Under pressure particularly from the USA, the government in Thailand has now prepared a draft of its proposed Patent Act (no 2) BE 2535 (1992) which, as far as the international pharmaceutical industry is concerned, has been greeted with mixed feelings.
Overall, the draft appears to comply with most of US Trade Representative Carla Hills' demands, and should avoid Thai-land being subjected to punitive action under Special 301 of the US trade law. A particular requirement of Thailand's patent legislation was that it should cover pharmaceuticals, food, drinks, biotechnology and agricultural machinery.
As far as the drug sector is concerned, the draft includes a 20-year patent term provision and the possibility to claim for damages in the event of patent violations. And it clarifies the situation on "local working," in that it refers to the possibility of compulsory licensing if the patent has not been applied without legitimate reason, or that no product manufactured under the patent is sold in the domestic market.
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