Intellectual Property Law

Intellectual Property Law

Abstract

This research work will focus on the importance of IP laws in business, with a close focus on trade secrets and patent rights that are used in commercial companies in Saudi Arabia, especially in the oil drilling firms. These are IP rights that help to keep a company’s information confidential and can only be shared through selling or licensing.

Introduction

Intellectual property is a general term given to the protection of personal ideas, creative artwork, signs and symbols, and images that are used in the commercial form. Lemley (2019) states that some of the most common types of intellectual property laws used in commercial platforms are trademarks, copyright, patents, industrial designs, geographical indications, and trade secrets.  The IP practice is implemented through the registration of a business and its practice. The IP rights are then established and drafted down as a contract and a non-disclosure agreement acquired (Acemoglu  & Akcigit 2012). Occasionally, companies get caught up in litigations situations whereby they are accused of obtaining their confidential information without legal consent. Incase a company gets into a commercial practice without having acquired the data through a lawful means, they be prosecuted due to the violation of IP practice.

Saudi Arabia’s IP law came into practice in 2017 through the Royal Decree. This was established due to the increased demands, especially by the oil drilling firms in protecting their information and trade secrets from other companies and intruders (Khorsheed, 2015). Further, through IP protection, businesses have been able to streamline and advance their operation by not having to acquire business strategies and plan but instead advancing on their economy-based knowledge in creating a dynamic business environment. Violation of IP protection may jeopardize the growth of the economic sector of a region by slowing down on the generation of new content and ideas.

Primary aims and objectives

• To identify the importance of trade secrets in business establishments in the region
• To identify the penalties in violations of IP protection in the region
• To identify the impacts accrued to companies that do not have IP protection contracts

Research Question

• What is the importance of having trade secrets and protection by firms in Saudi Arabia?
• What are the penalties made against firms that violate IP protection rights by a company in the region?
• What are the impacts on a state and company when they have not protected their Intellectual properties?

Methodologies

To justify the data accrued to the research objectives and research questions, a quantitative research methodology would be used.  A quantitative research methodology would be preferred in this study as it is accurate, easy to implement, independent, objective, and gives actual results. It emphasizes on the use of measurements, figures statistical analysis, and numerical analysis in acquiring data (Acemoglu & Akcigit 2012). Questionnaires, surveys, and polls will be used in collecting data from the specific companies that have implemented on IPR and those that have not. The data accrued would be used in making comparisons of the responses made.

Background Research

Saudi Pipelines and tankers have grown to become one of the most prestigious ventures in the region. Most of the world oils and oilers rely on the kingdom’s pipelines in the supply of gas and oil. This led to the increased urge for the approval on the creation of IPR by most oil companies in the region. In the recent past, different companies have been on the risk of facing attacks that have led to significant damages and destruction in the oil companies. Therefore, Khorsheed (2015) posits that by having the IPR implementation, companies and business owners are able to secure their trade secrets in regard to customers, drilling tools, capacities, technologies, and infrastructures. Trade secrets as IP protection are significant to companies as it allows companies to gain fair protection in market access. Therefore, companies interested in gaining knowledge about a similar business have to sign contracts and get into trade agreements with the parent company in order to do venture into a related business. This has helped in building the economic growth in Saudi by creating more room for entrepreneurs and business owners to be creative and coming up with their own concepts of doing business.

The creation of IP also helps in managing the population of entrepreneurs in a particular venture. Acemoglu & Akcigit (2012) further state that during the creation of a contract, companies are sometimes advised to create high stakes for the IP range in order to discourage new members from trying to get into the industry limiting competition and profits made. The intellectual property law, therefore, creates room for people to develop incentives for unique job creation that would benefit society. In addition, it gives room for creative inventions and artistic works to be appreciated and given exclusive control from the public. The IP rights protection in Saudi Arabia is in line with the Sharia Laws implemented in the kingdom. To this effect, the laws may vary with other states as they are inspired by the Islamic teachings and codes of conduct (Zimowski, 2013). Therefore, this may place the IP rights of the region to be divergent to that of International standards as practiced by other states. The purpose of this research paper is to analyses the functionality of IP protection in Saudi Arabia and how it protects the business owners and companies from duplication.

Findings and Discussion

Findings

A list of several companies was identified, and 117 respondents engaged with a large number being oil companies in the region. Questionnaires in both closed and open-ended discussions were issued related to the IP protection of the company. The closed-ended questions enabled the researchers to have a uniform sequence of making comparisons on matters relating to intellectual properties and the importance of implementing the laws. Through the data collected, most companies appreciated the initiative taken by the government and business owners in protecting their business against duplication. However, others felt that it suppressed small entrepreneurs from growing their business and created room for the growth of monopolies since some companies such as the oil sectors.

Discussions

From the study, there were 98 respondents appreciated the impact of implementing IPR in the region. It gave investors room to grow their companies and make returns. Further, it also limited competition by other businesses in the region, thus giving the expression of authority. A standard IPR could last for approximately 20 years period, thus creating room technological improvements, innovation, and research and development to improve on service offered. In the event that there are cases of violation and infringement, cases may be presented to the federal or Sharia court, and possible remedies arrived at depending on the contract’s stipulations (Khorsheed, 2015). Some of the common penalties may include court injunction, financial damages, or creation of a license agreement whereby, the infringer is subjected to making payments to the owner.

Conclusion and recommendations

Recommendations

The Sharia laws governing the IPR laws in Saudi Arabia have played a significant role in boosting business in the region. However, there is a need to enforce strong protection on the IPR rights that are in range with the international standards and not solely on the cultural environments an Islamic law (Zimowski, 2013). This would help to limit the potential deficiencies in the protection since the religious laws are based more on forgiveness and sympathy, thus altering the global vision of the IP protection system.

Conclusion

IP laws help to protect a business against duplication that could lead to competition and loss-making. Businesses in Saudi Arabia have been able to nourish and boost economic development through the enactments of the IPR in 2017. Business owners have been able to come ups with creative works as well as benefit them against the competition. In Saudi Arabia, most oil companies have embarked on the implementation of IPR in order to protect their business against invaders and regulation of new entrants to the market.

References

Acemoglu, D., & Akcigit, U. (2012). Intellectual property rights policy, competition, and innovation. Journal of the European Economic Association, 10(1), 1-42.

Khorsheed, M. S. (2015). Saudi Arabia: from oil kingdom to a knowledge‐based economy. Middle East Policy, 22(3), 147-157.

Lemley, P. S. M. M. A. (2019). Intellectual Property in the New Technological Age: 2019 (Doctoral dissertation, University of California at Berkeley).

Zimowski, S. S. (2013). Consequences of the Arab Spring: How Shari’ah Law and the Egyptian Revolution Will Impact IP Protection and Enforcement. Penn St. JL & Int’l Aff., 2, 150.