Introduction
Strategically located at the crossroads of Europe, Asia, and Africa, the United Arab Emirates (UAE) plays a pivotal role in global trade, as one of the world’s biggest logistics and re-export center.
The country’s geographic location, particularly Dubai’s role as an international shipping and air transit center, positions it as a key point for goods transported between East, West, and Africa. This accessibility has led to the UAE, including ports like Jebel Ali, becoming a hub for counterfeit goods. Counterfeit products may enter the country for domestic sale or transit to other regions, sometimes concealed within legal shipments.
Although the UAE has introduced legislative and enforcement measures to address counterfeiting, the large volume of goods moving through its borders continues to pose challenges to the protection of intellectual property rights.
Scope of Counterfeiting
Counterfeiting in the UAE affects a broad range of products, including luxury goods (such as handbags, watches, perfumes, apparel, and electronics), automotive parts, pharmaceuticals, toiletries, and cigarettes. Counterfeit items are typically sold in informal or low-cost markets, particularly in Dubai districts like Deira and Al Karama.
The UAE authorities have ramped up enforcement in recent years, resulting in increased seizures and raids to curb the availability of counterfeit goods in the market. For example, over the five years 2019-2024, Dubai Police’s Economic Crimes Department reports confiscating approximately AED 8.7 billion (~ USD 2.3 billion) worth of counterfeit goods.
UAE Legal Framework
The UAE is a civil law country, comprising seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain. Each emirate can choose to run its court system or join the federal judiciary. Sharjah, Ajman, Fujairah, and Umm Al Quwain are part of the UAE Federal Judicial Authority. Abu Dhabi, Dubai, and Ras Al Khaimah have separate, independent court systems.
Both the federal and local courts follow a similar structure. They are divided into Courts of First Instance, Courts of Appeal, and either a Court of Cassation (local level) or the Federal Supreme Court (federal, also known as the UAE Supreme Court of Cassation). IP disputes can be heard by federal or local courts, depending on the case.
Intellectual property rights are protected by federal law; however, enforcement occurs at the local level. Each emirate has its own enforcement authorities.
The key federal legislation that covers anti-counterfeiting includes:
- Federal Trademarks Law (“Federal Decree Law No. 36 of 2021 on Trademarks”): The primary law governing trademarks and infringement. The new law modernized provisions (e.g., expanding protection to non-traditional marks) and significantly increased the penalties for trademark counterfeiting.
- Federal Copyright Law (“Federal Decree-Law No. 38 of 2021 on Copyrights and Neighboring Rights”): Criminalizes unauthorized copying, distribution, or commercial exploitation of protected content. Article 40(1) stipulates a penalty of imprisonment for a minimum of six months and a fine ranging from AED 100,000 to AED 700,000 for intentional infringement. Additional penalties may include confiscation of infringing materials and closure of the establishment involved.
- Anti-Commercial Fraud Law (“Federal Decree-Law No. 42 of 2023 on Combating Commercial Fraud”): Strengthens enforcement against counterfeit, adulterated, or fraudulent goods. It imposes strict penalties on suppliers, including up to 2 years’ imprisonment and fines ranging from AED 5,000 up to AED 1 million.
- Consumer Protection Law (“Federal Law No. (15) of 2020 on Consumer Protection”): Prohibits misleading descriptions and the sale of unsafe or counterfeit products and empowers authorities to issue fines up to AED 2 million and close businesses selling counterfeits.
- The GCC Unified Customs Law (Regulation): Provides the basis for border enforcement, including the detention of suspected counterfeit goods in transit at all ports of entry. The law permits customs to take ex officio action and open and inspect packages when counterfeit or prohibited goods are suspected, without waiting for a formal complaint.
Additionally, the UAE is a party to all major intellectual property treaties that strengthen its anti-counterfeiting regime.
UAE Anti-Counterfeiting Enforcement Mechanisms
4.1. Enforcement Authorities
Several authorities in the UAE are responsible for anti-counterfeiting at both the federal and emirate levels. The main agencies are:
- Customs Departments: Each emirate’s customs department is on the frontline of border enforcement. Customs officers inspect imports/exports at ports, airports, and free zones, and have the power to seize shipments of counterfeit goods. Dubai Customs has a dedicated Intellectual Property Rights Department that leads in training officers, maintaining a trademark recordal database, and conducting seizures, with subsequent destruction or recycling of counterfeit goods.
- Police and Criminal Investigation Departments (CID): The UAE’s law enforcement agencies, particularly the police forces of each emirate (often through specialized anti-economic crime units or CID), conduct criminal investigations and raids on counterfeit manufacturing or distribution operations. Brand owners can file complaints with the police, prompting investigations that may involve undercover purchases, warehouse raids, and seizure of counterfeit stock.
- Public Prosecution: The Public Prosecution (at the emirate level) oversees the criminal process once the police refer a counterfeit case. They play a crucial role in deciding whether cases proceed to criminal courts. Without a prosecutor’s approval, raids and arrests usually cannot take place, ensuring judicial oversight of enforcement actions.
- Economic Development Departments (EDDs): The Department of Economic Development (at the emirate level) carries out administrative enforcement against counterfeit goods in the local market. In emirates that lack a dedicated local IP enforcement unit, the federal Ministry of Economy coordinates enforcement efforts. These administrative bodies provide a more expedient, cost-effective avenue for brand owners to stop infringement, often without the need for court litigation.
- Federal Ministry of Economy and Tourism (MoET): UAE’s Ministry of Economy and Tourism leads on IP policy and administers the trademark registry. It also has an enforcement role, particularly in emirates where local DEDs are not active in IP enforcement. The Ministry’s Consumer Protection Department works with local authorities to combat commercial fraud and counterfeit goods nationwide. The new 2023 Commercial Fraud Law enhances MoET’s coordination powers by creating a national committee and mechanisms for federal-local cooperation.
4.2. Border Enforcement Procedures
The typical border enforcement process in the UAE includes:
- Customs Inspections: Customs officers screen incoming shipments using risk profiling, intelligence, and random inspections. Under the law, if a customs inspector suspects prohibited or infringing goods, they may open and inspect packages, even in the absence of the importer. Suspicious shipments (for example, goods bearing well-known trademarks but declared as generic) can be held for detailed examination and inspection.
- Notification of Rights Holder: When potentially counterfeit goods are detected, Customs will usually notify the trademark owner or its local legal representative, particularly if the mark is recorded with that Customs department. The right holder is typically given a short window (e.g., three working days) to confirm the counterfeit nature of the goods and express intent to take legal action. If the rights holder fails to respond in a timely manner, the goods may be released; therefore, prompt cooperation is crucial.
- Seizure and Evidence Gathering: Upon confirmation (or obvious evidence) that the goods are counterfeit, Customs will seize the shipment. A seizure report is prepared, and samples of the goods may be retained for evidence. In many cases, Customs will send samples to a government forensic laboratory for scientific verification of counterfeiting. This lab report can then support further legal action. The seized goods are typically stored in a customs warehouse pending final disposition.
- Follow-up Actions: Customs in the UAE cannot impose criminal penalties on counterfeit importers themselves. If punitive action is sought, the trademark owner (or Customs) must refer the case to the police or public prosecutor for criminal proceedings. However, Customs can directly order the destruction of counterfeit goods once they are confirmed to be fake and all necessary legal formalities are satisfied. Increasingly, UAE Customs departments dispose of seized counterfeit goods through environmentally friendly methods (e.g., supervised recycling) to prevent them from re-entering the market.
It is worth noting that, in line with the TRIPS Agreement, UAE Customs can detain goods in transit, which is particularly important given the UAE’s role as a global trade hub.
4.3. Customs Recordation
The UAE does not yet have a single unified federal customs recordation system; individual emirates allow rights holders to record their registered trademarks with local customs databases. Currently, 5 out of 7 emirates – Dubai, Abu Dhabi, Sharjah, Ajman, and Ras Al Khaimah, but not Fujairah or Umm Al Quwain – have recordation programs in place. Only trademarks registered in relation to goods (and not services) can be recorded with the customs authorities. The requirements usually include a copy of the UAE trademark registration certificate, a power of attorney or authorization letter, and payment of a recordation fee. The process and cost can vary by emirate.
Beyond the border measures, the UAE provides for administrative, civil, and criminal liabilities against counterfeiters. Brand owners typically choose the route based on the urgency, scale of infringement, and desired outcome.
4.4. Administrative Enforcement
In many cases, rights holders pursue an administrative complaint with the relevant emirate’s economic department or municipality to raid and confiscate counterfeit goods being sold domestically. Enforcement officials (sometimes in coordination with police) will then conduct inspections or raids at the suspect’s premises without court formalities. If counterfeit goods are found, the officials seize the items on the spot.
Penalties in administrative cases usually include fines against the infringer (levied by the department) and forfeiture/destruction of the goods. Repeat offenders can face harsher measures such as temporary closure of the business or suspension of licenses.
Administrative raids are valued for being swift and relatively low-cost – there are typically no court fees, and proceedings are handled internally. However, the penalties are administrative in nature (fines generally in the tens or hundreds of thousands of dirhams, depending on the emirate’s regulations) and do not include imprisonment. Administrative actions are, therefore, a practical tool for quickly cleaning up the market and deterring misconduct.
4.5. Civil Enforcement and Remedies
Under Article 48 of the Trademark Law, a trademark owner or any affected party can file a civil lawsuit against the infringer to seek damages for trademark infringement. Typically, the plaintiff must prove that a counterfeit or infringing act took place and that they suffered damages, such as lost profits or harm to their reputation.
A trademark must be registered in the UAE; no civil claim for trademark infringement can be entertained (well-known marks might be an exception in some instances, but generally registration is required for enforcement).
Civil cases are filed with the court of first instance, in the court of the emirate where the infringement took place or where the defendant is based, and proceed through written pleadings, evidence submission, and often court-appointed expert examination. Civil proceedings can be time-consuming (several months to over a year) and are conducted in Arabic. For a foreign brand owner, local legal representation is required through a licensed advocate, and a legalized power of attorney must be on file.
Civil Remedies: If the court finds in favor of the trademark owner, it can order a range of remedies:
- Permanent injunctions to stop the defendant from continued infringement. In the UAE context, this often takes the form of a court order to seize and destroy the counterfeit goods and to prohibit the defendant from dealing in such goods.
- Monetary damages to compensate for the harm. Damages in UAE civil cases are compensatory, not punitive. The court will consider the evidence of actual losses, which may include lost profits, a decrease in brand value, and investigation costs, among others. While courts have been traditionally conservative in awarding large sums without clear proof, damages awards against counterfeiters can still be significant if the volume of sales is proven. UAE law also allows for moral damages to be awarded for harm to reputation or goodwill.
- Ancillary orders: The court may order the publication of the civil judgment at the defendant’s expense (similar to criminal cases) or the cancellation of a conflicting business name or trade license if, for instance, the defendant’s trade name infringes the plaintiff’s trademark. In some cases, the court can also order the closure of the defendant’s business (though, again, this is rare in civil cases).
- Costs: The losing party can be ordered to pay court fees and a portion of the prevailing party’s legal costs. Full attorney fee recovery is uncommon, but partial costs (and expert fees) are often awarded.
4.6. Preliminary/Interim Measures
UAE law provides several preliminary or interim remedies that a trademark owner can leverage at the early stages of an anti-counterfeiting action, even before a full trial. The main interim tools include:
- Judicial Precautionary Measures: Under Article 47 of the Trademark Law (and mirrored in Civil Procedure rules), a rights holder may petition the court for urgent measures before or during a case. These can include descriptive seizure (Anton Piller order), asset freezing/attachment, travel bans, and interim injunctions to cease sales.
- Descriptive Seizure (Anton Piller order): The Court authorizes an ex parte search and seizure at the defendant’s premises to list and impound counterfeit goods, packaging, machinery, and related documents. This is essentially a civil raid carried out by court bailiffs, often with police assistance, to secure evidence and goods.
- Asset Freezing / Attachment: The court can order a garnishment or attachment of the defendant’s property (e.g., freezing bank accounts or confiscating proceeds from sales of counterfeits) to ensure funds will be available to satisfy a judgment. This is especially useful if there’s a risk that the counterfeit seller will hide or dissipate assets.
- Travel Ban: In some criminal cases, authorities may impose a travel ban on the suspects to prevent them from fleeing the country during the investigation and trial. While not a remedy per se, it is a precautionary step frequently used in significant counterfeit cases involving foreign suspects or extensive fraud.
- Interim Injunction to Cease Sales: A court can order the defendant to stop selling or distributing the alleged counterfeit goods immediately, pending the outcome of the case. This acts like a temporary restraining order to halt ongoing infringement.
The competent civil court usually grants these orders on an urgent basis. Importantly, suppose an ex parte order is given (without the defendant present). In that case, the defendant must be served and has the right to contest the order within a short period (typically 15 days). The court will then decide whether to uphold or cancel the interim measure. Additionally, the plaintiff must file the substantive lawsuit within 20 days if the order was obtained before filing the case, to maintain the validity of the order.
- Customs Suspensions: When a recorded trademark triggers a border detention, that detention is essentially an interim measure. Customs will suspend the release of the goods for a fixed period (between 3 and 10 days) while the rights holder decides whether to take further action. If the brand owner confirms the goods are counterfeit and files a formal complaint (criminal or civil) within that period, Customs will continue to hold the goods until the case is resolved. If no action is taken, the goods are released as a default. Thus, prompt legal follow-up is necessary to convert a customs administrative hold into a longer-term seizure through a court or prosecutor’s order.
- Administrative Closure Orders: Economic Departments can issue immediate closure orders for stores selling fakes (especially for repeat violators). For example, Dubai Economy officials have the power to padlock shops for a specified period if they are caught multiple times trading in counterfeit goods. Such closures serve as interim punishment and a means to stop further sales while the matter is being resolved.
The UAE courts and authorities generally recognize the need for urgency in IP enforcement, provided the trademark owner can present clear evidence of infringement and a valid registration.
4.7. Criminal Enforcement and Remedies
Under UAE law, trademark counterfeiting is a criminal offense, and the revised Trademark Law of 2021 imposes significantly stricter penalties than the previous regime. Article 49 of the Federal Trademark Law (No.36/2021) provides that anyone who commits acts of trademark counterfeiting or piracy, such as forging a registered trademark, knowingly using a counterfeit mark for commercial purposes, or using another’s trademark in bad faith, is subject to imprisonment and/or a fine between AED 100,000 and AED 1,000,000. This is a significant increase from the previous minimum fines of AED 5,000. The Trademark Law of 2021 further specifies that if the offender reoffends, the penalties can be doubled, and the court may order the closure of the business for up to 6 months in addition to the other penalties.
Article 50 of the Trademark Law targets those who sell, offer for sale, or possess counterfeit goods for sale with knowledge of their counterfeit nature. Such offenses are punishable by up to 1 year imprisonment and/or fines between AED 50,000 and AED 200,000. Repeat offenders under this provision also face double penalties. These graduated penalties aim to punish large-scale counterfeit producers more severely, while still penalizing distributors and sellers of fake goods.
In addition to fines and imprisonment, the criminal courts in the UAE can order various remedial measures upon conviction, including:
- Confiscation and destruction of the seized counterfeit goods (this is standard; courts will almost always order destruction of fakes to prevent them returning to the market). Destruction may also extend to the packaging, labels, and even the equipment or machinery used to produce the counterfeits. The court’s destruction order is often executed under official supervision, sometimes with the involvement of the brand owner to verify the items.
- Publication of the judgment at the offender’s expense in local newspapers or the Official Gazette. This penalty is discretionary, used in cases where publicizing the outcome is deemed a further deterrent or a way to inform the public (and other counterfeiters) of the consequences. It can also serve to rehabilitate the brand’s reputation by signaling enforcement.
- Business closure orders: Courts may order the offending establishment to be closed for a period (up to six months is provided in law), especially for egregious cases or repeat offenders. Although this remedy is provided by law, it is relatively rare in practice, but remains a possibility for serious infringements.
- Additional sanctions: Under the Commercial Fraud Law, which often runs in parallel for cases of trafficking in fake goods, a convicted supplier might face administrative sanctions as well, such as revocation of trade licenses. The Commercial Fraud Law itself provides up to 2 years imprisonment and fines (AED 250,000 for individuals, up to AED 1 million for companies) for dealing in counterfeit or fake goods. These penalties can be used in conjunction with the Trademark Law penalties when charges are brought under both laws.
Conclusion
The UAE has developed a relatively comprehensive legal and institutional framework to address counterfeiting, with mechanisms available at the border, in physical markets, and online. While challenges remain, the UAE continues to lead the region in developing institutional tools for brand protection.
An effective anti-counterfeiting strategy in the UAE requires a multi-prong approach, combining border controls, administrative actions, and judicial proceedings. Criminal cases can disrupt large-scale operations, while civil litigation offers a path to compensation and injunctive relief. In practice, pursuing both routes in parallel is often necessary to exert meaningful pressure on infringers.
With the growing significance of digital commerce, online enforcement has become increasingly important. Brand owners are encouraged to actively monitor digital channels and initiate takedown procedures in conjunction with conventional enforcement efforts.
Although significant tools exist, the effectiveness of enforcement in the UAE depends heavily on proactive rights holder engagement and close coordination with local authorities. Continued vigilance and strategic use of available mechanisms are essential for navigating the enforcement landscape.
Notes
- The authors would like to thank Imad El Badawi, Head of MENA Brand Protection at United Trademark & Patent Services, for his review and comments on the article.
- This article addresses only physical-market and border enforcement mechanisms in the United Arab Emirates. Matters relating to online infringement and digital enforcement fall outside the scope of this analysis.
References
