Building And Safeguarding IP As A Corporate Asset

In this fast-paced world, as businesses become more dynamic and competitive, for a large and growing number of businesses, their intellectual property (IP) has attained the status of an invaluable corporate asset, often more valuable than their tangible assets. From the brand value of a Company to a key role in its overall value proposition, Intellectual Property can significantly influence Corporate Valuations, Mergers and Acquisitions, attracting investors, goodwill, and finally their business profit.

The UAE, with its dynamic and progressive business environment, has established itself as a global hub for commerce and innovation. In this thriving landscape, building and safeguarding your intellectual property is more important than ever. Our team of expert IP Lawyers in the UAE is here to help you deal this complex legal terrain.

What is Intellectual Property (IP)?

Intangible creations and assets owned and protected by a business, the best-known IP includes trademarks, copyrights, industrial property, patents, utility certificates, industrial designs, and layout designs of integrated circuits.

Trademarks – The Federal Decree Law No. 36 of 2021 on Trademarks defines trademarks as distinctive forms of names, words, signatures, letters, graphics, logos, hallmarks, seals, patterns, packaging, or any other marks used to distinguish goods or services from others or to indicate that certain goods or services belong to the owner of the trademark. Protecting your trademark is crucial for building brand recognition and customer loyalty.

Copyrights – Copyrights in the UAE are regulated by Federal Law No. 38 of 2021 on Copyrights and Neighbouring Rights. The law protects authors of original works, including literature, computer software, databases, musicals, plays, architectural works, photographic works, etc., shall be protected if their rights are violated within the UAE.

Patents – Patents protect new inventions that are innovative, non-obvious, and have practical industrial applications. A patent grants you exclusive rights to your invention, allowing you to commercialize it and prevent others from using it without your permission.

Utility Certificates – When a new invention is industrially applicable but doesn’t meet the higher “inventive step” requirement for a full patent, a utility certificate can be used to secure protection.

Industrial Designs – These protect the ornamental or aesthetic appearance of a product. They cover unique two-dimensional or three-dimensional compositions that give a specific design to industrial or artisanal goods.

Why Your IP is a Strategic Corporate Asset?

With technology and digitalization integrated into nearly every business, intellectual property has become a substantial part of a company’s total value. Properly protecting your IP provides several key advantages, including:

• Exclusive Rights: IP rights, when properly registered, grant their owner exclusive legal rights to use such intellectual properties. This prevents unauthorised use or reproduction, and in case of infringement, the rightful owner can take legal action.
• Enhanced Brand Value: For a business, IP often forms its identity and reputation. Consumers are more likely to prefer brands that hold legally protected intellectual assets like trademarks and patents, showing their authenticity. Therefore, IP plays a key role in customer trust and brand value.
• Competitive Advantage: Previously, IP served as a shield to protect unique innovations and creations from unauthorised use. By differentiating a company’s products or services from its competitors, they are now viewed as strategic corporate assets with the potential to enhance the business’s market position and provide a competitive advantage.
• Increased Corporate Valuation: IP assets are no longer just a shield; they are a powerful strategic tool. By differentiating your products and services, they enhance your market position and provide a clear competitive edge. In times of Mergers and Acquisitions, IP significantly influences the value of a company’s asset portfolio.
• Monetisation Potential: IP assets can be a significant source of revenue. You can generate income by licensing or franchising your IP or even selling it outright. This potential for monetization makes IP a powerful asset for attracting investors and supporting long-term growth.

UAE’s Legal Framework for protecting IP:

Understanding the value of IP extends beyond just legal protection and effective management of these assets is vital. In the UAE, IP rights are protected under a comprehensive legal framework, including:

• Federal Decree-Law No. (36) of 2021 on Trademarks regulates trademarks in the UAE.
• Federal Law No. (38) of 2021 on Copyrights and Neighbouring Rights regulates copyrights.
• Federal Law No. (11) of 2021 on the Regulation and Protection of Industrial Property Rights oversees industrial properties, including patents.

Guide to Protecting Your Intellectual Property in the UAE

Protecting your IP requires a proactive approach and a deep understanding of the legal landscape. Our lawyers can help you with the following key steps:

• Ensuring compliance with UAE IP Laws – Registering your IP with appropriate authorities and following international treaties and conventions guarantees legal protection across multiple jurisdictions.
• Effective Monitoring – Regularly monitoring and conducting thorough IP due diligence. This helps businesses in locating conflicting intellectual properties, infringements early, aiding in avoiding legal disputes. Trademark searches and monitoring can ensure your marks remains unique, distinctive and that there exist no common marks in use.
• Timely Renewals – For the intellectual properties like trademarks, securing them throughout the lifetime of your business by the process of renewal is crucial in protecting your brand’s reputation and maintaining the exclusive rights of your intellectual properties.
• Proper Management of IP – Businesses can manage their IP by laying clear and written internal IP policies and proper documentation. This helps in meeting confidentiality standards and better management.

Conclusion:

Protecting your business’s IP by dealing with the legal challenges may seem intricate. Trivial and the slightest infringements upon your IP can impact your brand value and business goodwill, and may even end up in lengthy and complex legal disputes. Engaging with an IP professional or a legal expert like us can efficiently guide your business and navigate these challenges will provide unique insights and ensure the continuous enforcement of your IP rights.

Don’t leave your most valuable assets unprotected. Contact our expert IP lawyers at ABS Partners today to schedule a consultation and secure your business’s future.