UAE Trends and Developments Contributed by: Maria Farrukh Khan, Syed Mubashir Ali and Muhammad Talal Farrukh Irfan Khan, United Trademark & Patent Services
Today, the jurisdiction for cancellation actions lies pri - marily with the Ministry of Economy & Tourism’s trade mark department. • Procedural efficiency: Cancellation actions based on non-use or bad faith are filed directly as admin - istrative requests. The Ministry reviews the evi - dence and issues a decision without the need for full trial formalities. • The appeal pathway: Crucially, any appeal against the Ministry’s decision goes to the Grievance Com - mittee, and subsequently to the Federal Court of Appeal. This bypasses the court of first instance entirely, significantly shortening the litigation time - line. Navigating the transition: advice for ongoing disputes For rights holders with cases currently pending in the court of first instance filed under the old regime, a period of strategic adjustment exists. • Jurisdictional challenges: Defendants may attempt to dismiss ongoing civil court cases by arguing that the jurisdiction shifted to the Ministry. Robust arguments regarding the saving clauses of the new regulations remain vital to ensure existing cases do not face dismissal on procedural grounds. • Refiling strategy: In some instances, withdrawing a stagnant civil court case and refiling it as a fresh administrative complaint with the Ministry proves strategically advantageous. This allows leveraging of the faster timeline and specialised expertise of the new tribunal. The cost of conflict and settlement culture While the process became faster, it did not become cheaper in a way that encourages frivolity. The 2025 fee structure introduced significant costs for filing appeals and grievances (eg, AED5,000 for certain appeals). • Deterrence of frivolous appeals: In the past, the low cost of filing an appeal often encouraged delaying tactics. A party with a weak case would appeal a decision simply to keep the matter alive and frus - trate the opponent. The new fee structure acts as a gatekeeper. If a party appeals a decision now, it
signals a genuine commercial intent and a belief in the legal merits of the case. • Settlement pressure: The combination of faster administrative decisions and higher appeal fees has driven an increase in amicable settlements. Parties find it more prudent to negotiate co-exist - ence agreements or delimitations early, rather than paying high fees for an uncertain outcome in the court of appeal. The “without prejudice” safety net Complementing this structural shift, a landmark development in evidence rules emerged. In Case No 486/2024 (judgment issued 22 October 2024), the Dubai Court of Cassation formally recognised the principle of “without prejudice” communications for the first time in onshore or mainland proceedings. • The shift: Historically, parties hesitated to make written settlement offers, fearing their use was an admission of liability in court. The Court now clarifies that unsuccessful settlement discussions remain inadmissible as evidence of liability. • Impact: This brings UAE dispute resolution stand - ards in line with English common law jurisdictions. It empowers general counsels to engage in open, frank negotiations to resolve IP disputes without fear that their concessions will be weaponised if talks fail. This single development likely does more to accelerate settlement rates than any statutory amendment. Sustainable enforcement: the “Project Zero” paradigm A trend unique to the UAE, and one that sets a global benchmark, involves the integration of IP enforcement with environmental sustainability. This aligns with the UAE’s broader Green Agenda and the legacy of 28th Meeting of the Conference of the Parties (COP28). From destruction to recycling Traditionally, the “victory lap” of an anti-counterfeiting raid involved the destruction ceremony. This meant steamrollers crushing thousands of fake watches or burning counterfeit handbags. While visually impact - ful, this practice generated significant environmental waste and carbon emissions. This created a tension between IP rights and ESG goals.
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