Saudi Arabia introduces strict new law to protect local products, with fines up to SR1 million

Dubai: Saudi Arabia has approved a new Geographical Indications Protection Law, introducing key protections for locally produced goods tied to specific regions and imposing strict penalties on those who imitate or misuse these designations.

The law, issued under a royal decree, aims to safeguard the authenticity, reputation, and market value of local products, from Taif roses to Saudi dates, and prevent consumer deception.

The legislation, which will come into force 180 days after its publication in the Official Gazette, prohibits individuals or businesses from exploiting geographical indications without authorization or in a manner that misleads consumers about the true origin of a product, Okaz newspaper reported.  

The Saudi Authority for Intellectual Property (SAIP) is expected to issue the executive regulations within the same timeframe.

Under the new law, violators may face jail terms of one month to three years, fines ranging from SR5,000 to SR1 million, or both.

Offenses include the illicit commercial use or counterfeiting of a geographical indication, or presenting a product as if it were linked to a protected region despite not meeting the required specifications.

Similar penalties apply to misleading packaging, labeling, advertising, or any use likely to confuse consumers or constitute unfair competition.

The law also empowers courts to confiscate and destroy tools, equipment, and counterfeit products at the offender’s expense, or to order their disposal through non-commercial channels.

Final judgments may be published in a local newspaper or media outlet at the offender’s cost. Repeat offenders face doubled penalties and may have their businesses shut down or suspended for up to six months.

Geographical indications, labels that identify a product as originating from a particular region and possessing characteristics associated with that origin, are widely used for agricultural goods, foods, artisanal crafts, and industrial products.

Saudi authorities said the new regulations are designed to shield Saudi products with strong geographical identity, such as Najran honey, from misuse domestically and internationally.

The law, comprising 36 articles, establishes a national registry for geographical indications to be maintained by SAIP. It will catalog registered indications, applications, related transactions, and all relevant data in accordance with future implementing regulations.