DIFC IP Law Update 2025

Dubai Creek

Author Aravind Parameswaran Licence  CC BY-SA 4.0 Source Wikimedia Commons

 

Jane Lambert

As a result of such initiatives as the Innovation Hub and the Metaverse Platform, new products and services are being developed in the Dubai International Financial Centre ("DIFC") in such technologies as fin-tech, virtual reality and artificial intelligence. They will require legal protection in the DIFC and beyond.  That is not as straightforward in the DIFC as it is in the rest of Dubai because the DIFC has its own legal system. It is for that reason that the Ruler of Dubai proclaimed the DIFC Intellectual Property Law (DIFC Law No. 4 of 2019) on 14 Nov 2019.

That law does not establish any IP rights for the DIFC as such.  It implements the existing intellectual property laws of the United Arab Emirates ("UAE") in the DIFC and provides for their enforcement.  These are:

• the Federal Decree-Law No. 38 of 2021 on Copyrights and Neighbouring Rights; 
• the Federal Law No. 11 of 2021 on the Regulation and Protection of Industrial Property Rights; 
• the Federal Law No. 17 of 2009 on the Protection of New Plant Varieties; and 
• the Federal Law No. 36 of 2021 on Trademarks.

The relationship between those federal enactments and DIFC Intellectual Property Law is explained in my article Introduction to, and Overview of, the New DIFC Intellectual Property Law which I wrote on 11 Dec 2019.

In that article, I observed that:

"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."

The first Commissioner was Dr Tarek Hajjiri and he gave a very interesting interview to Mariam Sabet on YouTube at the INTA virtual conference in 2021.  Dr Hajjiri held that appointment until 2023 and his successor is Katherine Nixon.

I noted that the Commissioner has very extensive powers under art 59 (3) of the DIFC Intellectual Property Law in my article.  Art 59 (3) (a) requires him or her to receive and decide on all complaints or disputes filed in connection with the law in the DIFC, and to impose fines for non-compliance with the Law and any related regulations.  Drafting those regulations and submitting them to the DIFC Directors was another of the Commissioner's responsibilities,  The DIFC Intellectual Property Regulations came into force on 5 July 2021. 

As I stated in The New DIFC Intellectual Property Law - Patents and Utility Certificates on 9 Jan 2020, anyone seeking a patent for the DIFC may apply to the Gulf Cooperation Council Patent Office for a GCC patent or to the federal Ministry of Economy for a UAE patent.  I wrote about GCC patents in Patents: Gulf Co-operation Council on 21 Jan 2011.  The Ministry of Economy is also the appropriate authority for the registration of utility certificates, trade marks, industrial designs and the layout of integrated circuits that apply to the DIFC.  The UAE is party to the Patent Cooperation Treaty ("PCT") and the Madrid Protocol.

IP rights that do not have to be registered with the UAE Ministry of Economy include copyrights, rights in performances and other neighbouring rights and the right to prevent unauthorized use or disclosure of trade secrets.  I discussed those rights in The New DIFC Intellectual Property Law - Copyright and Neighbouring Rights on 28 June 2020 and DIFC Trade Secrecy Law on 7 July 2021.  Two IP rights that predate the new Law are the rights to enforce an obligation of confidence under art 37 of the Law of Obligations DIFC Law No. 5 of 2005 and the right to bring an action for passing off under art 38.. I wrote about the duty of confidence in DIFC Law of Confidence on 27 Jan 2021 and The DIFC Law of Passing off on 7 April 2011.

A rights owner who believes that his or her right has been infringed has the choice of complaining to the Commissioner under art 59 (3) (a) of the DIFC Intellectual Property Law and art 2 or bringing an infringement action in the Court of First Instance.   By far the cheaper and less formal procedure is to complain to the Commissioner.  Complainants complete a simple form and pay an initial fee of US$500. By contrast, the fees for issuing a claim form range from US$1,500 to US$130,000 depending on the value of the claim.  The Commissioner has jurisdiction to hear claims under the Law but not for breach of confidence or passing off.  The Court, on the other hand, can grant interim injunctions including search orders and freezing injunctions.  It can also conduct inquiries as to damages and accounts of profits. Most complainants, particularly startups and small and medium enterprises, will complain to the Commissioner and the DIFC has prepared a helpful guide to assist them,  Those with urgent high-value claims are likely to prefer the courts.

Although there is no intellectual property division in the Court of First Instance the Technology and Construction Division will hear claims relating to the design, supply and/or installation of computers, computer software and related network and information technology systems and services under Rule 56 (3) (5) of the DIFC Court Rules. Similarly, the Digital Economy Court will hear claims involving:

"(1) fintech;
(2) digital assets, including the digital environment, platform or system in which a digital asset exists or may exist;
(3) distributed ledger technology and blockchains including applications based on blockchain technology;
(4) substantial or complex databases;
(5) artificial intelligence and any devices or components of devices whether integrated or not that are dependent on or controlled by artificial intelligence;
(6) data stored digitally including on cloud or other remote platforms, including distributed ledger technology;
(7) e-commerce, online intermediaries, digital payment platforms or marketplaces which include virtual asset service providers in relation to: exchange between virtual currencies; exchange between virtual and fiat currencies; the safe-keeping or administration of virtual assets; or, enabling participation in financial services connected to the offer or sale of virtual assets;
(8) interactions and transactions within virtual reality and the Web3 economy, including digital peer-to-peer transactions;
(9) the application of automatic dispute resolution processes;
(10) decentralised autonomous organisations (DAOs), decentralised finance vehicles (DeFi) and decentralised applications (DApps);
(11) the validity of digital signatures and digital identification and verification systems;
(12) the design, supply and /or installation of computers, computer software and related network and information technology systems and services;
(13) cyber-physical systems such as unmanned aerial vehicles, 3D printing technologies, and robotics;
(14) intellectual property claims arising out of or in relation to any of the above claims;
(15) insurance claims arising out of or in relation to any of the above claims;
(16) claims under the DIFC Data Protection Law (Law 5 of 2020); and
(17) any combination of the above claims."

under Rule 58 (7).

As all the IP rights enjoyed in the DIFC except the obligation of confidence and the law of passing off are established under federal law it is conceivable that conflicts will arise between rights existing in one system and those existing in the other.   The Ruler of Dubai jas recently established a Conflicts of Jurisdiction Tribunal to resolve such disputes.

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

Saudi Arabia to host Design Law Treaty Diplomatic Conference

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Jane Lambert

A diplomatic conference will take place in Riyadh between 11 and 22 Nov 2024 to conclude and adopt a design law treaty.   Although art 5quinquies of the Paris Convention for the Protection of Industrial Property requires industrial designs to be protected by all countries of the Paris Union how they are protected varies greatly from country to country.  Countries like the UK and EU member states provide a system of design registration.  Other countries like the USA grant design patents.  The purpose of the proposed treaty is to harmonize and facilitate the registration procedure.

A draft treaty and implementing regulations have already been proposed.  The proposed treaty consists of 32 articles covering abbreviations, general principles, filing, grace periods, publication, terms of protection, renewal, regulations and governance.  An agenda, timetable and social programme have also been published.  The proposed treaty will not affect contracting parties' obligations under the Hague Agreement or Section 4  of the Agreement on Trade-Related Aspects of Intellectual Property Rights ("TRIPs").

Further information on the conference can be contained from the World Intellectual Property Office and the Saudi Authority for Intellectual Property websites.  Anyone wishing to discuss this article may call me on +44 (0)20 7404 5252 during UK office hours or send me a message through my contact page,

Fajer Ahmed's Law Column

National Assembly of Kuwait

Author: xiquinhosilva
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Serendipity means a "fortunate happenstance" or "pleasant surprise". The word was coined by Horace Walpole who explained an unexpected discovery he had made by reference to a Persian fairy tale, The Three Princes of Serendip in which the princes were “always making discoveries, by accidents and sagacity, of things which they were not in quest of”.  A practical example of serendipity occurred this morning when I was referred to an article in the Kuwait Times about a ballet teacher in Kuwait by the Royal Academy of Dance (see Jane Lambert Dance in the Gulf 10 June 2016 Terpsichore).

I discovered that the Kuwait Times has a legal column in English called Legalese. The columnist is called "Attorney Fajer Ahmed".  His columns seems to cover everything from What happens if you’re fired by telephone? which was published on 5 June 2016 to Understanding Kuwait's Laws on 15 Nov 2015. Articles that my readers might find particularly interesting include The Law and Franchises in Kuwait (28 Feb 2016), How to start a Business in Kuwait 31 Jan 2016) and Protecting your Intellectual Property (17 Jan 2016).

Fajer also contributes to a an online publication called 248AM which also has a legal column. Interesting articles on that site include Kuwait Law: How a Law becomes a Law 2 Nov 2015 and Kuwait Law: SMEs and Small Businesses in Kuwait 25 Nov 2013. 

I also learned from 248AM that Kuwait is building a cultural centre that will include a stage for opera, ballet and other performing arts (see Sneak Peak: Kuwait Cultural Centre 5 May 2014 and A Photographic Journey inside Qasr Al Salam 9 Apr 2014). Since copyright protects librettos, musical scores, choreographic notation, stage backdrops and sometimes costumes and props and as actors, dancers, singers and musicians have the right to object to filming, taping or broadcasting of their performances it is perhaps time to revisit Kuwait copyright and related rights which I last discussed in Intellectual Property Law in Kuwait on 14 July 2011.

Abu Dhabi Global Market - Yet Another Common Law Enclave in the Gulf

The Abu Dhabi Global Market ("the ADGM") describes itself as "a broad-based international financial centre for local, regional and international institutions, established in accordance with the Federal Law No (8) of 2004, Federal Decree No (15) of 2013, Cabinet Resolution No (4) of 2013, and Abu Dhabi Law No (4) of 2013." It is located on Al Maryah Island which is a 114 hectare island to the North East of the capital. Like the Dubai International Financial Centre and the Qatar Financial Centre, the ADGM will have its own legal system based on English common law.

S.1 (1) of the Application of English Law Regulations 2015 provides:

"The common law of England (including the principles and rules of equity), as it stands from time to time, shall apply and have legal force in, and form part of the law of, the Abu Dhabi Global Market—
(a) so far as it is applicable to the circumstances of the Abu Dhabi Global Market;
(b) subject to such modifications as those circumstances require;
(c) subject to any amendment thereof (whenever made) pursuant to any Abu Dhabi Global Market enactment; and
(d) notwithstanding any amendment thereof as part of the law of England made pursuant to an Act or any legislative instrument adopted thereunder at any time after the date of enactment of these Regulations, which amendment shall not apply and have legal force in, or form part of the law of, the Abu Dhabi Global Market, unless and until an Abu Dhabi Global Market enactment expressly provides that it applies and has legal force in, and forms part of the law of, the Abu Dhabi Global Market."

Accordingly, it would appear that the English law of confidence and the action for passing off are imported directly into the law of the ADGM.

S.2 (1) of the same Regulations imports a number of UK statutes into ADGM law with certain modifications. The governing body of the ADGM have made their own laws on companies, data protection, employment, insolvency and partnerships which are based on English law. All the ADGM's laws will be in English.

The ADGM Courts will be governed by the ADGM Courts, Civil Evidence, Judgments, Enforcement and Judicial Appointments Regulations 2015. S. 1 (2) of those Regulations establishes a Court of Appeal and a Court of First Instance. S.12 (1) provides for the Court of Appeal to be a superior court of record and the court of final instance in the ADGM and s.16 (1) for the Court of First Instance to be a superior court of record.  The Court of Appeal shall consist of the Chief Justice of the ADGM and any other judge directed to sit in that court by the Chief Justice (see s.26 (1)). The Court of First Instance shall consist of the Chief Justice and any other judge directed to sit in that court by the Chief Justice.

The Chief Justice has power under s.187 (1) and s.191 (1) of the Regulations to make rules and practice directions to be known as the “ADGM Court Procedure Rules” (see s.186 (1)). These rules shall govern and provide for all the practice and procedure to be followed in the Court of Appeal, the Court of First Instance and any other court as may, from time to time, exist.

The Courts are likely to open in the next few months.  The judiciary has now been appointed. Lord Hope of Craighead will be the first Chief Justice and Lord Saville, the Hon. Kenneth Hayne AC, the Rt. Hon. Sir Peter Blanchard KNZM and William Stone QC will also sit on the bench. Lord Hope must now compile draft ADGM Court Procedure Rules and Practice Directions for consultation.  When the courts open, any lawyer who has practised or been employed as a lawyer for a continuous period of 5 years or more anywhere in the world may appear before the ADGM courts by virtue of s.219 (1) (a) of the ADGM Courts etc Regulations 2015.

Should anyone wish to discuss this article of the ABGM courts generally he or she should not hesitate to call me during office hours on +44 (0)20 7404 5252 or get in touch through my contact form.

Saudi Arabia accedes to the Patent Law Treaty and PCT

On 3 May 2013 Saudi Arabia acceded to the Patent Law Treaty and the Patent Co-operation Treaty with effect from 3 August 2013.  The Patent Law Treaty harmonizes the procedures and formalities for patent applications.  The Patent Co-operation Treaty enables applications for patents for several countries or groups of countries to be made simultaneously.

The only other intellectual property conventions to which Saudi Arabia had previously been party (other than the WIPO Convention and TRIPS) were Paris and Berne.  The Saudi government had notified its accession to those treaties on 11 Dec 2003 and they came into effect on 11 March 204.

For a short overview of Saudi intellectual property law see my article of 22 May 2011.  If you require specific information on intellectual property or technology law anywhere in the Middle East North Africa region or representation members of my chambers will be glad to advise you where we can or refer you to our connections in the region where appropriate.   Call us on +44 (0)20 7404 5252 or complete our contact form.