1 of 20

Safeguarding Your Creative Works:� An Overview of Intellectual Property Law �in Saudi Arabia.

hmco.com.sa

2 of 20

Who We Are

Ebaa Tounesi

Senior Associate

Ebaa.Tounesi@hmco.com.sa

0501180775

Jude Abualhashem

Associate

Jude.Abualhashem@hmco.com.sa

0595384900

3 of 20

ABOUT US

For over four decades we have been serving the diverse legal needs of dynamic regional businesses from our head office in Saudi Arabia, which has positioned our firm today as one of the leading private legal practices across Saudi Arabia and the wider Gulf Cooperation Council (GCC).

Whilst we operate from our five offices located across the Kingdom of Saudi Arabia and the United Arab Emirates, our regionally and internationally qualified teams have extensive experience working on complex, high-value transactions and contentious disputes for large, listed businesses, government entities, owner-managed firms and private clients across the wider region, along with working on multi-jurisdiction deals and litigations.

Our innovative spirit, coupled with our dedication to deliver exceptional quality services has enabled our firm to attract and retain a committed diverse panel of legal experts and professionals, who have supported our clients to navigate challenges, whilst leveraging industry and market opportunities relating to regulatory development, technology, innovation, and new age initiatives.

We’re a forward thinking, integrated legal services provider offering more than traditional legal advice. We’re about investing in relationships, not just transactional delivery of our services.

Whilst we are corporate in dynamic, we have retained our legacy value of entrepreneurial spirit, which has enabled our firm to take a leading position with owner-managed and private clients, which has resulted in some of the region’s largest and notable brands relying on our firm to support them with their legal needs.

The Middle East market is burgeoning as new and emerging industries grow, we operate at the legal forefront of these emerging industries, helping to navigate complex and changing regulations.

The rapid transformation of business in the Middle East requires legal support that is regionally relevant and internationally recognized. Our approach means we have the agility to anticipate and support our clients’ future needs in an era of technological disruption.

As regional economies continue to diversity and emerge, our firm is well positioned to leverage the new opportunities on the horizon, whilst supporting our clients to navigate the implications for their industry and business.

4 of 20

Value Driven Approach

  • Clients at the heart of our firm

We place our clients at the heart of our firm; therefore, you can be assured of a client-centric approach, which means an agile, efficient and personable service. We don't just limit our scope to the engagement but think about your business challenges, providing guidance for areas which may present future risks and opportunities. Therefore, you have peace of mind that won’t charge by the minute but invest our time in building a relationship.

  • Empowered people who thrive

Our people are the most resourceful and valuable asset of our firm; therefore, we have created a culture of empowerment, trust, respect and integrity. We work as one-firm, irrespective of our clients practice needs, therefore you can be assured of the receiving the very best technical advice, support and experience which clients of Hammad & Al-Mehdar deserve.

  • Innovative & Efficiency

In keeping with the new-age technology and innovation available, our firm has digitalized its operations, which enables us to build efficiencies for you. You can be assured of value-add.

5 of 20

OUR SERVICES

Corporate & Commercial

Dispute Resolution

Technology

Finance

Sports & Media

Employment

Risk & Reputation

Compliance

Commercial Agreements

General Corporate Restructuring

FDI

Project & Infrastructure

General Advisory

Joint Ventures

Competition & Antitrust

Arbitration Litigation Expert Witness Inheritance

Asset investigation SME Advisory

Sourcing Agreements Intellectual Property

Security

Crypto Security Data Investigations

M&A

PE & VC

Islamic Finance Capital Markets Funds

Banking Fintech

Sports

Media

Entertainment

Gaming

6 of 20

Content Overview

Types of Intellectual Property

01

02

Overview

03

Saudi Authority for Intellectual Property

04

Trademarks

05

Patents

Industrial Design

06

07

08

09

10

Trade Secrets

IP Agreements

Copyrights

Unified Draft Intellectual Property Law

7 of 20

Types of Intellectual Property

8 of 20

Overview

  • Intellectual Property (“IP”) refers to the inventions, literary and artistic works, symbols, names, and images used in commerce. The legal framework for IP protection in Saudi Arabia is based on a number of laws and regulations including:
  • Trademark Law which provides protection to trademarks and prohibits the use of identical or similar marks.
  • Copyright Law which provides protection to original literary, artistic, scientific works, including computer software.
  • Law of Patents, Layout Designs of Integrated Circuits, Plant Varieties, and Industrial Designs which provides full protection to inventions, and grants exclusive rights to the owner of such inventions.

9 of 20

Saudi Authority for� Intellectual Property (“SAIP”)

  • SAIP aims to organize, support, sponsor, protect and promote intellectual property in Saudi Arabia in accordance with best global practices.
  • SAIP is organizationally linked to the Prime Minister in KSA.
  • Functions of SAIP:
  • Proposing rules and regulations for IP rights and improving them.
  • Authority to investigate and enforce IP rights in KSA. It can initiate legal proceedings against infringers and impose penalties for IP violations, including penalties, imprisonment, and seizure of infringing goods. Investigations may further be triggered by submitting a complaint through the e-services available on the SAIP website.
  • Registration of IP rights and granting/enforcing protection documents.
  • Providing information regarding IP rights to the public.
  • Raising awareness and promoting the importance of IP rights and its protection.

10 of 20

Trademarks

  • Definition: Trademarks are those creations that come in the form of names, words, signatures, letters, symbols, numbers, titles, designs, graphics, images, or any sign or group of signs if they are used or intended to be used to distinguish goods or services of a facility.
  • This includes: Company brand, logo, software titles, or sub-titles; all of which must be registered with SAIP in order to be duly protected.
  • Registration Requirements:
  • It must contain a unique name, image or symbol.
  • It must not contain any features that are against public policy or Islam.
  • Multiclass applications are not permitted, so a separate application must be made for each class of goods and services.
  • Governing body: SAIP
  • Duration: Trademarks are protected for 10 years upon registration and can be further extended in its final year.

11 of 20

Copyrights

  • Definition: Copyright gives the author or creator the right to use and exploit work, and prevent others from using and benefiting from it without the owner’s consent. Copyright works include: books, songs, drawings, art, audio-visual works, sketches, 3D works and computer software.
  • Scope of Protection: Works of authors that are published, produced, performed or displayed for the first time.
  • Author: An author is any person who publishes a work attributed to himself by mentioning his name on the work or by any other means used to attribute works to their authors, unless there is evidence to the contrary.
  • Duration: Copyright protection lasts for the entire life of the author and an additional 50 years upon their death.
  • Exclusions: Ideas, procedures, work methods and concepts are not protected under copyright.

12 of 20

Patents

  • Definition: It is an exclusive right granted for an invention that generally offers a new technical solution to a problem. To obtain a patent, technical information about the invention must be disclosed to the public in a patent application.
  • This includes hardware technical solutions, inventive app design elements, or technical innovations such as data base designs.
  • Requirements:
  • The invention must be new and unique.
  • It must also have an innovative/inventive-step.
  • It must be industrially applicable.
  • Governing body: SAIP
  • Duration: 20 years from the date of registration.

13 of 20

Trade Secrets

  • In KSA, trade secrets and IP are protected under different laws and regulations.
  • To qualify as a trade secret, the information must be confidential, have commercial value, and be subject to reasonable efforts to maintain its secrecy.
  • Trade secrets can include inhouse development tools, customer lists, pricing information, and developer contacts. There are civil and criminal remedies for trade secret misappropriation including damages.
  • While trade secrets and IP are distinct legal concepts, they can overlap as a confidential formula or process may be eligible for patent protection if it meets the requirements for patentability.

14 of 20

Personal Data Protection Law –�Key Considerations

  • Established in 2023 to regulate the collection, processing, and protection of personal data.
  • Applies to entities (including tech startups) that handle personal data of Saudi residents.
  • Key PDPL Requirements for Tech Startups:
  • Obtain valid consent for personal data collection and processing.
  • Implement robust data security measures and safeguards.
  • Comply with data subjects' rights (access, correction, deletion).
  • Report personal data breaches to the local authorities.
  • Implement and update privacy policies and data handling practices.
  • By proactively addressing PDPL requirements, tech startups can strengthen their data privacy practices, enhance their competitive advantage and their overall brand value.

15 of 20

New Draft Unified Saudi Intellectual Property Law

  • SAIP announced the publication of a draft unified Intellectual Property Law for public consultation on 5 April 2023 (ended 3 May 2023), noting that it has yet to come into effect to date.
  • Highlights:
  • Types of IP rights are expressly listed.
  • Authorship is regulated in detail.
  • Practicing IP activities requires a license and is governed by SAIP.
  • IP litigation is referred to the relevant judicial legislation, and parties may utilize alternative dispute resolution.
  • IP assets are subject to liquidation and must be valued prior to the initiation of any liquidation procedures.
  • Recognizing the extent in which ownership of IP by utilizing Artificial Intelligence (“AI”) can be afforded protection in limited circumstances.

16 of 20

Start Up Tech Companies and �IP Agreements

  • Developers who do not have the necessary rights and licensing agreements may face difficulty in publishing, rolling out, and monetizing their IP and may not be able to fully benefit from the value of their work.
  • Essentially, developers’ IP is what they own and sell through licensing deals, and therefore, protecting their IP is crucial as it is the core of their business.
  • Tech companies should therefore consider entering into several types of IP agreements including:
  • Licensing Agreements: This permits the licensor to grant the licensee the right to use its IP in exchange for compensation. Tech companies may enter into licensing agreements to allow other platforms to use their IP, such as trademarks, codes, or software
  • Development Agreements: This governs the development of new IP or required modifications and will likely include provisions related to ownership of IP, and timelines for completion
  • Publishing Agreements: This will provide for the rights to publish the IP or launch a software, including the necessary licenses, promotion, and marketing. It will generally include provisions related to revenue sharing and exclusivity.

17 of 20

Start Up Tech Companies �and IP Agreements

  • Trademark Licensing Agreements: This shall govern the use of the trademark, including enforcement, registration, and licensing rights. Tech companies enter into such agreements to protect brand identity and prevent others from unlawfully using their trademark.
  • End-user License Agreements: This is generally an agreement between the tech company and the end-user governing the terms of use of the IP. Important provisions to include are ownership of IP, liability for damages, and limitations on using the IP.
  • Co-development Agreements: Co-development agreements are important to allow two or more companies to work together to develop a new product and/or software. The main provisions will clarify compensation to each contracting party and ownership of the developed IP.
  • Service Agreements: This shall govern the provision of services relating to hosting and maintenance and support for the software. The main provisions include confidentiality, IP ownership, and compensation to the service provider.
  • Terms & Conditions and Privacy Policies in accordance with the Personal Data Protection Law.

18 of 20

What to Consider in IP Agreements

  • Considering IP provisions in agreements can vary depending on the specific agreement and the needs of the parties involved, the below provides an overview of the main provisions and its purpose:
  • Ownership of IP: This should clearly state who owns the IP rights in relation to the tech platform and its services, including any related materials, such as artwork, trademarks and source codes.
  • License Grants: When granting licenses, the provision should stipulate the scope of any license grants and the limitation on the use of IP with respect to sublicensing and restrictions.
  • Fees: The agreement should outline how fees will be paid, including any terms related to minimum guarantees and revenue sharing.
  • Indemnification: The agreement should include indemnification in the event of any claims related to IP infringement or other legal issues.
  • Representation and Warranties: The agreement should include warranties and representations from both parties regarding the right to use and own such IP.

19 of 20

How We Can Assist

  • Infringements:
    • We can prepare a claim assessment to determine your IP rights and assess whether an infringement has occurred.
    • We can prepare the necessary cease-and-desist letters to request stopping the unlawful use of your IP.
    • We can assist with enforcing your IP rights against a potential infringement through SAIP or the Commercial Courts.
  • IP Agreements:
    • We can prepare the necessary IP agreements as applicable.
    • We can review and advise on the provided IP agreements.

20 of 20

Thank you

Ebaa Tounesi

Senior Associate

Ebaa.Tounesi@hmco.com.sa

0501180775

Jude Abualhashem

Associate

Jude.Abualhashem@hmco.com.sa

0595384900