Partnering is a great strategy for businesses to expand their market and achieve business goals as well as access new target consumer groups. When speaking of innovation that goes hand in hand with cultural diversity, brand collabs in UAE are becoming more and more a trend in the UAE as well as in other sectors. However, getting into a collab with a brand is not a process that you can simply throw the power of creativity into – there is a lot of law and legal work that comes with collaborating with a brand.
In this blog, you will learn about some basic legal aspects of brand collabs in UAE to stay on the safe side while looking forward to your collaborations.
Why Brand Collaborations Matter
Although we will look at the legal issues in collab between brands in the next section, it is useful to know why such collab is so influential. Joint venture creations introduce new viewpoints, new markets, and shared equipment. Starting from influencer marketing and finishing the detailed collaboration known as brand collabs and sponsorships can enhance the visibility and credibility of both prospects.
However, even if a collaboration looks highly inspiring, any failure to notice the legal implications might result in conflicts or a company’s reputation.
1. Define the Scope of the Collaboration
The first process in any collab with a brand to identify various factors, including whether it is a campaign, project or partnership. The most basic question that need to be answered is: What are aims and objectives of partnership? Will it be part of co-branding, shared events or cross-promotions? These details have to be contained in a written contract.
A well-drafted contract should cover:
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Ethical position of organizations and expectations of their performance
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Duration of the collaboration
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Marketing goals and objectives and the target market
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Profit sharing or revenue distribution agreements
That is why defining these elements shows that everyone is working according to the same plan and eliminates misunderstandings.
2. Comply with UAE Regulations
That is why there are particular laws regulating business in UAE, such as advertisements and intellectual property, which must be adhered to when conducting brand collabs in UAE. Some critical regulations include:
a. Licensing Requirements
Both brands must confirm they have necessary licenses to be operating within the UAE. For instance, influencers can only achieve collaborations in which they satisfy the conditions of the National Media Council (NMC).
b. Advertising Laws
The Central Bank of the UAE has very rigid rules on what is to be advertised and what is not. Promotions have to be truthful, cannot contain deceptive information and cannot offend one’s culture.
c. Sponsorship Approvals
In case the collab between brands entails patronages, it is probable that, authorization from the respective country’s authorities will be necessary. This is particularly applicable when it comes to an occasion or public awareness creation exercise.
3. Protect Intellectual Property (IP)
Brand collabs and sponsorships involve data ownership to some extent, depending on the logos, slogans or contents shared in it. To avoid disputes:
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To file your trademarks, designs or copyrights, you should go to the UAE Ministry of Economy and register them.
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One of them is to make it clear in the collaboration agreement who owns the IP in a particular project.
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Do not use the partner’s intellectual property without first getting their written consent.
For instance, if you are using a product logo during the cooperation, make sure both of you know how it will be used and where.
4. Plan for Financial Transparency
Finance is another area that may lead to controversy in a collab with a brand in no time. Surest method is to remain as transparent as possible in the financial transactions. Key points to address include:
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Who will be responsible for bearing marketing and or production costs?
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How are the revenues or profits to be split?
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How will payment be made? will it be paid before the project start, in phases or at the end of the project?
Some of these details should be included in the agreement as well as a provision for handling financial issues.
5. Handle Data Privacy and Confidentiality
In the age of information, data have a vital function in brand collabs in UAE. From customers’ data to other important business strategies, data confidentiality is always of paramount importance.
To ensure confidentiality:
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Use a nondisclosure agreement (NDA) when disclosing some proprietary information.
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Comply with the provisions of the UAE data protection laws especially as relating to personal data.
6. Plan for Dispute Resolution
There are bound to be challenges in any partnership and this holds even for those organisations that have taken the time to plan this kind of strategic partnership. Perusing conflicts to some degree is very important to preserving relations. In the UAE, common methods of dispute resolution include:
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Mediation: Disputes are settled calmly by a third party who has no bias in the particular case.
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Arbitration: This is so that users see an opportunity to get faster and more private resolutions than court trials.
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Litigation: In the final decision different disputes can be addressed to the civil and commercial system of laws of the UAE.
However, you should also state in writing what type of dispute resolution the parties should follow.
7. Cultural and Ethical Considerations
The United Arab Emirates also highly value cultural and ethical aspects of life. While planning the brand collabs and sponsorships, don’t forget that along with business cultures, people have certain specificities that should be taken into consideration. Do not discuss topics that may create conflict and make sure your cooperation respect each other.
Benefits of Successful Brand Collaborations
A legally sound collab between brands can lead to numerous benefits, including:
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Increased coverage and people’s awareness of the brand
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Shared costs and reduced financial risks
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Besides, brand image and believability are enhanced.
By identifying with the legal factors one prepares strongly the ground for a fruitful partnership and desirable outcome.
Final Thoughts
It is a known fact that brand collaborations are the keys to massive growth but with these opportunities come great responsibilities. Brand collabs in UAE take place in a dynamic yet highly regulated business environment, therefore there should be a legal framework that would guide the process. As important as the substance of an agreement, its form and other factors range from details that may be crucial.
Adhering to the listed legal must-knows will make sure that you are on the safe side while at the same time developing a good legal base for the business partnership in BrandmeBold. So, the next time you consider a collab with a brand, remember: Let me reiterate that success is impossible without a good legal strategy!
