Abu-Ghazaleh Intellectual Property Bulletin, July 1997

A Gulf Cooperation Council Patent Office

The Qatari government has renewed its endorsement of the Gulf Cooperation Council (GCC) Patent Law and the basic statutes of the Patent Office, thereby completing the endorsement by all the GCC member states. According to Mr. Mohamed Al-Rasheed, Director of the Patent Office, the Qatari endorsement will expedite the inception of the Gulf Patent Office within a few months. He expects that the office will be situated at the General Secretariat of the GCC in Riyadh, Saudi Arabia.

Qatar had endorsed the law and the statutes the first time in 1995. Renewal of the endorsement is to cancel any Qatari reservations on the previous endorsement. A statement of the General Secretariat of the GCC that the implementation of the law and statutes, which were approved by the GCC at the Abu-Dhabi Summit of 1992, is expected to invigorate and encourage joint scientific research among the GCC countries.u

Jordan: Publication Charges Increased by 150%

Please contact our Regional and International offices in Amman, Jordan, for more information.u

In this issue

l AGIP Silver Jubilee - page 1
l A GCC Patent Office - page 1
l AGIP Celebrates its 25th Anniversary this Month - page 2
l AGIP Chairman receives IBAT 1997 International Leadership Award - page 2
l Jeddah: Seizure of 16 Thousand Counterfeit Watches - page 3
l In Brief, From our International Office - page 3

Legal Angle

l Jordan: Setting up a Regional Office

AGIP Celebrates Its 25th Anniversary This Month

On July 14th, 1997 AGIP will be celebrating its 25th anniversary. A fruitful day to include a seminar on intellectual property matters, round tables to bring clients and associates closer to AGIP members and to update their knowledge on all new intellectual property aspects in each of the countries where AGIP has offices. The day will be concluded with a live musical concert to culminate this day of celebration and commence another 25 years of growth and success.

Since its establishment in 1972, Abu-Ghazeleh Intellectual Property (TMP Agents), has been working with utmost dedication to become the leading firm in the field of intellectual property in the Middle East and North Africa. We have grown quickly and proved to be a success at every stage of our development through our commitment to providing only the highest quality professional services.

AGIP handles all types of intellectual property matters in the Middle East and North Africa and renders intellectual property services to clients in countries all-over the world, where protection is possible. These services are not limited to registration of intellectual property titles but also extend to cover all other associated legal and market services.

The company's Regional Office in Amman, Jordan, is the main office which supervises the operation of the twenty branch offices. The Regional Office is the guardian of the quality control of the company that ensures the application of its professional policies in the appropriate manner. The Regional Office maintains the computer programmes that control the functioning of all offices on a centralized basis. Clients, who are interested in integrated services in any country where protection of intellectual property is possible, find in the Regional Office the speedy and efficient executor that they wish to deal with.

The Accounts Department of the company constitutes part of the Regional Office in Jordan in line with the company's policy of having a centralized system for communications with clients and offices. Not only are the charges for services rendered by the company absolutely competitive but also our graded discount system ensures that clients obtain the best charges in the service market.

Besides the Regional Office, our International Office handles intellectual property matters in the countries where we do not have offices of our own and where protection of intellectual property rights is available. The office thus provides clients and associates with a full range of services to those provided by our twenty fully-operational offices. The International Office operates through associates and draws on the expert advice and assistance of licensed affiliated attorneys to offer its services in countries the world over.

AGIP's services are not only limited to chargeable services to clients but also extend to providing services to local communities in the form of assistance in the drafting and implementation of intellectual property laws. The company has assisted and will continue to assist legislators as well as government registration offices in their mission of securing well established protection systems in the Arab countries.

A major service that has been accomplished in this field is the establishment of the Arab Society for the Protection of Industrial Property (ASPIP), a pan-Arab society that is expected to fulfil our aspirations for a harmonized system in the Arab countries and to build bridges of confidence with counterpart bodies throughout the world. AGIP and ASPIP have already provided expert assistance to Arab governments. ASPIP was founded as a Regional Society that has the ultimate aspiration and plans to establish an independent national society in each of the Arab countries. At present ASPIP has founded four national societies in Jordan, Egypt, Tunisia and Lebanon, in addition to the regional one founded in Germany.

AGIP and various members of AGIP, especially partners, managers, and senior staff are members of the various associations of the profession. Foremost among such associations are AIPPI, CIPA, FICPI, ITMA, PTIC, PTMG, GRUR, ECTA, INTA, MARQUES, ACG, and ASPIP.

AGIP and its sister firm Abu-Ghazaleh Legal Services (ABLE) together form Talal Abu-Ghazaleh Associates (TAGA). These and other subsidiaries are members of the Abu-Ghazaleh Group. AGIP handles the registration of (contiuned on page 3)

Jeddah: Seizure of 16 Thousand Counterfeit Watches

Around 16 thousand counterfeit watches were seized in Jeddah, Saudi Arabia, some of which carry world famous trademarks and trade names while others have false appellations of origin.

Staff of the Commercial Fraud Patrol have found out the manipulation of the dealers in counterfeit watches which involved attaching a sticker on the watch which can easily be applied and removed to give a false appellation of origin. Among the trademarks of the watches which are being manipulated are Seiko, Citizen, Christian Dior and Rolex.

Dealers of the counterfeit product market admitted that they import those watches from East Asian countries and offer them for sale in their shops at low prices. They explained that some factories in Asia sell them large quantities to an extent that the sale is conducted by weight, not by number of the watches.

Earlier a number of the commercial agents of genuine trademark watches filed complaints to the Branch of the Ministry of Trade in Jeddah against unfair trading in those watches. They confirmed that they were adversely affected by the counterfeit product sale.

Mr. Al-Harby said that such practices fall in the domain of commercial fraud, forgery and deception regarding the origin of the goods, especially that the country of origin is very important for both the merchant and consumer. Therefore, any manipulation in naming the country of origin is a serious contravention which should be redressed, even if the products were manufactured in a country with a good industrial level, because there is an intention to take advantage of the confidence the consumer has in a country famous for a product.

Mr. Al-Harby said that the watches which were seized represent a clear contravention to Article 1 of the Law on Combating Commercial Fraud. He confirmed that the measures to be taken under the law include seizure of the counterfeit products and referring the dispute to the Commercial Dispute Settlement Committee at the branch of the Ministry in Jeddah to prescribe a suitable penalty of a fine up to 100 thousand Riyals or closing down the store for three months or by both of those penalties. Also, the contravening merchant's name will be published in newspapers at his own expense.u

Al Eqtisadiah Newspapers, June 15, 1997, Saudi Arabia.

CORRECTION

In the article on "First Infringement of a Granted Patent in the UAE", of June 1997 issue No. 58, the date of registering the patent should have read JUNE 19, 1994 under No. 34/94. We regret the error.

AGIP 25th Anniversary

patents, designs, copyright, and trademarks and renders all services relating to the protection of intellectual property, such as maintenance of titles through renewal of registrations and payment of annuities. ABLE is the only Arab regional firm of attorneys specializing in all aspects of business law and related legal services. The practice of ABLE combines the scholarship and practical experience of qualified attorneys and is particularly valuable in matters relating to intellectual property. ABLE operates out of offices in strategic locations in the region and renders litigation services which complements those of its sister firm AGIP.

In Brief , From Our International Office

BOSNIA & HERZEGOVINA

The Bosnian Government has extended the deadline for filing revalidation claims for those rights acquired in the former Yugoslavia for another twelve months to be on 31st MAY, 1998.

INDIA

India has won an international lawsuit against a U.S.A. commodity trading firm, which filed for the registration of Texmati, Kasmati, and Jasmati trademarks on rice varieties in Greece claiming that they are similar to the Basmati rice grown in India. The statutory Trademark Administrative Committee (TAC) in Greece refused the registration of the U.S.A. rice trademarks. India was encouraged by Greece's decision and plans to file a similar lawsuit against a firm which has applied for registering the trademark Basmati in Thailand. Basmati rice is only grown in northern India and Pakistan and is the most expensive rice in the world today.

BHUTAN

The Kingdom of Bhutan has introduced a Trade Marks Law effective 4th April 1997. This law provides for the registration of trade and service marks and utilises the International Classification of Goods. An application is filed in one class with extension to additional classes. The only document required and which can be filed subsequent to filing is a power of attorney form simply signed.

Jordan: Setting up a Regional Office

In the last issue of the TMP Bulletin, we provided our readers with highlights of the new Companies Law in Jordan. We have since received a number of requests from our readers regarding the new law and its provisions especially those relating to the operation of foreign offices in Jordan.

Below is a translation of the new Companies Law, specifically relating to regional offices (non-operating offices).

Article 245

A. For the purposes of this law, foreign companies not operating in the Kingdom are defined as companies or entities with regional offices in Jordan for operations outside the Kingdom, whereby this office is used for the purposes of coordinating such operations with the company's headquarters.

B. Regional offices are prohibited from conducting any commercial operations or activities in the Kingdom, including representative, agent or commercial middlemen operations.

Undertaking such operations will lead to cancellation of the office's registration and the office will be obliged to pay compensation for any damages incurred upon any other party.

C. Regional offices may, under the provisions of this Law, register offices for representative purposes, delivery of services, and technical offices in Jordan. As for the purposes of jurisdiction of litigation, Amman City shall be the regional offices' domicile.

Article 246

A. Applications for the registration of foreign company regional offices shall be submitted to the Controller of Companies accompanied with the following documents translated into Arabic and notarized by a notary public in Jordan:

1. Certificate of registration or incorporation of the company in its home country.
2. The company's Articles and Memorandum of Association showing its objectives, capital and type.
3. Copy of the power of attorney authorizing a local representative to undertake the company's operations and to register the company in Jordan.
4. The company's balance sheet for the last two fiscal year duly certified by a licensed auditor.

B. The application must be signed by the person authorized to register the company in the presence of the Controller of Companies or his representative, or a notary public. The application must be accompanied with the principal information concerning the company, namely:

1. The company's tradename, location of its headquarters, date of registration, and its objectives

2. Company category, its nationality, and its address in the country of registration

3. The company's capital and the names of its founders or partners

4. All other information deemed necessary by the Controller of Companies.

Article 247

A. The Controller of Companies, may approve or disapprove the registration of foreign companies' regional offices. In case of approval, the legal steps to register the foreign company in the Register of Regional Offices shall be completed and such registration will be published in the Official Gazette.

B. Any changes must be notified to the Controller within 30 days from the date of their occurrence.

Article 248

Companies with regional offices in Jordan enjoy the following privileges:

A. Exemption from all registration fees and publication required from foreign companies operating in Jordan.

B. Exemption of their profits outside the Kingdom from income taxes and social services taxes.

C. Exemption from registration with the Chamber of Commerce, all professional associations, and any payment of fees or obligations in this regard, including commercial licences.

D. Exemption of salaries of non-Jordanian employees working in the regional office from income taxes and social services taxes.

E. Permission to import commercial samples which are exempt from customs duties and import taxes.

F. Exemption of furniture and office equipment imported for use in the office from customs duties and all other related fees.

G. The Regional Office may import one car free of customs duty every five years, for the personal use of their non-Jordanian employees.

H. The Minister of Industry and Trade, based upon the recommendation of the Controller of Companies, may approve - if duly justified by the Company - importing another car free of customs duty.

I. The conditions of exemptions mentioned in this article shall be determined in special regulations.

Article 249

The number of Jordanian nationals employed in a regional office shall be no less than 50% of the total number of employees.

Article 250

Companies with regional offices may open a non-resident Jordanian Dinar or foreign currency account in a licensed commercial bank, provided that such funds are transferred to the company from abroad and through the bank.

Article 251

The Minister of Industry and Trade, based upon the recommendation of the Controller of Companies, will cancel the registration of a regional office if it appears that such office has undertaken any commercial operations in the Kingdom, and thus violated the provisions of this Law or any procedures or regulations issued in accordance with this Law.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.