Article 22 of the Saudi Patents Law
المادة 22 من نظام براءات الاختراع · الفصل الأول: أحكام عامة
The article allows the Administration to ask the parties to a license contract to amend it so that it is free of abuse of the right, any negative effect on competition, or on the acquisition and dissemination of technology.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز للإدارة أن تطلب من أطراف عقد الترخيص تعديله، بما ينفي عنه إساءة استخدام الحق في وثيقة الحماية، أو أي أثر سلبي على المنافسة، أو حيازة التقنية ونشرها.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 22 explained in plain English
This article gives the Administration a supervisory power over the contractual license contracts regulated by Article 21.
The power: the Administration may ask the parties to a license contract to amend it.
The purpose of the amendment: to rid the contract of any of the following:
- Abuse of the right in the protection document.
- Any negative effect on competition.
- Any negative effect on the acquisition and dissemination of technology.
Why this provision? Because a license, although it is a private agreement between the owner and the licensee, may have terms that go beyond the interests of the two parties and affect the market or the transfer of technology. This is linked to recording the license in the Administration's records, which Article 21 requires for it to be effective against third parties.
Limits of the text: the article establishes a power to "ask" the parties, and does not state the procedures for doing so or what follows if the parties do not respond, so nothing of the kind should be assumed.
Article 23 follows, setting out the licensee's rights where the contract is silent. When drafting a license it is useful to watch for terms that may restrict competition or the transfer of technology, and the contract can be reviewed with a lawyer specializing in intellectual property and patents.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 22 of the Saudi Patents Law
Can the competent body intervene in a patent license contract?
The Administration may ask the parties to the contract to amend it so that it is free of abuse of the right or a negative effect on competition or on the acquisition and dissemination of technology.
What grounds justify asking for a license contract to be amended?
Abuse of the right in the protection document, or a negative effect on competition or on the acquisition and dissemination of technology.
More articles on Licensing Patent Exploitation
- Article 17
The article requires the owner of a protection document who disposes of it to another, or whose right to exploit it passes to another, to formally notify that person of any legal procedure concerning the document.
إذا تم التصرف في وثيقة الحماية للغير بأي نوع من أنواع التصرف، أو انتقل حق استغلالها للغير لأي سبب من الأسباب، فعلى مالك الوثيقة إبلاغ المتصرف إليه، أو من انتقل
- Article 21
The article lets the owner of a protection document license others contractually to exploit it, not effective against third parties until the fee is paid and the license recorded, and not preventing the owner from exploiting it or licensing another.
يجوز لمالك وثيقة الحماية أن يرخص ترخيصًا تعاقديًّا لغيره في القيام بكل أو بعض أعمال الاستغلال، المنصوص عليها في الأحكام الخاصة، لكل موضوع من موضوعات الحماية. ول
- Article 23
The article gives the licensee all the acts and privileges of the owner of the document across the Kingdom for the whole protection period unless the contract provides otherwise, and bars the licensee from assigning them unless the contract expressly allows.
يترتب على الترخيص أحقية المرخص له في القيام بجميع الأعمال والامتيازات المقررة لمالك وثيقة الحماية، والمتعلقة بموضوع الحماية في جميع أنحاء المملكة طوال مدة سريان
- Article 33
The article provides that a judgment invalidating the grant of a protection document makes the grant treated as if it never existed from its date of issue, with a special rule on license payments and publication of the judgment.
الحكم ببطلان قرار منح وثيقة الحماية كليا أو جزئيا يترتب عليه اعتبار هذا القرار كأن لم يكن من تاريخ صدوره، وذلك في نطاق ما قضي ببطلانه، على أنه ليس من شأن الحكم
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.