Woman accused of Dh3 million counterfeit sportswear scheme

ABU DHABI // A woman, accused of producing counterfeit sports shoes, will appear in court over Dh3 million in lost business.

The owner of Border, a local company that manufactures sports and safety foot wear, filed a lawsuit against another woman for counterfeiting her products and using her brand name on them.

The accused then sold them at a lower price in the market, which caused the accuser major financial losses.

She raised a complaint at the Ministry of Economy and the case was referred to public prosecution. The defendant was fined Dh10,000, and the losses of the plaintiff were evaluated to have reached Dh3 million.

The owner of the company then filed a lawsuit at the Civil Court requesting compensation for her losses.

The First Instance Court ordered the defendant pay her Dh300,000 in damages.

Both parties appealed the verdict, but the Appeals Court decided to reject the lawsuit altogether.

The Borders owner then appealed that verdict at the Cassation Court, arguing that‎ the guilt of the defendant has been proven through the earlier penal court’s verdict, which fined her.

The Cassation Court found her argument valid; federal law number 37 for 1992, says whoever registers the trademark under their name is considered an owner of it and is the only one who has the right to use it.

The burden of proof will be on the defendant to claim they had registered the name first.

Anyone who uses another’s brand name is considered to have breached their the rights of the owner and the owner has the right to sue them.

The Cassation Court overruled the Appeals Court verdict and ordered that a second Appeals Court panel hear the case.