The Insolvency Execution with Patent and Trademark

Abstract

This research article aims to study the enforcement of debt repayment through patents and trademarks in bankruptcy cases. In Thailand, there are three major issues regarding bankruptcy enforcement: the knowledge and expertise of official receivers, valuation of intellectual property, and the auction process. This study uses qualitative research methodology through the review of books, academic articles, and in-depth interviews with experts.

The findings reveal that the Bankruptcy Act B.E. 2483 (1940) and related laws, including the Intellectual Property Valuation Manual by the Department of Intellectual Property, Ministry of Commerce, do not specify the qualifications required for official receivers to effectively manage patents and trademarks. Furthermore, no legal provisions guide alternative methods of asset sales in bankruptcy cases, despite Section 123 of the Bankruptcy Act B.E. 2483 allowing such sales with creditor committee approval. Although the valuation manual offers broad guidelines for assessing the value of patents and trademarks, the recommendations are too general, making practical application difficult.

The researcher recommends amending the Ministry of Justice’s Regulation on Bankruptcy Enforcement and Liquidation B.E. 2520 (1977) to include provisions for appointing assistant official receivers, defining their authority and duties, determining remuneration, overseeing procedures, setting financial guarantees, and establishing minimum qualifications. Moreover, the Intellectual Property Valuation Manual should be revised to better align with the specific characteristics of patents and trademarks.