Libya has announced significant changes to its trademark renewal fees and procedures under Resolution no. 586 of 2024, issued on November 27, 2024. These changes affect both foreign and domestic businesses, introducing higher fees and more complex requirements.
Under the new decree, the renewal fee for trademarks in Libya has seen a dramatic increase. The renewal cost is now set at US$2,000 per year, which brings the total renewal fee for a 10-year term to US$20,000. For foreign trademark holders, this represents a significant increase in costs, as businesses are now required to pay the new fee to renew their trademarks in Libya.
Additionally, trademark owners will have the option to pay the full ten-year renewal fee of US$20,000 upfront, or choose to pay in annual installments. The first installment will be due at the time of renewal, with subsequent payments required on or before each annual renewal date. A six-month grace period will only apply to the first renewal. It is also important to note that the option for installment payments is not explicitly referenced in the recent decree amendment.
For Libyan companies, the renewal fees will now be calculated as 5% of the trademark's assessed value, based on the most recent audited balance sheet. This new requirement introduces a more complex and burdensome procedure, particularly for companies with high-value trademarks.
It seems confirmed that this fee increase will not impact renewals that have already been submitted and are currently pending.
Changes Impacting Trademark Applications
A notable change also affects the trademark applications filed between April 2 and September 2, 2024. Due to the suspension of operations of the Trademark Office during this period, all trademark applications filed during this time will be canceled under Ministerial Decision No. 2, effective January 15, 2025. Applicants whose trademarks were filed during this period should be aware that they will need to refile their applications. Importantly, priority rights will be lost, so businesses must act quickly to avoid further delays. Moreover, businesses now have the opportunity to appeal any previously rejected trademarks that were denied due to similarities with marks filed during this period.
Industry Response and Next Steps
Given the magnitude of these changes, many businesses and practitioners are actively engaging with the authorities to seek adjustments to the new fee structure. There is hope that the government will reconsider the sharp increase in renewal fees. In the meantime, trademark owners are advised to review their portfolios carefully and seek professional advice to navigate the new requirements and ensure compliance. Given these changes, businesses with trademarks in Libya are strongly encouraged to seek professional advice to navigate the updated requirements and ensure compliance with the new regulations.
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