While reviewing the latest Trade Mark Journal issued by the Trade Mark Office, I encountered an unusual publication regarding the seizure of a trade mark. This type of notice is unprecedented. Although permitted under UAE Trade Mark Law, its practical application has been largely unknown. Typically we see more common notices regarding mortgage applications which are a standard process available through the online service portal.
The publication noted, “It was decided to seize the trade mark based on court case no. ….” Seizure of a trade mark is a legal mechanism where the rights to a trade mark or the trade mark itself, are temporarily or permanently restricted. Such actions are allowed by the law and undertaken to enforce a court order or to protect creditors’ interests.
The practical implementation of trade mark seizure marks a significant milestone in recognizing intellectual property (‘IP’) particularly trade marks, as valuable assets. It underscores the UAE government’s ongoing efforts to elevate the status of IP in the Middle East and more specifically within the UAE. This advancement aligns seamlessly with governments initiatives aimed at promoting and strengthening IP awareness and enforcement, highlighting the pivotal role of trade marks as economic assets.
Moreover, this development reflects an acknowledgment from the Ministry of Economy and the Trade Mark Office regarding the substantial financial value of trade marks. The ability to practically execute this process underscores the importance of protecting IP rights and illustrates the financial benefits of investing in trade mark protection. Although the article does not delve into the procedural aspects and mechanism of trade mark seizure, it emphasizes that such procedures can occur in practice, reinforcing the importance of IP as a cornerstone of economic growth and innovation.
Reference to seizure of property (moveable and immovable) under UAE Law
The Federal Decree Law No. (42) of 2022 on the new Civil Procedures Law emphasizes the possibility of seizing movable and immovable property (المنقولة و غير المنقولة),including precautionary and executory seizures. Notably, IP assets and trade marks are classified as ‘immovable property’.
The UAE Trade Mark Law always recognized seizure of trade marks, as outlined under Article 28, paragraphs 1 and 3, regarding the assignment and mortgage of trade marks:
Establishing a clearer mechanism in place for seizing trade marks as immovable assets is significant for various reasons:
Key Insight
Many economies recognize trade marks and other IP as valuable assets due to their longstanding experience with IP. While the UAE's IP framework is relatively new, it has already outpaced many other countries. The practice of seizing trade marks reflects the UAE's growing status as a global business hub with a modern legal system.
This update illustrates how the UAE continues to align its legal frameworks with international best practices, ensuring that IP rights holders possess the necessary tools for protection and monetization. It is an opportune time for businesses and legal professionals in the UAE to capitalize the opportunities these advancements present.
Additionally, trade mark seizures paves the way for integrating intellectual property valuation into business strategies and creating opportunities for valuation services. By acknowledging trade marks as valuable assets subject to seizure, companies may be encouraged to assess the financial worth of their IP. This evaluation can play a critical role in guiding decisions related to mergers, acquisitions, and overall financial planning.
The information in this article is for general informational purposes only and should not be considered as professional or legal advice. Please get in touch with us should you like to discuss further.
