500 thousand riyals is a fine for using a restricted or seized trade name


The new draft to regulate “trade names” is punished by a fine of not more than 500 thousand riyals whoever uses a trade name reserved or restricted to another person and protected by the system, or uses a trade name reserved or restricted to him in a way that misleads the public or violates the provisions of the system, and it is permitted to double The fine in the event of return, and whoever commits the same violation as evidenced by a final decision shall be considered within (three) years from the date of the decision, and the penalty decision may include the stipulation to publish his summary at the expense of the violator in one – or more – local newspapers issued In his residence or headquarters, or on the website of the ministry or any other means determined by the ministry, according to the type of violation committed, its gravity and its impact, provided that the publication – in all cases – is after the decision has been secured by the passage of the specified period by law, or the judgment issued in it has acquired the status The project aims to provide confidence in the commercial environment and to add flexibility and speed in transactions, in addition to addressing cases of similarity between trade names and expanding their scope to ensure transparency. The project included permitting the seizure of the trade name before its registration for a specific, extendable period, specifying the conditions that must be met in it to be registered or seized, and the trade names that are prohibited from being seized or registered in the commercial register. Numbers or that it be in a language other than Arabic, as the draft law permits the disposal of the trade name in an independent manner from the commercial establishment, and the project contributes to strengthening the protection of trade names, and it is prohibited to use a trade name reserved or registered in the commercial registry without the consent of its owner, and the draft included rules and conditions for regulation And it is for every merchant to take a trade name and register it in the commercial registry, and the trade name must be inventive or the same as the name of the person registered in the identity or both, and it may include data related to the type of trade assigned to it, and it is prohibited for any person to use a reserved or restricted name. Or the system is protected, and it is permissible to use the restraint after the approval of the one who is registered for it.

6 cases of banning the reservation or registration of a trade name

Corresponding to the trade name of an internationally known commercial facility

– It includes a political, military, or religious meaning or content

Similar to a name, badge, honor mark, or symbol of any organization

Leads to others believing that its owner has an official capacity

Similar to a registered or well-known trademark in the Kingdom

Its use is prohibited or restricted to specific parties

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