A business partnership can become difficult when one partner starts using the company’s name, logo, trade name, social media identity, packaging, or customer-facing branding without proper authority.
This issue is especially serious where one partner leaves the business but continues using the brand, opens a competing business under a similar name, keeps control of social media accounts, or claims that the trademark belongs to them personally.
A business partner trademark dispute in the UAE can affect customer trust, sales, investor confidence, and the future of the business. The right legal response will depend on who owns the trademark, what the partnership documents say, and how the mark is currently being used.
Start With the Most Important Question: Who Owns the Trademark?
The first step is not to assume that the company owns the brand simply because the business has used it for years.
The ownership position may depend on:
The transfer, assignment, pledge or attachment of a registered trademark is provided for in the Federal Decree-Law No. 36 of 2021 on Trademarks. The transfer shall not be valid towards third parties until it is registered in the register of trademarks and published in the public according to the applicable procedures.
This means that internal arrangements between partners may not always be enough. Where the business ownership has changed, the trademark position should also be properly reviewed and updated.
When Is a Partner’s Use of the Trademark Unauthorised?
A partner may be acting without authority where they:
Not every dispute will automatically amount to trademark infringement. In some cases, the issue may be a breach of contract, breach of fiduciary obligations, misuse of business assets, unfair competition, or misuse of confidential information.
However, if the trademark is registered and the former partner is using it without permission, the registered owner may have stronger legal options.
Check Whether There Was a Trademark Licence
Many businesses allow a partner, distributor, franchisee, or related company to use the brand without clearly documenting the arrangement.
Under Article 30 of the UAE Trademark Law, the owner may grant one or more persons a licence to use the trademark for all or part of the registered goods or services. Article 31 requires the licence agreement to be in writing and duly notarised.
A proper trademark licence should clearly state:
Article 34 also provides that a licensee cannot assign the licence or grant a sub-licence to another party unless the trademark owner has agreed otherwise.
For business owners, this is important. A former partner cannot simply pass the brand to another person or business because they previously had permission to use it.
Practical Steps Before Starting Legal Action
A trademark dispute should be handled quickly, but carefully. The first stage is usually evidence gathering.
Keep copies of:
Do not rely only on verbal discussions. In many disputes, the written documents determine whether the other partner had permission to use the mark.
Mrs. Awatif Al Khouri often highlights that early evidence preservation can make a major difference in commercial brand disputes. Once a former partner changes social media pages, removes advertisements, or transfers digital assets, proving the original misuse may become more difficult.
Legal Options Available in the UAE
1. Send a Formal Legal Notice
A legal notice may require the former partner to stop using the trademark, remove branding from physical and digital platforms, return business materials, and confirm that they will not use a similar name in the future.
The notice should be precise. It should identify the trademark, explain the ownership position, list the unauthorised acts, and give a reasonable deadline for compliance.
In some cases, a firm legal notice can resolve the issue before litigation becomes necessary.
2. Seek Urgent Protective Measures
The trademark owner may also request the Magistrate of Summary Justice at the Civil Court to take precautionary measures if the misuse is continuing and causing immediate damage as per Article 47 of the Trademark Law.
These measures may include:
The court may issue urgent measures without first summoning the other party where delay may cause serious harm or evidence may be lost. The trademark owner must then file the main claim within the period required by law.
3. File a Civil Claim for Compensation
Article 48 allows the trademark owner to bring a civil claim for compensation where damage has resulted from infringement.
Compensation may be claimed for actual loss, lost business opportunities, reputational harm, and other provable financial damage. The final amount will depend on the evidence, including sales records, customer diversion, advertising expenses, and proof of unauthorised use.
4. Consider Criminal Action in Serious Cases
The UAE Trademark Law further provides for criminal sanctions for certain willful acts such as infringement of a registered trademark, the willful use for commercial purposes of a counterfeit or imitated mark, or the use in bad faith of a trademark of another person.
Article 49 provides for imprisonment and/or fines ranging from AED 100,000 to AED 1 million for specified trademark offences.
Criminal action is generally more appropriate where there is clear bad faith, deliberate imitation, counterfeit goods, or serious commercial misuse. It should not be treated as a routine step in every partnership disagreement.
Conclusion
A business partner trademark dispute in the UAE is not only about a logo. It is often connected to ownership, customer relationships, company control, digital assets, and future business opportunities.
Business owners should act quickly, preserve evidence, check the trademark register, review all partnership documents, and avoid allowing informal use of the brand to continue without written terms.
Mrs. Awatif Al Khouri’s experience in commercial and intellectual property disputes reflects an important practical point: businesses should protect their trademarks before relationships break down, not after the brand has already been misused.
A clear trademark registration, a properly drafted licence, and written exit provisions can prevent many disputes before they become costly court proceedings.
