The Legal Problematics of The Trademark Mortgage in The UAE Legislation

Dr. Muzaffar Jaber Al-Rawi
Associate Professor of Commercial Law College of Law – University of Sharjah – UAE


This study focuses on the provisions of the trademark mortgage due to its importance to the merchant within the scope of commercial credit, and because this topic did not receive enough analysis and research in the UAE laws. The study also examines the possibility of applying the provisions of commercial mortgage stipulated in the Commercial Transactions Law and the general provisions of mortgage in the Civil Transactions Law to the mortgage of the trademark.
The study raises several problematics, including the legal nature of the trademark mortgage contract as well as other issues that constitutes a threat to the interests of the mortgage creditor. Some of the debtor’s actions may cause harm to the interests of the creditor.
For example, failure of the debtor to adhere to the interest of his commercial benefits or neglecting the quality of products or services may lead to a decrease in the value of the trademark or deeming it valueless. In addition, failure to take the necessary legal measures to protect his trademark from infringement, or failure to renew its registration may lead to its forfeit, which directly affects the mortgage creditor’s interests through the termination of the trademark and his financial guarantee. The situation may lead to the expiry of the mortgage and the sale of the trademark. The study reviews some solutions and remedies to these problems considering absence of legal texts dealing with these problems.
The research follows the descriptive and analytical approaches in examining the texts of Emirati legislation that deal with the subject of mortgage, with reference to the position of the Emirati judiciary in this regard. The study provides a set of recommendations. The most important of which is the necessity for the Emirati legislator to enact a special law of commercial mortgage consistent with the nature and speciality of the commercial transactions of this mortgage which require the speed of proof, enforcement and credit.

Keywords: Trademark, Trust Mortgage, Mortgage Contract, UAE Law.

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