Article 32 of the Saudi Trademarks Law
المادة 32 من نظام العلامات التجارية · الباب الثالث: عقود الترخيص
The Article bars a licensee of a trademark from assigning the license to others or granting sub-licenses, unless the parties agree otherwise.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز للمستفيد من الترخيص التنازل عنه لغيره أو منح تراخيص من الباطن ما لم يتفق على خلاف ذلك.
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 32 explained in plain English
This Article deals with the limits of what the beneficiary of the license holds, that is, the person or company that obtained from the trademark owner permission to use it. A license gives a right of use to a specific person, and does not become a right the licensee may dispose of as he pleases.
The Article sets two basic rules:
- No assignment: The licensee may not transfer the license itself to another person to take his place.
- No sub-licensing: He may not grant a third party a sub-license to use the mark.
However, this prohibition is not absolute; it is a rule that applies unless the parties agree otherwise. If the license contract expressly provides for the licensee's right to assign or to grant sub-licenses, he may do so within the limits of what they agreed.
This Article is linked to Article 31, which requires the license contract to be in writing to be recognized, so any agreement allowing assignment or sub-licensing should be recorded in that written contract. It is also linked to Article 33, which governs cancelling the license entry from the register when the contract ends or is terminated.
This Article matters to mark owners who want to keep control over who uses their mark, and to companies that obtain licenses and plan to expand their activity through independent partners or branches. To draft license terms to suit a particular situation, you can consult a lawyer who specializes in trademarks and commercial cases.
Practical example
A company in Riyadh obtained a written license to use a registered restaurant mark, then wanted to allow an investor in Jeddah to open a restaurant under the same mark. Because the license contract did not include a provision permitting sub-licenses, the company has no right to grant this sub-license, and must first agree with the mark owner on 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 32 of the Saudi Trademarks Law
May the licensee assign a trademark license to another person?
Not as a general rule, unless he agrees otherwise with the mark owner.
Can a sub-license to use a trademark be granted?
The beneficiary of the license may not grant sub-licenses unless otherwise agreed with the mark owner.
How is an agreement allowing assignment of the license proved?
Article 31 requires the license contract to be in writing to be recognized, so any agreement of this kind should be recorded in the written contract.
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 30
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.
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 ال
- 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 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.