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

Qatar at the WIPO

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Jane Lambert

Yesterday, I attended the WIPO Conference "As the UDRP turns 20: looking back, looking ahead" on domain name disputes at the Organization's head office in Geneva. Next to our meeting, there was an exhibition about Qatar and some kind of reception.  As I have written quite a lot about Qatar and the Qatar Financial Centre with its own legal system based on English law, in particular, I toured the stands.

Qatar has been in the news a lot lately for good things such as the recent IAAF World Athletics Championships last month and the 2022 FIFA World Cup as well as more troubling things like the ongoing dispute with its neighbours which I mentioned briefly in How will the Blockade of Qatar affect IP Law in the GCC Countries? on 7 June 2017.  An official on one of the stands agreed that the breakdown of regional cooperation was a concern but he points out that it had not stopped Qatar from investing heavily in upgrading its already impressive infrastructure.

I asked specifically about patents and whether Gulf Cooperation Council patents still had force in Qatar and whether the inventions of Qatari inventors were protected in other GCC states.  The official could not answer my question beyond saying that Qatar does not apply for a large number of patents.  The table of European patent applications by country between 2009 and 2018 on the European Patent Office's website suggests that he may well be right. However, he pointed out that his country has robust copyright laws and he handed me a short leaflet entitled "We Protect Your Right" published by the Ministry for Industry and Commerce with some basic information on copyright registration.  I was also handed a copy of a gallery guide to the National Museum of Dohar 

That leaflet on copyright registration appeared to be the only literature in English on intellectual property at the exhibition but there is a statistical country profile on Qatar on the WIPO website.  It would appear from WIPO's country profile that Qatar is party to the Paris, Berne and other international agreements and has comprehensive intellectual property laws.

Anyone wishing to discuss this article or Qatari IP law generally should contact me on +44 (0)20 7404 5252 during British office hours or message me through my contact page,

Dubai Smart City Accelerator

Dubai Fort

Author Kimon Berlin
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Source Wikipedia Dubai

Jane Lambert

The Dubai Silicon Oasis Authority, which manages a free trade zone for information and communications technology businesses in the emirate, has invited applications for its Smart City Accelerator which will run from September 2019 to January 2020. This is not the first accelerator programme to take place in Dubai.  I reported on the DIFC's financial technology programme in FinTech in Dubai on 3 Aug 2017.

According to the Authority's press release:

"This year, scouts are particularly on the lookout for startups that specialize in 5G applications, connected stadiums, smart retail, smart airports, and smart payments. However, the program is open to applicants from across the spectrum of smart city solutions, including internet of things and connectivity, urban automation and mobility, artificial intelligence, blockchain, open city data, sustainable cities and living, and smart government."

The Accelerator will be run by Startupbootcamp which operates a number of accelerators around the world.

The Startupbootcamp web page offers 10 selected companies hands-on mentorship from over 100 industry experts, office space in Dubai, seed funding, and access to a global network of investors and corporate partners from across the Smart City industries.  The successful candidates will need to know about registering trade marks in the United Arab Emirates and their leading markets around the world as well as the various ways of protecting their investment in technology. It is not clear from the announcements by the Authority or operator who will supply that guidance or whether it will be supplied as part of the programme but I shall be glad to advise them individually or collectively by phone, Skype or otherwise if necessary.

The closing date for applications is 30 June 2019.  This post links to the application page,

Anyone wishing to discuss any of these issues should call me on +44 (0)20 7404 5252 during London office hours or they can contact me through my message form.

DIFC Expansion likely to present new Opportunities for the DIFC Courts

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Jane Lambert

The Dubai International Financial Centre ("DIFC") is a free zone for banking, insurance, securities trading and other financial services. It was established with the aim of transforming Dubai into a major financial centre. On 7 Jan 2019, the Vice-President and Prime Minister of the United Arab Emirates and Ruler of Dubai announced plans to triple the size of the Centre (see the DIFC press release Mohammed Bin Rashid Approves DIFC’s New Expansion Plan 8 Jan 2019).

The press release states that

"Upon completion, the new district will comprise 6.4 million square feet of office space, 2.6 million square feet of creative space, 1.5 million square feet of residences, 1.3 million square feet of retail space and 700,000 square feet devoted to leisure and entertainment. This will be complemented by a financial campus covering approximately 400,000 square feet, an additional 250,000 square feet of hospitality offerings, and 3.5 million square feet of car parking space."

The DIFC already has its own laws based on English common law with its own English language courts and tribunals.  It is reasonable to suppose that those laws will apply to the new area.

I first discussed the DIFC's legal system in DIFC Courts 7 Jan 2011 JD Supra. When I wrote that introduction nearly all the judges of the DIFC's Courts were Commonwealth expatriates.   Many of those judges have now retired and been replaced by Emirati citizens.  Chief Justice Tun Zaki Bin Azmi is Malaysian but the Deputy Chuel Justice and four other judges are Emiratis.

The DIFC Courts will accept jurisdiction where parties choose those courts for the resolution of future or existing disputes (see Jane Lambert DIFC Courts Spread Their Wings  7 Dec 2011). Businesses in developing countries may prefer their disputes to be resolved in Dubai rather than London or New York for all sorts of reasons.  As the DIFC courts are English speaking common law tribunals, they are likely to be acceptable to many businesses in developed countries.  I discussed choice of jurisdiction clauses in DIFC Courts: Choice of Jurisdiction Clauses 28 Dec 2012.

Another development that could increase the importance of the DIFC Courts is the creation of a virtual commercial city. Art 3 of the Dubai government's Fifty Yeat Charter envisages "the establishment of the first virtual commercial city in the region that grants commercial licenses without having to reside in Dubai. The city will allow investors to open bank accounts and grant e-residencies according to best international laws and regulations." The government hopes to have 100,000 companies in that virtual city.  The reference to "best international laws and regulations" are presumably the laws and regulations of the DIFC and the tribunals that would apply those laws are likely to be the DIFC Courts.

The DIFC Courts belong to an organization known as The International Consortium for Court Excellence which has members from various parts of the world including Bhutan, Namibia, Papua New Guinea and Swaziland as well as the USA, Canada, Australia and Brazil.  Dubai hosted the annual conference of that consortium in November 2018 (see press release DIFC Courts host international court excellence and legal tech conference 7 Nov 2018).

Anyone wishing to discuss this article or the DIFC Courts generally should call me on +44 (0)20 7404 5252 during office hours or send me a message through my contact form.