Introduction
The protection of trade names and trademarks constitutes one of the most important pillars of commercial identity and intellectual property rights in the United Arab Emirates. In a highly competitive business environment, companies invest substantial time, effort, and financial resources in establishing goodwill, commercial reputation, and brand recognition.
Consequently, UAE law provides extensive legal protection against the unauthorized use of trade names, trademarks, and commercial identities that may create confusion among consumers or result in unfair competition.
A significant recent development in this area is the judgment issued by the Abu Dhabi Court of Cassation in Commercial Appeal No. 375/2026, decided on 11 May 2026, which reaffirmed critical legal principles relating to trade name protection, trademark infringement, unfair competition, and the jurisdiction of local courts in the UAE.
Background of the Dispute
The dispute arose between two companies operating in the same industrial and commercial sector within the UAE. The claimant company was established in the UAE in 1994 and held a registered commercial license issued by the Dubai Department of Economy and Tourism. The company had also registered and continuously renewed its trademark before the UAE Ministry of Economy.
The claimant alleged that another company incorporated in Abu Dhabi in 2022 adopted an identical or substantially similar trade name and used the same commercial identity in connection with its products, invoices, transport vehicles, advertising materials, and commercial activities. According to the claimant, such conduct caused substantial confusion among consumers and constituted a direct infringement of its established trade name and trademark rights.
The claimant sought several remedies before the Abu Dhabi Commercial Court, including:
- Immediate cessation of the use of the disputed trade name;
- Cancellation and removal of the commercial name from the trade license records;
- Prohibition against using any similar name or trademark;
- Compensation amounting to AED 4,271,670 for material and moral damages;
- Publication of the judgment in local newspapers.
Initial Proceedings and Appeal
The defendants argued, among other matters, that the Abu Dhabi courts lacked jurisdiction because trademark registration falls under the authority of the UAE Ministry of Economy and federal jurisdiction. They further argued that the dispute related to trademark registration matters rather than commercial name protection.
The Court of First Instance initially dismissed the claims against the primary defendant company. However, upon appeal, the Abu Dhabi Court of Appeal reversed the judgment and ordered the cancellation of the infringing trade name registration, publication of the judgment in Arabic and English newspapers, and payment of AED 200,000 compensation to the claimant company.
The defendants subsequently filed a cassation appeal before the Abu Dhabi Court of Cassation.
Jurisdiction of Local Courts in Trade Name Disputes
One of the most significant aspects of the judgment relates to judicial jurisdiction in commercial disputes involving trade names and trademarks.
The defendants argued that since trademarks are regulated by the Ministry of Economy, the dispute should fall under federal jurisdiction. The Court of Cassation rejected this argument and confirmed that the Abu Dhabi local courts possessed jurisdiction because the dispute primarily concerned the commercial name registered within Abu Dhabi and the business activities conducted within the Emirate.
The Court relied on Articles 3 and 104 of the UAE Constitution, which preserve the judicial independence of local judicial authorities in Emirates such as Abu Dhabi. The Court further referred to the Abu Dhabi Judicial Department Law No. 6 of 2024 and provisions of the UAE Civil Procedure Law governing territorial jurisdiction in commercial disputes.
Importantly, the Court clarified that disputes involving commercial names registered with local economic departments do not necessarily require the Ministry of Economy to be joined as a party, particularly where the relief sought concerns cancellation of a trade name appearing on a local commercial license.
This principle is highly significant for businesses operating in the UAE because it confirms that local courts maintain jurisdiction over commercial name disputes even where trademark issues are indirectly involved.
Distinction Between a Trade Name and a Trademark
The judgment provides an important legal analysis distinguishing between a trade name and a trademark under UAE law.
The Court explained that a trade name is the commercial identity adopted by a company or trader to distinguish its business activities from others, whereas a trademark is any sign, symbol, word, or indication used to distinguish products or services.
The Court further emphasized that a trade name may simultaneously function as a trademark where it acquires distinctive commercial significance and becomes associated with the products or services of a particular business.
In the present case, the claimant’s trade name had become strongly associated with its products in the UAE market over several decades. The expert report confirmed that the disputed company used an identical commercial name in the same field of activity, thereby creating substantial consumer confusion.
The Court therefore concluded that the infringing company’s conduct constituted unlawful exploitation of the claimant’s established commercial reputation and amounted to unfair competition.
UAE Legal Framework Governing Trade Names
The Court referred extensively to the UAE Commercial Transactions Law and the UAE Commercial Companies Law.
Under Articles 53, 54, and 55 of the UAE Commercial Transactions Law, a trade name must not be misleading or create confusion with previously registered names. A trader or company cannot use a name identical or similar to an existing registered commercial name where such similarity may mislead consumers.
The Court also referred to Article 12 of the UAE Commercial Companies Law, which prohibits the registration of companies using names already registered in the UAE or names sufficiently similar to create confusion.
A particularly important legal principle established by the Court is that the protection of commercial names applies across the UAE as a whole and is not confined to individual Emirates. The defendants argued that one company operated in Dubai while the other operated in Abu Dhabi. However, the Court rejected this argument and held that the risk of confusion must be assessed across the UAE market generally, especially where the companies operate in the same commercial sector.
This aspect of the judgment significantly strengthens nationwide protection for established commercial identities within the UAE.
Unfair Competition and Consumer Confusion
The Court strongly emphasized the doctrine of unfair competition.
According to the judgment, the use of an identical or substantially similar trade name by another company operating in the same industry constitutes an unlawful parasitic exploitation of the goodwill and reputation developed by the original business.
The Court explained that unfair competition occurs where consumers may reasonably believe that there is a connection, affiliation, or association between two businesses due to similarities in commercial identity. Such conduct may divert customers, damage reputation, and interfere with legitimate commercial activities.
The Court accepted the findings of the expert report, which established that the names used by the parties were substantially identical and capable of misleading consumers in the UAE market. The Court also noted that the claimant company had been using the name for decades prior to the registration by the defendant company in 2022.
Compensation for Commercial Damage
Although the claimant initially sought more than AED 4 million in damages, the Court awarded AED 200,000 compensation for the material harm caused by the unauthorized use of the claimant’s commercial identity.
The judgment confirms that UAE courts possess broad discretionary authority in assessing compensation for commercial and reputational damages arising from trademark infringement and unfair competition.
The Court reiterated that compensation assessments are factual matters falling within the discretion of the trial court, provided the judgment identifies the elements of harm and the causal relationship between the unlawful conduct and the damages suffered.
This demonstrates that UAE courts are prepared to award damages where businesses suffer commercial losses arising from consumer confusion, reputational harm, or unauthorized exploitation of commercial goodwill.
Importance of Expert Reports
Another notable aspect of the judgment is the substantial reliance placed upon the court-appointed expert report.
The expert conducted a comparison between the two commercial names, examined the parties’ business activities, reviewed their commercial documentation, and assessed the extent of consumer confusion likely to arise from the similarities between the companies.
The Court confirmed that where it is satisfied with the technical findings and reasoning of an expert report, it may adopt the report without separately addressing every challenge raised by the parties.
This reinforces the practical importance of technical commercial evidence and expert analysis in UAE intellectual property and unfair competition disputes.
Practical Lessons for Businesses in the UAE
This judgment provides several important lessons for companies operating in the UAE:
First, businesses should conduct thorough due diligence before registering a commercial name to ensure that no similar name already exists in the UAE market.
Second, companies should register and renew their trademarks promptly with the UAE Ministry of Economy and maintain documentary evidence demonstrating long-standing commercial use.
Third, businesses should monitor the market for potential infringements and act quickly where confusingly similar names or brands emerge.
Fourth, companies should recognize that UAE courts provide strong legal protection against unfair competition and unauthorized exploitation of commercial goodwill.
Finally, the judgment confirms that commercial name protection extends beyond Emirate-specific boundaries and applies across the UAE market generally.
Conclusion
The Abu Dhabi Court of Cassation judgment in Case No. 375/2026 represents an important judicial precedent strengthening the protection of trade names and commercial identities in the UAE. The judgment clarifies the distinction between trade names and trademarks, confirms the jurisdiction of local courts in commercial name disputes, and reinforces the UAE’s strong legal stance against unfair competition and consumer confusion.
The decision further demonstrates the UAE judiciary’s commitment to protecting established commercial goodwill and maintaining fair commercial practices within the national market. Businesses operating in the UAE should therefore ensure robust protection of their intellectual property rights and commercial identities through proper registration, monitoring, and legal enforcement strategies.
If you require further clarification or legal assistance concerning the matters discussed in this article, please do not hesitate to contact Kh legal Advocates & Legal Consultants LLC. Our lawyers would be happy to assist you.
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