Why Trade Names Alone Do Not Protect Your Brand: Key Lessons from Dubai Cassation Judgment Nos. 920 & 941 of 2025

The intersection between trade names and trademarks continues to be one of the most misunderstood areas in intellectual property (IP) disputes.

Recently, a client approached us with a common concern: they had a valid trade name for their business but were confused about why they needed to register a trademark separately. They wondered whether their trade name alone could protect their brand in the marketplace.

This is a question many businesses face in the UAE, and it highlights a critical point: a trade name and a trademark are not the same, and each serves a distinct legal purpose. The Dubai Court of Cassation’s ruling on Appeal Nos. 920 and 941/2025, issued on 10 September 2025, clarifies these differences and reinforces the importance of proper registration for enforceable rights.

This judgment reinforces long-standing principles while offering fresh insight into the hierarchy of rights, the role of registration, and what businesses must do to secure enforceable IP protection.

1. Understanding the Distinction: Trade Name vs Trademark
   
   The Court reaffirmed that a trade name and a trademark are two distinct legal concepts:
   
   

Trade Name


A trade name is:
• the official name adopted by a merchant or company,
• used to distinguish their business or establishment,
• registered with the Department of Economic Development (DED).

The Court emphasised that a trade name is not automatically entitled to IP protection. It becomes legally protected only when: (1) it is registered with DED; and (2) it does not create confusion with existing trade names in the same commercial field.

Trademark

A trademark, by contrast, is:
• A sign, name, word, logo, or any element used to distinguish products or services,
• Intended to indicate commercial origin.

Its purpose is to differentiate goods or services in the marketplace, not the business entity itself.

2. When a Trade Name Can Become a Trademark
   
   The Court noted an important exception:
   A trade name may also function as a trademark, but only if it is original or has an innovative form.
   This means:
   
   • not every trade name qualifies as a trademark;
   • only those with distinctive character can serve dual functions;
   • and even if it qualifies, registration as a trademark remains mandatory.
   
   This principle is critical for businesses that rely solely on their trade name without securing trademark protection. The Court made it clear:
   Using a trade name as a trademark does not grant trademark rights unless registered.
   
   
3. Registration: The Cornerstone of Trademark Ownership
   
   The judgment strongly reinforced a key rule in UAE trademark law:
   Trademark rights belong to the person who first files the registration application.
   Once registered, the protection is deemed effective from the filing date, not the date of registration. This means:
   
   • filing early is crucial;
   • priority is based strictly on chronological filing;
   • use alone (without registration) is insufficient to establish ownership.
   
   This principle protects the UAE trademark system from disputes based on prior unregistered use, which may be recognised in some jurisdictions but not under UAE law.

4. Using a Trademark Without Registration Has No Legal Effect
   

   
   The Court emphasised that anyone who wishes to use a trademark:
   • for trading,
   • for offering goods or services, or
   • with the intention to do so,
   must apply for trademark registration with the Ministry of Economy.
   Failure to register can cause the following consequences:
   • deprives the user of legal ownership,
   • exposes the business to infringement liability,
   • prevents enforcement against counterfeiters,
   • and could even allow competitors to register the mark first.
   The message is clear:
   In the UAE, trademark rights arise from registration, not use.
   
   

5. Implications of the Ruling for Businesses
   
   This judgment provides important guidance for companies operating in the UAE:
   
   a) Register Your Trade Name, But Don’t Stop There
   Registering your trade name with DED protects your corporate identity, not your brand.
   
   b) If Your Trade Name Functions as a Brand, Register It as a Trademark Too
   A trade name with distinctive character may also serve as a trademark, but it must be registered as such to enjoy protection.
   
   c) Prior Use Does Not Create Rights
   Only the first filer gains ownership. Early filing is essential to avoid disputes.
   
   d) Avoid Confusion with Existing Names
   Businesses must ensure their trade name does not conflict with others in the same field.
   
   e) Trademark Registration Is a Legal Requirement for Enforcement
   Without registration, you cannot stop third parties or counterfeiters from using a similar mark.
   
   

Conclusion

A Reinforcement of the UAE’s Registration-Based System

The Dubai Court of Cassation’s 2025 judgment is a powerful reminder of the UAE’s strict registration-based IP framework. It confirms that:

• trade names and trademarks serve different legal functions;
• a trade name only enjoys protection if registered and non-confusing;
• trademark protection belongs to the first person to file;
• and businesses must register their marks to secure enforceable rights.

For companies operating in the UAE market, whether local or international, the takeaway is simple: registration is not optional; it is the foundation of brand protection.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.