Article 31 of the Saudi Trademarks Law

المادة 31 من نظام العلامات التجارية · الباب الثالث: عقود الترخيص

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.

Official text (Arabic)

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

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 التي يتم بها التأشير وإشهاره.

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 31 explained in plain English

This Article explains the form required for a trademark license contract and whether it needs to be recorded in the register.

1. Writing is a condition: A license contract is not recognized unless it is in writing. An oral agreement to license use of the mark is not recognized under this text.

2. Noting in the register is not required: The license contract does not have to be noted in the trademark register to be recognized.

3. If it is noted: The Implementing Regulations specify the manner in which the contract is noted and publicized, and the text does not detail this.

The text thus distinguishes between two matters: writing, which is required; and noting in the register, which is optional. This Article states no other effects of noting, but it is useful for both parties to know the Law's other provisions on licensing before contracting.

This Article comes after Article 30, which bars restrictions on the licensee that do not follow from the registration rights or are not necessary to preserve them, and permits specifying the area or period, quality control conditions and refraining from harming the mark. It is followed by Article 32, which does not allow the beneficiary of a license to assign it to others or grant sub-licenses unless otherwise agreed. To draft a complete written license contract, it is wise to engage a lawyer who specializes in commercial cases.

Practical example

The owner of a bakery mark in Jeddah orally agreed with a friend that he would use the mark at a branch in Makkah. When they disagreed, it turned out that the agreement is not recognized because the license contract was not in writing. Had they written the contract, it would have been recognized even without noting it in the trademark register.

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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