Competition is one of the business components, but it is not always used fairly and skillfully. Moreover, one of the country’s highest priority areas of economic policy is a compelling and uncompromising fight against unfair competition. In developed countries, where factors such as business reputation and fair competition are essential to business, stealing ideas and using the reputation of competitors is not acceptable. The importance of researching the problem is that one party in the industry receives improper benefits and the other losses. Due to the use of anti-competitive rules in economic activity, there are no prospects for the efficient functioning of the economy.
Despite the sizeable legal framework, unfortunately, there are many cases of violation of legislation on the protection of economic competition in the modern world. Besides, if business owners realize that competitors are not using appropriate methods, they do not always know their rights and cannot sue. However, the injured party’s rights, the criteria and description of unfair competition, and possible protection mechanisms are enshrined in law. It is crucial to identify potential liability for violations and remedies in each case. The issue of trademark protection has many aspects, namely the protection conditions, the procedure of proof, and punishment in confirmation of criminal activity.
Trademarks can also be the object of unfair competition, so it is necessary to identify the criteria according to which there is an abuse of competition and options for protecting the business owner. In the absence of a response to infringement of intellectual property of trademarks, the rightful owner of the business suffers losses, and consumers will not receive quality goods. This situation will lead to the deterioration of the business owner’s reputation or the closure and bankruptcy of his business.
The purpose of the study is to critically evaluate the legislation of the United Arab Emirates on the protection of fair competition, in particular trademarks. The structure of the study will be based on three main points concerning the assessment of the general level of trademark protection in the United Arab Emirates, the specific rights of the owner, and the responsibility for trademark infringement. As a result, it will allow to assess the situation and find ways to resolve such cases.
The work will use the laws of the United Arab Emirates, which directly regulate the protection of trademarks. (Trademarks, 1992) and (Regulation and safety of the industrial property of patents, industrial drawings, and designs, 2006). These laws define the criteria for trademark registration, disclose the concepts of intellectual property and trademark ownership, sanctions in case of improper use of trademarks. The primary source will also be used for an empirical and complete analysis of all aspects of brands (Mann & Roberts, 2019). An additional source will be used to make reliable predictions about improving trademark protection in the United Arab Emirates (Sachdev, 2016). The current state of development of intellectual property literature allows you to fully explore the topic and make a prediction for the industry’s future.
A trademark has a fixed definition, according to which the criteria for trademark registration and its features are then formed for further protection in case of infringement by competitors. “Shall be considered a trademark all that takes a distinctive shape composed of names, words, signatures, letters, numbers, drawings, symbols, addresses, hallmarks, stamps, pictures, engravings, advertisements, packages or any other mark or a combination thereof if used or meant to be used either in distinguishing goods, products or services of whatever origin, or establishing that the goods or products are owned by the owner of the Trademark because he manufactures, selects or trades therein, or that a service has been rendered.” according to the federal law (1992). Citizens, individuals, and legal entities engaged in business, and not citizens engaged in commercial activity, have the right to register trademarks in the United Arab Emirates. That is, the registration of intellectual property and trademarks is a necessary condition for their protection. United Arab Emirates law provides equal access to intellectual property protection to its citizens and non-citizens.
The legislation also provides for a procedure for appealing a denial of registration. This condition offers additional opportunities and attempts to protect intellectual property and business ideas from misuse. An essential guarantee of the correctness and integrity of the trademark is the publication in two daily newspapers so that everyone can express their claims (Mann & Roberts, 2019). This provision of the law avoids disputes as to who owns the brand or whether the trademark is not wholly unique. That is, if a little-known company wants to register a trademark similar to Patchi, the claim can be filed before the official registration of the brand. As a result, a timely response to an attempt at the unfair competition will help avoid litigation and significant financial losses for the company.
After registration of the trademark, the owner receives a certificate confirming his rights. According to regulations (2006), the use of certification for five years continuously gives grounds to consider the right of ownership indisputable. However, the trademark owner can change the trademark after publication in a daily newspaper and obtain permission from the Ministry. This is an opportunity to make legislation and business flexible for change.
Thus, the first condition for protecting intellectual property, ideas, and trademarks is official registration. Not only do citizens have the right to legalize their brand in the United Arab Emirates, but also legal entities and non-citizens. The registration procedure also provides for the possibility of checking the trademark and expressing claims before the moment of official registration, which avoids disputes in the future. Accordingly, the registration procedure provides the trademark owner with the right to the brand. It is noted that from the moment of registration, there are no claims to the intellectual property and trademark used for doing business, and its subsequent violation is punishable by law. Therefore, the United Arab Emirates legislation includes the verification and exclusion of claims at the stage of registration of the trademark and provides it with guarantees for protection in the future. Regarding the difference between the concept of intellectual property and a trademark, a logo is an object of property rights. That is, intellectual property is a fixed right to use a brand to conduct business.
Trademark protection can be carried out only by legal means, confirming registration every ten years. Liability for illegal use of the brand can range from imprisonment to a fine of five thousand United Arab Emirates dirham. Punishment is applied to those who intentionally counterfeit a trademark to mislead the public and use the reputation of the original brand. Accordingly, the federal law (1992) punishes imprisonment for up to one year and fines five hundred thousand United Arab Emirates dirhams for those who illegally manufacture products under the trademark and those who indicate the trademark name without permission. As a means of restitution, the injured party may file a lawsuit in a civil court to restore his previous position.
Moreover, the trademark owner has the right to demand preventive measures before the final court decision. That is, Patchs will have the right to know the addresses of all stores and receive a detailed description of all items and packaging that contain an illegal trademark as indicated in the federal law (1992). This right allows you to seize all illegally manufactured consignments of goods for destruction after the deposit of money by the plaintiff. It is worth noting that such protection measures are effective at the beginning of the conflict. Precautions will permit Patch to seize consignments of goods so that the company’s reputation is not damaged. It is also important to note that the preventive measures do not affect the further issuance of a final decision in the case and the possibility of its appeal.
A similar study in a case involving Samara Brothers, Inc. The company made summer clothes decorated with applications from hearts, flowers, and fruits, cooperated with shops that sold its clothes. Judy-Philippines copied the clothing of Samara Brothers, Inc., which was protected by copyright. Samara Brothers, Inc. filed a lawsuit for copyright infringement; a week later, the jury upheld the claims of Samara Brothers, Inc. The court ordered damages and interest totaling five hundred and sixteen million dollars and issued a court order (Mann & Roberts, 2019). This is an example of how fast and efficient a lawsuit is if the author’s copyright is registered by law. Patchi will also receive monetary compensation in the event of a dispute, and the trial will take place quickly.
Although in most countries of the world, recognizing a patent or trademark may occur automatically, the registration procedure can solve many problems. The ability to license, sell or transfer technology will be challenging if the patent or trademark is not registered; indeed, without intellectual property rights that are not legally proven, it will be almost impossible to sell or rent technology (Regulations, 2006). When negotiating the deal or leasing of technology, the parties are afraid to disclose information about the invention. Due to without the protection of intellectual property, the counterparty may remember or copy the technology. It is also possible that someone will be the first to patent technology or trademark and have the exclusive right to use it. Thus, such methods can legally exclude the company from the market, restrict activities or ask the company to pay a license fee to use the invention. That is, to use a unique brand without registering the rights to it is allowed. Only the registration of intellectual property for a patent and trademark can protect a business from legal problems.
The modern world creates many new technologies and ways of use, but prospects development of intellectual property legislation, patents, and trademarks lag behind the general tendencies. According to Sachdev (2016), intellectual property protection in social networks is not regulated by a single and comprehensive law. For example, the law does not address legal issues related to brands on social networks. In the future, the development of intellectual property law will take place in new areas, such as social networks and information technology. The field of information services, software development, and applications is gaining popularity, so the question arises about adopting harmonized legislation to regulate the single technology market. Also, the protection of intellectual property, copyright, and users’ personal information require special regulation in social networks.
Therefore, effective development of entrepreneurship is impossible without the existence of a large number of entrepreneurs, the innovation of their activities, the presence of different types of markets for goods and services. However, the impact of competition on business must be controlled and legal in accordance with statutory requirements. Often, a well-known trademark is used illegally during prohibited competition, injuring the brand’s real owners. As a result, the rightful owner receives claims from consumers of substandard goods under his trademark and deterioration of reputation. In order to protect the intellectual property rights of a brand, a trademark must be legally registered. If a well-known brand is not registered, it is also protected by law from infringers. On the other hand, the owner does not exercise the right to enter into leasing agreements, and there is a risk that someone else will be the first to patent a specific technology or recipe.
The legislation of the United Arab Emirates has a transparent and straightforward system of patent registration, which allows filing claims before the official recording of a brand in case of repetition of elements of already registered trademarks. As a means of protection, the injured company can file a lawsuit; possible punishments for the violator will be fines and imprisonment. The advantage of the current legislation is that it allows imposing preliminary measures before making a final decision. Therefore, it is possible to partially prevent damage to the reputation of the owner of the brand. In general, trademark protection legislation is sufficiently developed to protect infringed rights effectively. At the same time, the drafting of laws to regulate the field of information technology and social measures has already begun, which will further eliminate all gaps in the law.
References
Mann A. R. & Roberts S. B. (2019). Essentials of business law and the legal environment. 13th edition. Cengage Learning.
Sachdev, R. (2016). Towards an improved framework for trade-mark law and regulation in social media usernames: A study of the Canadian, U.S. and U.K. positions. Intellectual Property Journal, 28(3), 379-418.
Trademarks, Federal Law. No. 37. (1992).