Brand Usage Agreement Template for Saudi Arabia

A Brand Usage Agreement is a legally binding contract that governs how your brand can be used by authorized third parties in Saudi Arabia. This document establishes clear boundaries for brand licensing while ensuring compliance with Saudi trademark laws and commercial regulations. Whether you're expanding internationally or allowing local partners to use your brand, this agreement protects your intellectual property rights while enabling legitimate business relationships.

When do you need this document?

You need a Brand Usage Agreement when entering into any arrangement where another party will use your brand name, logo, or trademark in Saudi Arabia. This includes franchise operations where you're licensing your business model and brand to local operators, distribution partnerships where Saudi agents represent your brand, joint ventures requiring shared brand usage, or licensing arrangements for specific products or services. The document is also essential when appointing local Saudi agents as required by law for foreign companies, or when establishing subsidiary operations that need clear brand usage guidelines. Given Saudi Arabia's strict trademark protection laws, having a comprehensive agreement prevents unauthorized use and protects your brand's commercial value.

Key legal considerations

The agreement must clearly define the scope of brand usage rights, including specific products, services, and territories covered under the license. Quality control provisions are crucial, as you need to maintain standards that protect your brand's reputation and comply with Saudi quality regulations. Termination clauses should address both voluntary and involuntary termination scenarios, including what happens to branded materials and ongoing obligations. Intellectual property protection measures must align with Saudi Trademark Law requirements, including provisions for enforcement against unauthorized use. The agreement should also include dispute resolution mechanisms that comply with Saudi commercial court procedures and may reference arbitration options available under Saudi law.

Legal requirements in Saudi Arabia

Under Saudi Trademark Law (Royal Decree No. M/21), all brand usage agreements must respect registered trademark rights and cannot exceed the scope of protection granted by Saudi trademark registration. The Commercial Agencies Law (Royal Decree No. M/11) requires specific disclosures and registration procedures when the agreement involves commercial agency relationships. Foreign brand owners often need to comply with local agent requirements, and the agreement must specify roles and responsibilities accordingly. The Anti-Commercial Fraud Law provides enforcement mechanisms against unauthorized brand use, which should be referenced in your agreement's protection clauses. Additionally, if your brand usage involves e-commerce activities, compliance with the E-Commerce Law (Royal Decree No. M/126) is required. All agreements should be drafted in Arabic for official purposes, though English versions may be used for business operations.