REMINDER

Telephone and telefax numbers have changed in JORDAN. Please make note of the following:

REGIONAL OFFICE
New Telephone Number 962-6 5669-603
New Telefax Number 962-6 5603-743

JORDAN OFFICE
New Telephone Number 962-6 5698-282
New Telefax Number 962-6 5603-743

YEMEN: WIPO Comments on Industrial Property Provisions

The World Intellectual Property Organization (WIPO) has completed its comments on the industrial property provisions contained in the Yemeni Intellectual Property Law of 1994. These comments have been prepared taking into consideration the compatibility of the Law with the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS Agreement) and the Paris Convention for the Protection of Industrial Property.

WIPO has also provided the government of Yemen with a draft law on the protection of patents and industrial designs along with commentary on its main provisions.

KUWAIT Joins WIPO

The State of Kuwait has joined the World Intellectual Property Organization (WIPO) as of January 1998. The Emir of Kuwait issued Law No. 2 of the year 1998 concerning the approval of Kuwait becoming a member of the WIPO.

AGIP's 1998 Registration Requirements and Schedule of Charges

The current Schedule of Charges of AGIP will remain effective during for this year, 1998. We will be sending you the 1999 Registration Requirements and Schedule of Charges together in one volume for your convenience at the end of this year.

Please do not hesitate to contact us at the Regional Office, Jordan if you have any inquiries or require any information regarding the world-wide registration requirements and schedule of charges.

In this issue:

l Reminder: Change of phone and fax numbers - page 1
l YEMEN: WIPO Comments on Industrial Property Provisions - page 1
l KUWAIT Joins WIPO - page 1
l 1998 Registration Requirements and Charges - page 1
l Meeting with UN Secretary General - page 2
l A Seminar in Bahrain - page 2
l ASPIP is Proceeding to issue a Unified Arab Law - page 2
l BAHRAIN: Regional Center - page 3
l BAHRAIN: Copyright Law - page 3
l ALTTS Seminar on Licensing and Technology in SHARJAH, UAE - page 3
l Meeting in JORDAN between Members of INPI and ASPIP - page 3

Legal Angle

l QATAR: Amendment to the Registration of Pharmaceutical Companies - page 4
l Offshore Companies in BAHRAIN - page 4
l JORDAN: New Commercial Agents and Mediators Act - page 5

Meeting with UN Secretary General

Mr. Talal Abu-Ghazaleh, Chairman of AGIP and ASPIP, and as a representative of the International Chamber of Commerce/Jordan, met with the UN Secretary General, Mr. Kofi Annan, on February 9, 1998. During this meeting, Mr. Abu-Ghazaleh called for the necessity of laying down practical programmes for helping the less developed countries to build the infrastructure which allows them to receive investments, including developing the legislation and training.

Foremost among the participants of the meeting, which aimed to create cooperation between the UN and the private sector, were the representatives of the UN Secretariat, heads of international governmental organizations, ambassadors of some countries, and presidents of large companies. The meeting was also attended along with Jordan by representatives from Lebanon and Saudi Arabia.

During the dialogue, Mr. Abu-Ghazaleh suggested that the International Chamber of Commerce lead the project of setting up a coordination committee for all international activities in the field of works comprising the UN and other international commissions. The aim is to prevent repetition, place more focus, bring about consultation and reciprocal support, which would serve the countries concerned especially development programmes for the less developed countries.

ALGERIA: Change of Telefax Number

Please note that the telefax number of our Algeria Office has changed to: (213-2) 746-161

ASPIP is Proceeding to Issue a Unified Arab Law

Mr. Talal Abu-Ghazaleh, ASPIP Chairman, has called upon international organizations to take the good example of the World Intellectual Property Organization (WIPO) to establish Arab Administrations to deal with the Arab countries as one group instead of two groups; one being Asian and the other African. Mr. Abu-Ghazaleh announced that the Arab countries are endeavouring hard to enhance intellectual property sectors and update their laws to harmonize with the requirements of world free trade. He stressed that the Arab Society for the Protection of Intellectual Property (ASPIP) is always striving for the issuance of a unified and modern law for intellectual property for all the Arab countries.

Mr. Abu-Ghazaleh made these statements during the meeting of the Arab experts of the WIPO Arab Office held in Geneva, on the 19th and 20th of February, 1998. The purpose of the meeting was to discuss the negotiations topics to be listed on the agenda of the second ministerial meeting of the WIPO, which is to be held in Geneva, on the 18th and 19th of April, 1998.

The meeting was organized by the representatives of 17 Arab States, the World Intellectual Property Organization (WIPO), the World Trade Organization (WTO), the International Labour Organization, the League of Arab States, the Economic and Social Council of Western Asia (ESCWA) and the Islamic Bank for Development.

A Seminar in BAHRAIN on the Importance of Intellectual Property in Economic Development

A seminar titled "The Future Horizons for Intellectual Property Protection" was held in Bahrain on February 14, 1998. The seminar was held under the sponsorship of the Chairman of the Bahraini Trade and Industry Chamber, and in cooperation with the Publications and Publishing Department of the Ministry of Information and Council of Ministers Affairs and with the participation of the Ministry of Trade and the Arab Society for the Protection of Intellectual Property (ASPIP).

ASPIP's Chairman, Mr. Talal Abu-Ghazaleh, took part in the activities of the seminar and spoke about the importance and advantages of an effective protection system for intellectual property rights and its economic effects. He pointed out that adhering to the rules and laws of intellectual property is the real key to any sound economic progress.

Mr. Abu-Ghazaleh commended the efforts and procedures followed by the competent authorities in Bahrain and the efforts of His Highness the Bahraini Minister of Trade. Likewise, he commended the efforts of all those in charge of the intellectual property sector of the Ministry, in upgrading and modernizing laws, the world Intellectual Property Organization's efforts as well as those of the Trade and Industry Chamber for its vital role in disseminating awareness among merchants and industrialists of the importance of adhering to laws.

Foremost among the participants in the seminar were those in charge of the ministries, governmental departments, video stores and computers stores owners, printing press houses, publishing houses, insurance companies, professional societies and concerned institutions.

BAHRAIN:

REGIONAL CENTER

American Companies are taking Bahrain as a regional center for intellectual property rights protection.

The US companies are to establish a regional center for them in Bahrain to serve the GCC countries area and the Middle East as a commercial center. The center will provide the requirements for audio-visual and written works of art in the framework of protecting intellectual property rights. This step comes following Bahrain's activating of its copyright law and combating piracy, which would attract large production and distribution companies in this field

The role of Bahrain has been exemplary in implementing intellectual property laws, including the patent law, in enacting laws, and taking measures to activate the protection, which enhance awareness among citizens, businessmen, and other relevant sectors.

COPYRIGHT LAWS

The government of Bahrain has extended an invitation to a delegation from the World Intellectual Property Organization (WIPO) in order to work closely with local authorities to give advice to improve the legislation and enforce copyright laws. The group of experts is helping to review Bahrain's copyright legislation and enforcement measures. The WIPO experts are also providing the different offices dealing with intellectual property rights with the equipment that they need.

One of the most important benefits of the proper enforcement of copyright laws will be encouraging local Bahraini talent to be more productive as they would know that their products will be protected.

Currently in Bahrain 90% of the products sold in most shops are original; no factories are producing copyrighted material in Bahrain. This came as a result of the enforcement of copyright laws which in turn has attracted foreign investment to the country.

Meeting in JORDAN Between Members of INPI and ASPIP

A French delegation headed by the Director General of the French Institut National de la Propriete Industrielle (INPI), and including representatives from the Bilateral Affairs and Cooperation Department at INPI and the Department of Foreign Economic Relations at the Ministry of Finance, and accompanied by the Economic and Commercial Counsellor at the French Embassy in Jordan, met with a group of members of The Arab Society for the Protection of Intellectual Property (ASPIP).

During the meeting, discussions centered on ways of co-operation between ASPIP and INPI and improving the level of intellectual property protection in Jordan, through offering technical assistance to the Jordanian Government in terms of conducting educational seminars, and delegating Jordanian nationals to special training courses on intellectual property in France. It is note worthy to point out that INPI has already signed technical assistance agreements with the Lebanese and Chinese Governments.(r)

The Aspects of Licensing and Technology Transfer Rights in SHARJAH, UAE

The Arab Licensing and Technology Transfer Society (ALTTS), in cooperation with the Sharjah Chamber of Commerce, held a seminar in Sharjah on February 15, 1998. This seminar addressed the needs of the various public and private sectors in the Arab world for licensing and technology transfer, its economic importance, and the intellectual property rights. This is a measure to face the economic challenge of the international direction towards establishing a new vision of a free world economy.

At the end of the seminar, and after a very constructive scientific discussion, the following recommendations were brought forth:

1. To propose the appropriate laws to prevent monopoly and introduce the technology transfer regulating texts to the valid laws in the Arab countries.
2. To support the continuous cooperation between ALTTS and LES for developing training programs, receiving information, and obtaining the texts of technology transfer agreements.
3. To apply the latest technical and scientific means used in information systems and databases for assisting all Arabs interested in licensing and technology transfer matters.
4. To affirm the right of the Arab world to acquire technology and develop it in the interest of the Arab nation.
5. To issue publications and use the various media of information, to make the economic sectors in the Arab world aware of the importance of technology transfer, and concluding licensing agreements.

ALTTS Chairman, Mr. Talal Abu-Ghazaleh, announced a decision to establish a branch for ALTTS at the Sharjah Chamber of Commerce. Also, it was announced that a cooperation agreement had been concluded between ALTTS and Ajman Science and Technology University in the fields of research, technical education, and preparing for an Arab masters certificate in intellectual property.

QATAR: Amendment to the Registration of Pharmaceutical Companies

His Highness Sheikh Hamad Bin Khalefah Al-Thani has issued Law No. 2 for the Year 1998 amending some of the provisions of Law No. 1 for the Year 1986 on the Registration of Pharmaceutical Companies and Their Products. The law will come into force within 30 days of its publication in the Official Gazette.

Article 1

The text of the second paragraph of Article 9, text of Article 10, and text of the first paragraph of Article 13 of Law No. 1 for the year 1986 referred to shall be substituted by the following provisions:

Article 9

Paragraph Two: The company's owner, manager, agent, mediator, and importer in the State of Qatar shall be responsible for all contraventions to the provisions of this law and its implementing regulations and decisions.

Article 10

1. The agent or mediator commits to importing the pharmaceuticals registered and covered by the Agency from the country of origin. Without prejudice to Law No. 3 for the Year 1983 regulating the pharmacists profession mediators, factory agents and pharmaceutical companies, and its amending laws, it shall not be permissible for third parties, other than the agent or mediator, to import pharmaceuticals except after obtaining a special authorization to do so from the Administration of Pharmacology and Medicinal Control, based on an application submitted by a pharmacist or drug store owner to the said Administration.

2. The authorization shall not be granted except after the said administration makes sure that one of the following two cases apply:

A) If the agent or mediator fails to provide the pharmaceuticals covered by the Agency.

B) If the agent or mediator refuses to sell medicines to pharmacies, drug stores, hospitals, and public clinics.

3. The authorization to import shall be granted once unless one of the above two cases apply.

Article 13 (Paragraph One)

1. The pharmaceutical companies' owners, managers, agents, mediators and importers, if they operated in the State of Qatar without being entered in the Register kept for this purpose.

2. Every provision that contravenes the provisions of this law shall be revoked.

3. All the competent authorities in their respective fields shall implement the law and it shall come into force within 30 days of its publication in the Official Gazette.

Offshore Companies in BAHRAIN

Offshore companies is a term mainly used in connection with companies registered in the home country but conduct business abroad.

In Bahrain, the applicant who wishes to register such a company must fulfil the requirements stated in the Companies Act. Incorporation of such an offshore company is subject to the approval of the Minister of Trade and Agriculture who may authorise the incorporation of a share-holding company with a closed underwriting. Such incorporation is subject to the following requirements:

1) The objective of the company should be conducting business in Bahrain.
2) The head office should be situated in Bahrain.
3) The company should deposit a share of its capital in a local accredited bank.

The nationals of Bahrain are permitted to underwrite in an offshore company with a maximum of 20%, subject to the approval of the Minister, despite the registration of such a company in Bahrain. If the offshore company had been registered before the law was put into force, shares could be assigned to a Bahraini either by sale or by any other legal disposition.

The Companies Act and the provisions contained therein pertaining to offshore companies supersede any other Law or agreement to the contrary. However, this Law is binding without prejudice to the special agreements concluded between the government and certain companies.

JORDAN: The New Commercial Agents and Mediators Act

A new Commercial Agents and Mediators Act is currently being discussed by the Cabinet of Ministers for approval.

Following is a translation of some of the major amendments to Act No. 44 of 1985 that will take effect after the new draft is approved by the Jordanian Parliament.

Article (2) - Draft:

"A commercial agency is the contract concluded between the Principal and the Agent, by which the Agent will have the duty of distributing, selling, offering, or providing a service or a product inside the Kingdom, either for his own account or for the account of the Principal in return for a commission or a lump sum."

The old provision defined a Commercial Agency as: "A contract concluded between the Principal and the Agent by which the Agent conducts commercial work or act in his name but for his Agent's account in return for a commission."

Article (5) - Draft:

"Every Commercial Agency agreement shall be in writing and shall be officially registered with the competent governmental authority."

The context of this provision is the same as the old one. The only difference is a penalty resulting from the breaching of such provision. The new act will stipulate that any unregistered commercial agency agreement shall not have any probative value as to prove the existence of a commercial relationship between the principal and the agent. (Draft Article 9.a)

Article (12) -Draft:

"A regional office, registered under the Jordanian Companies Law, shall not be allowed to perform any of the functions of Commercial Agents (as defined here- above). Offering tenders for the benefit of the parent corporation is also included in such prohibition."

Article (18) -Draft:

"The courts of the Agent's place of business shall have jurisdiction over any disputes that might arise of a commercial agency contract. Parties may choose to resort to arbitration according to the Jordanian laws and regulations applicable in this regard; any agreement to the contrary shall be considered null."

The new addition to this provision is the inclusion of arbitration as an alternative dispute resolution method in the text. Old precedents regarding arbitration are represented by the Cassation Court's decision No. 47/91, page 193/1993, which stated that:

"It is understood from the terms of the New York Convention for Arbitration, which Jordan has signed on July 8, 1979, that it is acceptable that the local courts of a country may refuse to recognize an arbitration award and the enforcement of which or even referring such dispute to arbitration, if the latter contradicts the public policy of that country.

It is the public policy of the Hashemite Kingdom of Jordan in the case of Commercial Agencies to protect and insure national sovereignty. According to Article 20 of the Commercial Agents and Mediators law, and notwithstanding any agreement to the contrary, local courts in Jordan will have jurisdiction over the subject matter whenever the Agent is a Jordanian national."

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.