UAE Trends and Developments Contributed by: Maria Farrukh Khan, Syed Mubashir Ali and Muhammad Talal Farrukh Irfan Khan, United Trademark & Patent Services
The launch of “Project Zero” on 3 November 2025 by Dubai Customs represents a paradigm shift. This initiative launched in partnership with the DP World Foundation and Landmark Group. • The mechanism: Instead of destruction, seized counterfeit goods, specifically textiles and apparel, are now processed through specialised recycling partners. Fake designer clothing shreds to recover raw materials repurposed for new products. • The scale: The initiative targets the recycling of hundreds of thousands of items. It converts poten - tial landfill waste into usable raw materials, sup - porting the circular economy. ESG compliance for rights holders For multinational corporations, this marks a critical development. Enforcing IP rights in the UAE no longer comes with an environmental penalty. Brand owners can now align their local enforcement actions with their global sustainability commitments. Operationalising green enforcement: a checklist To fully participate in this initiative, rights holders must update their administrative protocols. • Power of attorney updates: Many standard powers of attorney explicitly authorise agents to destroy goods. It is recommended that these be updated to include the authority to recycle or dispose of goods via environmentally sustainable means. • Instruction letters: When a seizure occurs, the instruction letter sent to customs should explicitly request recycling over destruction. This signals to the authorities that one’s brand aligns with their sustainability goals. • Vendor vetting: The recycling partners designated by the authorities must meet one’s own corporate compliance standards for chain of custody. Cer - tainty that recycled goods do not leak back into the market is needed. The “one million” deterrent While the disposal method softened, the penalties hardened. The legal framework now allows for fines of up to AED1 million for counterfeiting offences. This statutory cap provides a powerful deterrent and a strong leverage point for rights holders during settle -
ment negotiations. The risk/reward ratio for counter - feiters shifted dramatically against them. The monetisation of creativity: the era of royalties For decades, the protection of copyright in the UAE remained theoretically robust but commercially dor - mant regarding public performance. The licensing of background music in hotels, malls and restaurants proved inconsistent, and rights holders often strug - gled to collect royalties; 2026 marks the definitive end of this royalty-free era. The rise of collective management organisations (CMOs) The UAE has fully operationalised its collective man - agement infrastructure. With the Emirates Music Rights Association (EMRA) and Music Nation both receiving licences from the Ministry of Economy & Tourism, the market was standardised. • The players: EMRA focuses on the rights of authors and composers, while Music Nation handles neigh - bouring rights and public performance licensing. • Operational reality: These entities exist beyond paper. They actively audit venues, issue tariffs and collect fees. Compliance reality for hospitality and retail This development impacts the operational bottom line of any business that uses music or visual art to enhance its customer experience. The “wait and see” approach no longer works. Businesses must proac - tively secure licences to avoid fines and reputational risk. A compliance action plan follows. • Audit public spaces: Identify every location where music plays. This includes lobbies, elevators, retail floors and event halls. • Budgeting: General managers of hospitality groups must now include public performance royalties as a fixed line item in their annual operating budgets. • Vendor review: Third-party event organisers or DJs hired for venues must have their own licences or fall under the venue’s blanket licence. The tariff landscape One complexity of the new system involves under - standing the tariff structure. Tariffs are often calculated
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