything that conveys a statement, story or fact, by any means and in any form, including formulas, patterns, compilations, programs, methods, techniques and processes.
What counts as trade secret infringement in Thailand?
Disclosing, taking or using a trade secret without the owner's consent in a way that is contrary to honest commercial practice, where the infringer knows or has reason to know that it is, under Section 6. Practices contrary to honest commercial practice include:
- Breach of contract.
- Breach of confidence, or inducing someone to breach a confidence.
- Bribery, threats or fraud.
- Theft or receiving stolen property.
- Espionage, whether by electronic or any other means.
What can you do if someone steals your trade secret?
With clear evidence that someone is infringing or about to infringe, the controller of the trade secret may ask the court for a temporary order to stop or refrain, and may sue for an order prohibiting the infringement and for damages, under Section 8.
The temporary order can be sought before the lawsuit is filed. The court under this Act is the Intellectual Property and International Trade Court.
What are appropriate measures to keep information secret?
Section 3 requires appropriate measures but does not list them. A good practice is several layers of protection, each one backed by documents you can show.
- Confidentiality agreements signed by employees, contractors and partners.
- Need-to-know access with access logs.
- Confidential labels on documents and files.
- An exit routine: return documents and revoke access.
Common problems and how to fix them
Most organisations slip on the same 4 points. The table shows how to fix each one yourself, and how AIPDPA gets it done faster with the evidence in place.
| Problem | Fix |
|---|---|
| ✗ Keeping recipes or key data in a folder anyone can open. | ✓ Section 3 requires appropriate secrecy measures. Restrict access to those who need it and switch on access logs, then use AIPDPA's IP register to record which employees have signed IP agreements. |
| ✗ No confidentiality agreement with employees or contractors. | ✓ Section 6 treats breach of contract as contrary to honest commercial practice, so the contract is key evidence. Use AIPDPA's Thai and English NDA templates, to produce ready-to-use agreements in minutes. |
| ✗ Sharing information with a prospective partner without a contract. | ✓ A good practice is to have the partner sign an NDA before you send anything, and to share only what is needed. Approved documents in AIPDPA carry a QR code to verify them, so you can prove which version was actually agreed. |
| ✗ Discovering a leak with no record of who had access or who signed what. | ✓ Section 8 needs clear evidence before the court will grant a stop order. Keep signed agreements and access logs from day one, and log the case with its documents in AIPDPA's IP register. |
Have your trade secret evidence ready before you need it
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Frequently asked questions
The questions people search for most on this topic. Each answer is short, direct and stands on its own.
What is a trade secret under Thai law?
Trade information that is not generally known, has commercial value because it is secret, and is protected by appropriate secrecy measures, under Section 3 of the Trade Secrets Act B.E. 2545 (2002).
Can a recipe or a customer list be a trade secret in Thailand?
Yes, if it meets the three tests in Section 3, because trade information includes formulas and compilations.
Is it illegal for an ex-employee to use our formula at a new company?
It can be infringement under Section 6 if they disclose or use it without the owner's consent in a way contrary to honest commercial practice, such as breach of contract or breach of confidence, and they knew or had reason to know it.
Can I get a court order to stop a trade secret leak before suing?
Yes. Section 8 lets the controller ask the court for a temporary order to stop or refrain from infringement before filing suit, provided there is clear evidence.
Which court hears trade secret cases in Thailand?
The Intellectual Property and International Trade Court, as defined in Section 3 of the Trade Secrets Act B.E. 2545 (2002).
Can I claim damages for trade secret theft in Thailand?
Yes. Section 8 allows the controller to sue for an order prohibiting the infringement and for damages from the infringer.
Sources
This guide relies on 3 sources. Statutes are cited by section or clause; guidelines and standards are guidance, not law.
- Trade Secrets Act B.E. 2545 (2002), Section 3
- Trade Secrets Act B.E. 2545 (2002), Section 6
- Trade Secrets Act B.E. 2545 (2002), Section 8
The law cited here comes from AIPDPA's legal knowledge base, transcribed from the Royal Gazette · This is general information; if your situation has unusual facts, our lawyers can review it with you.
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Who stands behind this guide?
Written by the AIPDPA legal team · Content owner: Phuwara Krobtaku, Attorney-at-law · Thai Barrister-at-Law · technology & intellectual property counsel
Lawyer's licence no. 477/2558 · Thai Barrister-at-Law · LL.M. in Intellectual Property & IT Law (Gold Medal)
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