Articles

28.8.2025

Case Study: Intellectual Property Rights Protection Strategy

Case Study: Intellectual Property Rights Protection Strategy

Many globaltechnology companies face a significant challenge in protecting theirintellectual property rights within commercial sectors. In this study, wereview how one international company encountered widespread violations of itslicensing agreements in the Kingdom, which resulted in financial losses. Wewill explain all the practical steps taken and how these challenges wereaddressed and transformed into a success story that we at the SaudiIntellectual Property Rights Company are proud of.

The Challenge:Financial Losses and Unspecified Legal Risks

When the technologycompany discovered that several companies in Saudi Arabia were using itssoftware in violation of licensing agreements, it faced fundamental challengesthat hindered its ability to act effectively. These challenges included:

• LegalRequirements: In all countries, legal requirements require precise andspecialized knowledge and practical experience in dealing with intellectualproperty issues, especially those that typically take a significant amount oftime.

• Resources: Thecompany is focused on its business and therefore lacks the resources necessaryto gather evidence, communicate with violating companies, and manage theprocess in an organized manner.

We worked in fourphases to address the violations, encompassing all the objectives stated by thecompany.

Phase One: Analysisand Evaluation

After meeting witha specialized team to conduct a risk assessment and determine the extent of thedamages, a comprehensive compliance audit was conducted to determine the legaland financial dimensions of the losses resulting from the unauthorized use ofthe software. This phase revealed that the extent of the violations was muchgreater than initial estimates, with losses estimated at approximately $12million.

Phase Two:Implementation

Although the optionof taking formal legal action through the Saudi Authority for IntellectualProperty (SAIP) was available, the adopted strategy took into account theclient's desire to preserve its business relationships as much as possible.Accordingly, the focus was on sending formal notices to the violatingcompanies. The aim was to raise awareness, warn them of the legal consequences,and give them the opportunity to rectify the situation through severalmeasures, such as paying the license fees for periods prior to the unauthorizeduse. This has proven to be effective, especially given the strength of theSaudi Authority for Intellectual Property Rights and the capabilities of itsteam.

Phase Three:Settlement

The client wassupported in reaching negotiated settlements with the violating companies.These settlements included payment of overdue license fees while ensuringfuture compliance. To make the solutions feasible, the agreements oftenincluded flexible payment schedules, and in some cases, group discounts wereoffered to encourage settlement.

Phase Four:Protection and Ongoing Monitoring

The partnership didnot end at the settlement stage. A long-term protection and monitoring systemwas put in place to ensure the company's continued compliance with licensingregulations and protect it from future violations. The company thus focuses on itsbusiness and plans, as we monitor these companies and conduct periodic audits.

 

Results andConclusion

This casedemonstrates that professional and organized management of intellectualproperty matters yields tangible results. Over the six years of thepartnership, the client recovered more than $12 million, witnessed a radicaltransformation in the way they managed their licenses, and gained completeconfidence that their rights were protected. Indeed, the company's reputationfor not allowing its rights to be violated had the effect of warning othercompanies against taking this action, and consequently the number of violationsdecreased over the years due to the company's monitoring. At this point inparticular, and most importantly, the company was protecting its rights solelythrough its reputation for the strength of its follow-up and demand for its rights.

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