Sustainable Development Of The UAE

With the increase in Global Warming and the spread of awareness of its effects, the terms such as ‘sustainable development’ are always in discussion and we keep coming across them. As the term “sustainable development” signifies it refers to development in such a manner that it is compatible with sustenance. The natural resources that are utilized for the development must be consumed in such a manner that they may replenish and the remaining quantities are enough for the coming generations. Sustainable development thus refers to development which facilitates the continuance of life on our planet. The needs of the present generation must not undermine the aspirations of the future generation.

The UAE federal law no. 24 of 1999 (hereinafter known as ‘the law’) contains provisions regarding sustainable development. First, it casts a duty on the people responsible for development of the country or those who play any role in the process of development, who are responsible for planning, economic and constructional development, to consider aspects of protection of the environment, control of pollution and rational use of natural resources when developing economic and social plans and when establishing and executing of projects.

The second responsibility vested in the Federal Environmental Agency who is to consult and coordinate with the competent authorities and the people concerned with the development and undertake the preparation, issuance, revision, development and updating measurements and standards of environment protection. The Agency while determining the measures for environmental protection is to at all times keep in mind that the measures must be such as to facilitate sustainable development for which it must at all times strike a balance between the technological capabilities available and the economic cost in such a manner that the levels of pollution remain in control and the requirements for a healthy environment are fulfilled.

The measures and standards for sustainable growth and development and environmental protection by the Federal Environmental Agency are to be complied with at all times and the only time when non-compliance shall be tolerated is in the case of emergency or in case a non-compliant act is necessary in order to protect the lives or the ensure the safety of the establishment or work area. But it is essential that such acts of non-compliance must be notified to the Agency and the competent authorities so as to enable them to take necessary measures for damage control.

Further the law also prohibits certain acts enlisted below that are derogatory to the lives of animals that help maintain a wholesome environment:

    1. It is prohibited to hunt, kill or capture birds, wild and marine animals identified and specified in three lists that are attached with the law.

    2. It is prohibited to possess, transport, wander with, sell or offer such birds or animals for sale, alive or dead, without obtaining a license from the competent authorities.

    3. It is also prohibited to damage the nests or destroy the eggs of the said birds. The executive regulations shall determine the areas licensed for hunting, the conditions for licensing and the means of supervision that are necessary for the implementation of this article.

The law has also prescribed sanctions for violation of any of the above three prohibitions. The degree of punishment is in accordance to the category of the birds and animals. For violations in respect to the birds or animals that are listed in the first list the punishment prescribed is a term of imprisonment for a period of no less than six months and a fine of no less than twenty thousand Dirhams. For violations in respect to the birds or animals that are listed in the second list the punishment prescribed is a term of Imprisonment for a period of no less than three months and a fine of no less than ten thousand Dirhams or either punishment. For violations in respect to the birds or animals that are listed in the third list the punishment prescribed is a term of Imprisonment for a period of no less than one month and a fine of no less than five thousand Dirhams or either punishment.

Apart from this, any other violation with respect of any regulation prescribed by the law is punishable by a fine of not less than Five Hundred Dirhams (AED 500) and not exceeding Ten Thousand Dirhams (AED 10,000). The punishment in all cases of repetition of violation is double the term of imprisonment and double the fine amount that was awarded during the prior conviction.

Apart from the above mentioned sanctions the law has also adopted the Polluter Pays Principle (PPP) according to which when a person either intentionally or due to any negligent act of his causes harm to the environment, he is to compensate for the loss suffered by all people due to the said environmental damage. Not only does the person have to compensate for such loss, he is also supposed to bear all costs that are incurred in the process of treating or removing such environmental damage.

The UAE is playing an active role in promoting sustainable development and in furtherance of that the 20th Session of the Commission on Sustainable Development which took place on 29th- 30th May 2013 was hosted by UAE and was held in Dubai. The issues regarding the climatic change, food security, water security, increasing drought and desertification, land degradation, natural disasters and extreme events (dust storms, heat waves and floods), diseases and epidemics in the Arab region were the main discussion topics during this meeting and it reaffirmed the principles enumerated by the Rio Declaration in 1992.

There are also various private organizations that provide their services to industries and establishments in undertaking their projects in a sustainable manner. One such organization is the Middle East Centre for Sustainable Development (MECSD) which provides for guidelines for green building and efficient use of Energy. Also it provides for a LEED (Leadership in Energy and Environmental Design) Certification for the establishments that undertake green building.

The Emirate of Dubai has often been criticized for its unsustainable rate of urbanization and the extreme use of natural resources for the transformation of the desert. Also the projects of creation of artificial islands is said to deteriorate the aquatic life forms. Dubai needs to re consider its own environmental policies in order to follow the principles of sustainable development and going green.

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For legal advice regarding the subject, please call +971 4 4221944, or call 800-LAWYER (529937).

CHANGING SURETIES – An Employment Dilemma

UAE’s population is ever increasing but what is to be noted here is that the population of the UAE nationals is only about 12% whereas the expats (expatriates1) make up for the rest of the 88% of the total population. According to the UAE law all expats are aliens. An alien is defined in the Article 1 of the federal law no. 6 of 1973 “On Entry and Residence of Aliens’ (hereinafter referred to as ‘the law’) as whoever is not the national of the UAE.

The constitution of the UAE through article 34 grants the freedom to choose one’s own occupation, trade or profession. But this freedom is granted only to the UAE citizens, which means 88% of the population in UAE is deprived of this freedom. The present article is going to look into the provisions of the law and the implementing law (the implementing regulation to federal law no. 6 of 1973 on alien’s entry and residence) for the transfer of workplace of the aliens living on work-residence visas in UAE.

According to article 13 of the implementing law, for an alien to be granted visa he must have a surety residing in the Country whether the latter be a national or an alien. The term ‘surety’ is not defined in the implementing law but according to article 14 ‘The surety guarantees the veracity of the information written down in the application and undertakes to bring the guaranteed or, where necessary, get him out of the Country or any other obligation imposed on him by the General Administration for Nationality and Residence’. Thus the surety is the person, who takes responsibility and gives guarantee to the government for the guaranteed alien‟s law abiding conduct, and for the accuracy and reliability of the documents presented and the information given by the guaranteed in his visa application.

In case of a residential-work visa, the employer is the surety of the employee and gives guarantee to the UAE government for the employee. As the employer is the surety and takes the guarantee of the employee, article 67 of the implementing law provides that the guaranteed person shall undertake not to work with anyone other than his surety also it provides a reciprocal provision for the surety that the surety shall undertake not to employ any alien guaranteed by someone else without abiding by the terms and conditions of the transfer of guarantee as stated in the article 68.

Further the law places a duty on the surety to inform the Nationality and Residence Administration or the nearest police station of the alien under his guaranty who has left his service for any reason whatsoever within three months from the date the alien guaranteed leaves his work.

Article 68 of the implementing law provides for conditions and procedures for the transfer of the alien’s guaranty to work. The said conditions are listed below:

    1. If the application for transfer is from an organization, institution or company of the public sector to another similar one, the following conditions should be met:

      a. The approval of the previous surety and the new one.

      b. The approval of the application by the Nationality and Residence Administration.

    2. If the application for transfer is from a private sector to a public or private one, the
    following conditions should be met:

      a. The approval of the previous surety and the new one.

      b. Ratification of the Ministry of Labor and Social Affairs if the guaranteed person is included in the classes subjected to the Law regulating the Labor Relations.

      c. Ratification of the application by the Nationality and Residence Administration.

    3. If the transfer is from a public to a private sector, the following conditions are required:

      a. The approval of the previous surety and the new one.

      b. The approval of the Ministry of Labor and Social Affairs on the transfer, if the guaranteed person is included in the classes subjected to the Law regulating the Labor Relations.

      c. The approval of the Nationality and Residence Administration on the application.

    4. If the application for transfer concerns the class of house servants or those in similar condition, the following conditions are required:

      a. The guaranteed must have completed the contract period agreed upon between the parties.

      b. The guaranteed person must give a thirty day advance notice to his surety of his will not to renew the contract upon expiration of the fixed period.

      c. Payment of the fees prescribed for the transfer of the guarantee.

      In all instances, the guarantee may be transferred without abiding by the conditions mentioned in paragraphs (a and b) in case of securing the surety‟s approval.

    5. If the application concerns the transfer of aliens guaranteed by their parents to the private sector, the following conditions are required:

      a. The approval of the previous surety and the new one.

      b. The approval of the Ministry of Labor and Social Affairs, if the guaranteed person is included in the classes subjected to the Law regulating the Labor Relations.

      c. The approval of the Nationality and Residence Administration.

    6. If the application for transfer concerns aliens guaranteed by the public or private sector to reside with their parents, the following conditions are required:

      a. The new surety must fulfill the conditions for guaranteeing his family.

      b. Approval of the previous surety and the Ministry of Labor and Social Affairs, if the guaranteed person is included in the classes subjected to the Law regulating the Labor Relations.

      c. The approval of the Nationality and Residence Administration.

      In addition, it is required to transfer the guarantee from the public sector to individuals or from an individual to another, and that the new surety satisfies the conditions required for the guarantee mentioned in this Regulation.

    7. The guarantee of house servants, or the like, may be provisionally transferred in accordance with the following conditions:

      a. The provisional transfer must be within the jurisdiction of the concerned Administration according to the prescribed restrictions and conditions.

      b. The period of the provisional transfer must not exceed 90 days.

      c. The provisional surety shall, during the specified period, guarantee all incumbent legal liabilities.

      d. The guaranteed person must not commence the provisional work except after obtaining the card or authorization required for this purpose.

      e. Payment of the prescribed fees for the transfer of the guarantee.

In all cases the provisional transfer of residence for the same guaranteed person may not be effected more than once.

If the guaranteed alien changes his workplace without the approval of his surety, such an alien need to be reported at the Nationality and Residence General Administration and shall be considered to be the persons escaped from their surety. The name of such persons shall be put on an administrative list as a result of which such person shall be prohibited to enter the Country because of cancellation of their residence or prohibited from exit therefrom and their arrest is requested. Their name shall be removed from the list after a period of one year from the departure or deportation from the country.

A person may be deported and banned from the country for a period of a full year. Therefore it is recommended that one should take care while getting into any arrangement with a person becoming one‟s surety, also changing of surety should be done only with the consultation of the existing surety.

[1] A person temporarily or permanently residing, in a country and culture, which is other than that of the person’s upbringing.

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For legal advice regarding the subject, please call +971 4 4221944, or call 800-LAWYER (529937).

LA POSIBILIDAD DE ABORTAR POR RAZONES MEDICAS según la actual regulación española

Primeramente es preciso reseñar que la actual legislación relativa a la libre interrupción del embarazo se encuentra inmersa en una re-estructuración que, en breves fechas, será presuntamente aprobada por el Parlamento Español y probablemente sólo con los votos del partido que gobierna en la actualidad.

Precisamente una de las variantes que presuntamente van a introducirse en el Nuevo Proyecto será la eliminación de esta posibilidad a la que me voy a referir.

Pues bien, este supuesto -junto con otros- se encuentra recogido en la Ley Orgánica 2/2010, de 3 de Marzo. En general, y a modo de breve resumen, podemos decir que bajo el amparo de esta norma y su articulado la mujer puede libremente abortar dentro de las 14 primeras semanas del embarazo sin la concurrencia de ningún tipo de requisito. Dicha interrupción de la gestación será en un centro médico homologado, por supuesto, siendo informada previamente sobre las ayudas estatales, autonómicas o de otras instituciones a las que puede acceder como futura madre concediéndosele un plazo de 3 días para que piense y madure su decisión.

Una particular polémica de esta Ley es que este derecho también puede ser ejercido por mujeres comprendidas en edades entre los 16 y 17 años, es decir, aún siendo menores de edad y sin ser necesario el consentimiento de sus representantes legales (padre o tutores, por ejemplo). Es más, hasta pueden solicitar que ni siquiera éstos sean informados de su decisión.

No deja de ser cuanto menos algo sorprendente que se conceda esta capacidad de decisión e independencia a estas edades en un tema tan determinante como éste y, por ejemplo, dichas adolescentes sean consideradas como no capaces para contratar pues no alcanzaron la mayoría de edad. No acierto a entender el fundamento y finalidad de esta dispensa legal.

Después de este avance genérico vamos a centrarnos en el núcleo que da título a este artículo siendo de necesaria observancia para ello examinar el artículo nº15 de la citada L.O. 2/2010 que es el que aborda la posibilidad del aborto por razones médicas. Según este artículo la mujer puede interrumpir el embarazo en los siguientes casos:

    A.-/ Hasta la semana 22 si se trata de un caso grave para la vida de la madre o del feto.
    B.-/ Más allá de la semana 22 si aparecen anomalías en el feto incompatibles con la vida.
    C.-/ Y, finalmente, más allá de la semana 22 si se detectase en el feto una enfermedad extremadamente grave e incurable en el momento del diagnóstico.

Realmente entiendo que este último es el supuesto más polémico y sobre el que me gustaría hacer unas breves consideraciones planteando una serie de cuestiones y reflexiones para el lector.

En realidad se trata de un supuesto muy ambiguo, difuso y poco concreto y eso es muy peligroso dentro del ámbito jurídico donde la concreción en temas como éstos debe ser determinante. Así pues:

– Qué debemos entender por enfermedad “extremadamente grave e incurable”? Acaso no es posible que una enfermedad pueda ser grave y/o incurable en un momento dado pero posteriormente poder ser tratada con éxito? Qué se entiende o debe entenderse por “grave”? Dónde está la medida para determinar hasta qué punto o límite una enfermedad es más o menos grave? Dependerá de las distintas comisiones médicas que diagnostiquen cada caso en particular?

– Y el supuesto de algunas enfermedades que se consideran más o menos graves pero que tienen un alto porcentaje en calidad de vida (como síndrome de Down) se encontrarían dentro de este caso? Qué ocurriría entonces con los derechos de los discapacitados, por ejemplo? No podría apreciarse una vulneración de los mismos o incluso una forma de discriminación? Yo creo que podría ser posible.

Considero que ésta es una cuestión muy importante sobre todo si tenemos en cuenta que los abortos en los que se ha diagnosticado previamente un síndrome de Down éstos se han multiplicado por tres en España en los últimos 20 años.

En consecuencia de lo antes expuesto es por lo que esta Ley ha sido denunciada ante la Organización de Naciones Unidas por entender que vulnera la Convención de Naciones Unidas sobre los Derechos y Dignidad de las Personas con Discapacidad firmada en Nueva York en el año 2007 lo que ha motivado la supresión de este supuesto por el Gobierno Español en el próximo Proyecto de Ley sobre el aborto (tal y como ya se reseñó anteriormente) para así acomodar la legislación española a la normativa internacional vigente ya que el Derecho Internacional es vinculante y ambas normas se encuentran claramente en contradicción.

Claro está que esta problemática nos va a llevar siempre a la pregunta de si pesa más el derecho de la mujer a decidir o el del “nasciturus” a la vida. Dicha problemática ya había quedado plasmada en la principal Sentencia existente sobre el aborto en nuestra legislación y que fue emitida por nuestro Tribunal Constitucional (STC 53/1985). En dicha Sentencia se llegó a un Fallo gracias al voto de calidad del Presidente del Tribunal lo que refleja no sólo la igualdad en las diferentes posiciones encontradas de los miembros del Tribunal sino también de la sociedad entera respecto a este tema.

La mentada Sentencia se basa muy a “grosso modo” en que si hay una lucha o contradicción entre ambos intereses deberá prevalecer el de la mujer pues está basado en los derechos fundamentales (protegidos por nuestra Constitución) de su libertad de decisión y elección así como de su integridad física y mental no pudiendo existir nada que los coarte. En cambio, en nuestro sistema civil y bajo la perspectiva de nuestro Código Civil, el “nasciturus” no es concebido como una persona todavía (jurídicamente hablando) sino que es un proyecto de persona que puede tener una expectativa de derechos (hereditarios, por ejemplo) pero que deben ser igualmente protegidos. Por eso el Tribunal habla de derechos fundamentales frente a intereses o bienes dignos de protección. Conclusión: prevalecerán los derechos.

La fundamentación de esta teoría y jurisprudencia se encuentra argumentada principalmente en el articulado de nuestro Código Civil que data de 1889, es decir, de hace ya dos centurias. Atendiendo al mismo tenemos que:

      .- El artículo 29 del C.c. nos habla que el “fetus”, “nasciturus” o “no nato” tiene unas expectativas de derechos en lo que pueda beneficiarle que serán reales cuando sea persona.
      .- Y el artículo 30 del mismo texto legal nos indica cuáles son los requisitos legales para ser persona, es decir, que dicho feto tenga una efectiva viabilidad de vida, de forma independiente, después de pasar las 24 primeras horas fuera del vientre materno.

 

Ante el contenido de estos preceptos no creo que sea necesario decir que esta legislación es muy obsoleta teniendo en cuenta los tiempos y avances médicos en los cuales nos encontramos.

Así pues, y a modo de epílogo, creo que resultaría interesante que nos preguntáramos si con la legislación actual en el caso de poder abortar al diagnosticarse una enfermedad grave o incurable resulta ser ello un acierto porque respalda la libertad de elección de toda mujer o si, por el contrario, la futura anulación de este supuesto en el Nuevo Proyecto de Ley vendrá a significar una mayor protección de los derechos de las personas discapacitadas, evitará una posible discriminación y será una manera de adecuar nuestra normativa a la regulación internacional vigente en esta controvertida materia.

Espero que estas preguntas y reflexiones puedan ser contestadas de forma consistente primero por cada uno de nosotros y después, de forma general, bajo la forma de una normativa que nos otorgue siempre un marco jurídico de seguridad en el cual movernos.

Así las cosas, gustosamente, y en lo que buenamente pueda servir de ayuda, encantando se atenderá cualquier duda, problemática, reflexión o comentario que pudiera surgir acerca de éste u otro tema pues en el fondo el asesoramiento, la conciliación y la interpretación de la legislación es la misión de todo Letrado más allá del litigio el cual siempre debería ser el último recurso.”

En Dubai (UAE), Julio 2013

Signed by Gustavo A. Calles Castro

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For legal advice regarding the subject, please call +971 4 4221944, or call 800-LAWYER (529937).

Al Safar & Partners Sponsors the IBPC – Presentation on ‘The Legal System of Dubai

Indian Business & Professional Council, Dubai is organizing a Presentation on ‘The Legal System of Dubai’ on Thursday, 6th February, 2014 at 12 noon. H E Dr Ahmed Saeed Salem Bin Hezeem, Director General, Dubai Courts has kindly given his consent to deliver a presentation on the topic “Judicial System in Dubai: Achievements and Challenges” which will be followed by a presentation by H E Mr Michael Hwang, Chief Justice, DIFC Court.

Scope of Copyright Protection

Copyright is the exclusive right that is granted to authors or artists for the literary or artistic works they create to publish, broadcast, assign or sell their work for a fixed period of time. Copyright protection is granted for the expression of ideas and not for the ideas themselves. A person having an idea regarding a flying horse communicates the idea to another who creates a sketch of the same. Here the copyright protection is given to the second person who expressed the idea of a flying horse through a sketch and not to the first person even though the original idea regarding the flying horse had emerged out of him. Also every different form of expression is granted a separate protection.

In the above mentioned example, if a third person looks at the sketch of the flying horse and writes a poem describing the same then again this third person is granted a separate copyright protection for his work. Here it is noticed that the idea of the flying horse is one but the manner and form of expressing it varies from person to person. Two people may get inspired by the same idea and express it in their own original ways. It is essential that the expression should be original.

In the above mentioned example, a fourth person getting inspired by the painting also composes a poem describing the flying horse, he is also granted copyright protection. The mode of expression of the third and the fourth person is the same and they both got inspiration for the poem from the sketch of the flying horse but their expression is original and emerges out of their own mind. Had it been that the fourth person copied the poem of the third person then it would amount to infringement and he would not be granted any copyright protection. The reason for granting protection only to expressions of ideas and not ideas themselves is that if a person is granted monopoly in ideas then it would greatly hinder the various creative expressions. Also, there is no way to record and evidence the emergence of an idea in a person and hence it would create confusion and would result in more infringements.

According to the Berne Convention all “literary and artistic works” are given copyright protection. The expression “literary and artistic works” according to article 2 of the Berne Convention includes every production in the literary, scientific and artistic domain, whatever may be the mode or form of its expression, such as books, pamphlets and other writings; lectures, addresses, sermons and other works of the same nature; dramatic or dramatic-musical works; choreographic works and entertainments in silent show; musical compositions with or without words; cinematographic works to which are assimilated works expressed by a process analogous to cinematography; works of drawing, painting, architecture, sculpture, engraving and lithography; photographic works to which are assimilated works expressed by a process analogous to photography; works of applied art; illustrations, maps, plans, sketches and three-dimensional works relative to geography, topography, architecture or science.

The Berne Convention also further provides that it is the matter of the country’s legislations to decide the exact scope and extension of the copyright protection it shall grant. The present article discusses the scope of copyright protection granted by UAE through its federal law no. 7 of 2002 (hereinafter referred to as ‘the law’).

Article 2 of the law provides for a list of works created by authors that shall enjoy copyright protection. This protection is enjoyed by authors, the assignees and licensees as the case may be. The list provided by the law goes as follows:

    1. Books, pamphlets, articles, and other written works.

    2. Computer programs and applications, databases, and similar works as determined by a ministerial decision.

    3. Lectures, speeches, sermons, and any other works of similar nature.

    4. Theatrical works, musical shows and pantomime.

    5. Musical compositions with or without words.

    6. Audio, visual or audiovisual works.

    7. Architectural works, and engineering drawings and layouts.

    8. Works of drawing in lines or colors, sculpture, engravings, lithography, printing on textiles, wood and metals, and any similar works of fine arts.

    9. Photographic and analogous works.

    10. Works of applied arts and plastic arts.

    11. Illustrations, geographical maps, sketches, and three – dimensional works relative to geography, topography or architecture and others.

    12. Derivative works (works derived from other works, the poem that was inspired from the painting in the example discussed is considered as a derivative work). The protection granted to derivative work in no way prejudices the protection to the original work.

    13. Title of the works when they have innovation and creativity in them.

    14. Written innovative broadcast programs.

Article 3 further defines the scope of copyright protection by specifying the works that are excluded from the protection. It provides that the protection is not granted to ideas, procedures, work methods, mathematical concepts, abstract principles and facts themselves. The copyright protection is however granted to the innovative expression of the same.

There are certain works that are meant for the use of the public and therefore allowing any monopoly rights to anyone over such works would prove to be prejudicial to the public at large. Such works are enlisted by the law as under:

    1. Official documents regardless of their original language or the language in which they were reproduced such as texts of laws, regulations, decisions, international conventions, court decisions, arbitral awards, and decisions issued by administrative committees having judicial competence.

    2. News and reports about incidents and current events which constitute mere information releases.

    3. Works that have fallen into public domain.

The information or content in such work cannot be granted copyright protection but the creative expression of the same maybe granted protection. Creative expressions may be in the form of compilation, arrangement or any such innovative method.

The copyright protection is granted from the date of the first publication of the work. There is no necessity for the work to be registered with the Ministry of economy for receiving protection. But the registration of the work has better evidentiary value and therefore recommended.

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For legal advice regarding the subject, please call +971 4 4221944, or call 800-LAWYER (529937).

Fair Use – An Exception to Copyright

The term ‘Fair Use’ in the context of copyright law refers to the use of material subject to copyright protection without permission or authorization from the copyright owner, in a way that would not infringe the copyright of the owner. The rationale behind the provision of the ‘Fair Use’ concept is to allow the general public to reap the benefits of the literary or artistic work in a way that would not be prejudicial to the moral and financial rights of the author. It allows the public to analyze, comment and criticize the works and helps in creating and sustaining a healthy environment for the growth of art and literature in the society.

The Berne Convention through its Article 10 permits the making of quotations from a work with appropriate details as to the source from where the quotation is taken and the author of the said quotation provided that the following conditions are met:

    1. The work should have been made lawfully available to the public. This rule clarifies that only the work that is published (made available to the public through any of the modes of communication) lawfully can be subject to fair use. The word ‘lawfully’ included in the above rule stresses on the fact that fair use shall not rise from unauthorized publications.

    2. The making of the quotations must be compatible with the fair practice. Every country has the right to provide the limitation regulation for the extent and purpose of the fair use of a work that is permissible. The use of a work should be compatible to the said regulations.

    3. The extent of the quotations must not exceed the extent that is justified by purpose. There may be various reasons that justify fair use such as critic, comment, parody, education etc., and thus for each the extent of use varies. A parody may require much more use than a critic, and therefore it is essential to limit the use only to the extent of requirement.

The UAE provides for ‘Fair Use’ through its articles 22, 23 and 24 of the Federal law no. 7 of 2002 regarding Copyrights and Related Rights (herein after referred to as ‘the law’).

Article 22 of the law provides for the use of the copyrighted work in the following ways and circumstances provided that two conditions namely 1) the moral rights of the author are not being prejudiced and 2) the work has been lawfully published, must be satisfied:

    1. The reproduction of a single copy of the work for the purpose of personal, non-profit and non-professional use. Works of fine or applied arts are an exception to this rule and they are subject to fair use only when they are exposed in a public place with the consent of the right owner or his successor. Architectural works are also an exception to the concept of Fair Use and would be subject to Fair Use only when they permanently exist in public places.

    2. The Fair Use of computer programs, applications or databases is allowed only for making a single copy with the knowledge of the legitimate possessor for the following purposes:

      a) For a purpose that falls within the licensed purpose.

      b) For the purpose of saving or substitution in case the original copy is lost, damaged or becomes unfit for use, on a condition that the spare of extracted copy be destroyed when no more necessary.

    3. Reproduction of protected works for use in judicial proceedings, or their equivalent, within the limits prescribed by such procedures, with mention of the source and the name of the author.

    4. Making a single copy of the work through the non-profit archives, libraries or authentication offices, either directly or indirectly, in one of the two following instances:

      a) Reproduction is made for the purpose of preserving the original copy or of substituting a lost, damaged copy or one unfit for use, if it has become impossible to obtain a substitute thereof under reasonable conditions.

      b) The purpose of reproduction is the satisfaction of a request made by a physical person, to use it in a study or research provided it is done only once and on different intervals in case it was impossible to obtain a license for reproduction pursuant to the provisions of the present Law.

    5. For citations of short paragraphs, excerpts, or analyses, within the customary limits of the work, for the purpose of criticism, discussion or information, with mention of the source and name of the author.

    6. Performance of a work in meetings with family members or by pupils in an educational institution, so long as such performance has not been made for direct or indirect consideration.

    7. Exhibition of works of fine, applied, plastic or architectural arts in broadcasts, if such works permanently exist in public places.

    8. Reproduction within justified and reasonable limits, of short abstracts of a work in the form of manuscripts or audio, visual, or audiovisual recordings, for the purposes of cultural or religious education, or vocational training. The name of the author and the title of the work are to be mentioned whenever possible. The reproduction should not be made for the purpose of direct or indirect profits. Such reproduction is allowed only in case the license for the same cannot be availed.

Further, article 23 of the law brings under the scope of ‘Fair Use’ the reproduction of the work in such a way and limit that it justifies the objective behind the reproduction which is done through newspapers, periodicals or broadcasting organizations. This provision of the law applies to the following works:

    1. Extracts of the works regarding current incidents that have been lawfully made available to the public. The source and author of the work must be mentioned.

    2. Published articles relating to discussions of issues, which have preoccupied public opinion at a certain time. Here too, the source and name of the author of the article used must be mentioned. The articles that are prohibited upon publication cannot be used.

    3. Speeches, lectures, and addresses delivered in the course of public sessions of the Parliament, judicial councils and public meetings; so long as such speeches, lectures and addresses are addressed to the public, and are reproduced within the framework of reporting current news.

This also provides that ‘Fair Use’ is allowed while using works that are protected under the title of ‘related rights’ of copyright. Thus even the owners of such related rights cannot complain of infringement if the use of the work falls within the scope of ‘Fair Use’ as provided for by the law.

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For legal advice regarding the subject, please call +971 4 4221944, or call 800-LAWYER (529937).

Copyright – Infringements and Remedies

Copyright being the exclusive right of the owner to exploit the work through publication, broadcasting, printing, making copies etc., any such act done by a person who is not the owner of the copyright and has not been assigned the copyright in a given work by the owner of the rights or without the written authorization from the copyright owner amount to copyright infringement and shall be liable to the owner of the copyright to provide for damages that owner suffers due to the said infringement of his copyright.

The UAE law regarding copyright and its related rights (federal law no. 7 of 2002) (hereinafter referred to as ‘the law’) deals with the various ways in which copyright infringement may take place and has provided for penalties for them. A list of the infringements and the penalties provided for them is as under:

    1. Trespassing one of the moral or financial rights of the author or the holder of the related rights provided for in this Law which also includes the publication of any work, performance, sound recording or broadcast that is protected by the law. The publication may be through any means including but not limited to the means of computers, internet, information and communication networks. The offender in this case is sentenced to imprisonment for a minimum period of two months, and to a fine amounting to ten thousand dirhams (AED 10,000) at least to a maximum of fifty thousand dirhams (AED 50,000), or to either penalty. On recurrence of the offence the penalty increases to a six months imprisonment and a minimum fine of fifty thousand dirham (AED 50,000).

    2. The selling, renting or offering for circulation, in any manner or by any means, a work, sound recording, or broadcast that is protected by the law is an offence punishable with an imprisonment for a minimum period of two months, and to a fine amounting to ten thousand dirhams (AED 10.000) at least to a maximum of fifty thousand dirhams (AED 50,000), or to either penalty. On recurrence of the offence the penalty increases to a six months imprisonment and a minimum fine of fifty thousand dirham (AED 50,000).

    3. The undue manufacture or import, for the purpose of sale, rental or circulation, any counterfeited work or copies thereof, any apparatuses, equipment, devices or materials specially designed or prepared for defrauding protection or technology used by the author or holder of related right for transmitting, offering for circulation, regulating or managing such rights; or preserving a specific standard of purity of the copies is an offence under the law and is subject to a penalty of imprisonment for a minimum period of three months and a fine amounting to a minimum of fifty thousand dirhams (AED 50,000) to a maximum of five hundred thousand dirhams (AED 500,000). In case of repetition of the offence, the increased penalty is imprisonment for a minimum period of nine months and a fine amounting to a minimum amount of two hundred thousand dirhams (AED 200,000).

    4. The Undue disruption or impair of any technical protection or electronic data that is aimed at regulating and managing the rights prescribed by the law is an offence that subject to a penalty of imprisonment for a minimum period of three months and a fine amounting to a minimum of fifty thousand dirhams (AED 50,000) to a maximum of five hundred thousand dirhams (AED 500,000). In case of repetition of the offence, the increased penalty is imprisonment for a minimum period of nine months and a fine amounting to a minimum amount of two hundred thousand dirhams (AED 200,000).

    5. The downloading or storing in the computer any copy of the computer program or applications thereof or databases, without obtaining a license from the author or right holder or successors thereof is penalized by the law with an imprisonment for a minimum period of three months and a fine amounting to a minimum of fifty thousand dirhams (AED 50,000) to a maximum of five hundred thousand dirhams (AED 500,000). In case of repetition of the offence, the increased penalty is imprisonment for a minimum period of nine months and a fine amounting to a minimum amount of two hundred thousand dirhams (AED 200,000).

    6. The using of a computer program or applications thereof or databases, without obtaining in advance a license from the author or successors thereto is penalized with a fine amounting to a minimum of ten thousand dirhams (AED 10,000) upto a maximum of thirty thousand dirhams (AED 30,000) for each program, application or database. In case of recurrence the offence shall be penalized with a minimum of thirty thousand dirhams (AED 30,000). This provision is an exception of the offences number 1 and 2 mentioned above.

Apart from the above mentioned penalties the court may also order the following:

  • Confiscation and destruction of counterfeited copies subject of the offence or copies reproduced therefrom.
  • The confiscation of the equipment, and devices used in the perpetration of the offence, and which cannot be used for any other purpose.
  • Closing of the establishment in which the counterfeiting has been committed; for a period not exceeding six months.
  • Publication of the summary of the court ruling in one or more daily newspapers on the expense of the condemned party.

Apart from the penalties for the offences, the law also provides for some intermediate measures for immediate relief to the claimant. The claimant i.e. the author or his successor may request to the President of the Court of First Instance to make any of the following orders along with an injunction order:

    1. Making detailed description of the work (subject to infringement).

    2. Stopping the publication, exhibition or production of the work.

    3. Seizing the original or copies of the work, (whether books, pictures, drawings, performances, photographs, sound recordings or broadcasts, or otherwise); as well as the devices that are used in re-publishing or reproducing such work, provided that such devices are not valid except for re-publishing or reproducing of the work.

    4. Establishing public performance as regards playing, acting or reciting a work to the public and preventing the going exhibition or prohibiting it for the future.

    5. Computing the income generated from the publication, performance or exhibition, by an expert appointed for this purpose, if necessary, and seize such income in all instances.

    6. Establishing the fact of trespassing on any of the rights protected under the law.
    In order to execute the Injunction order, the claimant must submit the dispute to the competent court within a period of fifteen days from the date of the issue of the injunction order.

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For legal advice regarding the subject, please call +971 4 4221944, or call 800-LAWYER (529937).

Creditor’s Rights During Liquidation

With the ongoing frauds investments always pose a risk of losing all your savings. There have been many cases wherein and individual after investing in some company later finds out that the company has vanished or is liquidated. Also it appears that many Real Estate Buyers or individuals/companies dealing with companies in the UAE are discouraged to initiate legal proceedings against a company that went to or under liquidation.

It often happens that the concerned parties are worried with the method that will be required to be complied with in order to be added with the list of Creditors and whether litigation or arbitration, as may be provided for in the Agreement between the parties, permit such method of recovery of the debt owed.

The answer to this dilemma is found in Commercial Companies Law (CCL). The CCL permits for a claim to be referred to the court or arbitration to recover a debt from a company under liquidation. Unlike insolvency where court actions shall cease, court actions can be filed or can be continued with in case of liquidation (Article 691 of the UAE Commercial Code). The UAE Commercial Companies Law No. 8 of 1984 (“CCL”) states that immediately upon its dissolution the company shall be considered to be in liquidation. During the liquidation period it shall retain its corporate personality to the extent required for the liquidation formalities. The authority of the managers or the board of directors shall cease with the dissolution of the company. The company institution shall continue to exist during the liquidation period, and their authorities shall be limited to liquidation business that is not within the authority of the liquidators. The liquidator shall perform all the required liquidation functions, particularly to represent the company before the courts of law, settle the company debts and sell its movable assets or real estate by auction or any other method unless the document appointing the liquidator stipulates that the sale should be performed in a specific method.

Thus, as a matter of law, when the company is dissolved and liquidated, the company conserves its corporate body during the liquidation process and the liquidators represent the company under liquidation before the court of law.

Thus, as only the representatives of the company change, no extinction of the corporate body occurs before the liquidation completion and closure. There is neither assignment nor transfer of any agreement that intervenes between the company and the liquidators to consider the latter as a party to court or arbitration proceedings.

As to the appropriate method of recovery of a debt it is commonly found in the agreement between the parties, namely a clause stipulated the method of solving a dispute. Such method is complimentary to any other method of a debt recovery available to the creditor under the Law.

This means that a creditor can either follow the rules provided for a debt recovery at the CCL or initiate arbitration or court proceedings. Any other interpretation to the contrary shall be deemed as undue limitation of a constitutional right to litigate. The creditors can always contact lawyers and take the appropriate legal action against the debtor company.

The debtor may insist that the creditor should not or did not submit a formal claim to the Company’s liquidators and as such shall be responsible for the costs of arbitration or litigation. However, there are certain procedures the liquidators shall have to comply with. The UAE Companies Law No. 8 of 1984 states that the purpose of liquidation is to ensure that all the company’s affairs have been dealt with properly. This involves:

• Ensuring all company contracts are completed;
• Transferred or otherwise brought to an end;
• Ceasing the company’s business;
• Settling any legal disputes;
• Selling any assets;
• Collecting in money owed to the company;
• Distributing any funds to creditors and returning share capital to the shareholders.

The Company in liquidation or its liquidators shall formally and as required by the law to contact the creditors in order to review their claims that they may have against the Company under liquidation and to invite them to present their claims in the liquidation. However, even if the liquidators failed to formally notify creditors of the liquidation in 2 local newspapers, the liquidators shall nevertheless make all reasonable provisions to pay all claims and obligations, including all contingent, conditional or un-matured contractual claims known to it at the time of liquidation. Provisions also need to be made as reasonably likely to be sufficient to provide compensation for any claim against the debtor company.

Thus, the liquidation proceedings do not affect the rights and claims that the creditors may have under the Agreement(s) with the debtor company as the arbitration or litigation proceedings are necessary in order to preserve the claims of the creditors and the repayment of the same by the liquidators to the creditors.

Therefore, the creditors can always enforce their rights to be paid the amount due to them by the company under liquidation through the Dubai Courts. For further details as to how to go about with the legal procedures for debt collection one must consult lawyers.

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For legal advice regarding the subject, please call +971 4 4221944, or call 800-LAWYER (529937).

Dissolution of a Company Incorporated in UAE

The procedure for termination or dissolution of companies in the United Arab Emirates can be examined under the provisions Commercial Companies Law. This Article talks about termination of companies under this Law.

Companies located in Free Zones and Offshore companies are not governed by the Commercial Companies Law. Apart from Free Zone Regulations and Dubai offshore company, termination of companies is covered by the Commercial Companies Law (hereinafter referred to as ‘the law’).

The law provides that a company can be dissolved for any of the following reasons:

    a. expiry of its duration cited in the articles of incorporation or association

    A company can be incorporated for a fixed period of time which is to be incorporated in its articles of association. On expiry of this fixed period the company dissolves automatically.

    b. completion of the objective for which the company was established

    Sometimes companies are incorporated only for specific projects or tasks and therefore they continue to be in existence only till the completion of the said project or task after which they are terminated.

    c. loss of all or most of the company’s assets

    In order to run, a company needs to have sufficient assets without which it is not possible for it to continue to function and needs to be terminated.

For the dissolution of the company to be effected, in case the share capital of a limited liability company is half, directors are to put the matter of dissolution before a general meeting. In case the losses suffered by the company amount to more than half of the capital, the partners who hold 1/4th of the capital may request dissolution.
Liquidation is to be carried out by one or more liquidators to be appointed by the partners or the general meeting approved by the majority by which the company’s decisions are taken.

Further a notice is to be given of the dissolution of a company by entry in the Commercial Register, and publication of dissolution notice in two Arabic newspapers.

A company has a legal personality only to the extent required by the liquidation process and it is thereby required that the name of the company should have the suffix “under liquidation” added.

Immediately upon his appointment and by agreement with the Board of Directors, the liquidator is to take stock of the company’s assets and liabilities, and the Board of Directors are to make available to the liquidator all ledgers, accounts and documents of the company. The Liquidator is then to undertake the following tasks:

    1. Draw up a detailed list of the company’s assets and liabilities together with its balance sheet to be signed by him and the Directors. Keep a ledger to record the process of liquidation.

    2. Do everything necessary to safeguard the assets and the rights and obtain all company’s claims and deposit the monies received into the company bank account as soon as received.

    3. Perform all the tasks required by the liquidator, including settlement of the company’s debts and sale of the company’s movable and immovable property by public auction. However, liquidator cannot commence any new business, and if he does he will be personally liable.

    4. Inform all the creditors by registered letter inviting them to present their claims. Notification shall be made in two Arabic daily newspapers. Time limit for submission of claims shall be not less than 45 days.

    5. In case the company’s assets are not sufficient for the settlement of all debts, the liquidator is to discharge the debts proportionately without prejudice to the rights of the privileged creditors.

    6. Liquidator is obliged to submit to the partners or the general meeting a provisional account every six months of the liquidation process.

    7. Assets of the company resulting from the liquidation shall be divided among the partners after settlement of its debts and at the division each partner shall receive a sum equal to the value of the stake in the capital he contributed. Remainder of the company’s assets shall be divided between the partners in proportion to their respective share in the profit.

    8. If the net assets of the company are insufficient to repay the partners stake in full, the deficit shall be distributed between them in accordance with the proportion laid down for the distribution of losses.

    9. Upon completion of the liquidation, the liquidator is to submit a final account to the partners or the general meeting for the liquidation process. Such process is to be concluded with the approval of the final accounts. Furthermore, liquidator is to record the conclusion of the liquidation in the Commercial Register and request that the entry of the company be deleted from the Commercial register.

It is to be noted that liquidator is held liable to the company if its affairs are mismanaged during the period of liquidation. The authority appointing the liquidator also has the power to dismiss the Liquidator and appoint another liquidator as his replacement (Article 312).

Apart from the above mentioned procedure for termination of a company. A company can also be terminated due to it being declared bankrupt. Bankruptcy and composition with creditors are separately governed by detailed provisions of the Commercial Transactions Law.

A commercial company may be declared bankrupt if it ceases to pay its commercial debts at the time they fall due because of disruption of its financial operations. A company may be declared bankrupt even if it is in the process of liquidation.

In case of public joint stock companies and limited liability companies, if the declaration of bankruptcy is requested then the liquidation proceedings are suspended, and it may not be liquidated before completion of the bankruptcy.

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For legal advice regarding the subject, please call +971 4 4221944, or call 800-LAWYER (529937).

CONSEQUENCES OF BOUNCED CHEQUES

The number of people who have loans, own credit cards and owe debt and so on is getting higher every year and now with the job losses or reduced income it is becoming more and more problematic for a large number of people to repay back the debts that accumulated over a period of time. The situation is even worse when such difficulties in repayment of debts are considered as a criminal offence.

Article 599 of the Commercial Transactions Law of the UAE (Federal Law No. 18 of 1993) prohibits the issuance of cheques unless the drawer (individual issuing the cheque) of the cheque has sufficient money with the drawee (bank) of the cheque which the drawee can dispose pursuant to an express or implicit agreement between the two. The UAE law makes it a criminal offence when an individual unable to honor his financial obligations and writes a cheque while having insufficient funds in the account.

The UAE Federal Penal Code (Federal Law No. 3 of 1987) describes and criminalizes dishonor of cheques. The various acts included within the scope of dishonor are as follows:

    a) Drawing of a cheque in bad faith without funds which could be withdrawn or with funds less than the amount of the cheque.

    b) After issuing a cheque, withdrawing all or part of the funds and rendering the balance insufficient to settle the amount of the cheque. This is done in bad faith.

    c) In bad faith, ordering the drawee not to pay the value of the cheque.

    d) In bad faith, drawing or signing a cheque in such a manner as to prevent it from being paid,

    e) Showing or delivering to another a cheque payable to bearer, with full knowledge that it does not have a provision which could be withdrawn or which has a provision less than the amount of the cheque.

Thus it is noticed that in all the above described criminalized acts, two essential components are ‘knowledge’ and ‘bad faith’. These components are generally presumed to be present in case of cheque bouncing and therefore the burden of proving absence of these elements is on the individual accused of the offence. If the individual is not able to disprove the existence of those elements, he is penalized by either a term of imprisonment or with a fine or with both.

The Penal Code also provides for punishment or fine where a drawee (bank), in bad faith, declares the availability of funds which is less than what is actually in the account. The banks are always alert to avoid such liability. If you have issued cheques to settle outstanding balances on credit cards and other accounts and those have bounced, banks may take legal actions against you. Only the cheques that have been lost or stolen can be cancelled. Individuals who failed to keep up with their payments or whose cheques have bounced are considered as criminals and are subjected to the provisions of the penal code.

However, the banks might give a person an opportunity to settle the amount before filing a case against him/her. If the settlement cannot be reached; the complaint will be registered as a case in the police, who will then arrest and give a person an opportunity to repay the debt. However, if the settlement is not reached the case will be referred to the Criminal Court with the strong possibility of jail time.

Expatriates who accumulated debts in the UAE have to be alert while travelling to the any of the UAE Emirate as they are at risk of being arrested and taken to a police station where they have to undergo a lengthy and cumbersome procedure for being released on bail pending the settlement of the matter.

Further it must be noted that cheques issued in connection with the Real estate are being dealt by a Special Judiciary Committee established under Decree No. 56 of 2009.

This Committee is established in order to settle cases connected only to the bounced cheques in the Real Estate matters. It focuses and has full power over such cases and judgments rendered by the committee cannot be appealed. The Committee also has the following powers:

    1. To cancel the bounced cheque issued to the real estate developer if it is proved that the developer is not entitled to the amount of the cheque;

    2. Compel the cheque issuer to issue a new cheque to replace the bounced one.

    3. Refer the case to the concerned judicial authorities to determine whether to commence legal proceedings; and

    4. Consult on the property sector issues with experts.

It is also to be noted that the Decree No. 56 of 2009 prevents the Public Prosecution and Courts from carrying out any investigation into bounced property cheques or issuing any ruling until the case is looked into by the committee.
The Public Prosecution and the Courts are also under obligation to cease investigating any complaints or cases of bounced cheques relating to Real Estate matters, and must submit them to the committee.

Both the committee and the Courts are very efficient in dealing with such cases. There is a six months limitation period for filing of cases relating to the bounced cheques after which no legal action can be taken against the drawer of the bounced cheque. Hence, it is advised to take action at the earliest and to seek the assistance of a lawyer to avoid delay in the procedure to avail the remedy.

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For legal advice regarding the subject, please call +971 4 4221944, or call 800-LAWYER (529937).