Loi sur les noms commerciaux (émise par décret royal n° M/15, 12 Chaâbane 1420 (20 novembre 1999)), Arabie saoudite

Kingdom of Saudi Arabia

Ministry of Commerce & Industry

( 3 )

Agreement: (TRIPS)

LAW ON TRADE NAMES (Official Translation)

Royal Decree No. M/15

12 Sha'ban 1420 H

(20 November 1999)

Article 1:

Every merchant must have a trade name to be recorded in the Commercial Register.

This name shall consist of his name as recorded in the Civil Register, a novel

appellation or both. It may include data relating to the type of commercial activity.

In all cases the name must be suitable, not misleading, nor inconsistent with Islamic

Shari ‘ah or public interest.

Article 2:

Subject to the provisions of the Companies’ Law, the name of the company shall be

its trade name and may include a novel appellation or data relating to the type of

commerce in which the company is engaged.

Article 3:

The trade name shall consist of Arabic or Arabized words, and may not include

foreign words, excepted from this provision are: names of foreign companies registered

abroad, companies with well-known international names, and companies of mixed capital,

to be specified by a decision issued by the Minister of Commerce.

Article 4:

Application for registration of a trade name shall be submitted to the Commercial

Register Office. If more than one merchant or company applies to register the same name,

priority shall be given to the first one who used it publicly.

Article 5:

In case the application for registration of the name is approved, it must be published

in the manner specified by the implementing regulations. The Commercial Register Office

may reject the application pursuant to a reasoned decision within thirty days.

Article 6:

Upon registration of the name in the Commercial Register no other merchant may to

use it in the Kingdom in connection with the same commercial activity in which the owner of

the registered name is engaged. If the commercial name applied for is similar to a commercial

name already registered in the Commercial Register, the merchant shall add to that name

something to distinguish it from the name already registered.

Article 7:

The merchant, whether an individual or a company must post his trade name clearly

on the front of his place of business as well as all his printed materials. Where there is a

difference between the trade name of the individual merchant and his name as registered

in the Civil Register, the merchant shall record his name as registered in the Civil Register

fully in all his printed materials and he shall sign the same in all his commercial

transactions.

Article 8:

The trade name shall not be disposed of independently of the place of business, and

any disposition of the place of business does not include its trade name unless otherwise

agreed to in writing. In this case the person to whom the name is transferred shall add to

it a statement signifying the transfer of ownership. If the predecessor agrees to the use of

the original trade name without any addition, he shall be responsible for the obligations of

the successor entered into under this name if the successor fails to meet them.

Article 9:

Whosoever succeeds to own a trade name incidental to transfer of ownership of a

place of business shall also succeed his predecessor’s rights and obligations undertaken

under this name, Nevertheless the predecessor shall remain responsible jointly with the

successor for the performance of these obligations. Any agreement to the contrary is not

binding on third parties unless recorded in the Commercial Register and third parties are

given notice, by registered mail, and is published in the Official Gazette and another Saudi

newspaper, provided that no one objects to it within thirty days after the date of delivery

of the notice or the date of publication in the newspaper whichever earlier. A lawsuit for

responsibility of the successor for the obligations of the predecessor shall not be heard

after the expiration of five years from the date of transfer of ownership of the place of

business.

Article 10:

In case of transfer of the place of business without its trade name, the predecessor

shall be responsible for the obligations arising prior to the transfer of ownership of the

place of business unless there is an agreement providing, in addition to that, for the joint

responsibility of the successor for these obligations.

Article 11:

If the trade name is used by other than its owner or is used by its owner in a way that

violates the law, those concerned may request the Minister of Commerce to prevent its use

or strike it off the Commercial Register if already registered. They may also resort to the

Board of Grievances for compensation if appropriate.

Article 12:

Without prejudice to any more severe penalty provided for under another law, anyone

who uses a trade name contrary to the provisions of this Law shall be punished with a fine

that may not exceed fifty thousand riyals. The penalty may be doubled in the event the

violation is repeated.

Article 13:

The officers of the Commercial Register, each in his area of competence, shall

investigate and record violations of this Law and the decisions issued for its

implementation.

Article 14:

Investigating violations of this Law and the imposition of penalties shall be vested in

a committee formed in pursuant to a decision of the Minister of Commerce composed of

three members, at least one of whom is a law specialist.

Article 15:

The representative of the public prosecution in the Ministry of Commerce and its

branches, each in accordance with its powers, shall be charged with the responsibility of

prosecuting violations of the provisions in this Law before the Committee.

Article 16:

The protection provided pursuant to provisions of this Law expires when the

commercial registration of the merchant, whether an individual or a company, is cancelled,

and whatever the reason may be. It also expires when the name is stricken off the

Commercial Register by a decision of the Minister of Commerce, if it appears that the

registration was effected in violation of the provisions of this Law.

Article 17:

Parties concerned may object before the Minister of Commerce decisions of the

Commercial Register Office and to the decisions of the Committee empowered to impose

penalties within thirty days from the date of notice of the decision.

The refusal of the Commercial Register Office to make a decision which the Office

should have made in accordance with the laws and regulations or its failure to act, shall be

deemed a decisions. Within thirty days from the date of notification of the Minister’s

decision, the parties concerned may also file a grievance with the Board of Grievances

against the decisions of the Minister of Commerce made in connection with their

objections or which were made pursuant to Articles 11 or 16 of this Law.

In case no decision is made by the Minister in connection with the objection or the

application submitted to him, within a period not exceeding sixty days of the date of filing

the objection or the application, the party objecting or the applicant may file a grievance

with the Board of Grievances against the decision of the Commercial Register Office or

against the decision of the committee empowered to impose penalties, or in connection

with his application, within thirty days of the date of expiration of the period specified for

the Minister to make his decision.

Article 18:

The Board of Grievances shall have jurisdiction to decide all lawsuits and disputes

arising from the implementation of this Law.

Article 19:

The Minister of Commerce shall issue the regulations and decisions necessary for the

implementation of the provisions of this Law.

Article 20:

This Law shall be published in the Official Gazette and shall come into

force after ninety days of the date of publication.