Agency Agreement Ksa

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    Although the registration of a trademark license with the Saudi Trademark Office may be considered a formality requirement, the non-registration of the agreement may have material consequences for both the trademark owner and the licensee. Typically, parties to trademark licenses register summary agreements (registered user agreements) in order to simplify the registration process and keep the commercial terms of the trademark license out of the registry. The Law on the Commerce Agency of Saudi Arabia (as amended by Royal Decree No. M/5 of 11/06/1389H, in accordance with 25/08/1969) and its implementing rules (the Law on Agencies) oblige all commercial agents to register their agreements with the Ministry. 2. In addition to the requirement to register agency contracts under the Agencies Act, saudi Arabia`s Trademark Law (such as Royal Decree No. . M/21 of 28.05.1423H) (Trademark Law) requires that trademark licenses be registered with the Saudi Trademark Office. The law provides that only a Saudi national or an all-Saudi company has the right to act as a commercial agent in Saudi Arabia and that the agreement must be registered with the Commercial Agencies Department of the Ministry of Trade and Industry. While Saudi law does not prohibit parties from settling their agreement with a foreign law or referring disputes to foreign courts or arbitration proceedings, Saudi courts generally do not respect the agreement of the parties and impose Saudi law when the dispute is adjudicated by Saudi courts. This announcement is a timely reminder for trademark owners to be aware of the legal framework in force in Saudi Arabia for the registration of commercial agent contracts and trademark licenses. .

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