News today, although no official announcement, that the Dubai Department for Economic Development has a new section dealing specifically with enforcement against parallel imports where there is a registered commercial agency agreement. The Commercial Agencies section will take action against parallel imports when a complaint is filed. A copy of the agency registration must accompany the complaint. Traders will be asked to sell the goods to the registered commercial agent and fines will be the same as those issued for trade mark infringement (starting at Dhs2,000).
This part of the Empty Quarter welcomes this news. If laws exist then so should the mechanisms to enforce them. The Dubai Department for Economic Development has a good record for enforcing trade mark rights and can bring that experience to the enforcement of the Commercial Agency Law. However, this part of the Empty Quarter can't help but feel that maintaining a system that allows one company to have a monopoly on the import of certain products is not good for consumers and that the original justification to support the creation of local trading businesses is not now as strong as it used to be.
This part of the Empty Quarter welcomes this news. If laws exist then so should the mechanisms to enforce them. The Dubai Department for Economic Development has a good record for enforcing trade mark rights and can bring that experience to the enforcement of the Commercial Agency Law. However, this part of the Empty Quarter can't help but feel that maintaining a system that allows one company to have a monopoly on the import of certain products is not good for consumers and that the original justification to support the creation of local trading businesses is not now as strong as it used to be.
