Why would Thailand need to demand that when it is a California invention?
To be clear, there is no “Sriracha” sauce in Thailand. At best there is a spicy pepper and vinegar blend which some cuisine uses, but it’s nothing like the California-made Sriracha sauce, and it is not called Sriracha (or Sri Racha) AFAIK.
Where I live, a lot of SE Asian restaurants will give the original red dipping sauce for certain dishes which it is meant for, and it is nothing like Sriracha. Different pepper, different color, way sweeter, very little acidity.
Sriracha as you know it is a Los Angeles invention by an intrepid culinary entrepreneur. It resembles actual Thai sauce about as much as Kraft “American cheese” [sic] does a good English cheddar. (Although unlike this comparison, Sriracha arguably improved on the original.)