DUBAI: A business owner who declined to spend Dh1,000 on a contract later became involved in an intellectual-property dispute that resulted in the loss of a commercial trademark and total losses estimated at about Dh1.5 million, according to UAE lawyer Ibrahim Al Hossani.
The dispute took around 18 months and went through several stages of litigation before reaching a final judgment, Al Hossani said in an interview on Sharjah TV programme Qadiya Lil Hiwar. He used the case to warn entrepreneurs, creators and business owners that intellectual-property protection can be considerably cheaper than defending an ownership dispute after it has arisen.
According to the lawyer, registering a trademark at the outset would have cost approximately Dh6,500 to Dh6,700, excluding possible additional charges where a registration agent is involved. The UAE Ministry of Economy and Tourism currently lists a standard trademark application fee of Dh750, a publication fee of Dh750 and a final registration fee of Dh5,000, bringing the listed total to Dh6,500.
The case illustrates a wider issue for UAE businesses: having a commercial licence or operating under a particular business name does not automatically mean the name is protected as a trademark.
A trade licence and trademark serve different purposes
Al Hossani said entrepreneurs sometimes assume that obtaining a commercial licence gives them ownership of the business name as a trademark.
The two serve different functions. A commercial name identifies a company, while a trademark identifies the goods, services or branding presented to customers, he explained.
The distinction can become important when another party registers or uses a similar mark.
The UAE’s Federal Decree-Law No. 36 of 2021 regulates trademarks, while the Ministry of Economy and Tourism provides services for trademark registration, renewal, transfer and related objections and complaints. The trademark law came into force on January 2, 2022.
Prior use may also become relevant in a dispute. Al Hossani said businesses may need to establish earlier use with records such as accounts, customer records, emails and other documentation.
Similar packaging can also trigger a trademark dispute
The lawyer described another dispute involving two rice businesses.
Although the companies used different names, one company’s packaging reportedly used similar colours, framing and lettering. The legal question was whether the overall similarity could lead an ordinary consumer to believe that the products came from the same business or were commercially connected.
That means businesses should not assume that changing a single letter, colour or design element will automatically remove the risk of infringement. The circumstances of each dispute, including the degree of similarity, the products involved and the relevant market, can matter.
Copyright protection extends beyond books
Al Hossani also referred to a copyright dispute in which an author copied about 30 pages from another book of more than 200 pages without identifying the original author. He said the court ordered compensation of almost Dh300,000.
The lawyer also highlighted situations where a creative work is adapted into another format. Translating a book, turning a novel into a play or adapting a poem into a song can raise rights issues even when the original creator is acknowledged, depending on the circumstances and applicable permissions.
The UAE Ministry of Economy and Tourism separately provides a registration service for intellectual works, covering eligible creative works, with the current service listing fees of Dh50 per author for individuals and Dh200 for companies or institutions.
Employees and company-created intellectual property
Intellectual-property disputes can also arise when employees leave a business with designs, inventions, customer information or other commercial assets created during their employment.
Al Hossani said factors such as the employee’s duties, the use of company resources and whether the employee was paid to undertake development work can be relevant when determining rights over work created during employment.
For businesses, this makes clear documentation of employment responsibilities, ownership terms and commissioned work particularly important.
What UAE businesses can protect
Intellectual property covers several different categories rather than one single type of right.
Al Hossani described the main distinctions as:
- Trademarks: identifiers used to distinguish goods or services, including certain words, designs and other distinctive elements.
- Copyright: protection for eligible creative works such as books, programmes and other original works.
- Patents: protection relating to qualifying inventions and technical solutions.
- Industrial designs: protection relating to the appearance or design of a product.
The Ministry of Economy and Tourism provides separate services for trademarks, patents, industrial designs and intellectual works. Its patent guidance, for example, states that an invention must meet requirements including novelty, an inventive step and industrial applicability.
For a business owner, the appropriate protection therefore depends on what is being protected: a brand, creative work, invention, product appearance or another qualifying intellectual asset.
What can a trademark owner do if infringement occurs?
Al Hossani said trademark owners facing infringement can consider several legal routes, including reporting the matter to police or the Public Prosecution, approaching the Ministry of Economy and relevant economic authorities, seeking urgent court measures and pursuing compensation through civil proceedings.
The Ministry of Economy and Tourism also provides official trademark services, including registration, renewal, transfer and mechanisms for related complaints and objections.
The broader lesson from the case cited by Al Hossani is straightforward: businesses should identify what intellectual property they own, determine which rights apply and keep documentary evidence of ownership and use before a dispute emerges.
For UAE entrepreneurs, the cost of formal protection should therefore be considered alongside the potential cost of proving ownership after an infringement dispute has already begun.
What happened in the UAE intellectual-property case?
UAE lawyer Ibrahim Al Hossani described a case where a business owner declined a Dh1,000 contract and later faced an intellectual-property dispute that resulted in the loss of a commercial trademark and total losses estimated at about Dh1.5 million.
How much does trademark registration cost in the UAE?
The UAE Ministry of Economy and Tourism currently lists Dh750 for examination, Dh750 for publication and Dh5,000 for final trademark registration under its standard service, totalling Dh6,500.
Does a UAE trade licence automatically protect a trademark?
No. A commercial licence and a trademark serve different purposes. A trade licence establishes a business entity, while trademark registration provides protection for qualifying marks.
What does UAE trademark law cover?
Federal Decree-Law No. 36 of 2021 establishes the UAE’s current legal framework governing trademarks.
Can prior use of a trademark matter in a UAE dispute?
It can be relevant. Al Hossani said evidence such as accounts, customer records, emails and other documents may help establish earlier use in appropriate cases.
What types of intellectual property can UAE businesses protect?
Depending on the asset and legal requirements, protection can cover trademarks, copyright, patents and industrial designs.
Where can businesses apply for trademark registration in the UAE?
The Ministry of Economy and Tourism provides an online trademark-registration service for companies, establishments and individua
