Intellectual Property (IP) Protection in ADGM | Business Legal Essentials

The Abu Dhabi Global Market (ADGM) is a financial free zone that follows English common law, which makes it attractive for international businesses. While ADGM doesn’t have its own separate IP laws like DIFC does, your intellectual property rights are still protected through – 1. UAE Federal IP laws – You register trademarks, patents, and copyrights with the Ministry of Economy and 2. Contracts under ADGM’s common law system – Strong, internationally recognised rules that make licensing, ownership, and enforcement straightforward.

Why do businesses use ADGM for IP?

One of ADGM’s biggest advantages is the ability to hold your intellectual property in a Special Purpose Vehicle (SPV). Think of an SPV as a “holding company” that owns your IP separately from your main business. This setup:

• Keeps your IP safe from business risks and liabilities
• Makes it easier to license your IP, collect royalties, or even use it as collateral
• Helps with international structuring and tax planning, as long as you meet the UAE economic substance rules

This is why many companies place their patents, trademarks, or software in an ADGM SPV rather than leaving them directly with the operating business.

Employee-created IP

Unlike DIFC, ADGM doesn’t have a special law that automatically gives employers ownership of employee-created IP. Here, the rules follow UAE federal laws and whatever you’ve agreed upon in contracts. That’s why businesses in ADGM must have clear employment agreements and IP assignment clauses to ensure the company, not the individual, owns what staff create.

How IP disputes are handled in ADGM

• Registration & official rights – Done at the UAE federal level (Ministry of Economy).
• Enforcement inside ADGM – If there’s a contract dispute or infringement, you can go to the ADGM Courts, which apply common law. This is a big plus because ADGM Courts can grant remedies like injunctions (quick court orders to stop someone from using your IP) – something you don’t always get under standard UAE civil law.
• Outside ADGM – If infringement happens in mainland UAE or abroad, federal UAE authorities get involved. In some cases, there may be overlaps between ADGM and federal courts.

The bottom line

ADGM is not about giving you “new” IP rights. Instead, it provides:

• A modern legal framework familiar to international businesses
• A safe and flexible way to structure and hold your IP through SPVs
• Stronger enforcement options through the ADGM Courts compared to standard UAE courts

This makes ADGM especially appealing for companies that want to protect, license, and monetise their IP globally while maintaining a UAE base.

How Arnifi Can Help?

Navigating IP protection in ADGM can seem complex, but that’s where Arnifi comes in. We guide businesses through every step, from structuring your IP in an SPV to ensuring compliance with UAE federal registrations. Our team also helps draft employment contracts and IP assignment agreements so your company clearly owns what your staff create.

If you ever face disputes or potential infringements, we assist in leveraging ADGM’s common law courts to enforce your rights efficiently and strategically.

With Arnifi, you get more than advice; you get a practical, hands-on approach to safeguard your intellectual property while setting up and growing your business in Abu Dhabi’s financial hub. Get a free consultation now!