Answer ... Lebanon’s legal framework is protective of IP rights. Innovation in the fintech space is protected primarily under the following laws:

• Resolution 2385/1924 on Commercial and Industrial Property Rights;
• the Law on the Protection of Literary and Artistic Property; and
• the Law on Patents.

An innovative industrial design in relation to a specific fintech activity, once filed with the IP Protection Bureau at the Ministry of Economy and Trade, grants its creator the right to exploit that design. However, this alone does not grant the creator the right to ownership of the design; the owner must also use the design. This right endures for 25 years from the date of filing, subject to renewal for an additional 25 years.

Trademarks are also protected under Lebanese law once they are filed with the IP Protection Bureau. This grants the holder the right of ownership and protects against unauthorised use and imitation for 15 years; the trademark may be renewed indefinitely for further periods of 15 years.

A computer program constitutes a literary work that qualifies for copyright protection under the Law on the Protection of Literary and Artistic Property. This applies, among other things, to computer software and databases. Copyright arises automatically once a work is created, and grants the creator the right of ownership without any formalities (ie, filing or registration) and protection against any violation.

A patent protects a filed invention that is novel, innovative and capable of industrial application. Inventions include, among other things, new industrial products and processes, and applications of previously known processes. Once a patent is filed with the IP Protection Bureau at the Ministry of Economy and Trade, it grants the inventor the exclusive right to exploit the invention and prevents third parties from copying the invention for 20 years from the date of filing.

Answer ... Under Banque du Liban (BDL) Basic Circular 23/1996, as amended by Intermediate Circular 331/2013, banks may benefit from interest-free loans from the BDL, for a maximum period of seven years, for their participation in the capital of start-ups that specialise primarily in ICT projects promoting economic and social growth and job opportunities in Lebanon.

Such loans are granted with the approval of the BDL Central Council, provided that the following conditions, among others, are satisfied:

• The start-up is a Lebanese joint stock company;
• The start-up is not a financial company or an offshore company;
• The bank undertakes to transfer its shares in the start-up within a period not exceeding seven years;
• The participation of the bank in the start-up’s capital does not exceed 80% of the start-up’s capital;
• The bank’s total participation in start-ups does not exceed 3% of its capital, and its participation in a single start-up does not exceed 10% of that 3% total; and
• The bank plays an active role in the development of the start-up’s business and supports its continuous growth and governance.

Additionally, the BDL grants subsidised loans for software and technology development; these loans are provided at a favourable interest rate and the borrower pays only part of the interest.

Under the Investment Law, the Investment Development Authority of Lebanon grants the following incentives for projects in the IT sector, such as ICT manufacturing, medical technologies, computer programming and other projects set out in Decree 8709/2012:

• an exemption from income tax and dividends tax for 10 years;
• the grant of work permits, subject to favouring the employment of Lebanese workers and registering employees with the National Social Security Fund; and
• the settlement on behalf of the company, for two years, of subscriptions due to the National Social Security Fund for Lebanese skilled labour whose annual salary does not exceed LBP 45 million.