UAE law punishes sale of counterfeit goods, fine of 1 million AED, prison time

The worldwide counterfeit products industry, which is believed to be worth $2-3 trillion, has a huge influence on both businesses and individuals, particularly in nations that serve as important trade centres like the UAE. To fight this issue, the UAE government has put strong safeguards in place, as well as regulations, to prohibit counterfeit items from entering or exiting the nation.

Residents in the UAE have a moral duty to report counterfeit products to the UAE Ministry of Interior’s Economic Crimes Section, providing specific information about the detected counterfeit items. When considerable amounts of counterfeit products are discovered, they are confiscated and moved to alternate storage facilities, with the guilty parties liable for storage and disposal charges.

In addition to criminal sanctions, complainants have the ability to pursue civil actions for damages, which can be backed by expert evaluations or consultant reports. Fines, seizure, destruction, jail, and deportation are among the consequences for owning and selling counterfeit products, with the severity set by the court’s discretion. The penalties for trademark-related offences, including as forgery and counterfeiting, are outlined in Article 49 of Federal Decree Law No. 36 of 2021 on Trademarks. Accused parties must demonstrate their ignorance of the counterfeit nature of the items or their failure to alert the exporter.

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