Saudi Arabia announces new trade name regulations

Recently, in order to improve the transparency and reliability of Saudi Arabia's business environment, the Saudi Intellectual Property Office promulgated a comprehensive new set of regulations in the Official Gazette No. 5050 on October 4, 2024, which substantially revised the existing business registration and trade name framework to regulate the registration and management of trade names. The new regulations will come into effect 180 days after publication.

Under the revised new regulations, all companies must register with the Saudi Arabian Intellectual Property Office's Commercial Registry using a unique trade name. They can either temporarily reserve a trade name or fully register a trade name, providing business owners with greater flexibility in the early stages of their establishment.

The core of the new trademark law:

• Mandatory Registration of Trade Names: Merchants are obliged to register their trade names with the Commercial Registry in accordance with applicable laws and may be subject to a fine of up to SAR 50,000.
• More transparency: Registered trade names should be prominently displayed or listed at business premises and in relevant official documents so that the public can obtain necessary trade name information from them, thereby promoting transparency in the business community.
• Better name protection: Registered trademarks are protected by law against unauthorized use. Businesses can now seek compensation if their registered names are infringed by others.
• Trademark registration applications will be processed within 10 days.
• Other provisions for dispute resolution related to trademark use.