July / August 2012 | Issue 251 LAW UPDATE LATEST LEGAL NEWS AND DEVELOPMENTS BY AL TAMIMI & COMPANY Recent Key Developments in UAE Employment Law Qatar: Changing the way we build Regulation of digital content in the UAE Mediation in the UAE Regional Footprint Al Tamimi & Company Offices 6 Iraq 8 10 Jordan Kuwait 11 Qatar UAE Kingdom of Saudi Arabia DUBAI - DIFC BAGHDAD, IRAQ AMMAN, JORDAN 6th Floor, Building 4 East Al Harthiya PO Box 18055 Dubai International Financial Centre PO Box No: 10014, Code 12921 Amman, Jordan Sheikh Zayed Road Baghdad, Iraq Zip 11195 PO Box 9275, Dubai, UAE T: +962 6 577 7415 T: +962 6 577 7415 T: +971 4 3641 641 F: +962 6 577 7425 F: +962 6 577 7425 F: +971 4 3641 777 [email protected] [email protected] [email protected] DUBAI WORLD TRADE CENTRE SHARJAH RIYADH, KSA 9th Floor, Sheikh Zayed Road Al Reem Plaza 2nd Floor, Sky Tower, PO Box: 9275 3rd Floor, Suite 306 (South Tower S.2.A) Dubai, UAE Khaled Lagoon King Fahad Rd. T: +971 4 331 7161 PO Box 5099 Al Olaia Area F: +971 4 331 3089 Sharjah, UAE PO Box 300400 [email protected] T: +971 6 572 7255 Riyadh, KSA F: +971 6 572 7258 T: +966 1 4169 666 [email protected] F: +966 1 4169 555 DUBAI INTERNET CITY [email protected] Building No.5, G 08 PO Box: 500188 Dubai, UAE DOHA, QATAR KUWAIT CITY, KUWAIT * T: +971 4 391 2444 Adv. Mohammed Al Marri in association Khaled Ben Al Waleed Street F: +971 4 391 6864 with Al Tamimi & Company Sharq [email protected] Al Jazeera Tower, 7th Floor Al Dhow Tower PO Box 23443 16th Floor Doha, Qatar PO Box 29927, Safat 13160 ABU DHABI T: +9744 572 777 Kuwait City, Kuwait Al Sila Tower, 26th Floor F: +9744 360 921 T: +965 2 246 2253 Sowwah Square, Sowwah Island [email protected] F: +965 2 246 2258 PO Box 44046, AD, UAE [email protected] T: +971 2 813 0444 F: +971 2 813 0445 * Al Tamimi & Company International Ltd. provides services in Kuwait through a joint venture with Yaqoub Al [email protected] Munayae. Yaqoub Al Munayae is a registered and licensed lawyer under the laws and regulations of Kuwait. The contents of Law Update are not intended to be a substitute for specific legal advice on individual matters. Reproduction of part, or all of the content in any form, is prohibited other than for individual use only and may not be recopied and shared with a third party. The permission to recopy by an individual does not allow for incorporation of material in part or in whole in any work or publication, whether in hard copy, electronic or any other form, unless specific mention is made to the source, “Law Update published by Al Tamimi & Company”, and written permission is granted from the firm. For more information, please contact us. Contents In Focus 4 Employment Department Dispute Resolution 6 Dubai: Commercial Agency Termination 8 Dubai: The Court’s approach - Side Agreements and their enforceability 10 Qatar Trademarks Dispute 11 Jordan International conventions vs. Domestic Laws Litigation 12 Mediation in the UAE Technology, Media & Telecommunications 17 Regulation of digital content in the UAE – Part two 20 BYOD in the UAE Intellectual Property 23 Software Piracy in the UAE News and Events 26 Employment 29 Recent Key Developments in UAE Employment Law Construction & Engineering 33 Qatar: Changing the way we build Corporate Commercial 36 Share Buy Backs in Private Joint Stock Companies Corporate Benefit: An analysis under the UAE legal 38 regime The New Difc Markets Law Regime – A Catalyst for 40 NASDAQ Dubai? 42 Qatar: Keeping your hands clean Banking & Finance 44 KUWAIT Pledge of Shares: Statutory Provisions vs. Private Arrangements 47 Cross Border Marketing into the DIFC 50 Legislative Update INTRODUCING OUR NEW PARTNERS ACROSS THE MIDDLE EAST Al Tamimi & Company is pleased to announce the appointment of 5 new partners. These new appointments further demonstrates our commitment to developing the finest legal talent in the Middle East, with each new partner having specialist legal skills and an ability to provide practical and innovative solutions for our clients based on sound business experience. AMMAR HAIKAL TARA MARLOW DAVID YATES Dispute Resolution Head of Hospitality Head of TMT UAE UAE UAE [email protected] [email protected] [email protected] GLENN LOVELL HESHAM AL HOMOUD Banking & Finance Head of Corporate KSA Commercial, KSA [email protected] [email protected] 2 Law Update IN THIS ISSUE Welcome to this month’s edition of Law Update. It’s been an extremely busy time for the firm over the past few weeks. Many of us expected things to slow down over Ramadan however the opposite has been true. It’s been interesting as this has traditionally been a quiet period for many businesses in the region. The increase in workflow can be attributed to a number of factors I suspect but I personally believe it’s has much to do with the fact that business is definitely back on the up which is a positive sign for all doing business in the Middle East. I’m going to take the opportunity this month to announce our recent promotions and appointments. Promoted to Partnership were Ammar Haykal (Litigation, UAE) Tara Marlow Editor: (Hospitality, UAE), David Yates (Technology, Media & Telecommunications, UAE), Angela Maglieri Hesham Al Hamoud (Corporate Commercial, KSA) and Graham Lovell (Corporate Commercial, KSA). These promotions bring the l Tamimi partnership number to 40 and Graphic Design: support our commitment to developing the finest legal talent in the region ultimately benefiting our clients. Waad Barghouthi I’m also pleased to announce the appointment of Adam Balchin as Head of Construction and Engineering. Adam will be based in Dubai however will be working For further information with our clients across the Middle East. Joining Adam is Justin Eade, Senior Associate on Law Update please in our Construction and Engineering practice who will be based in our Abu Dhabi contact: office. Adam and Justin bring over 40 years of combined experience to the firm and [email protected] are well-positioned to deal with the ongoing growth in the construction sector across Middle East. You can read more about these appointments in this month’s newsletter along with the latest legal developments from across the region. As we enter the Eid Al Fitr holiday, which I know many of us are looking forward to, I wish you and your families a happy and joyful break. It’s a time when many of us travel to be with family and friends around the world. Safe travels and I look forward to seeing you in September. Husam Hourani Managing Partner Law Update 3 THE EMPLOYMENT TEAM at Al Tamimi & Company Our employment practice consists of 10 lawyers and a paralegal making it the largest employment practice in the Middle East. We have built a reputation for providing the relevant, practical, commercially viable and cost effective legal advice as we guide our clients through the complex and changing employment environment in the region. Ensuring that our lawyers remain at the forefront of any changes in regional law and in clear and regular communication to our clients is key to our approach. 4 Law Update In Focus The employment team (jointly with the TMT practice) recently won the Commercial Team of the Year award for 2012 at the Corporate Counsel Middle East Awards, hosted by Legal Week, for the work undertaken in advising Coca-Cola on an acquisition of stakes in Saudi Arabian company Aujan Industries. The team was also named as the In-House Counsel UAE Employment Team of the Year 2011. The combined extensive experience of the team enables us to advise clients on all aspects of employment work, including transactional work, day to day employee relations advice and employment litigation. Expertise Our expertise spans all aspects of employment law in the public and private sectors including: POLICIES, PROCEDURES AND CONTRACTUAL DOCUMENTATION including service agreements, employment contracts, secondment arrangements and employee handbooks, for all categories of staff, including directors and senior executives CORPORATE SUPPORT on employment aspects of acquisitions and disposals (both share and business transactions), including due diligence and related reports BUSINESS REORGANISATIONS including redundancy programmes, changing terms and conditions, and transfer of employment EMPLOYEE RELATIONS ISSUES including disciplinary, dismissal and grievance procedures, settlement negotiations and severance agreements LITIGATION before the relevant labour authorities, labour and other civil courts, and in the DIFC courts, from termination and bonus claims, to protecting trade secrets, confidential information and business interests For more information please contact: SAMIR KANTARIA Partner Head of Employment [email protected] Dispute Resolution Law Update Judgment Each month Law Update highlights recent significant judgments issued from the local courts in our Law Update Judgments feature. Al Tamimi & Company’s lawyers translate, simplify and comment on these judgments providing our Law Update readers with an overview which they should find useful and insightful in terms of understanding the workings and developments of the local courts. If you have any queries relating to the Law Update Judgments please contact [email protected] DUBAI: COMMERCIAL AGENCY EL-AMEIR NOOR Zane Anani Partner [email protected] Dispute Resolution TERMINATION [email protected] This commercial agency judgment the business was suspended or to Agent commenced legal proceedings addresses the issue of termination pay compensation amounting to AED against the Principal. and whether legislation can operate 150 million for losses that the Agent retrospectively. This unique decision would sustain as a consequence of the The Principal filed a counter claim arguing establishes a precedent in the UAE on termination of the agency agreement.