Article 6 of the Saudi Trade Names Law
المادة 6 من نظام الأسماء التجارية · الفصل الثاني: أحكام الاسم التجاري وحجزه وقيده
The article prohibits others from using a trade name reserved or entered for a merchant, and gives the merchant whose name is entered the right to claim compensation before the competent court.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يحظر على أي شخص آخر استعمال الاسم التجاري المحجوز أو المقيد للتاجر وفقًا لأحكام النظام، وذلك مع مراعاة الأنظمة الأخرى ذات العلاقة.
2- يحق للتاجر، المقيد اسمه التجاري في السجل التجاري، أن يطالب من استعمل اسمه التجاري بالتعويض عن الضرر الذي ترتب عليه، وذلك أمام المحكمة المختصة.
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 6 explained in plain English
This article is the core of the protection of the trade name, and contains two rules:
- Prohibition of use: no other person may use a trade name that has been reserved or entered for a merchant under the provisions of the Law. The protection here covers the name that is both reserved and entered. This is subject to the other relevant laws.
- The right to compensation: a merchant whose trade name is entered in the Commercial Register has the right to claim from the person who used his name compensation for the damage he suffered, before the competent court.
Note the difference between the two paragraphs: the prohibition protects the reserved and the entered name, whereas the right to claim compensation is expressly tied by the article to the merchant whose name is entered in the Commercial Register. Compensation is also tied to there being damage resulting from the use.
This protection comes after Article 5 explains how to reserve or enter the name and the priority of the earlier application, and Article 7 then explains the names whose reservation or entry is prohibited in the first place, including a name that resembles a reserved or entered trade name whatever the type of activity.
If you discover that someone else is using your trade name and you want to claim compensation, consult a lawyer specializing in commercial cases to assess and prove the damage.
Practical example
A company in Riyadh owns a trade name entered in the Commercial Register for a restaurant business, then found a shop in the same city using the same name on its sign, which confused customers. This use is prohibited, and because its name is entered, the company may claim from the shop compensation for the damage it suffered before the competent court.
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 6 of the Saudi Trade Names Law
Can another person use my trade name?
No. Any other person is prohibited from using a trade name reserved or entered for a merchant under the provisions of the Law, subject to the other relevant laws.
Can I claim compensation if someone uses my trade name?
Yes. If your name is entered in the Commercial Register, you have the right to claim from the person who used it compensation for the damage that resulted, before the competent court.
Is only the reserved name protected?
The reserved name is covered by the prohibition of use, whereas the right to claim compensation is provided by the article for the merchant whose name is entered in the Commercial Register.
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.