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Trademark Agreements in the UAE: Licence, Assignment and Coexistence

Trademark agreements govern who owns and uses a mark. They include licences, assignments, franchise agreements and coexistence agreements between brand owners. Mistakes can weaken or even endanger rights.

This guide summarises the main review points.

Licence or assignment?

A licence lets someone use the mark while the owner keeps ownership. An assignment transfers ownership. The wording should leave no doubt which is intended and which marks and classes are covered.

Quality control

Owners should retain control over the quality of goods and services sold under a licensed mark. The agreement should set standards and inspection rights.

Territory and goods

State where the mark may be used and for which goods or services. Align the licence with the registrations that actually exist.

Registration records

Where the law or practice requires or recommends recording licences or assignments with the registry, ensure it is done. Unrecorded changes can cause problems in enforcement and renewals.

Fees and royalties

Payment structure and reporting
Minimum sales or marketing commitments
Audit rights

Improvements and goodwill

Goodwill generated by use should benefit the owner. Address ownership of any new logos or variants created by the licensee.

Termination and phase-out

Provide for what happens to stock, signage and domain names when the licence ends. A sell-off period is common.

Coexistence agreements

Where two brands may overlap, such agreements define how each may use its mark to avoid confusion. Terms should be precise.

How a consultation can help

A review can identify risks and propose clearer drafting. Recordal filings are made with the relevant authority, and no outcome is guaranteed. See also trademark registration.

Frequently asked questions

Can a distributor register my trademark?

Contract terms and the law matter. The agreement should prohibit it and require transfer if it happens.

Do I need to record a licence?

Check current requirements and benefits of recordal for your situation.

Can a licence be terminated early?

Only as the contract and law allow, so review the termination clause.

Related guides and services

General information only. Please read our Legal Disclaimer.