Trademark Squatting: What to Do When Someone Files Before You

What Is Trademark Squatting?

Trademark squatting — also called trademark piracy — is when a third party deliberately files a trademark registration for a brand name, logo, or slogan they know belongs to someone else. The motive is almost always one of three things: extortion (demanding payment to transfer the registration), market blocking (stopping a foreign brand from entering a country), or competitive sabotage (a former distributor locking out the rightful owner).

It is a systemic problem across the Middle East and North Africa. Egypt, Saudi Arabia, and the UAE all operate on a first-to-file system, meaning the first party to register a trademark in that country gains the legal right — regardless of who created the brand or how long they have been using it commercially. If you have been operating under a brand name but have not registered it, you are vulnerable.

The damage is real: IGBS has handled cases where multinational brands discovered that their trademark had been registered locally by a distributor who parted ways with them, and were forced into lengthy cancellation proceedings or paid significant sums to reclaim their own brand identity.

How Squatting Happens During Your Registration Period

Even brands actively filing for registration are not safe during the process. Trademark registration takes 18–36 months in Egypt and Saudi Arabia. During that window, your application is visible in official records — and opportunistic parties monitor trademark databases specifically looking for valuable pending applications to file in adjacent classes or territories.

The most common scenarios IGBS sees:

• Distributor squatting: A former agent or distributor files the trademark in their own name — either to retain leverage in a renegotiation or to continue selling after the relationship ends
• Class gap squatting: You filed in Class 25 (clothing) but not Class 35 (retail services). A squatter files in Class 35 to claim the brand in that channel
• Country gap squatting: You registered in Egypt but not Saudi Arabia. A squatter files in Saudi Arabia, knowing you plan to expand there
• Pre-filing squatting: Before you file at all, someone monitors your business and pre-emptively registers your brand name in your target market
• Variation squatting: You registered "BrandX" but not "Brand X" or "BrandX Pro" — a squatter registers the variations to extort you

Your Legal Options

When you discover that someone has filed or registered a trademark on your brand, you have several available remedies. The right path depends on whether the conflicting mark is still pending (published for opposition) or already registered.

Option 1: File a Trademark Opposition (Mark Still Pending)

If the squatter's application has been published in the official gazette but not yet registered, you can file a formal trademark opposition — a legal challenge that halts the registration process and triggers a proceeding before the trademark office.

Missing the opposition window does not end your options, but it is significantly better to act during this period — it is faster, cheaper, and decided at the administrative level rather than in court.

Option 2: File a Cancellation Action (Mark Already Registered)

If the squatter's trademark is already registered, you need to file a cancellation action — a legal proceeding asking the trademark office or courts to invalidate the registration. In Egypt, cancellation actions are filed with the EIPA and, if escalated, at the Economic Courts. In Saudi Arabia, the IP Court handles trademark cancellations.

Cancellation on grounds of bad faith is available in all three countries. Courts will look at whether the registrant knew your mark existed, whether they had a legitimate reason to file, and whether they are actually using the mark commercially.

Option 3: Assert Well-Known Mark Status

Egypt, Saudi Arabia, and the UAE are all signatories to the Paris Convention, which requires member states to protect internationally well-known marks even without local registration. If your brand has significant international recognition — global media coverage, established presence in multiple countries, strong consumer awareness in the target market — you may be able to invoke well-known mark protection to block or cancel the squatter's registration.

This is a higher bar to clear than a standard opposition, but it can be powerful for established international brands entering the region for the first time.

The Evidence You Need

Whether you are filing an opposition or a cancellation action, your case rests on the quality and age of your evidence. Courts and trademark offices are looking for proof that you used the mark before the squatter filed. Start gathering everything immediately:

• Dated invoices and contracts showing commercial sales or services under the brand name
• Marketing materials with dates — print ads, digital campaigns, product packaging, exhibition stands
• Domain registration records showing when you registered your website domain
• Social media account creation dates and archived posts showing your brand in use
• Corporate registration documents if your company name matches the brand
• Customs records showing import/export of goods under your brand name
• Third-party references — press coverage, distributor agreements, customer testimonials

Step-by-Step Action Plan

If you have just discovered that someone has filed your trademark, follow these steps immediately:

How to Prevent Squatting Before It Happens

The single most effective defense against trademark squatting is registering your trademark early — ideally before or alongside your market entry. A few additional strategies that significantly reduce your exposure:

• File in all target markets simultaneously — do not wait until you start generating revenue in a country. File on intent-to-use if the jurisdiction allows it
• Cover adjacent Nice classes — if you make consumer electronics, also register in retail services (Class 35) and advertising (Class 35). Think about how competitors might position against you
• Register common variations and transliterations — if your brand is in English, register the Arabic transliteration in MENA markets where it is likely to appear on product labeling
• Include trademark clauses in distributor agreements — explicitly prohibit distributors from filing trademarks in their own name and require them to support your trademark applications
• Set up monitoring alerts — trademark watching services notify you when similar marks are filed in your target markets so you can act within the opposition window