By Abu-Ghazaleh Intellectual Property
Patent, trademark, design & copyright attorneys and agents



Registration of Gulf Patents

The first of May 1998 will be the starting date for receiving patent applications from nationals of the GCC countries at the General Secretariat of the Council in Riyadh, Saudi Arabia.

The Kuwaiti Registrar of Patents and current chairman of the GCC Patent Office administration said that the office discussed the final arrangements and preparations for receiving patent applications. He added that the meeting looked into other topics relating to patents of invention, explaining that the office will grant patents to patent owners. Legal protection will be available in all the GCC countries under the provisions of Patent Rules endorsed by the Higher Council in its 13th session in 1998 and its implementing regulations endorsed by the Ministerial council in 1996.

For more information on the official fees, kindly contact us at the Regional Office, Amman, Jordan.(r)

OMANI Copyright Law to Be Implemented Soon

The Implementing Regulations of the Omani Copyright Law is about to be issued soon on the strength of a Sultani Decree which was issued in this regard last year.

The Minister of Trade and Industry said that there is a big interest in implementing intellectual property laws in Oman in addition to the Trademark and Patent Laws. He pointed out that steps were taken although the WTO, whose membership Oman has not obtained so far, gave many countries a grace period up to the year 2000 to implement the TRIPS Agreement.(r)

FOR THE UNITED ARAB EMIRATES

Kindly Complete the Power of Attorney Forms as Follows:
Abu-Ghazaleh Intellectual Property- TMP Agents
P.O.Box 1991
Deira,
Dubai, 
United Arab Emirates

Request NOT to Put JORDAN on the U.S. Watch List
The Secretary General of the Ministry of Trade pointed out that Jordan succeeded in persuading the US government not to put Jordan on the U.S. Special Watchlist of countries monitored for violation of intellectual property rights.

A governmental delegation attended meetings of the Joint Jordanian-American Work Group in the field of intellectual property. It was clearly pointed out that Jordan is committed to preparing a complete work plan for implementing intellectual property laws and adhering to international standards. The Secretary General, who headed the delegation, referred to the negotiations with Washington on providing Jordan with the required technical assistance.

This step comes before the up coming Jordan-WTO negotiation round which will be held in Geneva in July 98. The US is a member in the work team which will negotiate with Jordan and which has a big role in facilitating Jordan's joining the WTO.

In this Issue

  • Registration of Gulf Patents - page 1
  • OMANI Copyright Law to Be Implemented Soon - page 1
  • Power of Attorney Form - page 1
  • Request NOT to Put JORDAN on the U.S. Watch List - page 1
  • Combating Trademark Counterfeiting in SAUDI ARABIA - page 2
  • UAE's Fight Against Piracy Pays Off - page 2
  • Punishment of Copyright Violators in SAUDI ARABIA- page 2
  • AGIP & ASPIP Chairman's Dialogue on WTO - page 3
  • In Brief From Our International Office - page 3
  • Legal Angle
  • BAHRAIN: Comments Received from the Ministry of Commerce - page 4
  • BAHRAIN: A New Amendment to the Commercial Agencies Act - page 5
  • Opposition Action Does not Require a Previous Registration in JORDAN - page 5

Combating Trademark Counterfeiting in SAUDI ARABIA

CD'S

The Business Software Alliance has revealed that more than 40 stores have been raided by the Saudi authorities since August 1997. Large quantities of CD's amounting to 45000 disks containing pirated software were seized.

A statement by the Alliance pointed out that the raids, which were part of a wide Saudi initiative to combat Intellectual Property contraventions in Saudi Arabia, are considered as clear evidence of the commitment of the government of Saudi Arabia to eradicate piracy in the country. The statement went on to say that it was for the first time a fine was imposed on two companies using copied software and that the initiative was still going on.

The Alliance of the producers of business software also had a big role in assisting the competent authorities in their raid campaigns. The Saudi authorities were stern regarding dealing in pirated software and that the raids proved to be very efficient.

Initiatives include a plan to compensate the firms which sustained damage and losses. The plan will not only force counterfeiters to pay financial fines to cover the damage but also force them to substitute the fake with the genuine software. This plan is unique in the Middle East and should result in huge financial burdens for imitators.

AGIP and ASPIP Chairman Participates in a Dialogue on WT
Mr. Talal Abu-Ghazaleh, AGIP and ASPIP Chairman, has announced that the negotiations process for acceding to the World Trade Organization (WTO) is a continuous and endless process which in some respect is similar to the current peace negotiations in the area. He added that the longer the negotiations take, the more complex they become and the more difficult it will be for Arab and developing countries to accede to the WTO. Mr. Abu-Ghazaleh went on to say that what is required is to know how to deal with and benefit from the accession advantages regardless of the negative effects on us. This is in response to what some claims that joining the WTO is a disaster to the Arab and developing countries.

Mr. Abu-Ghazaleh made the statements during a dialogue transmitted live on the Abu-Dhabi satellite channel on April 13, 1998 during the economic programme "Aswaq" where he had been invited to participate as an economic expert and thinker. Foremost among the other participants were the Central Bank ex-Governor, Vice Secretary General of the League of Arab States for Economic Affairs, Secretary General of the Arab Economists Association, and Egypt's representative at international organizations in Geneva (including the WTO).

Mr. Abu-Ghazaleh touched upon the inter-Arab trade and said that its small size is not due to lack of the intention to trade but to the current trade status which depends on 75% exports of oil and 75% import of machines and industrial machinery that cannot be manufactured in the Arab countries.

However, he stressed that inter-Arab trade can be increased by liberalizing trade and pointed out that the looked-for Arab market cannot be established on the concept of the WTO accepting us as a free market unless we liberalize inter-Arab trade to about 80% of our bilateral and multilateral trade.

Mr. Abu-Ghazaleh also touched on the WTO ministerial meeting in Geneva to be held in May 1998 and explained that it will discuss two important issues. These issues are either to follow up what was said in the first ministerial meeting in Singapore, which the developing countries are clamouring for, or to propose a new round of talks which is what the developed countries support. Developed countries have liberalized three sectors, being transportations, telecommunications and financial services (including insurance). These three sectors are out of 155 sectors for which developed countries laid down a multilateral treaty and want to subject the rest of the sectors to a comprehensive round of negotiations.

Mr. Talal Abu-Ghazaleh concluded by saying that we are facing a serious challenge due to the entitlements of the WTO but that the largest challenge is the up-coming information revolution through electronic trade. The latter will make one market bloc out of the world, and any part that doesn't join in will remain in the cold and will move backwards rather than progress. The information revolution and electronic trade will even bypass the WTO.(r)


  • ABLE's News Update
  • BAHRAIN: Comments Received from the Ministry of Commerce
  • BAHRAIN: A New Amendment to the Commercial Agencies Act
  • Opposition Action Does not Require a Previous Registration in JORDAN

BAHRAIN: Comments Received from the Ministry of Commerce Regarding Registration of Foreign Companies

The editorial management of the Bulletin received a Letter from the Bahraini Ministry of Commerce, Office of the Undersecretary, commeneting on some points mentioned in the January 1998 Issue No. 65, the article on "Registration of Foreign Companies".

A correction is to be made regarding the official names of the ministries as follows: The Ministry of Commerce instead of the Ministry of Trade and Agriculture or the Ministry of Commerce and Agriculture. The official name is the Ministry of Oil and Industry rather than the Ministry of Development & Industry, as was reported.

Following are the points of clarification made by the Ministry of Commerce:

1) Incorporation of wholly foreign owned companies in Bahrain Ministerial Order # 4 of 1995 provided for the incorporation of wholly foreign owned companies With Limited Liability (W.L.L.) and Closed Joint Stock companies, permitted to engage either in manufacturing or in services, plus other activities accepted by the Minister of Commerce in Bahrain. For such companies there are no sponsorship requirements.

Companies are formed on the basis of a Memorandum and Articles of Association. On the submission of all supporting documents, the Ministry of Commerce licenses the company. In cases where the proposed activity of the company falls under the responsibility of another Ministry, such as the Ministry of Oil and Industry for manufacturing, Bahrain Monetary Agency for banking, etc., a prior license is required from that authority before the commercial registration is granted.

The capital requirement for a W.L.L. company is Bahraini Dinars (BD) 10, 000; BD 200,000 for a Joint Stock Company (closed), and BD 500,000 for a public company.

2) Incorporation of wholly foreign owned companies - offshore (Exempt Company)

Ministerial Resolution # 25 for 1977 permitted the establishment of wholly foreign owned companies whose activities are conducted outside the State of Bahrain, but which maintain their offices in Bahrain. All types of activities (subject to obtaining an operating license from any other competent Ministry) can be undertaken, and there are no sponsorship requirements.

There are two types of offshore companies: 'resident' and 'non-resident'. The distinction being that a 'resident' company is required to maintain its headquarters in Bahrain, whereas a 'non-resident' company is not allowed to maintain an office in Bahrain, but instead must appoint a legal representative from amongst firms practising law or accounting to act as the registered office. The commercial registration fees are also significantly different, BD 3,000 for a 'resident' and BD 300 for a 'non-resident' status.

3) Foreign branches/representative offices
Foreign companies may also establish branches or representative offices in Bahrain. A branch office is not incorporated per se, and therefore there is no capital requirement, and is permitted to operate on the basis of a guarantee issued by the parent company.

Branches can essentially do all activities, which could be done by a wholly foreign-owned, incorporated company, and provided that the branch is being established as a regional office. Then there are no sponsorship requirements.

  • ABLE's News Update
  • BAHRAIN: Comments Received from the Ministry of Commerce
  • BAHRAIN: A New Amendment to the Commercial Agencies Act
  • Opposition Action Does not Require a Previous Registration in JORDAN

BAHRAIN: A New amendment to the Commercial Agencies Act

In Bahrain, new provisions and amendments to the Commercial Agencies Act have recently been adopted. These provisions defined the commercial agency, percentage of the commission, powers of the Minister of Commerce upon termination of the commercial agencies in general, and the relationship between the principal and the agent.
The new provisions were published in the official Gazette No. 2314 dated April 1,1998.

The amendments supersede articles 1, 3(para C), 7, 9, 15 and 25 of the Law No. 10 /1992.

Hereunder is a translation of some of the new provisions:

Applying the provisions of this act, the Commercial Agency is representing the principal in distributing the goods and products, or presenting them for sale or dealing in exchange of profit or a commission, or giving special facilities of whatever nature. This includes land, sea, and air transportation agencies and travel and tourism agencies, as well as services, insurance, publications, press, mass media, and any other commercial activities as defined by a decision of the Minister of Commerce.

The act has defined a maximum ceiling for the commission percentage that an agent can charge in exchange for his services. The percentage shall not exceed 5% of the goods or products price.

The competent Committee formed by a decision of the Minister of Commerce may cancel the unlimited agency's registration upon reaching an agreement between the two parties, or if one party requested the agency to be cancelled in spite of the objection of the opponent.

Upon consolidation, merger, and/or sale of assets of the Principals entity, any new arrangements which may be of a negative effect to the continuation of the agency agreement can give the right to the agent to sue the principal of any damages accrued.

Opposition Action Does Not Require a Previous Registration in JORDAN

In a recent decision, the Jordanian High Court of Justice emphasized the legal rule that the Jordanian Trademarks Law does not require that the opposing party a trademark application has to own a previously registered trademark in Jordan in order to succeed in the opposition action.

The court ruled that the trademark application (Durkee) is identical to the trademark (Durkee) which is owned by BURNS PHILIP, hereinafter called (the "American Company".)

The American Company opposed the application to register the trademark (Durkee) No. 340058 in class 29. The Registrar accepted the opposition and refused to register the trademark (Durkee) for the benefit of a Jordanian company, hereinafter called (the "Jordanian Company".) The Jordanian Company appealed the Registrar's decision before the High Court of Justice alleging that:

Endnotes

1. The Registrar's decision refusing the trademark application and registration is not in compliance with the Jordanian laws and precedents.

2. The American Company does not own a registered trademark in Jordan. The court rejected those allegations and decided to deny registration of the mark (Durkee) in class 29. The court ruled that such registration represents an infringement to be exercised upon the original trademark (Durkee) owned by the American Company.
The original mark is a famous mark which is registered and used in class 29 for the same goods in more than sixty European, American, and Arab countries. In addition, the original mark has been used in Jordan for a long time. The American Company applied for this mark's registration in Jordan on March 13, 1995.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.