Database

Browse Database

KUWAIT

Reported in 2021

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Enforcement of copyright online
Lack of adequate enforcement of copyright online
It is reported that Kuwait has intensified its measures to combat copyright piracy through the enactment of the Copyright and Related Rights Law in 2019, along with the corresponding implementing regulations. However, there are reports indicating that certain provisions of the new copyright law still lack clarity, particularly regarding specific definitions and the extent of protection.
Furthermore, it is reported that there are still areas that require improvement. This includes the need for enhanced outreach and communication with trademark and copyright owners, implementing a modern customs recordation system, and better coordination in investigations and enforcement actions among relevant authorities. Concerns also persist regarding the lack of publicly available IP enforcement procedures, transparency in the fate of seized counterfeit and pirated goods, and the absence of adequate legal consequences for vendors and importers of such goods due to prolonged court cases, inconsistent judicial decisions, and inadequate penalties that fail to deter repeated offenses.
Coverage Horizontal

KUWAIT

N/A

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Signature of the WIPO Copyright Treaty
Lack of signature of the WIPO Copyright Treaty
Kuwait has not signed the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

KUWAIT

Since September 2016

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Participation in the Patent Cooperation Treaty
Patent Cooperation Treaty (PCT)
Kuwait is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal

KUWAIT

Since August 2019

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Copyright law with clear exceptions
Copyright and Related Rights Law
Kuwait has a copyright regime under the Copyright and Related Rights Law. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Art. 31 lists the exceptions, which include citing paragraphs of that work in another work, provided that the citation is in line with current practice and is not essential, and to the extent justified by the desired goal, and to mention the source and the name of the author, and this applies to press abstracts transferred from newspapers and periodicals; transfer of short excerpts from previously published works, drawings, photographs, designs or maps to textbooks prepared for the curricula and to history, literature and the arts, provided that such transfer shall be as necessary, provided that the source and the name of the author are mentioned; among others.
Coverage Horizontal

KUWAIT

Since December 1992
Since April 2016

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Practical or legal restrictions related to the application process for patents
GCC Patent Regulation Decree and By-Law of 1992

Kuwait Patent Law No. 71 of 2013
Following the implementation of Patent Law No. 71 2013 and implementing Regulations 115/2016, the Kuwaiti Patent Office stopped accepting national patent applications in 2016. The patent regime reflects the regime in place under the Gulf Cooperation Council (GCC). Patents are granted by the GCC Patent Office to the owner of the invention under the GCC Patent Regulation Decree and By-Law of 1992 and is valid in all the states of the GCC. A patent is granted to an invention that is new, innovative, and industrially applicable. On top of that, it must not contradict with the rules of Islam, public order, or public ethics in the GCC states whether this relates to products, manufacturing operations or manufacturing methods. A patent applicant filed by a non-GCC resident must appoint a registered agent who is resident in the GCC to represent them in carrying out their activities (Art. 6). Furthermore, the official language in all GCC states is Arabic. No other language is accepted.
Coverage Horizontal

KUWAIT

Since February 2016

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Nationality/residency requirement for directors or managers
Companies Law No. 1 of 2016
During the establishment process under Companies Law No. 1 of 2016, the manager of a limited liability company can either be a Kuwaiti national or a Gulf Cooperation Council national. The manager can also be a foreign national, but he/she must hold a valid residence in Kuwait. If a foreign national is appointed as a manager, the company will have a temporary licence until he/she transfers his/her residence to the new company, which must be achieved within three months.
Coverage Horizontal

KUWAIT

Since June 2013
Since March 2019

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Screening of investment and acquisitions
Foreign Direct Investment Law of 2013

Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits
The Foreign Direct Investment Law of 2013 established the Kuwait Direct Investment Promotion Authority (KDIPA) to solicit investment proposals, evaluate their potential, and assist foreign investors with licensing. Article 14 sets forth a license scheme for foreign direct investment. The Board of KDIPA examines investment proposals against the criteria, principles and assessment rules established by the Board regarding each of the cases set forth in this law. Investment through establishment of a new enterprise, a foreign branch, and a regional representative office must go through the license scheme (Art. 12).
In 2019, KDIPA issued Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits. It is reported that, in approving applications from foreign investors seeking full ownership, KDIPA prioritizes local job creation, the provision of training and education to Kuwaiti citizens, technology transfer, diversification of national income sources, contribution to exports, support for small- and medium-sized enterprises, and the utilization of Kuwaiti products and services.
Coverage Horizontal

KUWAIT

Since October 1980, entry into force in February 1981
Since June 2013
Since February 2016, as amended in April 2017

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Maximum foreign equity share
Commercial Law No. 68 of 1980

Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait

Council of Ministers Law No. 15 of 2017 amending provisions of Law No. 1 of 2016 on the Promulgation of the Companies Law
Arts. 23 and 24 of Law No. 68 require foreign entities conducting business in Kuwait to do so either through a local agent or a Kuwaiti partner, which is typically facilitated through the establishment of a Kuwaiti company with Kuwaiti participants owning at least 51% of the share capital. An exception to these restrictions on foreign ownership is when the relevant Kuwaiti company is established and licensed under the Law No. 116 (Art. 12), which allows for increased levels of foreign ownership (up to 100%). Law No. 116 permits the Kuwait Direct Investment Promotion Authority (KDIPA) to authorize, on a case-by-case basis, up to 100% foreign ownership in the following industries: communications infrastructure; information technology and software development; entertainment, investment management, among others. Although a Kuwaiti or Gulf Cooperation Council (GCC) national must own at least 51% of any local company, this requirement may be waived if non-GCC investors qualify to invest through KDIPA. A 2017 amendment to the 2016 Companies Law eliminated prohibitive requirements on limited liability companies.
Coverage Horizontal

KUWAIT

N/A

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Signatory of the WTO Agreement on Government Procurement (GPA)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Kuwait is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA) nor does it have observer status.
Coverage Horizontal

KUWAIT

Since May 2016

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Public Tenders Law No. 49 of 2016
The Public Tenders Law No. 49 of 2016 governs public procurement from the government. Art. 31 requires bidders to be a Kuwait individual or company registered in a commercial register. Art. 87 of the law imposes a local content requirement on foreign bidders to purchase not less than 30% of the goods from local suppliers. In addition, Art. 62 creates a preference scheme in favor of national products or products from the Gulf Cooperation Council member countries.
Coverage Horizontal

KUWAIT

Reported in 2021

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Lack of transparency in procurement process
It is reported that the process that manufacturers must undertake to pre-qualify new technologies by the government is lengthy and burdensome, and lacks transparency. It is also reported that the often-lengthy procurement process in Kuwait occasionally results in accusations of attempted bribery or the offering of other inducements by bidders.
Coverage Horizontal

KUWAIT

N/A

Pillar Tariffs and trade defence measures applied on ICT goods  |  Sub-pillar Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in the Information Technology Agreement Expansion Agreement (ITA II)
Kuwait is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996, but is not a signatory of its 2015 expansion (ITA II).
Coverage ICT goods
"SELECT DISTINCT(post_id) FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'KW')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
[{"post_id":"48112"},{"post_id":"48113"},{"post_id":"48114"}]
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'impact' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'KW')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2')\n\t\t\t\t\t\t\t\t)"
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'KW')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
ITA: [{"meta_value":"0.50"}]

KUWAIT

ITA signatory? I II

Pillar Tariffs and trade defence measures applied on ICT goods  |  Sub-pillar Effective tariff rate to ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
2.2%
Coverage rate of zero-tariffs on ICT goods (%)
39.19%
Coverage: Digital goods

KOREA

Since 1999

Pillar Online sales and transactions  |  Sub-pillar Adoption of UNCITRAL Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
Korea has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal

KOREA

N/A

Pillar Online sales and transactions  |  Sub-pillar Adoption of UNCITRAL Model Law on Electronic Signature
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Korea has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal