Article 30 of the Saudi Trademarks Law
المادة 30 من نظام العلامات التجارية · الباب الثالث: عقود الترخيص
The Article bars restrictions on the licensee unrelated to the mark's registration rights or protection, and permits specifying the area or period, quality control conditions, and refraining from harming the mark.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز أن تفرض على المستفيد من الترخيص قيود غير مترتبة على الحقوق التي يخولها تسجيل العلامة أو غير ضرورية للمحافظة على هذه الحقوق.
ومع ذلك يجوز أن يتضمن عقد الترخيص القيود الآتية:
1 - تحديد نطاق المنطقة أو فترة استخدام العلامة.
2 - الشروط التي تستلزمها متطلبات الرقابة الفعالة لجودة السلع أو الخدمات.
3 - الالتزامات المفروضة على المستفيد من الترخيص بالامتناع عن كافة الأعمال التي قد ينتج عنها الإساءة إلى العلامة التجارية.
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 30 explained in plain English
This Article sets limits on the conditions a trademark license contract may contain.
The general rule: No restrictions may be imposed on the beneficiary of the license that are:
- Not following from the rights conferred by registration of the mark,
- Or not necessary to preserve those rights.
The owner cannot exploit the license to impose on the licensee obligations unrelated to protecting the mark.
Permitted restrictions: Even so, the contract may include the following restrictions:
- Specifying the scope of the area or the period of use of the mark.
- The conditions required for effective quality control of the goods or services.
- The licensee's obligation to refrain from all acts that may harm the trademark.
These three restrictions are by nature tied to protecting the mark and its reputation. Anything else is measured against the general rule: does it follow from the registration rights, or is it necessary to preserve them? The Article does not state the effect of including a prohibited restriction in the contract.
This Article complements Article 29, which allows the mark owner to license its use for all or some of the goods or services and bars the license period from exceeding the mark's protection period. It is followed by Article 31, which requires the license contract to be in writing. When negotiating a license or franchise contract, it is wise to review its terms with a lawyer who specializes in commercial cases.
Practical example
A coffee company in Riyadh licensed an establishment in Al-Qassim to use its mark, and stipulated in the contract that use be limited to the Al-Qassim region, that the establishment comply with specific quality standards in preparing the coffee, and that it refrain from any act that harms the mark. These three restrictions are expressly permitted under the Article.
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 30 of the Saudi Trademarks Law
What restrictions are permitted in a trademark license contract?
Specifying the scope of the area or the period of use of the mark, the conditions required for effective quality control of the goods or services, and the licensee's obligation to refrain from acts that may harm the mark.
Can the mark owner impose any condition on the licensee?
No. Restrictions may not be imposed that do not follow from the rights conferred by registration of the mark or are not necessary to preserve them.
May quality standards be required of the licensee?
Yes. The contract may include the conditions required for effective quality control of the goods or services.
More articles on Licensing Use of a Trademark
- Article 23
The Article allows the mark owner to request cancellation in whole or in part, and a mark licensed under a contract noted in the register is cancelled only with the licensee's written consent unless he expressly waives.
لمالك العلامة التجارية أن يطلب من الجهة المختصة شطب العلامة من السجل، سواء عن كل السلع أو الخدمات التي سجلت عنها العلامة أو عن جزء منها فقط، ويقدم طلب الشطب وفق
- Article 29
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.
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 آخري
- Article 31
The Article requires a trademark license contract to be in writing to be recognized, does not require it to be noted in the register, and refers how it is noted and publicized, when done, to the Implementing Regulations.
لا يعتد بعقد الترخيص باستعمال العلامة التجارية إلا إذا كان مكتوبًا، ولا يشترط التأشير به في السجل، وفي حال تم التأشير به في السجل تحدد اللائحة التنفيذية الكيفية
- Article 32
The Article bars a licensee of a trademark from assigning the license to others or granting sub-licenses, unless the parties agree otherwise.
لا يجوز للمستفيد من الترخيص التنازل عنه لغيره أو منح تراخيص من الباطن ما لم يتفق على خلاف ذلك.
- Article 33
The entry of a trademark license contract is cancelled from the register at the request of the owner or the licensee after proof that the contract has ended or been terminated, and after notifying the other party, who may object.
يشطب قيد عقد الترخيص من السجل، بناء على طلب مالك العلامة أو المستفيد من الترخيص بعد تقديم ما يثبت انتهاء أو فسخ عقد الترخيص. وعلى الجهة المختصة أن تخطر الطرف ال
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.