Penalties for Trademark Violation in UAE Raised to Dh1 Million

As part of broader restrictions on intellectual property (IP) rights, the UAE increased the penalty for trademark violation to Dh1 million. The increased sanctions are necessary because the UAE intends to completely eradicate all such infractions.

Now, everyone connected with the protection, registration, or prevention of trademark infringement is covered by IP laws, including investors and owners of international businesses, owners of UAE projects and companies, authorised registration agencies, lawyers, and other legal service providers. Additionally, it will benefit designers, gifted investors, concerned state and local government agencies, and nonprofit groups.

The law will also apply to "new categories" of trademarks, including those including scent, sound, and holograms. These are in accordance with Cabinet Resolution No. 57 of 2022 and Federal Law No. 36 of 2021 regarding trademarks.

Local and international protection
● Those who wish to apply for international registration of their brands must register in the UAE first and then submit an international application.
● The law offers protection in the country only to brands registered in the UAE. As for those who wish to receive international protection for their brands, they must register by applying in accordance with the protocol relating to the Madrid Protocol, or by applying directly to the desired country if it is not a member of this agreement.

Abdulaziz Alnuaimi, Assistant Undersecretary in the Commercial Affairs Regulation Sector at the Ministry of Economy said, “The Federal Law no. 36 of 2021 concerning trademarks is a new legislative step towards enhancing IP protection in the UAE. The law establishes major rules for trademark owners within a barrier-free environment that promotes creativity and innovation. It guarantees the growth and prosperity of their businesses, and meets the aspirations of the country to transition into a sustainable, leading global economy based on knowledge."

What the new regulations mean for businesses and individuals?

The law intends to prevent all types of commercial fraud, raise the standard of goods sold on the UAE market, and increase the economy's allure by attracting top international businesses and brands;

The regulation also intends to promote and strengthen Emirati brands and guarantee their worldwide competitiveness;

In light of the modern technologies employed in creating corporate trademarks, it provides them with additional flexibility to adapt unconventional trademark patterns and gives them legal protection.

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