Introduction to, and Overview of, the New DIFC Intellectual Property Law

Jane Lambert

With its FinTech Hive and Courts of the Future initiative, the Dubai International Financial Centre ("the DIFC") is acquiring intellectual assets in financial, legal and other technologies that require legal protection. Of course, Gulf Cooperation Council patents and Emirati copyrights, trade marks and other intellectual property rights apply as much to the DIFC as they do to any other part of Dubai but those rights have been enforced up to now by the Arabic speaking civil law courts and not by the English speaking. common law DIFC courts. The only intellectual property matters that fell within the jurisdiction of those courts were those relating to breaches of confidence and passing off.

By an enactment notice (the equivalent on a commencement order) dated 14 Nov 2019,  a new intellectual property law, known as Intellectual Property Law DIFC Law No 4 of 2019. came into force on 21 Nov 2019.  The new law consists of 68 articles arranged in 7 Parts plus 3 schedules.  Part 1 (arts 1 to 6) deals with general matters, Part 2 (arts 7 to 16) with patents, utility certificates, industrial drawings and designs, Part 3 (arts 17 to 42) with copyright, Part 4 (arts 43 to 51) with trade marks and trade names, Part 5 (arts 52 to 55) with trade secrets, Part 6 (arts 56 to 65) with a new Commissioner of Intellectual Property; and Part 7 (arts 66 to 68) with remedies and sanctions.  Schedule 1 is concerned with interpretation, Schedule 2 with the laws that have been taken into consideration when drafting this legislation and Schedule 3 with fines for various infringements.

The law was enacted after a consultation which began in March and ended on 17 April 2019.  The consultation document was accompanied by a draft of the proposed law and a response form.  Para10 of the consultation document noted:

"Intellectual property rights are increasingly becoming the most important intangible assets of any business. In addition, technology and innovation are the driver for investment in today’s business. In DIFC, the growing interest in technology and innovation in the financial sector, has translated into the recent establishment of the first FinTech related accelerator - FinTech Hive."

Para 12 added that the purpose of the new law was to enable the DIFC to be a safe environment for creativity and innovation and to enable DIFC entities to protect their intellectual property rights within the DIFC. Para 17 adds that the proposed law recognizes the UAE registered trade marks, patents, utility certificates and industrial designs and drawings and does not require separate registration in the DIFC. It is aligned with the UAE federal laws relating to IP, and focuses only on the enforcement of IP rights in the DIFC.

Art 3 (1) of the Law provides that the enactment applies in the jurisdiction of the DIFC. By virtue of art 3  (2), it applies to any person who owns or claims ownership, uses or attempts to use, or who seeks to enforce or protect an intellectual property right, or any part thereof, in the DIFC. However, art 3 (3) makes clear that law applies to any person who owns or claims ownership, uses or attempts to use, or who seeks to enforce or protect an intellectual property right, or any part thereof, in the DIFC. Art 7 recognizes any patent or utility certificate that is valid under federal IP law  Similarly, art 14 recognizes as valid any drawing or industrial design that is valid in the UAE,  Correspondingly, art 43 recognizes federal trade marks.  Slightly different arrangements are made for copyrights and related rights. Art 17 provides:

"Notwithstanding Article 19, a Work recognised as subject to copyright protection under the Federal Copyright Law is recognised as valid for purposes of this Law and is protected and enforceable in the DIFC"

However, art 18 and subsequent provisions appear to create an independent DFIC copyright.  Curiously, Part 5 seems to establish a DIFC trade secrets law without any reference to art 37 of the Law of Obligations which covers the obligations of confidence. Nor is there ant reference to art 38 of that Law which provides for passing off.

The most interesting provisions of the new Law relate to the Commissioner of Intellectual Property, Art 5 provides that the Law and any legislation made for the purpose of that Law shall be administered by the Commissioner. He or she has very extensive powers under art 59:

"(1) The Commissioner of Intellectual Property has such powers, duties and functions as conferred on him under this Law and any Regulation made under this Law and shall exercise such powers and perform such functions in pursuit of the objectives of this Law and the Regulations.
(2) In performing his functions and exercising his powers, the Commissioner of Intellectual Property shall pursue the following objectives:

(a) to promote greater awareness and public understanding of intellectual property and the requirements of this Law and the Regulations in the DIFC, and
(b) to promote good practices and observance of the requirements of this Law and the Regulations by the registered entities in the DIFC. 

(3) Without limiting the generality of Article 59(1), such powers and functions of the Commissioner of Intellectual Property shall include:

(a) receiving and deciding on all complaints or disputes filed in connection with the Law in the DIFC, and imposing fines for non-compliance with this Law and any related Regulations;
(b) coordinating with the UAE Federal and Local authorities on facilitating and promoting protection of intellectual property rights for DIFC persons;
(c) preparing or causing to be prepared in a timely and efficient manner;

(i) draft Regulations;
(ii) draft standards or codes of practice; and
(iii) guidance; reasonably required to enable him to perform his statutory functions; 

(d) submitting such draft Regulations, draft standards, and draft codes of practice to the DIFCA Board of Directors for approval and advising it of any guidance that is issued;
(e) making recommendations to the DIFCA Board with respect to fees, procedures and executive regulations for the Commissioner of Intellectual Property, which the DIFCA Board may promulgate;
(f) employing and appointing persons on such terms as he considers appropriate to assist him in the exercise of his powers and performance of his functions;
(g) where he considers it appropriate to do so, delegating any of his functions and powers; as may more efficiently and effectively be performed by officers and employees of the Commissioner of Intellectual Property, and with the approval of the DIFCA Board of Directors, either generally or in relation to any particular matter, to any other person.
(h) prescribing forms to be used for any of the purposes of this Law or any legislation administered by the Commissioner of Intellectual Property;
(i) acquiring, holding and disposing of property of any description;
(j) making contracts and other agreements;
(k) with the prior consent of the President and Board of Directors of the DIFCA, borrowing monies and providing security for such borrowings;
(l) exercising and performing such other powers and functions as may be delegated to the Commissioner of Intellectual Property by the Board of Directors of the DIFCA pursuant to the provisions of this Law, and
(m) assisting in complying with the United Arab Emirates’ obligations under any international treaty or other agreement to which the United Arab Emirates is a party through the exercise of his powers and functions. 

(4) The Commissioner of Intellectual Property has power to do whatever he deems necessary, for or in connection with, or reasonably incidental to, the performance of his functions.
(5) In exercising his powers and performing his functions, the Commissioner of Intellectual Property shall act in an independent matter."

The Commissioner shall have wide powers under art 66 to deter or punish infringements of rights subsisting under this legislation.  These powers shall be without prejudice to the power of the DIFC courts to grant injunctions and award damages pursuant to art 67 (1) of the new law   There is a right of appeal to the DIFC courts from decisions of the Commissioner under art 68 (1).

Over the next few months, I shall study in detail the IP provisions relating to patents, designs, trade marks and other IP rights.  In the meantime, anyone wishing to discuss this enactment or IP law in the United Arab Emirates generally should call me on +44 (0)20 5404 5252 or send me a message through my contact form

The Abu Dhabi Global Market Courts hear their First Case

Jane Lambert

In Abu Dhabi Global Market - Yet Another Common Law Enclave in the Gulf 22 Feb 2016 I reported that Abu Dhabi had set up its own financial centre known as Abu Dhabi Global Market with its own English language common law courts.  I can now add that the Court of First Instance has heard its first case.

The Court heard for an application for interim declarations brought by the claimant Afkar Capital Ltd, against Saifallah Mohamed Amin Mahmoud Fikry (see  Afkar Capital Limited v Fikry [2017] ADGMCFI 1). Both sides were instructed by English counsel and the application came on before Sir Andrew Smith.

Sir Andrew refused the application for three reasons. The first was that the application raised issues that could only be determined at trial. The second was that the action was due to come on for trial early in the New Year. Interim declaratory relief would only marginally benefit the claimant but could result in injustice for the defendant.   Thirdly, an interim declaration would serve no practical purpose.

Anyone wishing to discuss this case or the Abu Dhabi Global Market Courts generally should call me between 08:30 to 18:30 London time on +44 (0)20 7404 5252 or send me a message through my contact form.

Middlesex University's Dubai Campus

One of the members of the audience at the Arab-British Chamber of Commerce seminar on combating IP crime on the 12 Dec 2013 was Dr. Elvira Domínguez-Redondo of Middlesex University. Dr. Dominquez-Redondo invited me to give a talk on IP to some of her LLM and LLB students on 3 Feb 2014 an you will find a report of my talk and subsequent discussions with the Dean of the Law School in "Working With Middlesex" 7 Feb 2014 London IP.

In addition to its main campus in London Middlesex University has campuses in Dubai, Malta and Mauritius. The Dubai campus is located in the Dubai Knowledge Village which is "the world’s only free zone area dedicated to human resource management and learning excellence." The  campus offers a variety of courses for undergraduates and graduate students and a variety of services for local businesses through the Centre for Innovation in Management.

Although those courses do not yet include law there may still be ways in which we can help. Anything that we may accomplish in Hendon could be replicated at the other Middlesex University campuses. The Dubai International Financial Centre has its own English speaking common law legal system and the recent extension of the jurisdiction of the DIFC courts should facilitate licensing and other knowledge and technology transfer transactions (see "DIFC Courts Spread Their Wings" 7 Dec 2011 and "DIFC Courts: Choice of Jurisdiction Clauses" 28 Dec 2012).

Should anybody wish to discuss this article, my slides or any other topic he or she can contact me on +44 (0)20 7404 5252 during normal business hours or send me a message through my contact form. He or she can also send me a tweet, write on my wall or contact me through G+, Linkedin or Xing.

Enforcing DIFC Judgments in England and Vice-Versa

On 23 Jan 2013 Mr Justice Cooke, the judge in charge of the English Commercial Court, and Mr. Michael Hwang SC, Chief Justice of the DIFC Courts, signed a Memorandum of Guidance as to Enforcement between the DIFC Courts and the Commercial Court, Queen’s Bench Division, England and Wales copies of which are on the English Judiciary and DIFC Courts websites.

The DIFC Courts

Paragraph 5 of the memorandum describes the DIFC Courts as follows:

"The DIFC Courts form part of the legal system of the United Arab Emirates, albeit that this memorandum only states the position as it applies to the DIFC Courts. They deal with civil and commercial disputes which are connected to the Dubai International Financial Centre or in respect of which the parties have agreed that the DIFC Courts should have jurisdiction. The DIFC Courts consist of a Small Claims Tribunal (SCT), a Court of First Instance and a Court of Appeal. They were established by Dubai Laws 9 and 12 of 2004 and operate as a common law court, applying the highest international standards of legal procedure. The Courts’ judiciary is selected from common law jurisdictions around the world and from Dubai and enjoy the highest international renown."

I have already written quite extensively about the DIFC Courts. Readers are referred in particular to my article "DIFC Courts" 7 Jan 2011 on JD Supra and my posts "The Legal Order of the United Arab Emirates" 12 Nov 2011, "DIFC Court: Corinth Pipeworks SA v Barclays Bank Plc" 20 March 2011, "DIFC Courts' Jurisdiction: Corinth Pipeworks Appeal Allowed" 25 Feb 2012, "DIFC Courts Spread Their Wings" 7 Dec 2011 and "DIFC Choice of Jurisdiction Clauses" 28 Dec 2012 in this blog. 

The Commercial Court

Paragraph 4 describes the Commercial Court as

"a specialist court within the Queen’s Bench Division of the High Court of England and Wales. It deals with complex cases arising out of business and financial disputes, both national and international, which fall within its jurisdiction. It was established as a separate court within the Queen’s Bench Division by section 3 of the Administration of Justice Act 1970 (now section 6(1)(b) of the Senior Courts Act 1981), although a specialist Commercial List had operated since 1895 for the hearing of commercial cases, to which specifically designated judges with commercial experience were assigned. The Court is internationally recognised for its experience and expertise in commercial dispute resolution."

Readers who wish to know more about the Commercial Court and its practice are referred to the 9th edition of The Admiralty & Commercial Courts Guide.

Status of the Memorandum

The memorandum is not a treaty or legislation.and it makes clear that there is no treaty between the governments of the United Kingdom and the United Arab Emirates whereby British judgments may be enforced in the UAE or Emirates' judgments in the UK.    The memorandum has no legal effect, it is not binding on the judges of either party, it does not supersede any existing laws, judicial decisions or court rules, it is not intended to be exhaustive or to create or alter any existing legal rights or relations.   Its purpose is simply to set out the parties’ understanding of the procedures for the enforcement of money judgments of one party in the courts of the other.

How to enforce Judgments

In both legal systems, judgments of the other party may be enforced as a debt in accordance with the following principles.   It is important to stress that these principles are not confined to the parties' judgments.   They apply equally to the judgments of any foreign court where there is no treaty for the enforcement of judgments between the UK (or as the case may be UAE) and the foreign jurisdiction.

Where a foreign court of competent jurisdiction has determined that a certain sum is due from one person to another, a legal obligation arises on the debtor to pay that sum.  The judgment must be final and conclusive, though it may be subject to appeal.   A foreign court is considered to have competent jurisdiction where the judgment was against a person:

(a)   who was present within its jurisdiction when the action began;

(b)   started proceedings or counterclaimed in the foreign court;

(c)   submitted to the jurisdiction of the foreign court; or

(d)   agreed to submit to the jurisdiction of the foreign court before proceedings began.

There are, however, some foreign debts that cannot be enforced in this way such as taxes, fines and other penalties.

Procedure for enforcing a DIFC Judgment in England

Paragraph 21 of the memorandum provides that n order to enforce a judgment of the DIFC Courts in the Commercial Court, a party must issue a claim form in the Commercial Court, providing a concise statement of the nature of the claim and claiming the amount of the judgment debt. A certified copy of the judgment should be exhibited to the claim form.  A certified copy of a DIFC Court judgment may be obtained by making a without notice application to the DIFC Courts exhibiting a copy of the judgment which is to be certified. The certified copy will be endorsed by a certificate that it is a true copy, signed by a judge or registrar and sealed with the seal of the DIFC Courts.   In most cases a judgment creditor will be entitled to summary judgment under CPR Part 24 unless the debtor can persuade the court that the judgment was obtained by fraud, it was contrary to public policy; or the proceedings were conducted in a manner which the Commercial Court regards as contrary to the principles of natural justice.

Procedure for Enforcing an English Judgment in the DIFC

The DIFC procedure is very similar to that of the Commercial Court.   The Rules and forms of the DIFC Courts are very similar to the those of the English courts.   In particular, Part 24 of the of the Rules of the DIFC Courts  which provides for immediate judgment is similar to CPR Part 24.

Further Information

On 11 Feb 2013 I was invited to join 4-5 Gray's Inn Square which is one of the leading sets of the English bar with expertise not only in intellectual property but also arbitration and alternative dispute resolution, chancery, commercial, construction. tax and other areas of work that fall within the jurisdiction of the DIFC courts.   This connection should enable me to expand my practice in the Gulf and to facilitate a more comprehensive service to clients in that region.   Should anyone wish to discuss this article or any other legal matter connected with the Gulf he or she should call Stephen Broom on +44 (0)20 7404 5252 or use my contact form.   He or she can also follow me on Facebook, Linkedin, twitter or Xing..