Entering the Middle East and North Africa: Intellectual Property Protection and Key Risks

In recent years, Russian companies have been actively expanding their operations in the Middle East and North Africa. The United Arab Emirates and Saudi Arabia, as well as Egypt and Qatar, remain the most popular destinations. The region offers favorable conditions for developing trade, services, and technology projects, but requires more thorough legal preparation, particularly in terms of intellectual property protection.

The key feature is that the right to a brand, technology, or other designation arises not from actual use, but from the filing date of the registration application. This means that a company entering the market without prior registration may find its designation already registered by a third party.

The Importance of a Trademark for Business

In the region’s countries, trademark registration is not just a form of legal protection but a mandatory requirement for full-fledged commercial activity. In some jurisdictions, trademark registration is essential for legally using a brand in advertising, signage, and point-of-sale design.

Registration serves several functions. It secures the exclusive right to use a trademark, prevents copying and imitation, and forms the basis for scaling a business, including through partnerships. Furthermore, a trademark is considered an independent asset that can be used when structuring a business and interacting with foreign partners.

Failure to register significantly increases the risk of losing control over the brand. If the trademark is registered by another party, protecting the rights will require significant time and resources, and in some cases, a complete rebranding.

Approaches to registration and choice of strategy

To protect rights in the region’s countries, two main mechanisms are used: filing applications through international procedures and registering individually in each country. Both options have their own specific features and are applied depending on the scale of the planned presence.

International registration is carried out through the World Intellectual Property Organization and allows for coverage of several countries simultaneously. However, it requires a basic application in the country of origin and depends on its fate during the first few years.

National registration involves filing an application in each specific country, taking into account local requirements. This approach offers greater flexibility but requires more detailed development and the involvement of local specialists.

In practice, companies combine both methods, starting with key markets and gradually expanding protection as their business grows.

Peculiarities of regulation in the countries of the region

Despite common principles, legal regulations in the Middle East and North Africa have significant specificities. These differences must be taken into account even at the market entry stage.

The most significant features include:

• Mandatory use of Arabic for signs and markings;
• restrictions on the registration of certain categories of designations;
• differences in the validity periods of rights;
• the need to interact with local representatives;
• lack of uniform rules for the entire region.

A number of countries do not allow the registration of designations associated with certain types of products and services, which requires prior adaptation of the brand and marketing materials.

The risk of brand loss and how to prevent it

One of the most common problems is the registration of trademarks by third parties before a company enters the market. This practice is quite common and can lead to the blocking of operations under its own brand.

To reduce risks, it’s important to follow a consistent process and ensure legal protection in advance. Experience shows that filing an application in a timely manner significantly reduces the likelihood of conflicts.

For these purposes it is recommended:

• conduct a preliminary check of the designation;
• submit an application before commercial use;
• take into account priority periods;
• register rights in key countries;
• document the use of the brand.

Such measures can significantly increase the likelihood of successfully securing rights and avoiding subsequent disputes.

Actions in the presence of an earlier registration

If, upon entering the market, it turns out that a designation has already been registered, various courses of action are possible, the choice of which depends on the specific country and situation.

In practice, the following approaches are used:

• conducting negotiations with the copyright holder;
• acquisition of rights to a designation;
• filing an application for deregistration;
• change of designation or its elements;
• adjustment of the list of goods and services.

In some cases, it is more economically feasible to reach an agreement with the copyright holder than to initiate lengthy proceedings.

Entering the Middle East and North Africa markets requires comprehensive preparation, in which intellectual property protection is central. Mistakes at the initial stage can lead to limited operations, additional costs, and the need to revise the development strategy.

Timely action and consideration of local specifics are paramount. Companies that proactively protect their trademarks and develop a sound registration strategy are able to safely develop their business and exploit the region’s potential without significant legal risks.