Irrevocable Letter of Credit Payment Dispute and Copyright Infringement
Red brought the traditional Thai song Bat and Monkey (Khaang Khaao Gin Gluay), which had expired copyright, and recreated it by hiring musicians and singers to perform and record it on CDs, selling them for 200 baht per CD. He purchased CDs and observed the song s popularity, leading him to resell them. Specifically, Red hired White to master the CDs he purchased and sell them at 120 baht per CD. He also hired other famous musicians and singers to perform and sell the CDs at 120 baht per CD. Whether Red s actions constitute a violation of copyright law is addressed below. Although the song Bat and Monkey could be claimed by any party, Red s recreation, including hiring musicians and singers to record it on CDs as the creator of the song recorded on a tangible medium, aligns with the Copyright Act B.E. 2537 (1994) Sections 4, 15, and 19 (1). Red s taking of the CDs he owned to resell them is considered copyright infringement, as it is not a new creation, in accordance with the Copyright Act B.E. 2537 (1994) Section 15, 28 (5). The question of whether Red s hiring of musicians and singers to create the song without using his CDs constitutes a violation of his rights is also examined. Because the song Bat and Monkey is protected by copyright law, as outlined in the Copyright Act B.E. 2537 (1994) Section 19 (5), this action is considered a violation. Thai Rubber Co., Ltd. entered into a rubber sales contract with Hansen Co., Ltd. in China, executed on July 4, 2001. The contract stipulated payment by an irrevocable confirmed letter of credit (L/C) issued by Hansen Co., Ltd. through PR China Bank. PR China Bank contacted Bangkok Bank branches in Siam to confirm the L/C, which Bangkok Bank then notified Thai Rubber Co., Ltd. Thai Rubber Co., Ltd. had already made two installments according to the L/C for the goods. Subsequently, Thai Rubber Co., Ltd. issued a payment notice and delivered shipping documents to Bangkok Bank branches in Siam for the collection of the third installment of 500,000 US dollars, drawn on PR China Bank. PR China Bank ceased operations before Thai Rubber Co., Ltd. Hansen Co., Ltd. notified Bangkok Bank branches in Siam to suspend payment of the third installment due to concerns about the quality of the delivered rubber, as per the contract terms. Thai Rubber Co., Ltd. retains the right to demand payment for the third installment and delivery of the goods. The Letter of Credit (L/C) opened by the buyer according to the sales contract is a confirming and revocable credit. Because Bangkok Bank notified the seller confirming the L/C, Bangkok Bank is bound to pay the seller according to the terms of the L/C. This aligns with the principles of Uniform Customs and Practice for Documentary Credits (UCP) 1993, which is a customary practice in documentary credits. Since the seller and the shipper delivered shipping documents according to the terms specified in the L/C, Bangkok Bank has the duty to pay the seller according to the L/C, even if Bangkok Bank has ceased operations or cannot pay according to the draft. Red is pursuing a criminal case in the Criminal Court.