Trade Secrets vs. Patents: What’s the smart choice for UAE Innovators?


Introduction
The UAE has seen a tremendous rise in growth and innovation in every sector. Every new idea is the intellectual property of its innovator. Therefore, protecting it is no longer optional. Whether you are a manufacturing firm, a pharma company or a startup, knowing what to patent and when to protect something as a trade secret can make a vast difference. The legal system in the UAE provides a comprehensive framework for the protection of your intellectual property, so that it helps you to build and maintain a competitive advantage in the market.
In this article, we will explore how to understand what the smart choice is for innovators in the UAE for shielding their innovations. Read until the end to know about the best approach for protection of your ideas.
What are Industrial Property Rights?
Before moving forward, let’s try to understand, what is meant by the term ‘Industrial Property Rights?’ These rights are a genus of Intellectual Property Rights that includes patents, utility certificates, industrial designs, integrated circuits and undisclosed information (also known as trade secrets). Therefore, it implies the protection of such creations of the human mind that have a commercial value and can be exercised through activities like manufacturing, selling, or importing.
What are Patents under UAE Law?
Let’s begin by understanding what the meaning of a patent is and what can actually be patented. The Federal Law Decree No. 11 of 2021 is the fundamental piece of legislation on the regulation and protection of industrial property rights.
Essential Criteria for Patentability:
One of the most significant components of these industrial property rights is patents. A patent is defined as the protection title granted by the Ministry for an invention or improvement. However, it should satisfy some requirements. Article 5[1] of the Federal Law Decree No. 11 of 2021 mentions the requirements for granting a patent. It provides that a patent is granted for each new invention resulting from:
- An innovative idea; or
- An improvement which involves an innovative step; or
- Any such act capable of industrial application.
However, the invention should be new and not capable of being anticipated by the public. It means that there should not be a disclosure of any information about it to the public before the patent is granted. To evaluate further, an invention can be patented if it:
- Involves an inventive step which is not obvious to a person with ordinary skills in art; and
- Is industrially applicable that is, can be manufactured or used in any sector.
Difference between Patents and Utility Model Certificates:
Now, confusion may arise between patents and utility model certificates. To avoid making any mistakes, it is important to understand the line of differentiation between the two concepts. Although both patents and utility model certificates are granted for inventions, a utility model certificate is issued for inventions that are industrially applicable but do not involve an inventive step sufficient to qualify for a patent.
Let’s take an example: Suppose someone makes a bottle cap that makes opening bottles easier. However, it is based on an existing design or mechanism and only has minor adjustments. Since this does not strictly involve an innovative step, it may not qualify for a patent. However, a utility model certificate may be granted considering its industrial application.
What kind of inventions cannot be patented in the UAE?
To understand more about how to decide between patents and trade secrets, let’s see what cannot be granted a patent or a utility certificate.
Article 7[2] of the 2021 Law provides that the following things or activities are not eligible for patents and utility model certificates:
- Plant or animal varieties
- Diagnostic or surgical methods
- Scientific theories or principles
- Business or computer methods
- Natural materials (unmodified)
- Inventions against public order/morality
Duration of Patent Protection under UAE Law:
Article 18[3] provides that a patent is granted for 20 years from the date of the filing of the application.
What are trade secrets under UAE Law?
As discussed above, the term ‘Industrial Property Rights’ among other things also includes undisclosed information. Undisclosed information means any confidential, non-public information which has economic and commercial value because it is a secret. For example, any formula, business practice, or customer data which if disclosed could result in a loss of competitive edge in the market.
What are the requirements for protection of trade secrets?
Article 61[4] of the Federal Law Decree No. 11 of 2021 provides that the following conditions should be fulfilled for granting protection to an undisclosed information:
- The information must be a secret. It should not be known or readily accessible to a person who normally deals in that kind of information;
- The information has a commercial value because it is a secret;
- The person in whose control it is has taken reasonable steps to keep it a secret.
In addition to the above requirements, Article 62[5] also mentions certain conditions outlining the scope of protection of undisclosed information or trade secrets. These conditions are:
- The information must have been created through substantial effort in terms of money, time, etc.
- The information was submitted to a government authority for the approval of new medicines or agricultural chemical products.
- Such information is usually submitted for testing or approval purposes before the product can be marketed.
The concerned government authority also has the obligation to keep such information protected from being disclosed or used unfairly for commercial gain.
Period of Protection for Undisclosed Information or Trade Secrets:
Under UAE law, undisclosed information or trade secrets are protected from disclosure and unfair commercial use until they are no longer confidential or for a maximum period of five (5) years from the date of submission, whichever is shorter.
Practical implications for UAE Innovators:
For the UAE’s innovators and entrepreneurs, deciding between protecting a patent or keeping a trade secret is not a matter of law; it’s a business strategy. Patents give official acknowledgement and secure enforcement rights, which is best for inventions that may be safely disclosed to the public and leveraged for income through licensing or investment.
Whereas trade secrets are more appropriate for processes, formulae, or business practices that derive value from secrecy. The correct choice is based on the type of your innovation, your marketing objectives, and your risk tolerance[6]. To navigate these complexities and ensure your intellectual property strategy aligns with UAE law, it’s advisable to seek expert guidance. Khalifa Bin Huwaidan Advocates and Legal Consultantsprovide tailored legal advice to innovators, startups, and established businesses to help protect and maximize the value of their IP assets in today’s fast-evolving in
[1] Federal Law No. 11 of 2021 on the Regulation and Protection of Industrial Property Rights, art 5.
[2] Federal Law No. 11 of 2021 on the Regulation and Protection of Industrial Property Rights, art 7.
[3] Federal Law No. 11 of 2021 on the Regulation and Protection of Industrial Property Rights, art 18.
[4] Federal Law No. 11 of 2021 on the Regulation and Protection of Industrial Property Rights, art 61.
[5] Federal Law No. 11 of 2021 on the Regulation and Protection of Industrial Property Rights, art 62.
[6] International Journal of Law Management & Humanities, ‘Guarding Innovation in the Desert’ (2025) https://ijlmh.com/wp-content/uploads/Guarding-Innovation-in-the-Desert.pdf
FAQs
Industrial property rights protect creative work used in industry and commerce that can be exercised through activities like manufacturing, selling or importing.
As per article 5 of the Federal Law Decree No.11 of 2021, an innovation is patentable when it results from an innovative idea, is an improvement which involves an innovative step or any such act capable of industrial application. It should be new and not capable of being anticipated by the public. It is granted from the date of the filing of the application.
A utility model certificate is issued for inventions that are industrially applicable but do not involve an inventive step sufficient to qualify for a patent.
Trade secrets include all undisclosed information that gives a company a competitive edge. They are protected from disclosure until they are no longer confidential or for a maximum period of five years from date of submission, whichever is shorter.



