World Intellectual Property - IP Laws - United Arab Emirates

 

Trade marks versus trade names:

As a general rule in the UAE, there is no difference between the Economic Department or Municipalities and the Trade Mark Registry in terms of clearing the trade names against the trade marks.  As a result trade marks often compete with company names as identifiers of the origin of goods and services.  This has created confusion in relation to who owns the actual right to use the name.  For example, in the case of two groups of fashion and clothing industry, one group had registered a brand against retail services and opened various outlets.  The other group had been operating in the market place for a number of years and decided to re-brand itself, creating a new image and using a name identical to the one group's brand as its trade name and launched a marketing campaign through various media across the region, to announce its change of name.

At this stage, the brand owner of first group had three options: (1) to write to the group informing of the situation and requesting that they re-brand which involves a costly procedure, (2) initiate court action on the basis of trade mark infringement which is a lengthy procedure and (3) seek the assistance of the relevant government department to have the group name changed.  Practically, option 3 is the most time and cost-efficient one inviting both the parties to come to a negotiable table.  However if there is no amicable solution, the authority can refuse to renew the trade licence of the party which has adopted the similar trade name.  In UAE, it is considered to be a good practice in order to avoid trade-name disputes and a costly re-branding exercise which potentially saves a lot of money.

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