Trademark Litigation in UAE: Protecting IP Rights in Franchise Agreements

Registering a trademark in the UAE bestows upon the brand owner the exclusive right to use the mark in connection with goods and services, along with the power to initiate legal action against infringers. Trademark disputes can arise not only from the use of a confusingly similar trademark but also due to breaches of commercial agreements involving trademark usage, such as franchise agreements.

As the UAE is a bustling hub for global brands and franchises, it’s crucial to seek the assistance of professionals providing trademark litigation services in Dubai services to manage disputes effectively in court. In this blog, we will deal with the aspects of protecting your trademark rights enshrined in franchise agreements:

Carefully State Trademark Rights in Franchise Agreements

Businesses must take advantage of trademark litigation services in the UAE to navigate legal conflicts successfully. Major international brands operating in the UAE adhere to commercial agreements supported by trademark licenses, which may include detailed provisions related to trademark usage. To ensure a perfect creation of such contracts, businesses can seek legal drafting services in Dubai, which may consist of a full contract based on goodwill or a restricted contract allowing the use of a trademark under certain conditions.

However, parties that sign these contracts may violate the stipulated conditions in the future, requiring trademark litigation and enforcement services in Dubai to take legal action against the violator. Some examples of such agreements include franchise, distribution, amalgamation, merger, and third-party use contracts. Franchise contracts are the most common commercial agreements supported by trademark licenses, and it’s crucial to protect the brand owner’s rights associated with the trademarks to ensure the proper functioning of the franchising business.

Examples of IP Rights Violations in Franchise Agreements

It is easier to explain trademark violations in franchise contracts through examples. ABC is an American Company that operates in the UAE through a franchise contract with an Oman-based company named PQR. ABC has signed a fill-rights contract with PQR based on goodwill. However, PQR operated branches of the ABC brand in different places in the UAE by signing contracts with other owners. For instance, ABC Ajman and ABC Dubai have different owners even though they are branches of the global brand ABC.

However, these branches signed a contract with PQR and not the original American company. In addition, PQR has granted only permission to use the ABC trademark to the branches through a restricted contract. If the UAE branches of ABC use the trademark against the conditions stipulated in the franchise contract. PQR can move a court against them through trademark litigation and enforcement services in Dubai.  Similarly, if the violation of the contract happens between the American company ABC and PQR, they can also go to court based on the terms and conditions stipulated in the contract.

What is the role of Trademark Litigation Services in the UAE?

Trademark litigation and enforcement services in Dubai can help illustrate the unauthorized usage of a trademark that violates a contract, highlighting the critical need for adequate protection of trademark rights enshrined in the contracts. For instance, if a franchisee violates the franchise agreement by using the trademark inappropriately, the brand owner can move against them in court through trademark litigation and enforcement services in Dubai. Similarly, if there’s a breach in the agreement between the brand owner and the licensee, they can also approach the court based on the terms and conditions stipulated in the contract.

Consult with the Best Trademark Litigation Services in Dubai, UAE

To effectively manage legal disputes related to trademark usage, businesses with a presence in the UAE must hire professionals offering legal services related to drafting contracts, trademark registration, enforcement, and litigation. Companies such as Jitendra Intellectual Property (JIP), one of the most reputed IP firms in Dubai, can provide robust legal services to brand owners. With years of experience in trademark registration, enforcement, and litigation, JIP can offer businesses the necessary legal services, including drafting contracts and defending them in court in case of trademark infringement.

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