The New DIFC Intellectual Property Law - Designs

Author Imre Salt Licence CC BY-SA 3.0 Deed Source Wikimedia Commons

Jane Lambert

On 21 Nov 2019, a new intellectual property law known as Intellectual Property Law DIFC Law No 4 of 2019. came into force in the Dubai International Financial Centre.  I wrote an introduction to, and overview of the new law on 11 Dec 2019 and discussed its provisions on patents and utility models (known as "utility certificates" in the DIFC) in The New DIFC Intellectual Property Law - Patents and Utility Certificates on 9 Jan 2020. In this article, I discuss Chapter 2 of Part 2 of the Law on General Rules on Industrial Drawings and Industrial Designs.

Design is important to Dubai   A report commissioned by The Dubai Design & Fashion Council and the Dubai Design District expected the design sector, which includes architecture, fashion, graphic, interior and product design, to grow by 6% a year between 2016 and 2021.  The Dubai government supports designers through the Council by providing advice and information on intellectual property and other legal services.  Well before the new Intellectual Property Law came into force, the Council agreed with the DIFC Disputes Resolution Authority to incorporate a DIFC choice of law clause into their contracts and designate the DIFC Dispute Resolution Authority for the resolution of disputes (see Designer Courts  12 March 2018 DIFC Courts press release).

The new DIFC design law is compressed into three short articles:

• Art 14 confirms that the registration of Industrial Drawings and Industrial Designs with the UAE Ministry of Economy is recognized in the DIFC and that the rights conferred by registration will be enforced in the DIFC;
• Art 15 sets out the rights conferred by registration; and
• Art 16 applies the provisions on entitlement and infringement in patent and utility certificates law to Industrial Drawings and Industrial Designs.

The table in para 3 of Sched 1 to the Law defines an Industrial Drawing as:

"Any innovative creation of lines and colors which generate a product that can be used in any industry or craft and in respect of which the Ministry has issued a deed of protection."

The same table defined an Industrial Design as:

"any innovative three-dimensional shape that can be used in industry or craft and in respect of which the Ministry has issued a deed of protection."

Applications to register Industrial Drawings and Industrial Designs are made to the Ministry.  The patent application portal appears to indicate that it is possible to apply for registration through that page but it has not been possible to obtain confirmation through the chat facility.

As art 16 applies the provisions of arts 9 to 13 to Industrial Drawings and Industrial Designs, the rules as to entitlement and employees' compensation are4 the same as for patents. Readers are referred to my article on patents and utility certificates of 9 Jan 2020.

Art 15 (1) of the Law confers on the registered proprietor of an Industrial Drawing or Industrial Design the following exclusive rights:

"(a) using the Industrial Drawing or Industrial Design in manufacturing any product;
(b) using, selling, or offering for sale any product relating to the Industrial Design or Industrial Drawing;
(c) importing any product using an Industrial Drawing or an Industrial Design; or
(d) possessing an Industrial Drawing or an Industrial Design with intention to use, or offer for sale, or sell the same."

Art 15 (2) makes clear that the rights referred to in art15 (1) shall be restricted to acts that are undertaken for industrial or commercial purposes and shall not extend to acts relating to a protected product after its sale.  This is similar to art 8 (2) for patents and utility certificates and seems to indicate the incorporation into DIFC law of something like the US first sale doctrine.

The rules on infringement, defences to patent infringement and reversal of,  the burden of proof that apply to patents and utility certificates under arts 9 to 11 are applied to Industrial Drawings and Industrial Designs by art 16. References in those articles to "patents" or "utility certificates"are deemed to refer to "Industrial Drawings" or "Industrial Designs" as the case may require.  Once again, readers are referred to my article on patents and utility certificates.

Anyone wishing to discuss this article or DIFC design law generally should call my clerk on  +44(0)7986 948267 or send me a message through my contact page while this emergency continues, I shall gladly respond by phone, VoIP or email,

Designers making use of the Small Claims Tribunal in Dubai

Standard YouTube Licence

Jane Lambert

A press release issued by the Dubai International Financial Centre Courts caught my eye with the headline "Designer Courts". It referred to a cooperation agreement between the Dubai Design and Fashion Council and the Dubai Dispute Resolution Authority which was signed on 15 March 2017 "to pave the way for wider adoption of the English language, international law courts system by Dubai’s fast-developing design and fashion sector."

I have not yet found a copy of the agreement but the press release suggests it contains the following provisions:

• "Dubai Design & Fashion Council (DDFC) support opt-in to DIFC Courts through new cooperation agreement with DIFC Dispute Resolution Authority (DRA)
• DIFC Courts Small Claims Tribunal to underpin Dubai’s expanding design and fashion sector through swift, English language dispute resolution
• Agreement lays foundation to explore adding Design IP as a topic for Courts of the Future"

I was particularly interested in the last of those bullet points which refers to "Design IP" because this is the first occasion that I have seen an official document considering the use of the DIFC's English language common law courts as a forum for resolving IP disputes.

Intellectual property is a federal responsibility in the United Arab Emirates and designs are protected by registration under Chapter 3 of Federal Law No. 31 of 2006 Pertaining to the Industrial Regulation and Protection of Patents, Industrial Drawings, and Designs.  The DIFC courts already had jurisdiction in breach of confidence and passing off cases under the DIFC Law of Obligations. The agreement between the DDFC and the DRA seems to extend that jurisdiction with the consent of the parties.

I have already discussed the DRA and the Small Claims Tribunal in my articles dated 27 July 2016 and 20 April 2017.  According to its website

"The Dubai Design & Fashion Council (DDFC) was established by the Dubai Government to raise the profile of Dubai as a regional and global destination for design. Leading the development of a sustainable industry, DDFC provides in-depth market intelligence and helps elevate local and regional talent, enabling the contribution of the creative industries to the development of the Emirate."

Looking through its news and resources pages I am glad to see that the DDFC already gives its members advice and information about intellectual property law.

The press release states:

"As design entrepreneurs start up and compete across the region and beyond, they are reliant on key partnerships for talent, funding and materials. These need to be protected to enable businesses to trade securely and grow. By opting in to DIFC Courts Small Claims Tribunal (SCT) using a standard contract clause, enterprises will benefit from its proven capacity resolve disputes amicably and fast in English, with 85% of cases settled within four weeks."

It is important to stress that the parties must consent to the DIFC courts' jurisdiction.  For licences, distribution, franchising, joint venture and other agreements, the following clause is suggested:

"Any dispute, difference, controversy or claim arising out of or in connection with this contract, including (but not limited to) any question regarding its existence, validity, interpretation, performance, discharge and applicable remedies, shall be subject to the exclusive jurisdiction of the Courts of the Dubai International Financial Centre (“the DIFC Courts”)."

For existing disputes, the press release suggests the following:

"Any dispute, difference, controversy or claim arising out of or in connection with [Define Dispute], including (but not limited to) any question regarding the existence, validity, interpretation, performance, discharge and applicable remedies of the underlying contract in dispute, shall be subject to the exclusive jurisdiction of the Courts of the Dubai International Financial Centre (“the DIFC Courts”)."  

There appears to be no reason why the court should not hear infringement disputes thought perhaps not revocation and invalidity applications without further federal legislation.  That appears to be in the contemplation of the Emirati authorities: "

"Thinking ahead for businesses of the future, DIFC Courts and DDFC will work together to understand the industries needs from a legislative perspective for IP law."

An incentive to opt into the Small Claims Tribunal's jurisdiction is that it offers speedy resolution.  According to the press release:

"Through the award-winning smart SCT, firms with claims can access a virtual courtroom online from anywhere in the world. With the option of serving notice via instant messaging and social media, business owners can now solve legal problems using their smartphones or laptops with minimal interruption even as they travel."

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