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Important Reasons Why a Business Needs a Trademark in UAE

Why a Business Needs a Trademark in UAE?

While UAE businesses can have business operations in the country without a trademark, there’s a lot of important reasons why trademark registration (Trademark in UAE) should be taken into consideration.

Important Reasons Why a Business Needs a Trademark in UAE

What are the benefits of having a business trademark in the UAE?

The important benefits of trademark registration in the UAE, which makes it an essential part of any business strategy are as follows:

  • The right to exclusive use of a ‘trademarked’ brand – trademark registration in UAE provides the trademark holder or the trademark owner exclusive rights in using a business mark all throughout the country. This is with respect to goods and services a trademark is registered in unless the trademark registration is proved to be invalid. A trademark owner has a prima facie defense for infringement attempts.
  • Ability to take legal action for goodwill depreciation – a registered trademark in UAE provides its trademark holder the right in bringing the action to any third party for good depreciation. This means a trademark holder has some protection against the use of a trademark even by a party that isn’t in the same industry as you or isn’t a direct competitor of your business.
  • Access to local courts – registration of a business trademark or brand in UAE enables the owners in taking a trademark infringement case to the local courts. An order of a competent court in the UAE is enforceable all throughout the country.
  • Incontestability – a registered trademark in UAE, under certain circumstances, becomes incontestable following registration. failing to register a trademark or brand in UAE even when you are entitled to doing so can result in any third party having the incontestable rights for a mark which you should have rights for.
  • Establishing obstacles for third-party registration for confusingly similar or identical marks – during the process of trademark registration in UAE, there will be a stage of thorough examination. This is done by the UAE Ministry of Economy. The Ministry conducts a search in order to help ensure a mark that is being applied for registration isn’t going to cause confusion within the UAE with any previously registered trademark.
  • Providing public notice – it’s prudent to implement a search of all trademark databases available prior to adopting a brand-new trademark. As soon as an application for trademark registration has been formally lodged with the local authorities, a trademark will appear not only in trademark registers in the country but also in local newspapers to provide public notice. This will call the attention of any potential user of a trademark. Corporate name searches are also required for new UAE trademarks.
  • Domain name rights – for business entities that don’t have a presence within UAE, registration of a trademark in UAE will provide rights in registering a domain name in UAE’s domain name registry. The registration will also enable the trademark owner in using the local legislation for protecting the brand against infringement acts within the country.
  • A valuable asset for selling or licensing – a registered trademark of a business in UAE is perceived to have an increased value versus a mark protected by common law. Trademark registration can be sold or licensed for others to use.
  • Foreign priority – trademark registration in UAE gives certain advantages wherein a mark’s owner can seek registration in several different countries for trademark protection.

Read also: Identifying the Right Trademark Class in UAE

What are the intellectual property assets available for UAE businesses?

If you are not sure of which intellectual property assets can be registered for your business in UAE, check out the list below.

  • Business name – this is the most common type of trademark registered by businesses. Your business name can be registered, which is one under which the business conducts its operations. This can be a great IP asset. If you use the name of your business in differentiating your goods and services, then your business name also works as the trademark. Remember that having a business name doesn’t automatically provide you with trademark rights. Trademark registration is still required to protect your business name.
  • Brand name and logo – brand names and logos are how consumers distinguish products and services that are in the marketplace. When goods and services start developing reputations, the brand value increases. Brand names and/or logos are excellent IP assets that are certainly worth protecting. Registration of a brand name or logo will provide 10 years of exclusive use rights.
  • Slogans – a slogan, which is a phrase that’s catchy, can differentiate the products and services of a business from those of the competition. It can be registered as a trademark for 10 years of having exclusive rights, subject to renewal.
  • Domain names – they can be intellectual property assets of companies as well. When your domain name is used in differentiating your goods and services, then the domain name works as a trademark. This is when you can benefit from trademark registration in UAE.

If you want to know more about trademark registration in UAE, contact us here in FAR Consulting Middle East today!