A Guide to Trade Secrets in Dubai

Dubai has become an international centre for investment and trade. In recent years, the Emirate has witnessed a surge in business registrations. This makes protecting your exclusive trade information crucial than ever. A trade secret is a type of intellectual property right on a piece of information to maintain its confidentiality. Intellectual property in Dubai is widely explored by entrepreneurs looking to expand and scale in the local market. Intellectual property allows you to protect the creations of your mind. To put in simple words, it protects the interests of an individual's inventions, which may range from literary, artistic, to design. Different types of intellectual property cover various aspects of creation. There are four main types of intellectual property recognised worldwide.

This article covers the intellectual property known as trade secrets. Read on to learn about the laws and regulations related to it.

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What is a Trade Secret?

Trade secrets are commercially valuable pieces of information that gives a company a competitive edge in the market. They are known to a limited group of individuals and are unique to an organisation. Unlike other intellectual property registrations in Dubai, trade secrets remain confidential and are not revealed  during the registration process. One common example of a trade secret is the formula that is used in the production of Coca-Cola.

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WIPO and Intellectual Property Law in Dubai

The intellectual property law in the United Arab Emirates (UAE)  came into force in 1971 under the Federal Law regime. However, it only regulates copyrights, patents, and trademarks. Later, the UAE entered the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement to align its IP laws with international standards. The global intellectual property treaties across the world is regulated by the World Intellectual Property Organization (WIPO). Therefore, all IP lawyers in Dubai are required to comply with the international standards set by the WIPO.

Find out more about intellectual property services in Dubai.

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Trade Secrets in Dubai

There is no separate law regulating trade secrets in Dubai. However, separate laws regulate and protect them within the Emirate, both in a general and employment context. Let us look at the following laws:

• Commercial Companies Law (Federal Law No. 2 of 2015)

The Companies Law, article 354 punishes any party or individual for breach of  terms and conditions specified in the non-disclosure agreement in Dubai. In such cases, the imprisonment period will not exceed  six months, and the penalty can range from AED 50,000 to AED 500,000.

• UAE Patent Law (Federal Law No. 11 of 2021)

The Patent Law in UAE prohibits any person from revealing, using or benefiting from a company’s secret information. This law authorises the owner to take specific measures to maintain confidentiality and take legal action in case of infringement. Articles 61, 62, and 63 include specific provisions regarding trade secrets in Dubai. They are as follows:

Article 61: This outlines the requirements for the protection of trade secrets in Dubai.

Article 62: It defines the scope of protection of trade secrets related to pharmaceutical or agricultural products.

Article 63: It describes owner’s rights and responsibilities for trade secrets in Dubai.

• Penal Code (Federal Law No. 3 of 1987)

The article 432 of the penal code overlooks unauthorised disclosure of trade secrets for personal interests/gain. It also details about the penalties and punishment, including fines and imprisonment depending on the severity of harm caused.

• Civil Code (Federal Law No. 5 of 1985)

The Civil Code, significantly articles 905, 909, and 922, provides provisions for a non-disclosure agreement in Dubai. It ensures that employees are obligated to keep commercial and industrial information confidential, even after the contract has expired. In general, this law regulates all the activities that go against disclosing trade secrets in Dubai.

• DIFC IP Law (Law no. 4 of 2019)

Regulations of the free zones are separate from the UAE federal law. Recently, the Dubai International Financial Centre (DIFC) introduced their own law - DIFC IP Law, which deals with intellectual property and trade secrets. This law prevents any misappropriation of a trade secret. Additionally, it lists a range of legitimate activities that cannot be considered an infringement of trade secrets in Dubai. Some of them include independent discovery, discovery via publicly accessible information, and reverse engineering.

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Benefits of Availing Trade Secrets Services

Trade secrets services are crucial for an organisation. You can gain significant advantages by getting these services from an expert agency. Mentioned below are some common benefits:

• Enhanced Confidentiality: Trade secrets registration in Dubai ensures complete protection of sensitive business information under Dubai’s intellectual property law.
• Competitive Edge: Safeguarding trade secrets will allow you to maintain a market advantage by securing proprietary processes and strategies.
• Legal Protection: Dubai’s trade secret law provides enforceable rights against unauthorised disclosure or misuse.
• Risk Mitigation: A well-drafted Dubai non-disclosure agreement complements trade secret protection efforts.
• Expert Guidance: Intellectual property lawyers in Dubai streamline the registration process, ensuring compliance with regulations.

Commitbiz LLC ensures you enjoy all of these benefits and more. Our experts, with over 17 years of experience, provide customised services for business incorporation in Dubai. They ensure regulatory compliance, while minimising your administrative burden. 

Contact us to learn more about our value-added services and take the first step towards success!

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