UAE Court of Cassation Rejects Appeal in Trademark Dispute, Underscoring Strong IP Protection for Online-Only Brands

The Abu Dhabi Court of Cassation has rejected an appeal in a trademark infringement case involving a globally recognised online-only brand, in a ruling that strengthens the United Arab Emirates’ position as a jurisdiction that enforces intellectual property rights with increasing rigour.

 

The dispute dates back to 2024, when the brand discovered that a local company in Abu Dhabi was using its registered trademarks extensively in a physical retail store. The marks appeared on the shopfront, inside the store, on products and in promotional materials, despite the global brand having no physical outlets and trading exclusively through an app and website. The company filed a lawsuit in the Abu Dhabi Commercial Court, arguing that the unauthorised use risked misleading consumers into believing there was an affiliation or licensing agreement.

 

The Commercial Court agreed, ruling in favour of the brand. It issued a wide-ranging order requiring the retailer to stop using the trademark immediately, remove its trade name from commercial registries across the UAE and withdraw all infringing goods and marketing material. The court found that the use of the marks created a real likelihood of consumer confusion and could dilute the brand’s identity, particularly given its global recognition and exclusive digital presence.

 

The retailer appealed the decision before the Abu Dhabi Court of Appeal, but the judgment was upheld in December 2024. The Appeal Court confirmed the lower court’s findings and maintained that the unauthorised use amounted to unfair competition and trademark infringement. It reiterated that modern business models such as online-only platforms are entitled to the same level of legal protection as traditional retail operations.

 

A further cassation appeal was lodged in January 2025, bringing the case before the highest civil court in Abu Dhabi. However, the Court of Cassation ruled the appeal inadmissible because the appellant failed to pay a mandatory security deposit required under Article 179 of the UAE Civil Procedures Law. The Court noted that the appellant had paid the filing fee but had not settled the deposit despite receiving a formal notification, making the appeal procedurally defective.

Judges emphasised that compliance with procedural requirements is not optional and that failure to meet the prescribed deadlines automatically invalidates a cassation appeal. Lawyers say the ruling is a reminder that while the Cassation Court may examine errors of law or procedure, it cannot move forward when appellants do not meet basic formalities.

 

Although the Cassation Court did not address the substantive trademark issues, the decisions of the Commercial Court and the Court of Appeal continue to carry legal weight. Collectively, they signal that the UAE judiciary is adopting a firm stance on protecting trademark owners in an evolving commercial environment. The courts recognised that brands operating entirely online can face heightened risks of misappropriation in physical markets, and that traditional evidence of “use” or “presence” is not a prerequisite for legal protection.

 

Legal analysts say the ruling is part of a broader trend in the UAE, where authorities have strengthened enforcement mechanisms and issued clearer frameworks for IP protection in recent years. The judgment also provides guidance for businesses operating digital-first models, confirming that courts will extend full protection to trademarks regardless of whether the brand has a physical footprint in the country.

 

For international companies, the case serves as a reminder of the importance of registering trademarks with the UAE Ministry of Economy to gain statutory protection. Lawyers advise brand owners to maintain active monitoring systems, particularly in markets where physical retail can create a perception of legitimacy for unauthorised operators. Thorough documentation of online operations, consumer reach and brand recognition has become increasingly relevant when proving infringement.

 

For local businesses, the decision highlights the risks of using marks that appear popular or widely recognised without verifying their registration status. It also illustrates the consequences of procedural lapses in litigation. Missing a payment deadline or failing to meet formal requirements can close the door to further appeal, even where parties believe they have strong grounds to challenge earlier judgments.

 

The case adds to the UAE’s growing body of jurisprudence in IP enforcement and will likely be cited in future disputes. With the country expanding its digital economy and attracting international investment, the ruling reinforces the message that courts are prepared to protect brand owners comprehensively -- including those whose operations are purely online.

 

The decision, legal practitioners say, reflects a maturing and increasingly sophisticated approach to intellectual property protection, and positions the UAE as a jurisdiction committed to safeguarding brands in an era where digital and physical marketplaces intersect more frequently than ever.


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