Doing Business in Saudi Arabia - International Franchise Association

However, SPO applied the new law retroactively thus disallowing and rejecting hundreds of
pending patent applications including those pertaining to pharmaceutical products. While
the new law is being retroactively applied, patents in the Kingdom of Saudi Arabia may be
easily exposed to infringements.
Trademarks are protected under the Trademark Law. The Rules for Protection of Trade
Secrets came into effect in 2005. Saudi Arabia has one of the best trademarks laws in the
region, but enforcement still lags and procedures are inconsistent.
American firms that wish to sell products in Saudi Arabia should work through their local
representative to register their trademarks with the Ministry of Commerce and Industry,
copyrighted products with the Ministry of Information, and patents with KACST or the GCC
Patent Office. Although these government entities are responsible for IPR protection in their
respective areas, any reported incident of piracy or infringement may not entail immediate
and decisive action by the concerned government entity.
The Saudi Government has revised its Copyright Law, is devoting increased resources to
marketplace enforcement, and is seeking to impose stricter penalties on copyright violators.
The Saudi Government has stepped up efforts to force pirated printed material, recorded
music, videos, and software off the shelves of stores. These efforts included stepping up
raids on shops selling pirated goods in 2008. However, many pirated materials are still
available in the marketplace. An Islamic ruling, or “fatwa,” stating that software piracy is
“forbidden” backs enforcement efforts. Saudi Arabia remains on the Special 301 Watch List
for 2008.
Saudi Arabia has not signed and ratified the WIPO internet treaties.
• Counterfeiting
Manufacturers of consumer products and automobile spare parts are particularly concerned
about the widespread availability of counterfeit products. Anti-counterfeiting laws exist, and
the U.S. Government has urged the Saudi authorities to step up enforcement actions
against perpetrators. In some popular consumer goods, manufacturers estimate that as
much as 50% of the entire Saudi market is counterfeit. In order to restrict the entry of
counterfeit products, the Saudi Customs Authority recently implemented a new directive
requiring all imported goods to clearly display the “Country of Origin” or “Made in ….” on the
items in an irremovable manner either by engraving, knitting, printing, or pressing based on
the nature of the imported items.
• Arab League Boycott
The Gulf Cooperation Council (Saudi Arabia, Kuwait, Bahrain, Oman, Qatar and the United
Arab Emirates) announced in the fall of 1994 that its members would no longer enforce the
secondary and tertiary aspects of the Arab League Boycott. The primary boycott against
Israeli companies and products still applies. Advice on boycott and anti-boycott related
matters are available from the U.S. Embassy or from the Office of Anti-Boycott Compliance
in Washington, D.C. at (202) 482-2381.