BADRI & SALIM EL MEOUCHI LAW FIRM Information Technology & Intellectual Property Legislation: Where does Lebanon stand today? AUB WEST HALL- MAY 17, 2006

BADRI & SALIM BADRI & SALIM EL MEOUCHI LAW FIRMEL MEOUCHI LAW FIRM

Information Technology & Intellectual Information Technology & Intellectual Property Legislation: Property Legislation:

Where does Lebanon stand today?Where does Lebanon stand today?

AUB WEST HALL- MAY 17, 2006AUB WEST HALL- MAY 17, 2006

Information Technology & Intellectual Property Information Technology & Intellectual Property Legislation: Legislation:

Where does Lebanon stand today?Where does Lebanon stand today?

MODERATORMODERATOR: SALIM EL MEOUCHI: SALIM EL MEOUCHI

SENIOR PARTNERSENIOR PARTNER SPEAKERSSPEAKERS:CHADIA EL MEOUCHI &:CHADIA EL MEOUCHI &

RAMY AOUNRAMY AOUN

INTRODUCTIONINTRODUCTION

The relation between IP and IT.The relation between IP and IT. IP Legal environmentIP Legal environment

• The History in the world and in LebanonThe History in the world and in Lebanon• The various laws and regulationsThe various laws and regulations• The international conventionsThe international conventions

IT Legal environmentIT Legal environment• The historyThe history• The existing regulationsThe existing regulations• Future legislationFuture legislation

INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY REGULATIONS IN LEBANONREGULATIONS IN LEBANON

Authors’ rightsAuthors’ rights Trade namesTrade names TrademarksTrademarks Domain namesDomain names PatentsPatents

AUTHORS’ RIGHTS AUTHORS’ RIGHTS PROTECTION IN LEBANONPROTECTION IN LEBANON

Definition of authors’ rights.Definition of authors’ rights.• All products of the human intellect regardless of value, All products of the human intellect regardless of value,

importance, destination or form of expression.importance, destination or form of expression.• Definition of a “Work”.Definition of a “Work”.• Accuracy of Definition.Accuracy of Definition.• Authors’ rights vs. copyrightsAuthors’ rights vs. copyrights

People who benefit from the protection.People who benefit from the protection.• Physical Individual.Physical Individual.• No need for formalities.No need for formalities.• Registration of assignments.Registration of assignments.• Case of joint authors.Case of joint authors.• Case of works created by employees.Case of works created by employees.• Case for audiovisual works.Case for audiovisual works.


Duration of protection.Duration of protection.• Works: lifetime of author plus 50 years.Works: lifetime of author plus 50 years.• Joint works: 50 years term begins as of death of last author.Joint works: 50 years term begins as of death of last author.• Audiovisual works: 50 years as of first publication.Audiovisual works: 50 years as of first publication.

The case of cultural exception.The case of cultural exception.• Educational institutions can make a limited number of unauthorized Educational institutions can make a limited number of unauthorized

copies.copies.• Public libraries can make unauthorized copies provided they buy at Public libraries can make unauthorized copies provided they buy at

least one original.least one original. The moral right and the neighboring rights.The moral right and the neighboring rights.

• Moral rights include right:Moral rights include right: Of first publication.Of first publication. Of paternity. Of paternity. Of amendment and of retraction.Of amendment and of retraction.

• Moral rights may not be assigned or transferred.Moral rights may not be assigned or transferred.• Neighboring rights include:Neighboring rights include:

The right to performThe right to perform The right to publish the performance.The right to publish the performance.


Contracts on authors’ rights.Contracts on authors’ rights.• Must be in writing.Must be in writing.• Must determine place and time.Must determine place and time.• Must include a remuneration in the form of a Must include a remuneration in the form of a

percentage.percentage.• Must have a fixed term, if not 10 years.Must have a fixed term, if not 10 years.• No assignment of future works.No assignment of future works.• Sanction is nullity.Sanction is nullity.

Consequences on violations.Consequences on violations.• Imprisonment from 1 month to 3 years and fine Imprisonment from 1 month to 3 years and fine

from 5 million LBP to 50 million LBPfrom 5 million LBP to 50 million LBP

TRADE NAMESTRADE NAMES

Definition of trade name under general Definition of trade name under general principles of the Code of Commerce. principles of the Code of Commerce.

No regulations to protect a Trade Name in No regulations to protect a Trade Name in Lebanon.Lebanon.

Governing principles worldwide for the Governing principles worldwide for the protection of a trade name.protection of a trade name.

Role of the commercial registry in Role of the commercial registry in Lebanon: no anteriority search.Lebanon: no anteriority search.

A new law must be enacted to protect A new law must be enacted to protect trade name.trade name.

TRADEMARKSTRADEMARKS

Definition of trademarks.Definition of trademarks.• The name or any sign used to distinguish the The name or any sign used to distinguish the

individuality and origin of the product.individuality and origin of the product.• Under criminal code, a trademark must be registered.Under criminal code, a trademark must be registered.• Adequacy of definition: service marks, geographic Adequacy of definition: service marks, geographic

indications and domain names.indications and domain names.• New trademark law is being prepared.New trademark law is being prepared.

Protection of trademarks.Protection of trademarks.• For initiation of criminal proceeding, trademark must be For initiation of criminal proceeding, trademark must be

registered.registered.• For exclusive ownership right, trademark must be For exclusive ownership right, trademark must be

registered.registered. Exception: principle of first use.Exception: principle of first use. Exception: highly notorious.Exception: highly notorious.


Term of protection: 15 years renewable.Term of protection: 15 years renewable. Role of the MOET-Office of IP in the Role of the MOET-Office of IP in the

protection of trademarks.protection of trademarks.• Until 2001: role is purely administrative, no Until 2001: role is purely administrative, no

examination of trademarks and no anteriority examination of trademarks and no anteriority searches.searches.

• Definition of examination of a trademark:Definition of examination of a trademark:• As of 2001: beginning of anteriority searches, As of 2001: beginning of anteriority searches,

still no examination of trademark.still no examination of trademark.• May 2006: now examining trademarks.May 2006: now examining trademarks.• Role of the Lebanese customs.Role of the Lebanese customs.


Consequences of infringement on Consequences of infringement on trademarks.trademarks.• Opposition against a trademark, 5 years Opposition against a trademark, 5 years

as of publication.as of publication.• If trademark is confusingly similar, If trademark is confusingly similar,

initiation of proceedings on the basis of initiation of proceedings on the basis of unfair competition.unfair competition.

• If a trademark is the exact imitation, If a trademark is the exact imitation, criminal charges: prison, fine and criminal charges: prison, fine and destruction of branded products.destruction of branded products.

DOMAIN NAMESDOMAIN NAMES

Definition of domain name.Definition of domain name.• No legal definition of domain name under Lebanese law.No legal definition of domain name under Lebanese law.• Generally accepted definition of domain name.Generally accepted definition of domain name.

GTLDGTLD CCTLDCCTLD

The Lebanese top level domain.The Lebanese top level domain.• Dot lb handled by AUBDot lb handled by AUB• Principle, first come first servePrinciple, first come first serve• Condition for registration: prior registration of trademark Condition for registration: prior registration of trademark

in telecommunications and Internet services classes.in telecommunications and Internet services classes.• Disputes settled the same way as trademarks disputes.Disputes settled the same way as trademarks disputes.

The International domain names.The International domain names.• Registration procedure under ICANN.Registration procedure under ICANN.

DOMAIN NAMESDOMAIN NAMES Role of the WIPO in resolving domain name disputes the Uniform Role of the WIPO in resolving domain name disputes the Uniform

Domain name Dispute Resolution Policy.Domain name Dispute Resolution Policy.• Policy applies automatically to gTLD and ccTLD on voluntary basis.Policy applies automatically to gTLD and ccTLD on voluntary basis.• Requirements for persons wishing to filed a domain name complaint.Requirements for persons wishing to filed a domain name complaint.

Domain name is identical or confusingly similar to a trademark.Domain name is identical or confusingly similar to a trademark. No legitimate interest concerning domain name.No legitimate interest concerning domain name. Domain name registered and used in bad faith.Domain name registered and used in bad faith.

• Main advantages of policy procedure:Main advantages of policy procedure: Fast: 50 to 60 days.Fast: 50 to 60 days. Cheap: fees vary between USD/1500/ and USD/5000/.Cheap: fees vary between USD/1500/ and USD/5000/. Procedure happens online- no hearings unless very rare exceptions.Procedure happens online- no hearings unless very rare exceptions.

• Type of decisions that can be made by the administrative panel:Type of decisions that can be made by the administrative panel: Transfer of domain name to complainant.Transfer of domain name to complainant. Cancellation of registration of domain name.Cancellation of registration of domain name. Reject complaint.Reject complaint. No award of monetary damages or lawyer costs.No award of monetary damages or lawyer costs.

PATENTSPATENTS

Definition of patents.Definition of patents.• An invention may be subject to a patent if it is:An invention may be subject to a patent if it is:

NewNew Includes an inventive activityIncludes an inventive activity If it can be applied on the industry.If it can be applied on the industry.

People who benefit from a patent.People who benefit from a patent.• Inventor or owner of a patent.Inventor or owner of a patent.• The case of the employee/inventor.The case of the employee/inventor.

The employer owns the patent if employee invents as part of The employer owns the patent if employee invents as part of employment agreement with inventive mission or for R&D.employment agreement with inventive mission or for R&D.

The employee owns the patent unless invented it on basis of know-The employee owns the patent unless invented it on basis of know-how, techniques or information ownership of employer, in which how, techniques or information ownership of employer, in which case, employer can buy patent for a fair price.case, employer can buy patent for a fair price.

• Joint ownership of a patent.Joint ownership of a patent. The duration of a patent.The duration of a patent.

PATENTSPATENTS

The conditions for obtaining a patent.The conditions for obtaining a patent.• Inventor to submit a request to the MOET.Inventor to submit a request to the MOET.• E.g. of inventions that may not be patentable.E.g. of inventions that may not be patentable.• Decision taken by the Minister and can be Decision taken by the Minister and can be

appealed before the Court of Appeal.appealed before the Court of Appeal.• The whole procedure takes 120 days which for The whole procedure takes 120 days which for

once makes Lebanon the fastest, but this is once makes Lebanon the fastest, but this is one area where decisions should be slower.one area where decisions should be slower.

• Adequacy of procedures.Adequacy of procedures. It is not experts who review the patent.It is not experts who review the patent. Speed of proceedings.Speed of proceedings. Minister’s appealMinister’s appeal

PATENTSPATENTS

The consequences on violation.The consequences on violation.• Same as authors’ rights violation Same as authors’ rights violation

(imprisonment and fines)(imprisonment and fines) Will software be subject to a patent?Will software be subject to a patent?

• Law 75/99 lists software under authors’ rights.Law 75/99 lists software under authors’ rights.• Theoretically, software is a medium to Theoretically, software is a medium to

illustrate a creation and not a creation in itself.illustrate a creation and not a creation in itself.• US software manufacturers’ lobby to be US software manufacturers’ lobby to be

protected under copyright rather than patents.protected under copyright rather than patents.• Effect of the courts.Effect of the courts.

INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY REGULATIONS IN LEBANONREGULATIONS IN LEBANON

IMPORTANCE OF IT.IMPORTANCE OF IT. COMPUTER NETWORKSCOMPUTER NETWORKS INTERNETINTERNET ECOMMERCEECOMMERCE

IMPORTANCE OF ITIMPORTANCE OF IT

Profound influence on today’s Profound influence on today’s economy (expected 500M users)economy (expected 500M users)

Access to Internet extremely Access to Internet extremely diversified (possibility to connect diversified (possibility to connect from different hardware).from different hardware).

Acceleration of commercial exchange Acceleration of commercial exchange in traditional commerce.in traditional commerce.

Getting a more global clientele.Getting a more global clientele.

COMPUTER NETWORKSCOMPUTER NETWORKS New telecommunications law, law n. 431 dated New telecommunications law, law n. 431 dated

July 22, 2002.July 22, 2002. Definition of computer networks under the Definition of computer networks under the

telecom law.telecom law.• Network: a comprehensive system of equipment used to Network: a comprehensive system of equipment used to

provide one or more communication service.provide one or more communication service.• Communication equipment: is the equipment including Communication equipment: is the equipment including

computer terminals and software used to provide computer terminals and software used to provide communications services.communications services.

• Communication services: are the transmission or routing Communication services: are the transmission or routing of information through any method with the necessary of information through any method with the necessary infrastructure.infrastructure.

• Computer network: is a comprehensive system of Computer network: is a comprehensive system of terminal equipment used to transmit or route terminal equipment used to transmit or route information through specific components using carriers information through specific components using carriers from one person to another.from one person to another.

COMPUTER NETWORKSCOMPUTER NETWORKS

Role of the MOT as regulator.Role of the MOT as regulator.• Regulations by the TRA vs. the MOTRegulations by the TRA vs. the MOT• MOT is the current regulator:MOT is the current regulator:

Authority to deliver permits for ISP and data services.Authority to deliver permits for ISP and data services. Approve equipment Approve equipment sets lists of requirements.sets lists of requirements.

• Main legal obligations of the MOT:Main legal obligations of the MOT: Ensure consumer protection at all times for access Ensure consumer protection at all times for access

and price.and price. Ensure that interconnection rules between SP having Ensure that interconnection rules between SP having

significant power and other SP are fair.significant power and other SP are fair.

COMPUTER NETWORKSCOMPUTER NETWORKS Laws, Regulations and Decisions governing computer Laws, Regulations and Decisions governing computer

networks.networks.• Telecom law, 2004 joining of the Arab Organization of IT whose Telecom law, 2004 joining of the Arab Organization of IT whose

role is to assist the private sector to develop IT.role is to assist the private sector to develop IT.• On top, decrees granting monopolies to companies (Datasat On top, decrees granting monopolies to companies (Datasat

1996, Cable One 1997, Pesco Telecom and Cedar Com). 1996, Cable One 1997, Pesco Telecom and Cedar Com). Validity of these decrees.Validity of these decrees.

• Decisions of the MOT regulating marketing aspects of Internet.Decisions of the MOT regulating marketing aspects of Internet.• The MOU between MOT and existing ISP for DSL promotion on The MOU between MOT and existing ISP for DSL promotion on

January 3, 2006.January 3, 2006. Adequacy and lack of, laws and regulationsAdequacy and lack of, laws and regulations

• Implementation decrees to telecom law.Implementation decrees to telecom law.• Implementation of TRA.Implementation of TRA.• Removal of monopoly over telecoms.Removal of monopoly over telecoms.• Availability of service the nature of which is to develop telecomAvailability of service the nature of which is to develop telecom• Clarification of the law with respect to some definitions such as Clarification of the law with respect to some definitions such as

significant market power.significant market power.

THE INTERNETTHE INTERNET

Is Internet a place where no laws or Is Internet a place where no laws or regulations exist?regulations exist?• Vision of the creators of Internet vs. actual Vision of the creators of Internet vs. actual

developments.developments.• Type of Lebanese regulations that affect Type of Lebanese regulations that affect

Internet: IP, communication, contracts law.Internet: IP, communication, contracts law. Intellectual property regulationsIntellectual property regulations

• Authors may enforce their rights against a Authors may enforce their rights against a carrier who will go to the hosting server, then carrier who will go to the hosting server, then to the web admin and finally to the person who to the web admin and finally to the person who committed the violation.committed the violation.

• Designer of the website will have authors’ Designer of the website will have authors’ rights.rights.


Communication laws regulations.Communication laws regulations.• The Internet as a communication The Internet as a communication

medium: newspaper, TV or radio.medium: newspaper, TV or radio.• Internet is subject to the communication Internet is subject to the communication

laws from which the information laws from which the information originates or in the domicile where the originates or in the domicile where the prejudice is felt by an individual.prejudice is felt by an individual.

• All communication laws are applicable All communication laws are applicable to the Internet and so are the sanctions. to the Internet and so are the sanctions.


Contract law regulations.Contract law regulations.• Access to Internet: standard rent of service of agreement Access to Internet: standard rent of service of agreement

between the ISP and the surfer.between the ISP and the surfer.• Uploading a website: contract with servers managers.Uploading a website: contract with servers managers.• Advertising the website: agreements for exchange links or Advertising the website: agreements for exchange links or

referencing.referencing.• All contracts include dispute resolution mechanism and an All contracts include dispute resolution mechanism and an

applicable law.applicable law. Internet can also be subject to competition, consumer Internet can also be subject to competition, consumer

protection and commercial laws in general.protection and commercial laws in general. Do we need additional legislation for the Internet?Do we need additional legislation for the Internet?

• No need for comprehensive legislation, but minor amendments No need for comprehensive legislation, but minor amendments to existing laws: electronic proof and the necessity to address to existing laws: electronic proof and the necessity to address the Internet in certain laws such as the criminal code or the the Internet in certain laws such as the criminal code or the communication laws and conflicts of laws rules.communication laws and conflicts of laws rules.

CREATING AN ONLINE COMMERCE: CREATING AN ONLINE COMMERCE: ECOMMERCEECOMMERCE

Importance of ecommerce as a Importance of ecommerce as a driving force behind the development driving force behind the development of SMEs.of SMEs.

Importance of the ecommerce in Importance of the ecommerce in Lebanon recognized by:Lebanon recognized by:• Central Bank of Lebanon for electronic Central Bank of Lebanon for electronic

transactions.transactions.• The MOET through the EU funded The MOET through the EU funded

Ecomleb.Ecomleb.


The Central Bank Regulations concerning The Central Bank Regulations concerning online banking.online banking.• Circular 69 in 2000 governing financial and Circular 69 in 2000 governing financial and

banking transactions through electronic banking transactions through electronic means.means.

• Definition of e-banking and e-transactions.Definition of e-banking and e-transactions.• Prior approval of the BDL.Prior approval of the BDL.• All banks must inform BDL of their intention to All banks must inform BDL of their intention to

undertake e-banking.undertake e-banking.• Security benchmarks of circular 69.Security benchmarks of circular 69.


The ECOMLEB project.The ECOMLEB project.• Funded by 1.7 M Euro grant by EC.Funded by 1.7 M Euro grant by EC.• Two main objectives:Two main objectives:

Development of a complete legal framework for e-commerce.Development of a complete legal framework for e-commerce. Business development and awareness campaign.Business development and awareness campaign.

• Legal component of ECOMLEB include:Legal component of ECOMLEB include: The drafting of a comprehensive regulatory framework including The drafting of a comprehensive regulatory framework including

Internet interaction and trading:Internet interaction and trading:• E-communication and SP law.E-communication and SP law.• Data protection and privacy.Data protection and privacy.• Electronic writings and securing digital signatures.Electronic writings and securing digital signatures.

Amendments to the existing laws:Amendments to the existing laws:• Issues of online contracts and burden of proof (amendments of Code of Issues of online contracts and burden of proof (amendments of Code of

Obligations and Contracts, code of civil procedure and code of criminal Obligations and Contracts, code of civil procedure and code of criminal procedure).procedure).

• E-commerce and online commercial transactions (amendments to the E-commerce and online commercial transactions (amendments to the code of commerce).code of commerce).

• Cyber crimes (amendment to criminal code).Cyber crimes (amendment to criminal code).• IPR and consumer protection.IPR and consumer protection.

Documents

BADRI & SALIM EL MEOUCHI LAW FIRM Information Technology & Intellectual Property Legislation: Where does Lebanon stand today? AUB WEST HALL- MAY 17, 2006