Government Regulation no. 35 of 2024 on Franchises.

Criteria: Profitability
To demonstrate profitability, it must be proven by the following:

(a) The franchise business activity has been ongoing for at least 3 consecutive years; and

(b) Audited financial statements which recorded profits for the last 2 years.

Previously, franchisor was only required to demonstrate a minimum of 5 years of experiences and possess business strategies to address operational challenges (as evidenced by the franchisor’s ability to sustain and grow the business profitably).

Intellectual Property (IP) Rights: Registered or Recorded
In line with the fulfillment of franchise criteria, the relevant IP rights must have been registered (trademark) or recorded (copyright) and proof of registration must be included in the franchise offering prospectus. This stricter requirement no longer allows franchisor to apply for Franchise Registration Certificate or Surat Tanda Pendaftaran Waralaba (STPW) based on pending applications.

Franchise Term & Logo:
Individuals or business entities, without possessing a STPW, are prohibited from utilizing the term “franchise” in their agreements, business name and/or activities, and the display of the franchise logo.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

On 20 September 2024, the Ministry of Labour and Vocational Training (“MLVT”) issued Prakas 211/24 on the Determination of Minimum Wage for Workers in the Garment, Textile, Footwear (“GTF”), Travel Product and Bag Sectors (“Prakas 211”), to set a new minimum wage for 2025, which will be effective from 1 January 2025.

Under Prakas 211, workers in the above sectors will be entitled to the following new minimum wage:

  1. for regular workers, USD 208 per month; and
  2. for probationary workers, USD 206 per month.

Prakas 211 also sets out the minimum wage for piece rate workers. For such workers, the pay rate is determined based on their level of production and, if such production gives rise to a higher pay rate than the minimum wage, the workers will be entitled to such higher amount. However, if their production gives rise to a pay rate lower than the minimum wage, the employer must adjust the workers’ pay such that the total pay is at least equal to the minimum wage (USD 208 for regular workers and USD 206 for probationary workers).

The other benefits to which the workers in the GTF sectors are entitled remain unchanged, such as compensation for a transportation or accommodation allowance of USD 7 per month, an attendance bonus of USD 10 per month, a meal allowance of USD 0.5 per day (or one free meal per day) for workers who work overtime and a seniority bonus from USD 2 to USD 11 per month for workers in their second to the eleventh years of service.

Under the Law on Minimum Wage, which was promulgated on 6 July 2018, the key factors in determining the minimum wage include social considerations (such as inflation rates and living expenses) and economic considerations (such as productivity, competition, job market status and profitability of a particular industry). The discussions on the minimum wage are conducted on an annual basis, unless decided otherwise by the National Council on the Minimum Wages, and such minimum wage is determined by a Prakas issued by the MLVT.

Should you require any further information or legal support, please contact us at: [email protected].

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

Myanmar has made significant strides in enhancing its intellectual property frame work with the introduction of the Patent Law in 2019, marking a major milestone. Enacted on 1 June 2024, by the State Administration Council, this comprehensive legislation was soon followed by the release of the Patent Rules on 4 June 2024. This article, part of a series on IP laws in Myanmar, provides an overview of the new Patent Law and Rules, focusing on the registration process and the legal implications for inventors and businesses.

Download the article on below download button.

On 1 June 2024, the State Administration Council (“SAC”) enforced the Patent Law 2019 (“PL”). Subsequently, on 3 June 2024, the Supreme Court of the Union issued several notifications defining the jurisdiction of the Intellectual Property (“IP”) Courts and the procedures for adjudicating lawsuits under the PL. We have outlined these notifications below:

Notification No. 689/2024 and Notification No. (693/2024)

The Supreme Court of the Union will designate suitable locations for IP Courts and appoint judges to preside over criminal and civil intellectual property cases. It has granted the High Court of the Yangon Region the power and authority to act as the IP Court for the following cases:

  • Deciding applications challenging the Intellectual Property Agency’s licensing decisions, including requests for compulsory licenses. Individuals dissatisfied with the Agency’s decisions may appeal to the designated IP Court within 90 days of receiving the decision notice, which also covers decisions on damages.
  • Handling applications contesting the Agency’s appeal decisions.

Furthermore, the Supreme Court of the Union can grant power and authority to the IP Courts to hear appeals and revisions concerning judgments, orders, and decisions made within their jurisdiction. The Supreme Court has authorized the High Court of the Yangon Region to decide appeals and revisions of judgments, orders, and decisions issued by the IP Courts in civil cases.

Notification No. (690/2024)

The Supreme Court of the Union has authorized the Court of the Self-Administered Division, Courts of the Self-Administered Zones, and District Courts to handle criminal cases under the PL.

Notification No. (691/2024)

The Supreme Court of the Union has authorized the High Courts of the Region and State to decide appeals and revisions of any criminal judgments, orders, and decisions issued by the Courts of the Self-Administered Division, the Self-Administered Zone, and the District Courts under the PL.

Notification No. (692/2024)

The Kyauktada District Court, authorized by the Supreme Court of the Union as an IP Court, can handle:

  • Civil lawsuits for patent rights violations.
  • Civil lawsuits seeking damages under the PL, where applicants could appeal to the IP Court if the compensation offered by the Ministry is deemed inadequate.
  • Applications for provisional measures under the PL, such as preventive orders to prevent patent infringement and preserve evidence related to alleged violations.

Applicants must provide evidence of their patent rights and infringement, ensure measures are not misused and may need to identify alleged infringing goods. The court can revoke measures if civil proceedings are delayed, or no infringement is found. In urgent cases, ex parte provisional measures (temporary orders issued in the absence of the opposing party) can be issued and reviewed upon request by the respondent.

Notification No. (694/2024)

The procedures for adjudicating lawsuits under the PL have been established under the authority granted pursuant to the PL. This provision empowers the Supreme Court of the Union to create rules, regulations, notifications, orders, directives, and procedures concerning the judiciary to implement the PL’s provisions effectively.

Recent actions by Myanmar’s State Administration Council and Supreme Court have strengthened intellectual property enforcement under the Patent Law 2019. New notifications define courts handling IP cases and outline procedures for resolving disputes and appeals. These changes streamline legal processes, protect patent holders, and address infringement. Moving forward, these updates signal Myanmar’s dedication to enhancing its intellectual property framework, promoting legal certainty, and fostering innovation across sectors.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

We are pleased to announce that DFDL is extending its PRC network of collaborating firms through a cooperation agreement with Leaf, a distinguished law firm renowned for its expertise in Greater China, and offices in Shanghai, Beijing and Paris. Leaf’s Sino-European team has been recognized for its expertise on cross-border M&A transactions, corporate finance and fundraising. Leaf also has a significant cybersecurity and data protection law practice complemented by a team of technical experts. This collaboration initiative will strengthen DFDL’s European Desk and allow us to join a hub of professionals to coordinate work for Asian projects from Europe, both inbound and outbound, with a primary focus on European clients.

Established in 1994, DFDL is a leading international legal, tax and investment advisory firm with a robust presence across South-East Asia, boasting twelve offices across 10 countries including Bangladesh, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.  DFDL and Leaf are multi-awarded law firms highly recognized for their knowledge and understanding of the legal and regulatory landscapes within their respective markets.

We are looking forward to this cooperation to expand our business horizons and, most importantly, to ensure that we continuously deliver seamless service to our valued clients.

For additional information, please feel free to contact Guillaume Massin ([email protected]) and Bruno Grangier ([email protected]).