Introduction
The modern world is a world of global business and international communication. Being recognizable in the vast majority of business companies and rivals is a challenge. Trademarks are extremely significant for business. Trademark is a sign that makes consumers remember the particular product or service. The importance of trademarks cannot be overestimated. They attract attention and demonstrate the popularity of some company. However, several issues may arise when it comes to dealing with trademarks. For instance, one may face difficulty during the process of trademark registration. It is also necessary to be aware of legal regulations concerning trademarks. In the following paper, the civil protection for well-known trademarks under the Federal Law No. 37 of 1992 on Trademarks (as amended by Law No. 19 of 2000 and Law No. 8 of 2002) with particular reference to international treaties such as Paris Convention (1883) and TRIPS Agreement (1994) will be discussed and evaluated.
Defining and Understanding Well-Known Trademarks
Definition and functions
The most important thing about trademarks is that they can be the most valuable assets of the business. They are signs that make the business, product, or service recognizable. The International Trademark Association defined trademark as ‘any word, name, symbol, or device (or any combination thereof) that identifies and distinguishes the source of the goods of one party from those to others’. The same definition is provided for the term ‘service mark’ that is used to describe the definite service. A more detailed definition of the trademark is provided by American Bar Association:
The term ‘trademark’ includes any word, name symbol, or device or any combination thereof used by the person or which a person has a bona fide intention to use in commerce and applies to register… to identify and distinguish his or her goods, including a unique product, from those manufactured or sold by others and to indicate the source of the goods, even if that source is unknown.
The central idea of both definitions is clear — trademark can be the word, logo, slogan, or any other sign used for identification of the particular source, service, or good. Coca-Cola, for example, uses a design of package (or trade dress) to identify drink.
Trademarks are everywhere. They comprise an integral part of everyday life. The primary function of any trademark is to make the public recognize it. This function predetermines the need for legal protection of trademarks. Without protection, the popularity of particular brand may be used by competitors or swindlers for their enrichment using illegal means. The second function of the trademark is that of the quality indicator. Every company produces goods of the particular quality. Consequently, when the person sees the trademark, he or she already knows about the quality of the good. One more function of trademarks is to protect the owner’s rights. Trademark is an indication that identifies owner’s right to use services or goods. Also, the owner of the trademark may sell the right to use the trademark for another company. Finally, well-known and famous trademarks increase the price of the company and business significantly.
Types of Trademarks
One more aspect to know about trademarks is the way they work. The efficiency of the trademark is often characterized depending on their distinctiveness and strength. Based on these two features, trademarks are divided into:
- Fanciful or coined. Such trademarks are made up. They do not have real life equivalents in terms of their meaning. Kodak and Xerox are often regarded as the most successful fanciful trademarks;
- Arbitrary trademarks. Common words and names are used as arbitrary trademarks when their meaning is different from the usual one. The most vivid example of the arbitrary trademark is Apple. All people know the meaning of ‘apple’ as the type of fruit. However, in the digital world, Apple is a widely recognized name of the manufacturer of computers and other devices;
- Suggestive trademarks are such words, symbols, or signs that suggest the explicit image. Sometimes they are referred to as allusions because they let people think about particular qualities of one object that are transferred to the other object. Jaguar for automobile and Playboy for magazine are one of the most vivid examples of suggestive trademarks;
- Descriptive trademarks use any combinations of words that describe the particular product. The example of the descriptive trademark may be the name of beer — Blue Ribbon.
The information about types of trademarks and their functions is necessary for the revealing controversial aspects of civil protection of trademarks. The civil protection of the trademark largely depends on its type. For example, fanciful and arbitrary trademarks are the most protected under all legislations. The situation is extremely different with suggestive and, in particular, descriptive trademarks. Terms that are used for the description of the particular goods cannot be protected unless they become highly recognizable in public. When the so-called ‘secondary meaning’ occurs, the legal protection becomes possible.
Identification of the Well-Known Trademarks
Although the information provided above is relevant for all types of marks, it is useful to evaluate the notion of well-known trademarks separately. It seems obvious that well-known or famous trademarks are those marks that are the most popular and easily recognized by the majority of people. However, the popularity of the trademark may be questioned. Several factors are important for defining whether the trademark is popular or not. These factors include:
- The level of trademark recognition in the particular public sector;
- The scale of the geographical spreading of the trademark;
- The scale of area where the trademark is promoted;
- The worth and importance of the trademark.
Difference between Famous and Well-Known Trademarks
Word-combinations famous trademarks and well-known trademarks are often used interchangeably. However, they are recognized as equal synonyms only in some jurisdictions. In most cases, it is necessary to understand that there is the difference between famous and well-known trademarks. The difference is that famous trademarks are considered to enjoy a higher level of popularity in comparison to well-known marks. According to the International Trademark Association, one more difference lays in the fact that ‘often a famous mark needs to be registered in at least its home country for protection, whereas well-known marks usually are protected without the need for any registration’. At the same time, famous trademarks may be provided with wider protection opportunities than well-known marks.
International Protection of Trademarks
Trademarks can be protected either on the state or international level. International protection of trademarks is a useful experience for simplifying the process of the usage trademarks in different countries. This aspect is especially significant when speaking about well-known and state trademarks. The application of international trademark can be realized under several legislative systems. One of the most reputable methods presupposes the protection under the Madrid Protocol. Although the United Arab Emirates do not support this system, it is necessary to analyze it briefly to provide insight into the international trademark legislation.
The Madrid Protocol
The provisions of Madrid Protocol or Madrid Agreement allow businesses to register trademarks that will be legally protected in numerous countries. Almost one hundred countries support the Madrid Agreement. Such a broad territorial coverage is the primary benefit of the Madrid system. All these countries comprise up to 80% of the overall word trade. The Madrid system is convenient as well. The organization has to write an application only in one language, and this file will be used throughout the world. This fact results in the other positive consequence — financial benefits. One should not pay for the translation of application into other languages. Also, by performing under the Madrid Protocol, the company avoids dealing with numerous national policies concerning trademarks.
Paris Convention for the Protection of Industrial Property
Paris Convention of 1883 became a significant step forward towards the efficient protection of rights of the trademarks. The prerequisite for signing the Convention became the need to organize the system of patent protection.
Prior to the Convention, those wanting protection for inventions in multiple countries needed to file patent applications in all such countries simultaneously, and needed to do so prior to any publication or exhibition of the invention at a trade fair, in order to avoid the unintentional loss of eligibility of patent protection in one or more of the countries.
The Convention addresses the issues of industries property very broadly. It provides regulations for trademarks as well. What concerns well-known trademarks, the Convention protects such trademarks which design has been altered though if changes do not present new distinctiveness of trademarks. The Paris Convention prohibits the registration, usage, imitation, and translation of trademarks to avoid uncertainties and violations of property rights. The Article 6bis is devoted to the notion of well-known trademarks protection. It should be added that the Paris Convention was not left unchanged since 1883. Seven amendments were made in the period between 1900 and 1979.
The TRIPS Agreement
The Agreement of Trade-Related Aspects of Intellectual Property Rights became enforced in 1995. The TRIPS Agreement is considered to be the most wide-ranging international agreement concerning intellectual property. The Agreement encompasses various aspects including copyright, trademarks, industrial designs, patents, and related issues. According to the World Trade Organization, the Agreement has three main features. The first aspect refers to the defined standards. The Agreements provides minimum standards that should be met by any participating state. The second feature of the Agreement concerns the enforcement procedures. All domestic procedures necessary for the successful enforcement are described. The third feature of the Agreement is the variants of the proper settlement of disputes.
The information in the TRIPS Agreement about the trademarks starts from their definition. The Agreement provides recommendations for the usage of trademarks in all member states. Also, the Agreement ensures that all owners of trademarks have the right to prevent the usage of the identical sign, symbols, or words for individuals who are not eligible to do so. The TRIPS Agreement requires from other members to monitor and reject the registration of marks that have similar or identical features of well-known marks.
Some companies may refer to the international obligations predetermined by the TRIPS Agreement to receive the approval that they are well-known and, consequently, be protected as well-known companies without registration. Still, registration should be regarded as a beneficial procedure ‘taking into account that many countries provide an extended protection of registered well-known marks dilution (Ar. 16.3 TRIPS), i.e., the reputation of the mark being weakened by the unauthorized use of that mark by others’.
Overview of the Protection of Well-Known Trademarks in the United Arab Emirates
Overview of the UAE
The United Arab Emirates became an independent country in 1971. Since that time, the state experienced two oil booms that resulted in the rapid increase of GDP and, consequently, the overall prosperity. The economy of the United Arab Emirates expanded rapidly. As a result, the country became a good source for foreign investments. However, the United Arab Emirates faced difficulties with the international collaboration due to the lack of support that could be given for the participants in the global community. The potential partnership with foreign investors provided new advantageous perspectives for both parties. Consequently, the United Arab Emirates enhanced its activity and became an active member of the global affairs.
The accession of the UAE to the TRIPS Agreement, Paris Convention, and Berne and Rome Convention boosted new opportunities for investments. Foreign investors have numerous benefits from putting their funds in the United Arab Emirates. Available workforce, zero rates for taxes, and world-class infrastructure are positive outcomes of investing in the UAE.
The UAE became a member of the World Trade Organization in 1996. Since that time, numerous opportunities were opened for the further development of the country.
For instance, for a foreign multinational active in the UAE, the future opportunities that arise from the implementation of WTO reforms will be of great relevance, and it is necessary to take this future development into account when strategies are formed.
Being a member of WTO is significant advancement as far as the Organization is the major figure in the international trade.
Also, the United Arab Emirates belongs to the Paris Union, which means that its patent law is well-developed and comprehensive. The UAE’s membership also includes:
- Berne Convention for the Protection of Literary and Artistic Works;
- Patent Cooperation Treaty;
- WIPO Copyright Treaty;
- Paris Convention for the Protection of Industrial Property;
- Convention Establishing the World Intellectual Property Organization.
Summary of the Intellectual Property System of the United Arab Emirates
Well-known trademarks are protected under the general Intellectual Property System of the UAE. This system includes patents, designs, utility models, and trademarks. The first three constituents are protected under the Patents, Designs and Industrial Models Law No. 17 of 2002 (the Patent Law). The Federal Law No. 37 of 1992 on Trademarks (as amended by Law No. 19 of 2000 and Law No. 8 of 2002) is for the protection of trademarks. The general principles of the Trademark Law presuppose that the presence of local representative is necessary for the law enforcement. Also, the application (for those who register trademarks) should be completed in the Arabic language. All trademarks are to be substantially examined though the request for examination is not required. The protection under the Trademark Law lasts for ten years after the approval of the application.
Protection of Well-Known Trademarks under the UAE Trademark Law
The United Arab Emirates has adopted the Federal Law No. 37 in 1992 (“the Trademark Law”) as a result of demonstrating the intention to become a valuable participant in the international affairs. The Trademark Law was subsequently amended in 2000 by the Law No. 19 and by the Law No. 8 in 2002. These subsequent amendments aimed to improve the system of civil protection of the trademarks (both local and international) in the country.
According to the Federal Law No. 37, the trademark is defined as Anything which takes form whether names, words, signatures, letters, figures, drawings, symbols, titles, tax stamps, seals, pictures, inscriptions, advertisements or packs or any other mark or a combination thereof, used or is intended to be used, either in distinguishing goods, products or services whatever their origin is, or to show that goods or products are owned by the mark owner by virtue of their manufacture, selection or dealing in, or to indicate the performance of a service.
Apart from the definition of trademarks, the Trademark Law includes the description of signs that cannot be registered as trademarks, the process of trademarks registration and canceling, providing others with the right to use the trademark and the penalties concerning the infringement of trademarks.
Trademarks Classification
The process of trademarks classification has not been developed by the authorities of the United Arab Emirates on their own. The state uses the principles of the Nice international trademark classification system. The International Classification of Goods and Services for the Purposes of the Registration of Marks was initially established in 1957 with several subsequent amendments. This Classification provides all necessary requirements concerning registration of marks and is mandatory both for national and international registration procedures.
The Nice Agreement has been constantly reviewed to ensure that the most efficient legal framework for trademarks classification is employed. The tenth edition of the Classification was the latest. It was adopted on January 1, 2012. Currently, eighty-four states follow the Nice Agreement. This number is small in comparison to the overall number of countries in the world. However, it should be noted that trademark offices of sixty-five more countries use the regulations of the Nica Agreements as well. The trademarks offices of some countries include the Office for Harmonization in the Internal Market of the European Union, the African Regional Intellectual Property Organization, and the Benelux Organization for Intellectual Property.
The Classification provides two lists — one list for the classification of goods and services. All of the items are arranged in the alphabetical order. Those lists are regularly reviewed and amended by the Committee of Experts. There are thirty-fours classes of goods and eleven classes of services according to the Classification.
The Classification provides the list of all Goods and Services that together comprise forty-five items. After the lists, the description of every class is provided with explanatory notes. Explanatory notes aim to provide a more specific definition to avoid disambiguates. The description of goods and services is realized in the form of enumeration. For example, the Class 1 of goods include ‘Chemicals used in industry, science and photography, as well as in agriculture, horticulture, and forestry’. Class of services are described on the same principles of similarity. For example, Class 45 is defined as ‘Personal and Social Services rendered by others to meet the needs of individuals; security services for the protection of property and individuals’.
Prohibition to Register Trademarks
The protection of the particular trademarks in not possible as far as the government of the United Arab Emirates provides certain requirements concerning the right to be protected or registered. Authorities outlaw the registration of marks that have the definite characteristics.
The usage of symbols that refer to some third party is not allowed. Thus, signs that do not have any distinctive features and employ common names of services, products, and goods or pictures that are not unique by their nature cannot be allowed to be registered. The signs that are offensive or demonstrate something that is controversial to the public order are subjects to the ban as well. The United Arab Emirates forbids the registration of trademarks that use similar or imitate the famous public symbols including logos and designs of the UAE or any other Middle Easy or foreign country without the official permission to do so. This prohibition concerns the usage of the signs of Red Cross, Red Crescent, or any analogous signs or symbols. The usage of the imitations of such signs is banned too. The country does not allow to register or protect trademarks that resemble or copy some religious movements, ideas, or beliefs. In addition, the trademarks should not be copies or originals of national and international bank notes, medals, or coins.
Also, the authorities of the United Arab Emirates prohibit the registration of trademarks that provide a misleading or not clear information. For instance, it is not possible to register a sign that contains a geographical name or location but does not clarify whether it is the country of origin. The symbol should not confuse people about its origin in such a way.
Some trademarks employ the title, images, names, or logos of the third party. In such cases, the proof of the authorized usage of such kind of information should be delivered. Otherwise, the registration is impossible. The important factor regarding the trademarks is that it should not mention or denote its competitors in any way. The content and overall presentation of the trademark should not demonstrate the worse quality of the competitor’s goods or lead to the undervaluation of other products. Translation of names of trademarks may be considered as an attempt of forgery. Consequently, any words that are translations of existing, renowned, or registered trademarks that may confuse the individuals about the type of trademark cannot be registered. The last significant ban refers to ‘Trademarks which contain words of expressions such as Concession, Concessionaire, Registered, Regis Drawing, Copyright, Imitation is Considered Forgery, or other similar words and phrases’.
The prohibition of registration of the defined types of trademarks is one of the ways of civil protection of the existing trademarks. These rules increase the possibility to avoid forgery and prevent the illegal trademark-related activities in the state.
The Trademark Law and Well-Known Trademarks
The authorities of the United Arab Emirates recognize the famous international trademarks. As in the other countries, there is no need for the international trademarks to undergo the registration procedures. However, the registration may be advisable or required in particular instances. The request for registration may come from the original owner, the official representative, or attorney of the original owner.
The essential factor concerning well-known trademarks refers to their identification. Thus, the United Arab Emirates should evaluate the degree of knowledge or recognition of the symbol or mark to allow the protection without registration.
The Article 4 of the Trademark Law of the UAE presupposes that the well-known trademark may not be allowed to be registered if it aims to distinguish goods or services that are not similar to those that are differentiated by these trademarks in two cases. The first instance is described as ‘Use of the mark implies a connection between the goods/services to be protected and the goods/services of the owner of the original trademark’. The second case refers to the reason when the ‘Use of the mark may result in damaging the interest of the owner of the original trademark’.
The Process of Trademark Registration
The registration of the trademark is the significant step that enhances the level of protection. The Ministry of Energy is responsible for the registration and protection of the trademarks. It should be added that the registration in one Emirate is enough for the civil protection of the trademark in other Emirates. The registration process starts with the identification of the persons who have the right to register their trademarks. The first persons who are eligible include native owners of legal or natural entities who have the business in the sphere of commerce, services, industry, or other professional activities. Foreign owners who have the same types of business in the United Arab Emirates are also eligible to register their trademarks. Another group of foreigners who have the right to register includes those who have reciprocity of treatment with the UAE in any of the previously enumerated spheres of business. Finally, public legal persons are also eligible to register their trademarks.
The pre-filling search is the initial step of the registration. Although the pre-filling search is not compulsory in the United Arab Emirates, it may be used for several purposes. The primary aim of this search is to identify whether the applicant has the right to ask for registration. Also, this phase is advisable for the evaluation of the trademark to be registered. The trademark should not have any of the features that result to the prohibition of the registration.
The next step is the provision of the request of the application. This document should contain the enumeration and description of bibliographic items that should be registered under the trademark. Also, it is necessary to provide the copy of the trademark. The applicant is required to provide the list and description of all goods and services. The classification of the goods and services should be based on the Nice Agreement. The important factor is that trademarks related to alcohol are prohibited for registration.
The Request for Application should be written in the Arabic language. If the trademark contains foreign words or descriptions, the translation to Arabic should be attached. One more important thing is that one application is necessary for one class of goods or services. It is not allowed to write one application for two or more classes. Also, ‘It is possible to file an application claiming a priority right under the Paris Convention’. One should remember that referring to the Madrid Protocol is not relevant in the United Arab Emirates.
When the request is accepted, the substantive examination occurs. The state does not have the system of examination, and this process is based on the evaluation of principal aspects such as the identification of trademark appropriateness for the registration. The peculiarities of this step have been already described.
If the application meets all necessary requirements, the trademark will be registered within thirty days. The Trademark Department accomplishes one more examination six or seven months later after the date of the application submission. Based on such regular examinations, the Trademark Department may reject, approve, or approve under particular conditions the registration of the trademark.
Trademark Law Infringement
Infringement is a potential threat to the successful usage of trademark. For examples, types of infringement include the unauthorized or illegal usage of the registered trademark, the usage of fake trademark, or selling goods with the counterfeit trademark. It should be added that only registered marks can apply to legal protection. The owner of the well-known registered mark can take several legal actions against infringement. Sending warning letters to the organization or individual who violates the law is the simplest way.
In the event of infringement of a trademark, be it international or local, the trademark owner can take legal action by filling a suit at Abu Dhabi Federal Court against Ministry of Economy and Commerce and the party attempting to register a similar trademark that may lead to potential infringement.
This method is the most widespread and appropriate when the infringement occurs. When the guilt of the accused is proved, the respondent will be required to pay a compensation while the Ministry of Energy will remove the fake trademark from the register.
The case of Khairallah Advocates & Legal Consultants may serve as the example of trademark infringement of the well-known water brand. The name of the brand is not provided because of the ethical policies of Khairallah Advocates & Legal Consultants. In 2015, the owner of the famous water brand was intended to make a request for application in the United Arab Emirates for registration of the trademark. However, the Ministry of Economy provided a reply stating that such trademark was already registered in the country. The owner of the brand sent a warning letter to the lawbreaker but received no response. Then the owner of the water brand became a plaintiff against the competitor (respondent) who used the same trademark illegally. The plaintiff applied to the Dubai Court of Cassation to resolve the issue and cancel the fake registration. The similarity of trademarks was proved as well as the respondent’s bad faith.
Such case of trademark infringement is rare in the United Arab Emirates. Nitin Nambiar writes that the owners of brands avoid being involved in trials. Consequently, the legal system of the state does not have enough relevant precedents of the proper punishment for infringement. As it has been already mentioned, the most widespread type of punishment is fine. The minimum penalty comprises Dh 5000. Three years of imprisonment is regarded as the most serious penalty for trademark infringement.
The improvement of the trademark law requires a better understanding of violations and proper punishment. Thus, brand owners should be promoted to bring up cases against infringers. Also, the country should be able to predict problems before they appear.
Challenges to the Trademark Law
The Trademark Law of the United Arab Emirates meets all regulations and requirements of the international rules. However, the enforcement of the Trademark Law remains the most controversial challenge. The significance of the Trademark Law has increased drastically due to the expansion of the business sphere in the United Arab Emirates. The state manages to satisfy all requirements of the World Trade Organization concerning the trademark regulations. Still, ‘one of the main challenges in trademark protection is the conflict between trademark and trade names of businesses operating in different legal frameworks or different geographical areas’.
The usage of trade names instead of trademarks is often a problem. The term ‘trade name’ is used to denote the particular entity’s registered activities. The notion ‘trademark’ describes the registered services or goods that belong to the entity. The case of Emaar, the well-known trademark of the UAE, may serve as the example. The name Emaar is used as a trademark for all units of the company. Emaar International or Emaar Properties is the trade name that defines the activities of the company’s units.
The similar case happened to the well-known five-star-plus hotel’s trademark. A two-star hotel had the similar trade name, and it resulted in disambiguated and disadvantageous situation for the five-star hotel. ‘The problem arises because trade names are only acquired on establishing a physical business presence, whereas trademarks can be registered by a trademark owner with no address or presence in the country’.
One more issue refers to the registration and further protection of trademarks in 3D forms. Nothing is mentioned about 3D forms in the Trademark Law of the United Arab Emirates. However, the usage of such technology for making brands resulted in the necessity to address this issue. It started with Honda’s attempt to register the trademark in 3D form. The court came to the conclusion that 3D forms should be provided with the right to registration. The UAE courts have already faced the case of infringement based on 3D forms. The manufacturer from China used 3D tradename of the well-known brand to sell its products. However, the administrative complaint proved the guilt of the manufacturer of China. This experience demonstrates that the UAE is ready for new challenges and improvements.
Conclusion
The civil protection of the well-known trademarks is realized under the Federal Law No. 37 of 1992 and subsequent amendments. The Federal Law meets all requirements of international trademark regulations including the Paris Convention and the TRIPS Agreement. The registration of well-known and famous trademarks is not required in the United Arab Emirates. However, it is advisable for a better protection in case of trademark infringement. The registration process includes the filling of application, substantive examination, and rejection or approval based on the results of the investigation. The Trademark Law provides the definition of trademarks, the list of signs that cannot be registered, and all other details concerning the trademark registration. If the trademark is registered, the brand owner has the right to the legal protection in the UAE’s courts in the case of infringement. Still, one of the most important challenges of the Trademarks laws is the controversy between trademarks and trade names.
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