Running a business in the UAE means protecting what makes it valuable—the brand, the content, and the technical know-how. Copyrights, trademarks, and patents are the tools for that, but the law does not stop at registration. Companies also need to think about how intellectual property (IP) is used internally, what happens when staff misuse it, and how professional indemnity insurance can limit exposure when things go wrong.
This article looks at how IP is protected in the UAE, what the law says about employee misuse, and why having the right insurance in place is part of smart risk management.
IP rights in the UAE
IP law in the UAE is split across several statutes, but it mainly comes down to three types of protection: copyright, trademarks, and patents.
Copyright covers original works like artwork, books, films, music, photographs, and software. It applies automatically from the moment the work is created, though registration with the UAE Ministry of Economy can be helpful if there is ever a dispute. Copyright usually lasts for the life of the creator, plus 50 years.
Trademarks protect distinctive elements of branding such as logos, names, taglines and even fonts and packaging styles. To enforce a trademark in the UAE, it must be registered with the Ministry. Once registered, the protection lasts for ten years and can be renewed indefinitely.
Patents protect technical inventions. These must be new, useful, and capable of being applied in industry. They need to be registered through the UAE Patent Office, part of the Ministry of Economy. Once granted, protection lasts 20 years from the filing date.
Infringement often happens because a company uses something it does not own, without checking who holds the rights. That could mean unlicensed software, reused imagery, reused client content, or even mimicking a competitor’s product design. Sometimes the issue is caused by poor supervision. Other times, it comes down to vague or non-existent internal policies.
Enforcement of IP rights in the UAE can be fast and serious. Infringement may lead to fines, court-ordered damages, or in some cases, criminal proceedings. Ministry inspections, takedown orders, and trade licence penalties are all on the table. This is particularly true in sectors like media, technology, healthcare, and education, where protected content is frequently reused across platforms or service lines.
Vicarious liability of employees
Employers can be held responsible when staff misuse IP.
Under Article 313 of the UAE Civil Code, a business is liable for acts committed by employees if they take place under supervision or in the course of duty. The law refers to the concept of “actual control”, which means the company directed or had oversight of the work being done when the infringement happened.
This includes things like:
- A designer pulling a copyrighted image from the internet and using it in a brochure;
- A consultant copying and pasting licensed content into a client deliverable;
- An employee sharing a competitor’s product specification sheet or trade secret;
- A team member using proprietary code or software without a valid licence.
In all of these cases, the employer can be held liable, even if the employee acted without authorisation. If the company benefitted from the act, if it occurred during work hours, or if it was carried out using work equipment or premises, it usually falls within the scope of employment.
In the Dubai International Finance Centre (DIFC), the IP Law No. 4 of 2019 sets out similar principles, with additional guidance around copyright ownership, patents created during employment, and trade secret protection. Under this law, IP created during the normal course of work usually belongs to the employer, unless agreed otherwise in writing.
There are limits. If an employee acts entirely outside the scope of employment—say, leaking files to a competitor for personal gain—the company may be able to defend itself. But this often depends on whether the business had reasonable controls in place. Courts will look at training, supervision, written policies, and whether the employee’s role gave them access to the misused material in the first place.
The idea that ‘we did not know’ does not carry much weight. If the structure was weak, or the company failed to provide direction, it is still likely to be liable.
The role of insurance
When a mistake results in legal action, professional indemnity (PI) insurance can protect a business from serious financial loss. This type of cover helps with legal fees, settlements, and compensation if a third party claims they suffered a loss because of negligence, bad advice, or IP infringement.
PI insurance is especially relevant to firms offering services that involve knowledge, design, strategy, or confidential data. This includes law firms, architects, marketing agencies, software developers, consultants, audit firms, and media companies. Many of these businesses handle copyrighted materials, proprietary data, or client content daily.
Some professions are now required to hold PI cover under UAE law. New rules issued in May 2024 mandate minimum cover levels for:
- Private notaries (AED 1 million);
- Court-appointed experts (AED 1 million for individuals, AED 5–6 million for firms);
- Translators and translation houses (AED 1–5 million depending on structure).
The law requires the policy to be issued by a UAE-based insurer and to remain valid throughout the registration period. Policies must be non-revocable, and insurers are required to pay out within 30 days of a valid claim.
But while the new rules set out clear terms for specific groups, most businesses still need to do their own due diligence when selecting cover. Some policies exclude coverage for intentional acts, criminal liability, or regulatory fines, even when those arise from unintentional copyright breaches or data handling issues.
There is also a gap between civil and criminal exposure. In the UAE, copyright infringement, defamation, and some data breaches can result in criminal prosecution. If a claim moves from civil court to public prosecution, many policies stop applying. That can leave the business and potentially the individual without financial protection.
It is worth reviewing exclusions carefully and working with an insurer who understands the UAE legal system. A one-size-fits-all international policy may not provide the protection that is needed locally.
Final thoughts
Every business that creates, uses, or stores IP needs to think seriously about how it protects that work. That includes what is owned, how it is used, and what rules are in place to stop it being misused.
Employer liability for staff actions is part of that equation. So is insurance. When something goes wrong, the law expects companies to show that they had the right controls in place and the right cover behind them. Without that, the consequences can be far more than financial.
By Sheldon Labuschagne, chief executive officer of the Knightsbridge Group, Dubai.
