Article 29 of the Saudi Trademarks Law

المادة 29 من نظام العلامات التجارية · الباب الثالث: عقود الترخيص

The Article allows the mark owner to license its use while keeping the right to license others and use it himself unless otherwise agreed, and the license period may not exceed the mark's protection period.

Official text (Arabic)

This article has not been amended since the law was issued.

يجوز لمالك العلامة أن يرخص لأي شخص طبيعي أو معنوي باستعمالها عن كل أو بعض السلع أو الخدمات المسجلة عنها العلامة، ويكون لمالك العلامة الحق في أن يرخص لأشخاص آخرين باستعمال ذات العلامة، كما يكون له أن يستعملها بنفسه، ما لم يتفق على خلاف ذلك. ولا يجوز أن تزيد مدة الترخيص عن المدة المقررة لحماية العلامة.

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 29 explained in plain English

This Article governs licensing the use of a trademark, meaning the owner allows another to use his mark while ownership remains his.

1. Scope of the license: The mark owner may license any natural or legal person to use it for all or some of the goods or services for which the mark is registered.

2. The owner's rights after licensing: Unless otherwise agreed, the owner keeps:

The right to license other persons to use the same mark.
The right to use it himself.

The default is therefore that the license is non-exclusive. Anyone who wants to be the only licensee, or wants the owner to refrain from use, must say so expressly in the contract.

3. Period of the license: The license period may not exceed the period set for protection of the mark. The license is tied to the continuation of protection.

This Article comes after Article 28, which governs the effect of transferring ownership of a business on marks; the difference between them is that a license does not transfer ownership but gives a right of use. It is followed by Article 30, which bars restrictions on the licensee that do not follow from the registration rights or are not necessary to preserve them, while permitting certain restrictions such as specifying the area or period of use and quality control conditions. To draft a license contract that protects both parties, it is wise to engage a lawyer who specializes in commercial cases.

Practical example

Ahmed owns a registered mark for burger restaurants in Riyadh and licensed a company in Dammam to use it in the Eastern Province. The contract did not provide for exclusivity, so Ahmed may license another company in Jeddah to use the same mark and may continue using it himself, and the license period may not exceed the mark's protection period.

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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