United Arab Emirates - Commercial Guide
Protecting Intellectual Property

Provides advice on IPR protection, including information on the registration of patents and trademarks.

Last published date: 2020-09-12
  • The UAE was placed on the United States Trade Representative’s (USTR) 2018 Special 301 Report as a Watch List country for failing provide adequate and effective protection and enforcement of Intellectual Property Rights (IPR) –
  • The UAE remained on the list in 2019 and again in 2020.
  • Effective implementation of IP-related laws and regulations has
  • Long-standing concerns about combating the sale and transshipment of counterfeit goods and the
  • Delay in establishment of collective management organizations, as well Recent policy changes may weaken IP protection for pharmaceutical products. 

IPR Enforcement: Enforcement of IPR takes place generally at the emirate-level. However, more effective coordinated cooperation is required with the different emirates and customs to control the transshipment of counterfeit goods, especially in the Free Trade Zones in the UAE. In Dubai, for example, the Dubai Police, Dubai Customs, and the Dubai Department of Economic Development (DED) share the power to search for and seize counterfeit products. Dubai Customs has authority to do so at the emirate’s borders and in free trade zones, while Dubai Police’s and DED’s authority only applies to in- market and non-free trade zone areas. Each emirate works with individual stakeholders regarding counterfeits of its brands, and the government publicly reports only the largest seizures of counterfeit goods. A 2014 law combating commercial fraud strengthened the UAE’s legal framework for IPR protection and enforcement, but inconsistent implementation of the law has heightened concerns about whether or not an adequate distinction has been made between defective or substandard goods (which may be returned to their point of origin) and counterfeit goods (which must be destroyed to prevent resale).         

While some UAE enforcement authorities seize and destroy counterfeit goods, significant copyright piracy and trademark infringement concerns remain. The 2019 Notorious Markets List included two physical marketplaces in the UAE, Ajman China Mall and Deira Markets in Dubai, for hosting a significant number of stores/stalls selling a broad range of probable counterfeit goods, including appliances, communication and acoustic equipment, building materials, machinery, footwear, and designer handbags. In addition to serving purchasers in the UAE, these marketplaces also operate as gateways to distribute counterfeit goods to other markets in the region, North Africa, and Europe.

Lack of IP enforcement actions within Free Trade Zones (FTZs) is a major concern. Enforcement authorities reportedly do not regularly investigate and take enforcement actions in FTZs against sellers or shippers of counterfeit goods, nor do they consistently seize counterfeit goods on their own initiative or destroy or otherwise prevent seized goods from being re-exported to their points of origin or transshipped to other destinations.. U.S. rights holders continue to raise concerns over the lack of IP prosecutions; a lack of permanent staff solely dedicated to counterfeit enforcement; a lack of enforcement action without specific, written complaints from rights holders; and a lack of transparency and available information related to raids and seizures of pirated and counterfeit goods. 

Copyright: Copyrights are protected under Federal Law. The UAE is also a member of several WIPO-administered Treaties, including the Berne Convention, the Rome Convention, the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty. The UAE has generally been responsive when encountering pirated physical CDs, DVDs, and software. However, the UAE also has yet to grant the necessary operating licenses to establish collecting management organizations to allow copyright licensing and royalty payments, reflecting a longstanding concern from U.S. industry. 

Pharmaceutical Products: Starting in April 2017, UAE officials allowed domestic manufacture of generic versions of pharmaceutical products still under patent protection in the United States. The UAE claimed that measures providing exclusive marketing rights for pharmaceutical products in the UAE based on country of origin patent protection – the Decree 404 system – were no longer valid. The Decree 404 system provided important IP protection for innovative products that is not available through other mechanisms in the UAE’s intellectual property and regulatory systems. This action demonstrated a lack of predictability and transparency in how regulatory data or clinical trial data is protected in UAE. The result of this ongoing concern has been a sense of instability and confusion amongst stakeholders, including U.S. and foreign firms across innovative and generic pharmaceutical industries.

In any foreign market companies should consider several general principles for effective protection of their intellectual property.  For additional information, visit Stopfakes.gov website or contact ITA’s Office of Intellectual Property Rights Director, Stevan Mitchell at Stevan.Mitchell@trade.gov. 

Resources

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