The recent intensification of U.S. tariffs—particularly those aimed at Chinese-origin goods—has disrupted global trade dynamics and inadvertently impacted the ecosystem of intellectual property rights (IPR) enforcement. For Thailand, a country strategically situated within the ASEAN trade bloc and increasingly reliant on exports, these tariff actions present indirect but serious implications for the integrity of IP protections. Indeed, the indirect consequences are likely to be substantial, particularly for IPR holders. The emergence of transshipment fraud, a surge in grey and counterfeit goods, and the realignment of global supply chains have created new vectors for IPR infringement.

Thai rights holders, legal practitioners, and policymakers must now confront the challenge of safeguarding intellectual property in an increasingly complex and adversarial trade environment.

This article examines the legal dimensions of this issue from the perspective of Thai IPR stakeholders. It provides insights into the evolving enforcement landscape, the role of customs and legal reforms, and strategic responses that rights holders and IP practitioners must adopt in light of the geopolitical shift.

1. Likely Impacts of U.S. Tariff Increases on IP Protection

A. Surge in Transshipment and Origin Laundering

The imposition of steep tariffs—some exceeding 100%—on Chinese goods has already in the past incentivized exporters to reroute shipments through third countries like Thailand. Known as origin laundering or transshipment fraud, this practice increases the risk that counterfeit or infringing goods enter global supply chains disguised as legitimate Thai exports. This undermines customs integrity, strains inspection capacity, and exposes Thailand to scrutiny under WTO rules and bilateral agreements.

Legal implications include:

• Complicity in Trade Circumvention: Under WTO obligations and preferential agreements, knowingly or negligently facilitating the entry or exit of mislabeled goods can violate origin rules.
• Customs Liability: Inadequate enforcement exposes Thai customs authorities to potential bilateral trade disputes and investor mistrust.

B. Rise in Grey and Counterfeit Goods

The artificial inflation of product prices caused by U.S. tariffs is further creating a demand vacuum, which counterfeiters and unauthorized distributors have already rushed to fill. Thai IP rights holders face mounting threats from:

• Grey Market Diversions: Genuine products imported without authorization, undermining exclusive distribution rights.
• Trademark Infringement and Brand Dilution: Counterfeiters exploit the market gap, especially in apparel, electronics, and automotive parts, leading to consumer confusion and erosion of brand value.
• Reputational Harm and Legal Exposure: Thai-origin counterfeit goods—even when produced elsewhere—can lead to reputational damage and affect licensing relationships in the U.S. and EU.

C. Increased Pressure on Enforcement Infrastructure

Last but not least, increased U.S. tariffs are likely to increase pressure on Thailand’s border control, customs, and IP enforcement agencies which already face mounting pressure to identify infringing goods within increasingly complex global supply chains.

There is a growing need for more manpower, advanced technologies (e.g., AI-powered shipment screening) and better cross-border cooperation with customs authorities.

2. Rise in Counterfeit and Grey Market Goods: Enhancing First-Line Defenses and protection strategies

In response to these challenges, Thai IP owners and their legal advisors should pursue multi-tiered strategies involving registration, enforcement, and contractual safeguards.

A. Strengthen International IP Protection

• Madrid Protocol and PCT Filing: Ensure trademarks and patents are filed under multilateral systems for broader protection and easier enforcement abroad.
• U.S. and EU Registrations: Secure direct registrations in key markets to facilitate enforcement at borders and online platforms.

B. Bolster Customs Enforcement

Utilize Thai Customs IPR Recordation System (TCIRs): Record trademarks and copyrights with customs to trigger automated alerts and enable preemptive detention of suspected infringing goods.

Introduced in 2022, TCIRs enables rights holders to proactively record their registered IP with customs authorities. This system aligns with TRIPS Article 58 and enhances customs’ ability to identify, seize, and investigate infringing consignments.

Key features include:

• Registration of Trademarks/Copyrights
• Digital Notification of Suspicious Shipments
• Mandatory Response Deadlines

Participate in customs and IP enforcement authorities training programs: Work with customs to conduct training on product authentication and expand cooperation on investigations.

C. Implement Robust Licensing and Distribution Agreements

• Define Territorial Boundaries Explicitly: Ensure contracts restrict unauthorized exports that could end up in grey markets.
• Add Audit and Reporting Clauses: Allow licensors to monitor distributor compliance.
• Specify Governing Law and Jurisdiction: Secure Thai or international arbitration forums for quick dispute resolution.

D. Monitor and Enforce Online

The rise of e-commerce and social media marketing for counterfeit goods demands aggressive online enforcement. Thai legal counsels are now well versed in:

• Digital Market Surveillance: Monitor e-commerce platforms and social media for unauthorized use of IP.
• Takedown Procedures: Use domestic legal tools and foreign laws (e.g., U.S. DMCA) to remove infringing content.
• Collaboration (MoUs) with e-commerce platforms such as Lazada and Shopee
• Private investigation and data analytics to trace digital infringers

E. Prepare for Cross-Border Disputes and Enforcement

• Evidence Preservation Protocols: Document infringement activities, maintain records of legitimate supply chains, and collect forensic evidence.
• Coordinate with IP counsels in foreign jurisdictions so as to align enforcement actions and legal strategy.

The confluence of heightened U.S. tariffs and Thailand’s strategic role in regional trade has created a new battleground for IP enforcement. For Thai IP owners and practitioners, the road ahead demands heightened vigilance, innovation, and international cooperation.

A multi-pronged approach—combining robust domestic enforcement, contractual safeguards, international IP registration, and digital surveillance—will be essential.

As the global trade order evolves, Thailand’s ability to adapt its legal infrastructure and enforce IP rights effectively will be pivotal in increasing its role as a trusted, rights-respecting economy in South-East Asia.