Scope of Enforcementof the Trademark Act B.E. 2534 in Parallel Imports: the Case Study of Benz Chang Wattana Co. Ltd.

Abstract

Parallel import is a trademark infringement. It is illegal. But if parallel import is banned, the market will be monopolized leading to an unfair competition.The study finds that Thailand deems parallel import of goods bearing the same trademark as a trademark infringement.This is because Thai courts focus their consideration in parallel import cases remarkably on the rights of trademark owners as to whether the rights of trademark owner are impacted by the parallel import or not. Moreover, the rights of trademark owner are considered from both domestic and international trademark registration certificates.The Supreme Court ordered Benz Chang Wattana Co. Ltd, the defendant, not to use the conflicted trade mark at all and to pay compensation to the plaintiff. The impacts of the Supreme Court’s decision towards Benz Chang Wattana Co. Ltd. were the close down of the company and the establishment of TSL Auto Corporation Co. Ltd. Furthermore, the impacts also made other parallel import companies in vehicle market denied to use
this conflicted trademark.