The Cost of IP Neglect: A Case Study in Brand Loss

In 2021, a successful European coffee chain planned to open 10 stores in Bangkok. They had their equipment, their leases, and their marketing ready. They had not, however, checked the Thai trademark registry.

 

The Discovery

Three months before launch, they received a "Cease and Desist" letter. A local individual had registered their exact logo and name in Thailand two years prior, knowing the brand was expanding globally.

 

The Result

• The Legal Battle: They spent 18 months in the Intellectual Property Court.
• The Settlement: They eventually had to pay the "squatter" hundreds of thousands of dollars to buy back their own name.
• The Lesson: In Thailand, being "internationally famous" does not grant you automatic trademark rights.

 

How the Squatter Won

The squatter had done nothing clever—Thailand's registry grants rights to the first to file, and examiners are not required to ask whether an applicant is targeting a brand that is famous somewhere else. From that day on, the burden of proof sat with the coffee chain. Opposition and court proceedings take years, while the registered holder can lawfully license the mark, sell it, or simply sit on it and let the price rise. Every month of delay strengthened the squatter's negotiating position.

 

Your Direct Action

Search the Thai DIP database today. If your brand is available, file the application immediately. The cost of a few thousand THB in filing fees is nothing compared to the cost of a multi-million THB rebranding or a settlement with a squatter.

 

The Checklist That Would Have Saved Them

• Search the registry in every class relevant to your business, not just the obvious one.
• File before your first public marketing activity in Thailand—not before your first store opening.
• Register the Thai-script version of the brand, not only the English name and logo.
• Put a watching service in place, so conflicting filings are caught early enough to oppose cheaply.

 

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Related Service: Company Registration & Legal — IP due diligence and anti-squatting strategies.