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Why Trademark Registration is No Longer Optional for Businesses in the UAE?

Why Trademark Registration is No Longer Optional for Businesses in the UAE?

In the 21st century, brand value is established online long before it is reflected on paper, as nearly 90 percent of the information we consume is derived from the internet, making the virtual environment the foundation for building and operating business presence. The public perception is the ultimate force that makes or breaks a brand. Therefore, it is no longer optional for businesses especially in the UAE which is emerging as a global economic hub to view trademark registration as a mere legal formality. It has become a business necessity.

We have seen the race behind obtaining the trademark for Dubai Chocolate. However, because of its popularity, it has lost its distinctive character, and businesses are now coming up with clever ways to associate themselves with the product either by affixing their company names or logos with it to create a mark of differentiation.

Therefore, with the increased globalisation, innovation and entrepreneurship, it has become fundamental to protect and preserve the identity of businesses, which is often referred to as the ‘trademark.’ The legal landscape of the UAE strongly enforces this notion with help of protective measures that are intended to secure a brand or business’s distinct place in the market.

What is a Trademark and Why it matters?

To understand the importance of trademarks, we first need to begin with the meaning of the concept. Article 2[1] of the Federal Law Decree No. 36 of 2021 defines a trademark as everything that has a factor of distinctiveness in terms of the following categories:

  1. Its Name
  2. Shape;
  3. Word;
  4. Sign or group of signs;
  5. Letters;
  6. Symbol;
  7. Numbers;
  8. Address;
  9. Seals;
  10. Drawing;
  11. Pictures & Engravings;
  12. Packaging;
  13. Graphic elements like colors;
  14. 3-D Marks & Hologram Marks; and
  15. Even its sound or smell.

The intention behind it should be to distinguish the product or service from others and indicate its performance or to conduct the monitoring or examination of the goods and services. Therefore, a trademark is a personification of a business or brand in the marketplace.

A trademark carries much more monetary worth in a business than any of its other assets. Consequently, it requires a proportionate level of protection as well. This protection is acquired through the rights that are granted upon successful registration of a trademark. For instance, the foremost protection is the right to prevent others from using same or similar or identical trademarks which may create confusion in the minds of the public regarding a product’s uniqueness. Therefore, a trademark is an identity certificate of a business that needs to be shielded to secure its commercial place in the consumer market.

Legal advantages of Trademark Registration in the UAE

Beyond the business and competitive advantages of trademark registration, the law also offers some exclusive benefits to trademark owners in the UAE. Some of these are discussed below:

  1. Right to prevent others from using it: Article 17[2] of the Federal Law Decree No 36 of 2021 makes the provision for a trademark registration certificate upon successful registration. It contains details such as Registration number, state in which application is made, priority number, date of registration, application and expiry, name, residence and nationality of the owner and the details of goods and services on which trademark is granted. This certificate gives the right to the owner to prevent third parties from using the same/similar/identical trademark without their consent including any geographical indication, if it may cause confusion in the public.  
  2. Presumption of ownership: As per Article 18[3] of the 2021 Law, whoever registers the trademark is deemed its sole owner. The law also creates a presumption of ownership in favor of a such a person if the following conditions are met:
    • The trademark has been in continuous usage for at least 5 years since the date of registration;
    • No action has been lodged against the trademark;
    • Registering person is proved as not malafide

If the above conditions are fulfilled, the ownership of the trademark cannot be disrupted.

  1. Protection for 10 years: The successful registration of a trademark gives the owner 10 10-year protection period starting from the date of the filing of the application. A request for renewal may be granted after the expiry of 10 years if such an application is made by the owner and the conditions are fulfilled.
  2. Right to assign, license and mortgage the trademark: A trademark owner can assign the ownership of the trademark to any third party with or without consideration. The owner can also mortgage, attach with a commercial shop/license or exploitation project in which the trademark has been used. It can also be transferred by will, inheritance, gift or any other legal form. Article 30[4] also allows contract licensing of the use of a trademark to any physical or juristic person for all or some of the goods and services for which it is registered.
  3. International recognition of ownership: A UAE-registered trademark can be extended to over 120 countries with a single international application. This has been made possible by UAE’s accession to the Madrid Protocol in 2021[5].

What has changed in the UAE’s IP landscape?

The IP landscape in the UAE aims to foster innovation, entrepreneurship and digital transformation. The Federal Law Decree No. 36 of 2021 replaced the earlier law of 1992 and brought significant changes that have brought the UAE to the forefront global market. Some of the key updates include:

  1. Broadened definition of ‘trademark’: Article 2 of the Law of 2021 as discussed above as well, has broadened the meaning of what can be a trademark. The most significant aspect is including 3-D marks, hologram marks and even the scent or smell of things. It has widened the aspects of differentiation and introduced more room for change keeping in view the advanced technological development.
  2. Electronic system for trademark registration: Article 54[6] of the 2021 Law provides that the Ministry of Economics may establish an electronic system and database for registration, renewal and cancellation of trademarks which shall be available with competent authorities. This measure has streamlined the registration process across the state.
  3. Accession to International Instruments: The UAE is a signatory to the Madrid Protocol, TRIPS Agreement. These international instruments have significantly transformed the IP landscape in the UAE and opened many new opportunities in the global marketplace for UAE businesses. As discussed above, the Madrid Protocol has made it cost-effective for UAE business owners to seek trademark protection in foreign jurisdictions. It has also allowed foreign businesses to designate the UAE in their international applications. As a member of the TRIPS Agreement, the UAE has introduced IP regulations that enforce Intellectual Property Rights covering trademarks, copyright, patents, etc.
  4. Strict penalties for violation: The penalties under the law of 1992 were less severe and did not justify the violations. However, the 2021 law has introduced stricter penalties for violations under the Act. For instance, a fine of minimum AED 100,000 and maximum AED 100,000 shall be imposed on repeat offenders who counterfeit trademarks. A legal entity that commits a trademark crime can be closed for upto 3 months.

Practical steps for Businesses

The above discussion has clearly shown that the UAE’s legal framework on Intellectual Property has made it easier to access and enforce rights with the help of a streamlined process. Therefore, every business in the UAE, whether it is an SME, a Startup or an Enterprise, needs to take proactive steps to secure its trademark with the help of strategic planning. Below are some of the steps that businesses can take to start their brand protection journey:

  1. Conduct a Trademark Search: Before settling down on a particular trademark, a preliminary trademark search should be conducted to ensure that there are no existing trademarks like the one you have chosen. This step is the most critical aspect to prevent future objections or rejections on ground of similarity. Therefore, professionals like consultants or attorneys should be engaged for risk prevention. You can contact Khalifa Bin Huwaidan Advocates & Legal Consultants for more information.
  2. File for registration through MoE’s platform: The 2021 Law has introduced e-filing system for trademark registration. The registering person must ensure that all the legal and compliance requirements are fulfilled before submitting an application to ensure timely completion. The process usually takes 4-6 months from the date of filing of application.
  3. Monitor and enforce your rights: Every right has a remedy. To exercise a right, you must be aware of the remedies you have in case of its violation or infringement. With respect to Intellectual Property, this means monitoring online marketplaces, social media for infringing activities. If such activity is detected, immediate action should be taken, and a complaint shall be filed with the appropriate authorities. Apart from that, one should also be aware of the renewal dates and all registered marks for better tracking and compliance.

Conclusion

As the UAE positions itself as a global center for innovation and entrepreneurship, trademark protection has become an indispensable pillar of business strategy. For businesses, registration is no longer a procedural step- it is a shield against imitation, a mark of credibility, and a driver of long-term value. In 2025, securing a trademark is not just about legal compliance; it is about protecting the reputation, trust, and distinctiveness that define a successful enterprise.



[1] Federal Decree-Law No 36 of 2021 on Trademarks (UAE) art 2
[2] Federal Decree-Law No 36 of 2021 on Trademarks (UAE) art 17
[3] Federal Decree-Law No 36 of 2021 on Trademarks (UAE) art 18
[4] Federal Decree-Law No 36 of 2021 on Trademarks (UAE) art 30
[5] UAE accedes to the Madrid System’ (WIPO)
[6] Federal Decree-Law No 36 of 2021 on Trademarks (UAE) art 54


FAQs

What is a trademark?

Trademark is the personification of a business or brand in the market, making it possible to differentiate their products or services from that of others.

Why has trademark registration become a necessity?

Due to globalization, the role of the internet in business formation has increased as it influences public perception. Trademark is a way to protect and preserve the identity of a business. UAE strongly enforces this by making Trademark registration a mandate.

What is the procedure to register a trademark in the UAE?

The procedure to register a trademark in the UAE includes filing an application with the Ministry of Economy (MoE) online, requiring a trademark search, proper documentation (license, logo, service list), fee payments, formal examination, and publication in the Official Gazette for public objection. If successful, your business will receive a certificate valid for 10 years.

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