As member states of the GCC continue to encourage investment in technology and R&D, and more international businesses enter and expand their presence in the region, intellectual property rights are taking on ever increasing importance. Whilst the region has seen small steps forward in this area, progress is still required to ensure that businesses can effectively protect their intellectual property and help their innovations to benefit the wider economy.
Intellectual property is a term used to refer to creations of the mind, such as artistic and literary works, inventions, trade names and logos, and designs. Subject to appropriate legislation, these ideas can be protected by means of registered or unregistered rights, including patents, trademarks, copyright and design rights. IP rights can give businesses a competitive edge and help protect against counterfeiters.
The GCC states are members of the World Trade Organisation and are therefore obliged to provide minimum standards for IP protection. Various laws have been passed by the GCC states to introduce such protection, but a lack of harmonisation across the region and issues with implementation and enforcement mean there is still significant work to be done.
All the GCC states have legislation in place providing for the registration and enforcement of patents. In Qatar and Kuwait, however, they have not been fully implemented and the patent offices of those states are only accepting applications and not examining or granting them. It is possible to make an application to the GCC Patent Office for a patent covering all of the member states. The extent of the protection afforded and the method of enforcement is, however, still dependent on the laws of each state.
All the GCC states other than Kuwait have now signed up to the Patent Cooperation Treaty (“PCT”). The PCT allows individuals and businesses in signatory states to make a single application to the World Intellectual Property Organization requesting the registration of patents in up to 148 countries. This substantially lowers the cost of obtaining international patent protection for local businesses.
Legislation was due to be enacted in 2006 to bring the trademark laws of the GCC states in line, but it stalled as its provisions were renegotiated. A revised draft was published last year and if passed, it will reduce the administrative burden on businesses.
Counterfeit products remain an important issue in the region and one that has long since plagued the authorities. An important tool in the fight against counterfeiters is the ability to record trademarks with customs authorities to assist them in identifying and seizing counterfeit goods. At present, only the UAE has such a system in place (in Dubai, RAK and Sharjah). Owners of trademarks registered with the Ministry of the Economy can record those trademarks with the customs authorities and provide them with additional information and training to help them distinguish between genuine and counterfeit products. The customs authorities can then better identify suspect shipments and easily notify the trade mark owner so that further action can be taken. Products that are confirmed as counterfeit may be seized and destroyed. It is hoped that the other GCC member states will follow.
Copyright laws have been introduced in all the GCC states, but they are not harmonised across each state, and in some cases have not been implemented and therefore remain unenforceable. In most of the GCC states, copyright arises as soon as a relevant work is created. In Bahrain, however, it is necessary to register works for copyright protection and implementing regulations to allow registration have not yet been issued.
The protection available for industrial designs also varies from country to country. Generally speaking, designs needs to be registered to receive protection – either in the form of a registered design or as a design patent. However, important considerations, such as the requirements for valid registration and the term of protection vary. Qatar for example is yet to pass regulations to implement its design law.
The member states of the GCC are moving slowly towards a position where intellectual property can be protected in an effective manner. The implementation of legislation that has already been passed and further efforts to harmonise IP law across the region are necessary, however, to establish a truly effective framework for the benefit of businesses investing in the region.
Patrick Gearon is a partner with law firm Charles Russell and is head of its Bahrain office.
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