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Consequences of Committing Trademark Infringement in UAE

Jun 19, 2021


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Trademark infringement in UAE occurs when there's commercial use of an existing mark which belongs to another company without securing proper authorization. To file a lawsuit for trademark infringement in Dubai, there are conditions that have to apply. These include:

  • The trademark being both eligible and valid for legal protection

  • Ownership of the trademark infringed by another entity

  • Infringement must be in relation to advertising or sale of products or services by a different entity using your trademark

  • There's confusion in the marketplace with regards to sources of products or services under the same or similar marks


What Happens When You Commit Trademark Infringement in UAE

Trademark infringement, alleged or proven, can result in serious consequences for an infringing party. Here are some of them:

  1. Sanction of a cease-and-desist letter - a lawful owner of an infringed trademark will issue a letter of 'cease and desist' and send it to the infringer. The formal letter is a prelude to a long and costly litigation for trademark infringement. It is a document which effectively informs an infringer regarding the violations committed to an entity's intellectual property rights in UAE. The document will also include information regarding the trademark, its domain, and date of issue among others. The intent is making the infringing party cease continued use of an already registered trademark or for the infringing party to change its trademark.

  2. Sanction of an injunction - a trademark's lawful owner will send the infringing party an injunction letter. An injunction is a court order of an infringer to stop the use of a mark. The court order can include asking the infringing party to seize and destroy the products that bear the same trademark. The infringing party will have the option to stop usage or continue using the same trademark then face legal consequences.

  3. Court order for paying monetary damages - local courts can ask an infringing party to pay the lawful trademark owner monetary damages. Monetary damages are awarded to lawful trademark owners that suffer due to illegal trademark use. This includes paying fines and penalties for usage and loss in sales of the trademark owner due to infringement. Monetary damage can also be for future advertising costs a trademark owner has to allocate money for to enhance or boost sales. The penalties can differ greatly, depending on whether the infringing party's actions are intentional or unintentional.

  4. Order to pay the trademark owner's legal bill - when a violation fails in settling the infringement, local courts can order an infringing party to pay the attorney's fees of the trademark owner.

  5. Damage to the business of the infringing party - when an infringement is proven, customers are less likely to purchase from the infringing business again. Sales can take a huge hit and the infringing party may even need to start over with a new business that has a brand-new name.


How to Avoid Intellectual Property Infringement Online

Most businesses in UAE and across the globe already have an online presence. So, how does one ensure it's not committing trademark or intellectual property infringement online? It's essential for your business to have proper safeguards set in place so you're not unintentionally infringing on any intellectual property rights.

  • Always assume everything is trademarked or copyrighted – this strict approach in publishing anything online can be very cumbersome. However, it is effective in helping you avoid intellectual property infringement. Don’t assume that as works are freely downloadable from the internet that they're already free for you to use for your own business.

  • Don’t copy, alter or share without seeking permission – always obtain permission if you use a work that is copyright or trademark-protected. Identify the intellectual property holders and discuss your use for their intellectual property. It’s advisable to have any agreement reached put in writing, most especially for the purpose and uses of the intellectual property. If there are fees payable, include the amount as well.

  • Review licensing agreements thoroughly – a work that is obtained online from stock agencies are subject to licensing agreements. Review the agreements, then keep copies of them in your records. They contain terms and conditions on which you’re purchasing a license with the applicable restrictions.

  • Have an intellectual property policy for the business – an intellectual property policy is a guideline that offers employees and team leaders with the principles that are applicable in dealing and managing trademarks and copyrights that belong to your business. The policy must set a uniform standard. It’s going to be the most effective means for protecting your business against a costly unintentional trademark infringement case in UAE.


Consult with experienced trademark attorneys in UAE

The intellectual property law in UAE is complex. Failure to understand any aspect of the legislation can lead to various serious legal consequences. Call experts like HHS Lawyers in Dubai today to seek legal advice. experienced trademark lawyers in Dubai can help prevent trademark and intellectual property infringement and help ensure your business is compliant with the law.

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