Trademark Licensing in the UAE Explained: Legal Requirements, Compliance Risks and Practical Guidance for Brand Owners

Trademark licensing is a strategic tool that enables trademark owners to expand brand reach, generate revenue and collaborate with partners while retaining control over their intellectual property. In the UAE, trademark licensing is regulated by Federal Decree-Law No. 36 of 2021 on Trademarks, and strict compliance with statutory requirements is essential to ensure legal enforceability.

This article provides an overview of trademark licensing in the UAE, outlining the legal framework, procedural steps and key considerations for businesses.

Legal framework for trademark licensing in the UAE

Under UAE law, licensing a trademark is subject to several mandatory conditions:

• Registered trademark requirement: Only trademarks registered with the UAE Ministry of Economy (MoE) may be licensed.
• Written and notarised agreement: The licence must be in writing and notarised if executed within the UAE.
• Registration with the Ministry of Economy: To be enforceable against third parties, the licence agreement must be recorded with the MoE’s Trademark Office.
• Scope and duration compliance: The licence must relate to the goods or services covered by the trademark registration and must not exceed the trademark’s validity period.
  
  

Steps for trademark licensing in the UAE

Step 1: Ensure trademark registration


The trademark must be officially registered with the MoE. Licensing an unregistered trademark is not permitted under UAE law.

Step 2: Draft the licence agreement


The agreement should clearly set out:

• Scope of use (specific goods or services)
• Duration of the licence
• Territorial limitations, if any
• Whether the licence is exclusive or non-exclusive
• Quality control obligations and compliance standards
  
  

Step 3: Record the licence with the MoE


The licence must be submitted for registration in the Trademark Register to ensure enforceability against third parties. Required details include:

• Trademark registration number
• Licensor and licensee details
• Commencement and expiry dates
• Geographical scope
• Notarised copy of the licence agreement
  
  

Step 4: Ensure ongoing compliance

 

• The licence duration must not exceed the remaining validity of the trademark.
• The licensed use must align with the registered goods or services.
• Notarisation is mandatory for agreements executed in the UAE; agreements signed abroad may require attestation.

 

Key considerations for licensors and licensees

Exclusive vs non-exclusive licences

• Exclusive licences grant rights to a single licensee within a defined territory.
• Non-exclusive licences permit multiple licensees to use the trademark simultaneously.
  
  

Legal enforceability

• Failure to register the licence with the MOE may prevent it from being enforced against third parties in the event of a dispute.
  
  

Quality control

• Licensors should include robust quality control provisions to protect brand reputation and prevent misuse or dilution of the trademark.
  
  

Benefits of trademark licensing

• Market expansion: Entry into new markets without direct operational investment
• Revenue generation: Royalties or licensing fees
• Brand control: Continued oversight of trademark usage
• Legal protection: Registered licences are enforceable against third-party claims
  
  

Common pitfalls to avoid

• Licensing a trademark before completing registration
• Failing to record the licence with the MOE
• Allowing use of the trademark without quality control measures
• Drafting vague agreements that lack clarity on scope, duration or territory
  
  

Conclusion

Trademark licensing in the UAE offers significant opportunities for business growth and collaboration. However, the legal framework established under Federal Decree-Law No. 36 of 2021 requires careful attention to trademark registration, licence recording, scope and duration. By ensuring full compliance, licensors can protect their brand, safeguard their rights and maximise the strategic value of licensing in the UAE market.

 

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