UAE - Counterfeiting & Trademark Infringement Report, 2018

UAE - Counterfeiting & Trademark Infringement Report, 2018

Report Description

The problem of counterfeiting is longstanding and is growing more and more in scope and magnitude. Many luxury brands are concerned because of the adverse impact of such illicit activities. The growth in global trade and technology has positively affected many markets across the world but along with that, it has some major adverse effects as well. Business organizations spend a lot of money, time and resources on protecting their brand and trademarks. But even after all the measures, the counterfeit market is booming rapidly.

The rapid growth of internet and technology has added fuel to this growing fire. The counterfeiters are using e-commerce websites, social networking sites and apps as their platform to sell the counterfeit goods. And due to advancement in the technology, tracking such sellers has become very difficult for the authorities. Even after having many legal regulations and laws, the companies and trademark owners have to bear the losses due to such heinous crimes. This clearly shows that there is absence of proper regulatory framework.

UAE -Counterfeiting and Trademark Infringement Report, 2018 focuses on the issue of counterfeiting and how it is impacting the brand owners. The report has explained the legal frameworks related to trademark in UAE. It also explains how the increasing usage of new technologies is helping the counterfeit traders to be safe and secure without any fear of being caught.

The web-based counterfeiters are using new advanced technologies to create an ambiance of luxury and an image of authenticity through very little financial investment. The web sites and apps are now designed and fashioned in such a way that it reassures unwitting consumers of authenticity through false claims and photographs of genuine articles, especially in those environments in which the goods for sale are incapable of pre-purchase scrutiny. The websites of the illicit traders appear in a way that it becomes difficult for the consumers to distinguish between approved genuine websites and unauthorized websites that sell counterfeit goods.

The report has elucidated the provisions that deals with the custom and border authorities, as they play a key role for protection of trademarks. They have certain rights that is very beneficial in securing the trademarks. The detection of counterfeit products on the borders is very necessary so that they don’t enter the UAE market.

The report has provided various recommendations. These recommendations are a mix of legal, social, economical and technological aspects of counterfeiting which will help the brand owners to track down the offenders and at the same time protect their trademark by using the latest technologies.

Losses incurred in 2017 due to Counterfeiting amounts to $1.2 Trillion

Table of


Table of Contents

  1. Executive Summary
  2. Scope and Approach
    1. Background – The Era of Flat world & Connected World
    2. Definitions & Terminologies
  3. UAE Counterfeiting Perception Index
  4. The Market Size of Counterfeit Goods in UAE
    1. By Value
    2. By Industry
  5. Sales Medium of Counterfeit Goods in UAE
    1. Markets 
    2. Online Medium
      1. E-Commerce
      2. Social Media
  6. International Agreements on Intellectual Property Rights
    1. Trade Related Aspects of Intellectual Property Rights, (TRIPS)
    2. Anti-Counterfeiting Trade Agreement
  7. Analysis - Secondary Liabilities
    1. Auction Sites
    2. Internet service providers
  8. Legal Analysis - UAE
    1. Federal Law No. (37) Of 1992 Concerning Trade Marks, 1992
    2. Anti-Commercial Fraud Law, 2014
  9. Issues Analysed
    1. Trademark Law
    2. Custom & Border measures
    3. Criminal Liabilities & Penalties
    4. Civil Enforcements
    5. Online Counterfeiting
    6. Anti-Counterfeiting
  10. Recommendations for Anti- Counterfeiting in UAE

List of


List of Graphs

  1. Economic Value of Losses Suffered due to Counterfeiting (USD Billion), 2001-2020
  2. Economic Value of Losses due to Counterfeiting in Selected Sectors (USD Billion), 2002-2020
  3. Shares of seizures by IP-infringing category (Percentage), 2017
  4. Number of Internet Users Globally (Millions), 2005-2017
  5. Growth in Estimated Value of Counterfeited Goods (Billion USD), 2008-2017
  6. Global Merchandise exports and Imports (USD Trillion), 1960-2017
  7. Value of Seized Goods by Reporting Economy (USD Million), 2017
  8. Average Percentage Share of global physical counterfeiting(Percentage), 2011-2017
  9. Total Annualized Outsourcing Contract Value and its Growth From (USD million), 2013-2017
  10. Share of Companies that Outsource by Sector(Percentage), 2017
  11. Distribution of the Countries as per Income Level (Percentage), 2017
  12. Share of endorsed celebrity follower’s in Countries as per the Region (Percentage), 2017
  13. Distribution of Targeted Audience by Income Level(Percentage), 2017
  14. Average Age of Luxury Brand User by Region (Year), 2017
  15. Average Age of Luxury Brand User by Income Group (Year), 2017
  16. Budget to reach potential customer of Luxury Brands on Social Media (per Day in USD), 2017
  17. Market Size of Global E-commerce Business(USD Billion), 2012-2017
  18. Most Frequent Brand Name Used in online Counterfeiting(Percentage), 2017
  19. Top five countries involved in online sales of counterfeit items (Percentage), 2017
  20. Share of Authenticated and Illicit Post on Social Media (Percentage), 2017
  21. Share in Mode of Communication on Social Media Counterfeiting (Percentage), 2017
  22. Distribution of Leading Uses of 3D Printing(Percentage), 2015- 2017
  23. Number of 3D Printer Shipment (Million), 2013-2017
  24. Route Map of Source and Destination of Counterfeit Clothes and Textile, 2017
  25. Route Map of Source and Destination of Counterfeit Footwear, 2017
  26. Route Map of Source and Destination of Counterfeit Cosmetics and Perfumes, 2017
  27. Route Map of Source and Destination of Counterfeit Leather Articles and Handbags, 2017
  28. Heat Map of Source, Destination and Transit points of trade in illicit goods, 2017
  29. Number of Application and Registration in UAE (Thousand), 2007-2017
  30. Blueprint of TAG Heuer Mikrograph Caliber 560, 2017
  31. Global Market Share of Logistic Services (Percentage), 2017
  32. Evolution of the global personal goods luxury( Billion Euro), 2012-2017
  33. Penetration of Countries in online luxury sales globally (Percentage), 2017

Country Analysed

United Arab Emirates

A Complete Analysis UAE's Laws



International, National and Regional Laws

International Agreement-

  1. Trade Related Aspects of Intellectual Property Rights, (TRIPS), 1995
  2. Anti-Counterfeiting Trade Agreement, 2012
  3. EU E-commerce Directive, 2000
  4. EU Customs Regulation, 2007


  1. Federal Law No. (37) Of 1992 Concerning Trade Marks, 1992
  2. Anti-Commercial Fraud Law, 2014
International, National and Regional Laws


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