Fortifying Saudi Arabia's Future: Strategies for Intellectual Property Protection Amidst Emerging Economic Shifts
Saudi Arabia Focus
In Saudi Arabia's evolving knowledge-based economy, the role of Intellectual Property (IP) assets is increasingly significant. This involves both licensing third-party IP rights into the Kingdom and developing and using IP domestically.
Law Update: Issue 367 - Saudi Arabia & Competition Focus
Ahmad Zaza Partner,Intellectual Property
Saleh Al HebshiSenior Associate,Intellectual Property
Rose BogariTrainee Lawyer,Dispute Resolution
In Saudi Arabia's evolving knowledge-based economy, the role of Intellectual Property (IP) assets is increasingly significant. This involves both licensing third-party IP rights into the Kingdom and developing and using IP domestically. It's crucial to understand how to effectively protect IP rights in Saudi Arabia.
As the importance of a knowledge-based economy quickly emerges in Saudi Arabia, Intellectual Property (IP) assets will play an increasing role. This pertains to both the licensing of third-party IP rights into the Kingdom and the development and utilization of IP within the country. Understanding the best methods to safeguard IP rights in Saudi Arabia is crucial.
The protection of IP rights begins with awareness, as there are IP-related risks the emerge on a day-to-day basis and occur within every organization. Whether these are trademark rights in brands, copyright in software, or patent rights in chemical compounds, the path to protection can only begin once there is an understanding of the types of rights that are being created and which are capable of being protected.
Trademarks, copyright works, patents, industrial designs, and domain names are all capable of being protected in Saudi Arabia and there is an established legal framework the supports the registration and recording of these valuable IP rights.
There are several ways to protect Intellectual Property (IP) rights in Saudi Arabia. Here are some of the best practices and strategies:
Intellectual Property Rights (IPR) Search: Conducting a comprehensive Intellectual Property Rights (IPR) search serves as an initial step in protecting IP assets. This involves researching existing patents, trademarks, and copyrights to ensure that the intended IP is not already claimed by others. By conducting thorough searches, businesses and individuals can avoid potential infringement issues and strengthen their position when applying for IP protection.
Registration: Intellectual Property rights in Saudi Arabia, including patents and trademarks, necessitate formal registration with SAIP to establish legal ownership and prevent infringement.
Non-Disclosure Agreements (NDAs): Utilize NDAs and confidentiality agreements to safeguard sensitive information and trade secrets, particularly in corporate dealings and employment contracts.
Surveillance and Monitoring: Implement regular monitoring to detect and prevent IP infringements such as counterfeiting and unauthorized use of trademarks and copyrighted materials.
Trademark and Copyrights Enforcement: In Saudi Arabia, SAIP has the authority to impose IP laws and rules. Protecting your IP rights and discouraging others from breaching them can be accomplished by pursuing legal action against infringers through SAIP or other legal channels.
Recent changes to Saudi Arabia's IP landscape represent a significant step forward in safeguarding intellectual property rights.
The Saudi Intellectual Property Authority was created by Royal Decree in late 2017. Once fully established and operational, it goes under one umbrella, the following IP functions:
Copyright, previously the responsibility of the Ministry of Culture and Information.
Trademarks, previously the responsibility of the Ministry of Commerce and Investment.
Patents, previously the responsibility of the King Abdulaziz City for Science and Technology
The creation of the Saudi Intellectual Property Authority is an important move by the Kingdom to recognize the interconnection between these key IP rights and it will allow the registration of these rights to be managed in a more effective and streamlined manner. One of the stated functions of the Authority is "promoting the benefit of Intellectual Property to build an advanced economy based on knowledge". This resonates with the very changes that we are seeing in the dynamic economy of Saudi Arabia.
Advice and information on how to protect Intellectual Property rights, including details on how to register patents and trademarks.
Companies based outside the Kingdom of Saudi Arabia ought to have an all-encompassing plan for the management of their Intellectual Property (IP) in Saudi Arabia and for the reduction of the risk of IP infringement. The Saudi Arabian government does not guarantee the same Intellectual Property rights or the same level of protection that businesses have come to expect in other Western markets. For most rights to be enforced, they need to be registered in the country in accordance with the laws there. For instance, registering a trademark outside the kingdom of Saudia Arabia will not afford you any protection in Saudi Arabia, unless it is well-known mark or has been used for a considerable time in the Saudi Kingdom.
Most recently, Saudi Arabia adopted the unified Gulf Cooperation Council (GCC) Trademark Law (effective in September 2016), and the country is also a member of the GCC Patent Law and GCC Customs Law. These laws help to harmonize Intellectual Property (IP) practices in Saudi Arabia, Kuwait, Qatar, Oman, and Bahrain, as well as in the United Arab Emirates. In Saudi Arabia, trademark registration is determined by who files their application first. Before putting your goods or services on the market, you need to first consider how to go about securing trademark protection for them and any other related IPR’s.
It is essential for businesses to have a solid understanding of the fact that Intellectual Property is primarily a private right, and that the governments that are outside the Kingdom of Saudia Arabia cannot assert rights in Saudi Arabia on behalf of private individuals. The holders of the rights are the ones who are responsible for registering, protecting, and enforcing those rights (where it is applicable), and doing so may require them to retain their own legal counsel and other advisors. Businesses may find it beneficial to consult with local attorneys or Intellectual Property consultants who are knowledgeable in the Intellectual Property laws of Saudi Arabia. When it comes to fully protecting their legal interests possible, companies based outside the Kingdom of Saudia Arabia should collaborate with the law firm or IP agent in their immediate area.
In 2017, Saudi Arabia established the "Saudi Authority for Intellectual Property" (SAIP) to consolidate all the different IP departments under one umbrella and to lead an IP national strategy including the updating of rules and regulations, the provision of IP products and services in a timely and high-quality manner, and the promotion of IP awareness for all stakeholders – including inventors, creators, entrepreneurs, and consumers – as well as the coordination of IP enforcement. In addition, the Saudi Authority for Intellectual Property (SAIP) was given the responsibility to register and protect IPR’s.
There have been some significant recent developments around Intellectual Property (IP) in Saudi Arabia. Here are some of the major ones:
New Law: In 2023, Saudi Arabia implemented a new Civil Transaction Law, that covers 700 articles and one of the important ones is Intellectual Property Law, how does the Saudi Laws protect IP’s rights. According to P1,2 from article 138 from this law states that “Compensation for the harmful act includes moral compensation. Moral damage includes what is inflicted on a normal personal, such as sensory or psychological harm”. That said, Saudi laws aims to protect all the rights in order to avoid any harmful to the normal persons in terms of their rights.
IP Offices and Legislation: SAIP was established in 2017 as a regulatory body responsible for managing and protecting IP assets in the country. Since then, SAIP has issued various regulations and guidance documents to provide more clarity around IP laws and procedures.
Copyright Protection: In 2019, Saudi Arabia became a member of the Berne Convention for the Protection of Literary and Artistic Works, which ensures that Saudi Arabian works are protected internationally. This move is expected to encourage more creativity and innovation in the country and help Saudi Arabian creators protect their works globally.
Counterfeiting and Piracy: Saudi Arabia has also been taking steps to crack down on counterfeiting and piracy. In 2020, the Saudi Arabian government launched a campaign to combat the sale of counterfeit goods in the country, particularly online. The campaign aims to protect consumers from harmful and fake products and to support legitimate businesses.
These recent developments indicate that Saudi Arabia is committed to improving its IP laws and regulations and creating a more supportive environment for innovation and creativity.
Saudi Arabia's new National Intellectual Property Strategy (NIPS) was launched in 2020 and aims to enhance the country's innovation ecosystem and promote economic growth through IP protection and commercialization. The NIPS includes five main pillars:
IP legal framework: Strengthening and modernizing Saudi Arabia's IP laws and regulations to align them with international best practices, including patent and trademark laws, copyright laws, and trade secret protection.
IP awareness and education: Raising awareness and promoting education on IP rights among various stakeholders, including entrepreneurs, researchers, investors, and the general public.
IP commercialization: Encouraging and incentivizing the commercialization of innovative products, services, and technologies, through various means such as licensing, technology transfer, and patent pooling.
IP enforcement: Improving the effectiveness and efficiency of IP enforcement mechanisms through the establishment of specialized courts and the development of law enforcement agencies.
International cooperation: Enhancing international cooperation and partnerships on IP issues to leverage the expertise and resources of foreign countries, organizations, and institutions for the benefit of Saudi Arabia's innovation ecosystem.
The establishment of the Intellectual Property Prosecution has been officially sanctioned by the Public Prosecution Councel.
The NIPS also includes specific initiatives and programs to support each of these pillars, such as the establishment of a national patent office, the creation of IP incubators and accelerators, the promotion of IP-based financing and venture capital, and the development of a national IP database and online registration system. The overall goal of the NIPS is to create a vibrant innovation ecosystem in Saudi Arabia that attracts domestic and foreign investment, fosters creativity and entrepreneurship, and contributes to sustainable economic growth.
The primary tenets of the strategy encompass a wide variety of domains as well as stages of development. It seeks to build an Intellectual Property system that encourages and supports creativity, and that maximizes the benefits that these bring to the economy. To do this, it will establish an Intellectual Property value chain that stimulates competitive innovation and creativity, and that supports economic growth. This will allow the system to accomplish its goal of building an Intellectual Property system that encourages and supports innovation and creativity. The Kingdom will be able to establish itself as a leader in the field of Intellectual Property rights because of such growth.
During the launch, the crown prince expressed his hope that the strategy, which has already been approved by the Saudi Cabinet, will stimulate creativity and innovation within the Kingdom over the course of the next five years.
Protection, generation, management, and commercial investment are the four cornerstones that support the National Intellectual Property Strategy. By putting these pillars into action, the goal is to strengthen the Kingdom's capacity to develop Intellectual Property assets that have both economic and social value.
Officially, it is recognized that a clear mechanism for encouraging, attracting, managing, and developing creativity is required to promote the development of intellectual property. This recognition is based on the significance of intellectual property, the creative minds of young innovators in a variety of fields, and other advantages that provide a competitive advantage.
Protection is now considered to be one of the most important pillars of the strategy because of the support that has been put in place for the generation and management of talent. The provision of a framework that offers protection for intellectual property, promotes respect for Intellectual Property rights, and enhances the value of safeguards on creative rights is among the goals of this initiative, which aims to revitalize the market economy. Laws and regulations will, of course, be enacted to facilitate this goal, and those who violate these laws and regulations will be subject to financial fines and other forms of punishment.
Building on the nation's own investment in its smart city megaprojects, such as The Line and NEOM, and other plans with innovation and creativity at the core of their designs, as well as the Kingdom's strategically important geographical location and robust digital infrastructure, the commercial investment pillar is intended to contribute to growth and investment in the Kingdom. This will be accomplished by capitalizing on the Kingdom's strong digital infrastructure.
This pillar's goal is to improve competitiveness while also enabling and facilitating the provision of the associated products and services that are necessary to maximize results.
Each pillar contains initiatives that have been delegated to different government agencies. These initiatives will be evaluated on a regular basis in accordance with a governance framework that outlines all the relevant roles and responsibilities.
On February 15, 2024, In alignment with the launch of the National Strategy for Intellectual Property by His Highness the Crown Prince, the Public Prosecution Council has officially sanctioned the establishment of the Intellectual Property Prosecution. This significant development stems from collaborative efforts to realize the objectives and pathways outlined in strengthening the intellectual property enforcement ecosystem. The decision to form the intellectual property prosecution underscores our commitment to safeguarding rights and fostering an environment conducive to innovation and knowledge. This initiative is a pivotal step towards enhancing the effectiveness and efficiency of the litigation journey, aligning with the goals outlined in the Kingdom of Saudi Arabia's vision to create an appealing atmosphere for business and investment. It also aligns with the broader vision of building a diversified economy rooted in innovation and knowledge, thus protecting the rights of creators and contributing to the nation's overall progress. More information will be provided soon. Stay tuned for updates!
In the coming weeks, months, and years, SAIP will keep investing in raising awareness of Intellectual Property and fostering a greater respect for IP rights. There are currently several projects in the planning stages. One of these is the appointment and assignment of Intellectual Property Respect Officers throughout various government agencies. These officers will play a pivotal role in coordinating and coordinating efforts across those agencies to protect and promote Intellectual Property rights. The officers will receive training from SAIP to become the "go-to" person in their respective agencies for all issues pertaining to Intellectual Property after completing the training.
In addition, the formulation of an Intellectual Property (IP) National Committee to coordinate the administration of IP laws throughout the government is currently in the works. The Saudi Arabian Intellectual Property (SAIP) will serve as the committee's chair, and it will be comprised of representatives from a variety of government enforcement agencies. The Committee's primary responsibility will be to ensure widespread compliance with IP laws and regulations across the Kingdom.
The Kingdom of Saudi Arabia understands how vital it is to safeguard Intellectual Property rights to provide entrepreneurs, artists, and businesses of all sizes with the opportunity to capitalize on the monetary worth of their intangible assets. The broader population will benefit from access to a constant flow of new technologies and creative products in addition to the advantages of a flourishing economy if innovation, creativity, and the growth of businesses are encouraged in this manner. Recent changes to Saudi Arabia's Intellectual Property landscape hold the potential to bring about significant benefits and represent a significant step forward in the direction of achieving the goals outlined in the Saudi Vision 2030.
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For further information,please contact Ahmad Zaza , Saleh Alhebshi and Rose Bogari.
Published in April 2024
