When Should a Startup Register Its Trademark in Saudi Arabia? A Timing Guide

The right time for a startup to register its trademark is immediately after settling on the name and before launch and any marketing spend. Protection in Saudi Arabia is based primarily on registration with the Saudi Authority for Intellectual Property (SAIP), and whoever registers first is usually in the stronger position. The longer you wait, the greater the risk that someone else gets there first, or that you discover after launch that your name cannot be registered.

Why Do Founders Put Off Registering Their Trademark?

The same reasons come up again and again:

• "The business is still just an idea; I'll register when it takes off."
• "Right now the priority is the product and funding."
• "I have a commercial registration and a domain name, and that's enough."

The problem is that once the business succeeds, its name becomes visible and tempting to copy, and someone may already have registered it. A commercial registration (CR) and a domain name also do not give trademark protection. In addition, the registration process itself goes through examination and publication stages that take time, so starting early means your protection is in place when you actually need it.

What Are the Risks of Delaying a Startup's Trademark Registration?

• Losing the name: if someone else registers an identical mark in your class, you may have to change your name after building your reputation around it.
• Rebranding from scratch: changing your name means new costs for design, printing, marketing, domains and accounts.
• Complicating funding rounds: investors usually review ownership of intangible assets, and the absence of registration may raise questions during due diligence.
• A weaker position against copycats, and difficulty reporting them to platforms.

What Is the Best Order of Steps for a Startup?

1. Shortlist several candidate names, preferring invented names over descriptive ones.
2. Run a preliminary search on each name through our trademark search service to rule out registered or similar names.
3. Settle on the name and have the logo designed under a contract that ensures the rights pass to you.
4. File the registration application in the classes that fit your current and near-term business.
5. Reserve the domain and accounts and obtain the commercial registration.
6. Launch and market knowing that the name can be protected.

In Whose Name Should I Register the Trademark: the Founder or the Company?

This is an important question for businesses with more than one founder. Registering in one founder's personal name may cause disputes later if the partners separate. It is therefore usually advisable to register the mark in the name of the business's legal entity once it exists, in one of the company forms available under the Companies Law, such as a limited liability company (LLC) or a simplified joint stock company, which is popular with startups.

If the mark was registered in a founder's name before the company was formed, it can later be transferred to the company, and this should be addressed in the partnership agreements from the outset.

How Many Classes Does a Startup Need?

Classification in Saudi Arabia follows the Nice International Classification (45 classes: 34 for goods and 11 for services). For startups with limited budgets:

• Start with the class that represents your core business.
• Add classes linked to your near-term expansion plans.
• Defer classes unrelated to your business until the need becomes clear.

For example, a food delivery app may need the class for software and app services, the class for transport and delivery services, and possibly the class for restaurant services if it will offer meals under its own brand. A clothing startup, on the other hand, usually starts with the clothing class and then considers classes for bags or accessories as it expands. The aim is to protect what you actually do without spending early on classes you may not need.

What Other Intellectual Property Assets Should a Startup Look After?

The trademark is not the only asset worth protecting in the early stages. Startups typically produce software, designs, content and marketing materials, much of it created by freelancers or co-founders before the legal entity is set up. So make sure you:

• Document the transfer of rights in source code and designs from developers and designers to the business.
• Sign confidentiality agreements with anyone who has access to the business idea or plans.
• Set out ownership of intellectual property between the founders in a written agreement from the start.

Do I Need International Registration From the Start?

If your plans include expanding into other countries soon, plan for it early, as your Saudi application or registration can serve as the basis for international registration through the Madrid System. If foreign expansion is a long way off, domestic registration comes first.

Frequently Asked Questions

Q: Should I register the trademark before obtaining a commercial registration? A: This is possible in accordance with SAIP's requirements. What matters is not delaying protection of the name once you have settled on it.

Q: Is trademark registration expensive for a startup? A: Fees are set by SAIP and may change; you can view them on its platform. The cost of registration is usually far lower than the cost of rebuilding your identity after losing your name.

How Can We Help?

FATIMA AL ASMARI Law & Intellectual Property Company in Jeddah supports startups in all regions of the Kingdom from choosing a name through to registration and follow-up. Book a consultation and we will put together a protection plan that suits your stage and budget.

Legal sources

This article is for general awareness and is not legal advice.