Detailed Overview of Libya’s New Trademark Renewal Fees and Requirements

The Libyan Ministry of Economy has issued Decree 586 of 2024, introducing major changes to the trademark renewal process. These changes include new requirements and substantial fee adjustments, significantly impacting both local and international trademark owners. Here’s everything you need to know about these updates and their implications for your intellectual property rights in Libya.

Key Updates in Trademark Renewal Fees

• For foreign entities: Trademark renewal fees  in Libya are now set at $2,000 USD, payable at the official exchange rate at the time of application. However, there is ongoing confusion about whether this fee applies per year or per application. Given that trademark renewals cover a 10-year period, applying this fee annually would lead to a staggering $20,000 USD. It is more likely the fee applies to the application as a whole, but official clarification is awaited.

• For national companies: The renewal fee is 5% of the trademark’s listed value, as stated in the company’s latest audited fiscal balance sheet. This introduces a new requirement for applicants to submit their balance sheet along with the renewal application.

These fees are among the highest in neighboring countries and the region, making them a significant factor for trademark owners considering their presence in Libya.

Impact on Businesses

The combination of high renewal fees and new documentation requirements could lead to fewer trademark renewal applications. Many foreign companies, particularly small and medium-sized enterprises (SMEs), might find the costs prohibitive, choosing not to protect their trademarks in Libya. This increases the risk of counterfeiting, as trademarks without local protection are vulnerable to misuse. Such high fees may deter businesses from entering the Libyan market, ultimately affecting economic growth and foreign investment.

SMEs are particularly affected by these changes due to tighter budgets and limited resources. For these businesses, the high cost of trademark renewal might render Libya an unviable option for market expansion or intellectual property protection.

Operational Challenges in Trademark Management

Trademark management in Libya has become increasingly challenging due to ongoing administrative and operational issues. Earlier this year, the Ministry of Economy issued Decree 26 of 2024, which revised and increased fees for trademark services. Frequent changes in management at the Trademark Office, coupled with administrative halts, have caused significant delays in processing applications. Additionally, while the Ministry announced efforts to digitalize processes, the implementation has been inconsistent.

Conclusion

The new trademark renewal requirements and fees under Decree 586 of 2024 represent a significant shift in Libya’s intellectual property landscape. While these changes aim to formalize trademark processes, the high costs and procedural complexities could discourage businesses from maintaining trademark protection in the country. For SMEs and foreign entities, these changes may reduce Libya’s appeal as a business destination.

At Tamkeen Firm, we understand the challenges posed by these regulatory updates. If you need assistance navigating the new trademark regulations, our experienced team is here to guide you through every step of the process. From compliance to application management, we provide tailored solutions to meet your needs.

Let us help you protect your trademarks and navigate Libya’s evolving intellectual property framework.