The UAE’s thriving economy, coupled with its strategic geographic location, has made it an attractive hub for businesses worldwide. This has also led to a growing demand for intellectual property (IP) leasing and licensing.
The UAE has robust laws protecting IP rights, providing a secure environment for businesses to invest in and lease or license their intellectual property. Alongside this, the UAE’s location at the crossroads of Europe, Africa, and Asia makes it a strategic hub for businesses seeking to expand their operations and market reach. Booming sectors like tourism, trade, finance, and technology have created a demand for a wide range of intellectual property assets.
The below business activities refer to the act of allowing others to use intellectual property products and similar products for which a royalty payment or licensing fee is paid to the owner of the product. The leasing of these products can take various forms, such as permission for reproduction, use in subsequent processes or products, operating businesses under a franchise etc. The current owners may or may not have created these products.
For entrepreneurs who want to enter this industry, here are the business activities you can choose under your business license.
7740.00 – Leasing of intellectual property and similar products, except copyrighted works
This business involves the rental or licensing of intellectual property assets other than copyrighted works. These assets can include patents, trademarks, trade secrets, and other proprietary information.
Key aspects of this business include identifying, acquiring, evaluating, and valuing IP, negotiating licensing and leasing arrangements, handling royalty payments, and contract management. Examples include patent licensing, trademark licensing, trade secret license, and technology transfer.
This business activity excludes the acquisition of rights and publishing, producing, reproducing and distributing copyrighted works (books, software, film), leasing of real estate, leasing of tangible products (assets), renting of video tapes and disks, and renting of books.
Third-party Approval: Business activity 7740.00 is exempt from this requirement
Filing of Economic Substance Return: This business activity needs to meet ESR requirements
Anti-Money Laundering Compliance: Business activity 7740.00 is exempt from this requirement
7740.01 – Leasing of intellectual property products (except copyrighted works, such as books or software)
This business involves the rental or licensing of intellectual property assets that are not considered copyrighted works, such as patents, trademarks, and trade secrets. Businesses in this sector typically acquire patents, trademarks, or trade secrets from inventors, companies, or research institutions. The value of intellectual property is then assessed based on its potential market, competitive advantage, and profitability. Beyond this point, licensing agreements, royalty payments, and contract management come into play.
This business activity excludes the acquisition of rights and publishing, producing, reproducing and distributing copyrighted works (books, software, film), leasing of real estate, leasing of tangible products (assets), renting of videotapes and disks, and renting of books.
Third-party Approval: Business activity 7740.01 is exempt from this requirement
Filing of Economic Substance Return: ESR is required for business activity 7740.01
Anti-Money Laundering Compliance: Business activity 7740.01 is exempt from this requirement
7740.02 – Receiving royalties or licensing fees for the use of: Patented entities, trademarks or service marks, brand names, mineral exploration and evaluation, and franchise agreements
This business involves generating revenue by receiving royalties or licensing fees for the use of various intellectual property assets. These assets can include patents, trademarks, service marks, brand names, mineral exploration and evaluation rights, and franchise agreements. Intellectual property creation and protection is a key activity in this business, including licensing agreements and contract management. Patent royalties, trademark licensing fees, mineral exploration and evaluation royalties, and franchise royalties are the most common types of fees used here.
This business activity excludes the acquisition of rights and publishing, producing, reproducing and distributing copyrighted works (books, software, film), leasing of real estate, leasing of tangible products (assets), renting of video tapes and disks, and renting of books.
Third-party Approval: Business activity 7740.02 is exempt from this requirement
Filing of Economic Substance Return: Business activity 7740.02 is exempt from this requirement
Anti-Money Laundering Compliance: Business activity 7740.02 is exempt from this requirement
7740.11 – Intellectual property services
Intellectual property (IP) services encompass a wide range of activities related to the creation, protection, and commercialisation of intangible assets such as patents, trademarks, copyrights, and trade secrets. Key activities include IP strategy development, portfolio management, due diligence, litigation, licensing, and commercialisation, along with training and education. Those who engage in intellectual property services could be patent attorneys and agents, trademark attorneys, copyright attorneys, IP consultants, and IP valuation experts.
This business activity excludes the acquisition of rights and publishing, producing, reproducing and distributing copyrighted works (books, software, film), leasing of real estate, leasing of tangible products (assets), renting of video tapes and disks, and renting of books.
Third-party Approval: Business activity 7740.11 is exempt from this requirement
Filing of Economic Substance Return: Business activity 7740.11 is exempt from this requirement
Anti-Money Laundering Compliance: Business activity 7740.11 is exempt from this requirement
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