The UAE has issued a new Federal Law, No. 38 of 2021, concerning Copyright & Neighboring Rights (New Copyright Law) that replaced the old Federal Law No. 7 of 2002 (Old Copyright Law). The new law has introduced significant changes to adhere to the fast-moving digital world we now live in and was implemented on 2 January 2022.
Confirmation of the “Work for Hire” Doctrine
The Copyright Law contains a new Article 28, which appears to put the “work for hire” doctrine on a statutory footing in the UAE.
An exciting and long-awaited addition to the New Copyright Law is the concept of “work made for hire” which is work created by an employee, commissioned by an employer, and which the employer compensates the such employee for the same. The employer will be considered the legal author of such work (unless otherwise agreed) under the New Copyright Law (which is a departure from the Old Copyright Law). This concept applies in the following two scenarios: (1) if the author creates the work for the benefit of another person, the copyright belongs to the latter; and (2) if the author creates the work within the scope of employment using the employer’s resources, tools, information, etc., the copyright belongs to the employer.
In the new law, there is greater clarity around copyright works for software-related entities, with the introduction of a specific copyright work to protect smart applications, computer programs and applications, databases, and similar works as determined by the Ministry of Economy. With such areas being of key importance in the UAE’s fast-paced development in the tech and innovations space, it is a significant step in offering this clear protection to such works.
Software companies and entities commissioning software developers should ensure that these new works are included in any agreements relating to the commercialization of such rights.
Moreover, the new, updated laws also define the ownership of Architectural Designs, which is of importance in the UAE, given that it is the home of so many unique and iconic buildings. Under the new law, it has been expressly stated that the ownership of the copyright in architectural designs vests in the owner of the property rather than the original author who created the architectural design (unless otherwise agreed). Again, this is an important factor for rights holders in iconic buildings, particularly with the emergence of the Metaverse and more real estate companies looking to commercialize or enforce rights in landmark buildings.
Fair Use Policies
The New Copyright Law made sure to include and define the concept of fair use concerning the reproduction of copyrighted work in limited circumstances. This law now permits the reproduction of copyright work without infringing an author’s intellectual property rights in certain situations, some of which are briefly outlined below; it is important to note that there are further restrictions and qualifications around these limited areas, so please seek legal advice before considering any “permitted uses”:
- Reproduction of a copyrighted work as a single copy for purely personal use (noting there are exceptions to certain works for personal use)
- Reproduction is an incidental and integral part of the process of digitally transmitting the work between different parties.
- Reproduction is made by a person authorized by the rightful owner or by law to carry out the transmission or broadcast of the relevant work.
- Reproduction is inevitable and incidental to accomplish a lawful action and in a manner that ensures that the copy is automatically erased without being able to be retrieved.
Increased Penalties
Article 39 increases the potential fines for copyright infringement from a maximum of AED 50,000 to AED 100,000 (the penalty was AED 10,000 – AED 50,000 under the previous Copyright Law).
Article 40 also introduces new and more severe penalties for (a) manufacturing or importing counterfeit works; (b) disrupting or impairing electronic data aiming at managing copyrights; and (c) downloading or storing computer programmers, applications, or databases without a license from the author or person/entity that holds the rights. Such offences now carry minimum imprisonment of 6 months and/or a fine of between AED 100,000 – AED 700,000 (the previous penalty was a minimum of 3 months imprisonment and a fine of AED 50,000 – AED 500,000 under the Repealed Copyright Law).
Eman Jad
