Guide on Trade Secrets in Dubai

by Zaara 28, Jan 2021

Guide on Trade Secrets in Dubai

Trade secrets are identified as information that is unique and valuable to an organization and not known or readily ascertainable to individuals outside the company.

Dubai has been a hub for new businesses and established business expansion for quite a while now. With companies flocking in this city, there arises a lot of fierce competition. And with an increase in business setups, having an IPR law is also essential. IP laws are necessary for the good governance of the business sector in every country, especially well developed like the UAE.

Trade Secrets in Dubai, UAE

Trade secrets are classified as information that is unique and valuable to any company, and which may not be easily accessible to individuals or entities outside that company. Trade secret registration becomes apparent when there is a dispute between the keepers of the trade secret itself. Information such as formulae, designs, practices, patterns, devices, instruments, and application methodology may be registered with the governing country’s authorities for trade secret protection, so long as they are considered to be trade secrets. Threats to a company’s trade secrets can arise from a breach of the company’s network, system, disgruntled employees, and disputes between partners or third-party service providers.

The United Arab Emirates companies law that came into force on 1 July 2015 provides the provision containing “Disclosure of Company Secrets” under section 369. The United Arab Emirates already has many trade secret provisions and misappropriation of the information. Therefore, the UAE laws provide major regulations for the infringement as well as registration. The following types of trade secrets are supplied by the Federal Law Number 31 of 2006:

  • Company manuals
  • Company programs
  • Client identities
  • Drawings
  • Formulas
  • Manufacturing process
  • Product ingredients
  • Technical information
  • Strategic plans etc.

Let us understand the different features of trade secrets in Dubai, UAE -

Legal Framework

Trade secrets are addressed by Federal Law No. 3 of 1987 (Penal Code), Federal Law No. 5 of 1985 as amended (Civil Code), and

Federal Law No. 8 of 1980 as amended by Federal Law No. 8 of 2007 (Labor Law).

Duration of Right

No time limits are placed on the confidentiality of the trade secret, and so this right will exist for as long as the information remains a trade secret.

Ownership/License

A trade secret will be owned by the company to which the secret pertains.

Remedies for Infringement

Penalties under the Penal Code include imprisonment for not less than one year and a fine of less than AED 20,000 (approx. USD 5,450).

Advantages of Availing Trade Secrets Services

Business trade secrets in Dubai services are essential for a business. By availing these services to form an expert agency, you can gain significant advantages. Some of the advantages of obtaining the services of a trade secret service provider are:

  • Enhancing the competitiveness of the business
  • Easing the legal as well as other paperwork formalities
  • Innovation and formulas can be fetched up with the help of the expert.
  • Getting immediate action.
  • Gaining knowledge concerning the current market trends as well as intellectual property laws and regulations.

How can we help you?

Our business setup consultants understand that some of our clients’ most valuable intellectual property assets are not subject to patent, copyright, or trademark protections – they are protected under the body of trade secret laws. From proprietary know-how, secret formulas, and patterns, to devices and compilations of information, our professional team can advise clients like you on how to protect, enforce and exploit their trade secrets and other confidential information, providing strategic advice on safeguards, confidentiality policies and restrictive covenants.

To know more, contact us today.