Registering a trademark in the UAE provides the brand owner with exclusive rights to use the trademark in relation to their goods or services. It also grants the right to take legal action against any infringers. Trademark disputes can arise not only from the unauthorized use of a confusingly similar trademark but also from breaches of commercial agreements that involve trademark use, such as franchise agreements.

Here are key steps to help you enforce your trademark rights in the UAE:

1) Drafting Commercial Agreements

Global brands operating in the UAE often enter into commercial agreements that are backed by trademark licenses. These contracts may contain provisions detailing the use of trademarks in business dealings. It is essential for businesses to seek professional legal services to draft these agreements accurately, ensuring all terms and conditions are clearly outlined.

Contracts can be drafted to allow full trademark use or to restrict the use of the trademark under specific conditions. If a party later violates the agreement, trademark litigation and enforcement services will be necessary to take legal action against the infringing party. Some examples of such contracts include:

• Franchise Agreements
• Distribution Agreements
• Mergers and Amalgamations
• Third-Party Use Agreements

2) Identify Violations of the Contract

Franchise agreements are often the most common commercial contracts that involve trademark licenses. When a brand grants another party the right to use its trademark under a franchise agreement, it is crucial to protect the trademark rights stipulated in the agreement. Trademark protection is essential not only for the brand owner but also for the licensee, who may be investing considerable resources into a venture relying on the proper use of the licensed trademark.

For example:

ABC is a US-based company that has a franchise agreement with a Kuwaiti company, PQR, to operate its brand in the UAE. The contract is based on goodwill, granting PQR the rights to use the ABC trademark in specific regions. However, PQR has allowed other owners to open branches of the ABC brand in different parts of the UAE, such as in Ajman and Dubai. These branches have signed contracts directly with PQR rather than the original US company, ABC. While PQR’s agreement with these branches is restricted, the branches’ use of the ABC trademark may violate the terms of the franchise agreement.

If the branches use the trademark in a way that breaches the contract, PQR can take legal action through trademark litigation and enforcement services. Likewise, if the breach occurs between ABC and PQR, both parties can seek legal recourse based on the terms of the contract.