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UAE Trademark Case Study 2026: Combating Bad-Faith Registration and Infringement Under Federal Decree-Law No. 36 of 2021

IPcrossark
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2026-05-28 03:18:41

 

In 2026, the United Arab Emirates (UAE) maintains a robust and modern trademark regime

governed by Federal Decree-Law No. 36 of 2021, administered by the Ministry of Economy

(MoE). The system operates on a first-to-file principle, with strict enforcement against

bad-faith registration, infringement, and counterfeiting—critical for protecting global brands

in the Middle East’s commercial hub. The following landmark case illustrates how proactive

registration and targeted enforcement can safeguard brand identity in the UAE’s evolving

marketplace.

Case Overview: Luxury E-Commerce Brand vs. Local Infringer

 

A globally recognized luxury fashion and e-commerce brand (the “Brand”) operated

exclusively online in the UAE, with no physical retail stores. In 2025, the Brand discovered that a

local Abu Dhabi retailer (the “Infringer”) had:

Registered a confusingly similar trademark in Arabic and English with the MoE;

Used the mark on store signage, product labels, and social media promotions;

Sold counterfeit goods bearing the Brand’s signature logo, misleading consumers into

believing the store was an authorized outlet.

Prior to the dispute, the Brand had filed UAE trademark applications for both English and Arabic

versions of its mark, covering fashion, accessories, and e-commerce services. Although the

applications were pending, the Brand relied on its prior international reputation and evidence

of extensive online use in the UAE to challenge the Infringer’s registration.

Legal Proceedings and Outcome

 

The Brand initiated a two-phase enforcement strategy under UAE law:

Administrative Cancellation: Filed a complaint with the MoE, arguing the Infringer’s mark was

registered in bad faith and conflicted with the Brand’s well-known mark (Article 24 of Federal

Decree-Law No. 36/2021). The MoE reviewed evidence of the Brand’s prior use, international fame,

and the Infringer’s knowledge of the Brand, ordering immediate cancellation of the infringing

registration.

Civil Litigation: The Brand filed a civil case in the Abu Dhabi Commercial Court, seeking injunctive

relief, seizure of counterfeit goods, and damages. The court ruled in favor of the Brand, issuing a

comprehensive judgment that: Permanently prohibited the Infringer from using the mark in any

form (online, offline, or on social media);

Ordered removal of the infringing trade name from all official registries;

Mandated destruction of all counterfeit products and promotional materials;

Awarded substantial compensatory damages for brand harm and lost revenue.

The Infringer’s appeal was rejected by the Court of Appeal, and a subsequent cassation appeal was

dismissed due to procedural non-compliance, cementing the Brand’s victory.

Strategic Insights from the Case

 

This landmark ruling delivers critical lessons for brand owners operating in the UAE:

Dual Language Registration is Mandatory: Registering both English and Arabic trademarks is

essential, as UAE law prioritizes Arabic for local enforcement.

Bad-Faith Registration is Strictly Penalized: The MoE actively cancels marks registered by parties

with prior knowledge of a famous brand, even if the foreign mark is not yet registered in the UAE.

Online-Only Brands Receive Full Protection: UAE courts recognize and protect e-commerce-only

brands against offline infringement, reflecting the country’s digital economy focus.

Procedural Compliance is Critical: Failure to meet court requirements (e.g., deposit payments) can

result in case dismissal, regardless of substantive merits.

Practical Guidance for Global Brand Owners

 

For international companies seeking to protect trademarks in the UAE:

File Early, File in Both Languages: Submit UAE applications for English and Arabic marks before

market entry to secure priority rights.

Leverage Well-Known Mark Protection: Even if unregistered, famous marks can block bad-faith

applications and support cancellation actions.

Monitor Local Registries: Regularly search the MoE trademark database to detect and challenge

infringing applications early.

Engage Local IP Counsel: UAE trademark law requires local agents for filings and enforcement;

experienced counsel ensures compliance with Arabic-language requirements and procedural rules.

Preserve Use Evidence: Maintain records of sales, advertising, and customer engagement in the UAE

to prove prior use and reputation in disputes.

Conclusion

 

The UAE’s 2021 Trademark Law provides a strong, brand-friendly framework for protecting

intellectual property in one of the Middle East’s most dynamic markets. The luxury brand case

confirms that proactive dual-language registration, vigilance against bad-faith actors, and

rigorous enforcement can effectively safeguard brand value—whether operating online, offline,

or both. For global innovators, understanding UAE’s trademark rules and leveraging local expertise is

essential to securing competitive advantage and preventing costly infringement disputes.

 

Hyperlink List

IPcrossark:

IPcrossark—Reliable IP Registration Platform | Trademark, Patent & Copyright Help

UAE Ministry of Economy – Trademark Registration:

https://www.moet.gov.ae/en/w/trademark-registration-1

Al Tamimi & Company – Well-Known Trademark Protection in UAE:

https://www.tamimi.com/law-update/jun-jul/articles/well-known-trademark-bad-faith-and-prior-use-in-the-uae/