Article 23 of the Saudi Patents Law
المادة 23 من نظام براءات الاختراع · الفصل الأول: أحكام عامة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 الحماية، ما لم ينص في عقد الترخيص على خلاف ذلك، وليس للمرخص له أن يتنازل عن الحقوق والامتيازات التي رخص له بها مالك الوثيقة، ما لم ينص عقد الترخيص على ذلك صراحة.
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 23 explained in plain English
This article sets out the scope of the licensee's rights when the license contract does not specify them, and restricts the licensee's assignment of the license.
1. The rule where the contract is silent: a license entitles the licensee to carry out:
- all the acts and privileges established for the owner of the protection document and relating to the subject of protection,
- throughout the whole Kingdom,
- for the whole period the protection is in force.
This is a default rule; the contract may provide otherwise, for example by limiting the license to a particular region, period or acts.
2. Assigning the license: the licensee may not assign the rights and privileges that the owner licensed to the licensee, unless the license contract expressly provides for it. The default here is a prohibition, and the exception requires an express provision.
Note the difference between the two rules: on the scope of rights the default is inclusion unless the contract provides otherwise, while on assignment the default is prohibition unless the contract expressly provides for it.
This article follows Article 22, which allows the Administration to ask for a license contract to be amended if it involves abuse of the right or a negative effect on competition. The compulsory license is dealt with in Article 24.
To set out the scope of the license and the conditions for assignment clearly in the contract, it is advisable to use a lawyer specializing in intellectual property and patents.
Practical example
A company in Riyadh obtained a license to exploit a patent without the contract specifying a region or a period, so it may exploit it throughout the Kingdom for the whole protection period. But if it wants to assign the license to another company, it may do so only if the contract expressly provides for it.
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 23 of the Saudi Patents Law
What are the licensee's rights if the license contract does not specify them?
The licensee has all the acts and privileges established for the owner of the document relating to the subject of protection across the Kingdom for the whole period the protection is in force.
May the licensee assign the license to another?
No, unless the license contract expressly provides for it.
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 22
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.
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.
- 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.