Trade License vs Trademark in UAE: Who Has Legal Rights Over a Business Name?
Many business owners in the UAE believe that once they obtain a trade license with their company name, they automatically own that name legally.
This is one of the most common and costly misunderstandings among startups, SMEs, online sellers, consultants, and even established companies.
In reality, a trade license and a trademark are two completely different legal protections — and having a trade license alone does not mean you own exclusive rights to your business name in the UAE.
This article explains:
- The legal difference between a trade license and a trademark
- Whether your business name is actually protected
- What happens if someone registers your company name as a trademark
- Whether long-term use of a trade name gives you any legal rights
- How to object to a trademark application based on prior usage
What Is a Trade License in UAE?
A trade license is issued by the Department of Economic Development (DED) or a UAE Free Zone authority to allow you to legally conduct business activities in the UAE.
When you apply for a trade license, you are required to:
- Reserve a trade name
- Choose your business activities
- Get initial approvals
- Submit incorporation documents
Once approved, your company is allowed to operate under the reserved name.
However, this approval only confirms that no identical trade name already exists within that specific licensing authority’s registry.
It does not mean:
- You legally own the brand name across UAE
- You have intellectual property rights over the name
- Others cannot use or register the same name
- You can stop someone from trademarking the name
This is where many businesses make a critical mistake.
What Is a Trademark in UAE?
A trademark is a form of intellectual property protection granted by the UAE Ministry of Economy.
Registering a trademark gives you:
- Exclusive ownership of your brand name
- Nationwide legal protection
- The right to stop others from using similar names
- Legal grounds to file objections and lawsuits
- The ability to claim damages for infringement
Once registered, your trademark protection applies across all Emirates, regardless of where your business is licensed.
So even if another company has a valid trade license under the same or similar name, they may still be required to stop using it if it conflicts with your registered trademark.
Trade License vs Trademark: What’s the Legal Difference?
Here’s a simple breakdown:
| Trade License | Trademark |
|---|---|
| Allows you to operate a business | Gives ownership of brand name |
| Issued by DED / Free Zone | Issued by Ministry of Economy |
| Administrative approval | Legal protection |
| Local jurisdiction only | UAE-wide protection |
| Does not prevent name usage by others | Allows legal enforcement |
| Cannot stop trademark registration | Can be used to object to others |
| No intellectual property rights | Provides IP protection |
In short:
A trade license gives you permission to do business.
A trademark gives you ownership of your brand.
Does Having a Trade License in UAE Give You Ownership of Your Brand Name?
No.
Having a trade license does not automatically give you legal ownership of the name.
Another company can:
- Register your business name as a trademark
- Obtain nationwide protection
- Legally prevent you from using that name in branding
Even if:
- You have been using the name for years
- You registered the trade license earlier
- You built a reputation under that name
Without trademark protection, your legal position is weak.
Can Someone Register Your Existing Trade License Name as a Trademark in UAE?
Yes — this happens quite often.
Let’s say:
You started a company called “Alpha Solutions” in 2018 and obtained a trade license.
But you never registered the name as a trademark.
In 2025, another party applies to register “Alpha Solutions” as a trademark under relevant business classes.
If approved:
- They become the legal owner of the name
- They can send you a cease-and-desist notice
- You may be required to rebrand
- You could lose website domains and social media handles
This can result in serious business disruption and financial loss.
Can Long-Term Use of a Trade License Name Help You Oppose a Trademark?
Yes — but it is not guaranteed.
If someone applies to register your business name as a trademark, you may file an opposition based on:
- Prior use of the name
- Established goodwill
- Brand recognition
- Commercial presence in UAE
You will need to provide evidence such as:
- Trade license history
- Invoices
- Advertising materials
- Website and domain records
- Social media presence
- Client contracts
However, the burden of proof lies on you.
Trademark opposition is a legal process, and success depends on how well prior usage can be demonstrated.
This is why registering a trademark early is always the safer route.
Can Two Companies Have the Same Name in UAE if One Has a Trademark?
Possibly — but not without consequences.
Two companies may:
- Be licensed by different Free Zones
- Have similar or identical trade names
- Operate in different jurisdictions
But if one of them holds a registered trademark:
They may initiate legal action against the other for trademark infringement, especially if:
- Both operate in similar industries
- Customers are likely to be confused
- Branding appears similar
In such cases, the trademark owner’s rights usually take precedence.
How to Object to a Trademark Application in UAE Using Prior Business Name Use?
Process to Oppose a Trademark Application:
- Monitor Trademark Journal
Identify any newly published trademark applications similar to your business name. - File an Opposition Within Deadline
Opposition must be filed within 30 days from the date of publication. - Submit Supporting Evidence
Provide proof of prior usage and brand recognition. - Legal Review by Authorities
The Ministry of Economy will evaluate submissions from both parties. - Decision Issued
The application may be accepted, rejected, or subject to conditions.
Professional legal assistance is strongly recommended during this process.
Is Trade Name Protection Enough in UAE?
No.
Trade name reservation is a commercial requirement for licensing.
Trademark registration is a legal safeguard for your brand identity.
If your brand name is:
- Visible to customers
- Used in marketing
- Associated with products or services
- Important for business growth
Then trademark registration should be considered essential.
Final Thoughts
Relying solely on a trade license to protect your business name in the UAE can expose your company to serious legal and financial risks.
Trademark registration ensures that:
- Your brand identity is legally protected
- You can prevent unauthorized use
- You avoid forced rebranding
- Your business reputation remains intact
If you are unsure whether your business name is protected or need assistance with trademark registration or opposition in the UAE, consulting a qualified legal professional can help you understand your rights and available remedies.
