The final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.Read the full edition
However with Iraq trying to build its economy and its appeal to international trade, brand owners have become more vigilant and eager to protect their trademark rights in Iraq. In this article we will provide a summary of the legal options to enable the enforcement of trademark rights against counterfeits.
Trademarks are regulated under the Trademarks and Commercial Data Law (No. 21 of 1957), which was amended by Order No. 80 of 2004 issued by the Coalition Provisional Authority (“CPA”). Then it was further amended by Law No. 9 of 2010 (“the Trademarks Law”).
The protection provided by the Trademarks Law is for registered trademarks, as the Trademarks Law provides that the owner of a registered trademark shall have the exclusive right to prevent all third parties not having the owner’s consent from using identical or similar signs for goods or services which are identical or similar to those in respect of which the trademark is registered, where such use would result in a likelihood of confusion.
Accordingly, the first step in setting a strategy for anti-counterfeiting activities in Iraq is to consider the registration of the trademark. During the recent war in Iraq, many brand owners dropped Iraq from their list of protection, which has now put some brand owners in trouble when trying to protect their trademark rights. This has led to infringers trying to obtain registrations for trademarks that infringe other well-known trademarks so as to provide a legal cover for their actions.
Trademarks are registered with the Trademarks Registration Office at the Ministry of Industry and Minerals in Baghdad. However, in 2011 the Ministry of Trade and Industry in Kurdistan started its own registration system which covers Kurdistan Province.
It is therefore currently possible to register in both Baghdad and Kurdistan Offices for the protection of a trademark at the same time. The registration with Baghdad Office provides protection for the whole country, while the Kurdistan registration covers only the Province. While the registration process with the Baghdad Office has improved significantly over the past years and has become quicker, the registration still takes up to three years to be completed. In Kurdistan however, the registration process is quicker and registration can be achieved within a year or a year and a half.
Legally speaking registration with the Baghdad Office is sufficient and enough for the purpose of protection. However, from an enforcement perspective, it is necessary to have registration in Kurdistan in order to take any legal action there; therefore, brand owners should consider Kurdistan registration if the counterfeit problem is in Kurdistan, rather than solely relying only on Baghdad registration.
Options to stop counterfeits
After registering the trademark in Iraq, the following are the legal options a brand owner may consider to stop counterfeit activities:
Accordingly, it is possible to file a criminal lawsuit requesting the punishment of the infringer and the confiscation and destruction of the counterfeit goods.
Criminal complaints are usually filed to the Court of Inquiry, which orders a raid to be conducted by the police, after which an investigation is started. If there is sufficient evidence of a crime, the matter will be transferred to the Court of Misdemeanors to issue judgment.
The most important element for a successful criminal complaint is to prove the knowledge of the infringer that the goods he is dealing with are counterfeit. The Trademarks Law requires knowledge or bad intention in order for a crime to be committed. This means it is necessary to send legal notices to the infringers before initiating the complaint, so that knowledge can be proved.
The penalties provided by the Trademarks Law is a jail term of between one and five years, and/or a fine of between 50,000,000 Dinars (USD 42,948) and 100,000,000 Dinars (USD 85,839). In cases of repeated infringements, the punishment will be imprisonment for a period of between 5 and 10 years and/or a fine of between 100,000,000 Dinars (USD 85,839) and 200,000,000 Dinars (USD 171,675) in addition to the closure of the commercial store or enterprise for a period of not less than fifteen days and not exceeding six months, together with the publication of the judgment at the expense of the infringer.
4. Civil action: the brand owner may file a civil case for compensation before the competent Court, supported by sufficient evidence of the trademark infringement and damages incurred. Compensation awarded by the Court shall be adequate to compensate for the injury the trademark owner has suffered as a result of the infringement. In addition, brand owners may recover the profits of the infringer that are attributable to the infringement. This is in addition to the confiscation and destruction of the counterfeit goods.
In conclusion, the Iraq Trademarks Law provides for different legal actions against counterfeit and it is the brand owner’s decision to choose the best options depending on the nature of the infringement. However, it is always recommended to set a strategy for anti-counterfeiting activities that should start with obtaining the proper trademark protection, sending legal notices to the targets and then filing the proper lawsuit.