Dubai Courts resolve a legal dispute over a famous trademark

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Dubai Courts named a legal dispute over a famous trademark of a type of paper product, as it decided to return it to its original owner after counterclaims and demands for huge damages by the disputants.

According to the details of the lawsuit, the plaintiff is a distinguished Asian businessman working in the field of industry and commerce in Dubai, and he established a well-known company for the manufacture of paper products, and he owned it equally with his father, and it is the owner of a famous brand of luxury paper tissues, and then decided to sell 75% of his company to another company. "First Defendant" and received an e-mail from the buying company explaining the mechanism for acquiring the percentage offered for sale from his company, which is the initial transfer of a 75% stake to it until the true value of each partner is determined by an external evaluator.

The arbitrator and legal advisor, Muhammad Najib, the plaintiff’s legal representative, stated that his client had issued a general power of attorney to the defendant authorizing her to deal with banks and conclude agreements and other administrative procedures. Before you take over the rest of the shares, which represent 24%

He added that the two parties did not reach a later understanding about the price that the external resident set for the shares offered for sale, but they negotiated the same matter again and signed a memorandum of understanding according to which the defendant company acquired the company of his client in full.

Najeeb explained that his client sold his company, but he did not give up the trademark. Rather, the two parties agreed that the trademark should not be part of the sale, but he was surprised by the defendants' refusal to transfer the trademark back to him, which means that they violated his rights under intellectual property law, which He was seriously damaged, affecting the value of the brand.

Accordingly, the plaintiff demanded to oblige the defendants to transfer and register the trademark and all its derivatives, industrial designs and any rights related thereto, to the plaintiff again, and also demanded compensation in the amount of 17 million and 702 thousand dirhams for the damages and material losses, current and future, and demanded 10 million dirhams. Compensation for the one who committed against him intentionally and in bad faith.

For its part, the defendant group of companies demanded in a lawsuit against the plaintiff to pay compensation amounts estimated at ten million dirhams, the value of a penal clause, as a result of his breach of the terms of the contract, and moral compensation because of his damage to its reputation.

In addition, the Court of First Instance referred the case to a tripartite committee of experts, which concluded that the relationship between the plaintiff and the respondent company was contractual based on the sale of his shares to it without including the trademark among the fixed or intangible assets in the shares that were sold.

After considering the case, the court ruled that the plaintiff was entitled to the trademark and obligated the defendant company to return the trademark to it.

While it ruled that he was not entitled to material claims for compensation amounting to 17 million 702 thousand dirhams, noting that there were no documents proving the damages that required compensation.

Regarding the demands of the defendant company in the counterclaim for compensation of 10 million dirhams, the expert committee concluded that these amounts were handed over to the defendant previously, so the court ruled to reject the lawsuit.

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