Batelco, the former incumbent telecom operator, underwent a structural separation in 2019 into a wholesale infrastructure unit (BNET) and a retail operator (Batelco). The process for completing the full internal systems and organisational separation is under way, according to Resolution No. 17 Promulgating the Fifth National Telecommunications Plan. The Fifth Telecommunications Plan adopted in 2020 provides that BNET will become the sole fibre network infrastructure company over time. Batelco is partly owned by the government. As reported in 2020, Mumtalakat Holding Company and Social Insurance Organization, both of which are associated with the Bahraini government, own more than 55% of the shares.

While it is reported that Bahrain has established accounting separation by law for the operator with significant market power, functional separation for operators with significant market power is not required by law. Nevertheless, the Resolution No. 17 Promulgating the Fifth National Telecommunications Plan shows that the government is finalising the implementation of the structural separation of Batelco (the former incumbent) into a wholesale infrastructure unit (BNET) and a retail operator (Batelco).

Bahrain has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.

Law No. 7 of 2003 provides a framework for effective protection of trade secrets.

Bahrain has a copyright regime under Law No. 22 of 2006 on the Protection of Copyright and Neighbouring Rights. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Arts. 19-30 list the exceptions, which include uses for non­-profit archives or libraries to make one photocopy of a work without the consent of the author and without paying compensation; make a reproduction from a work to be used in judicial or administrative procedures, within the limits necessary for such procedures and on condition that mention is made of the source, and of the name of the author if it appears in the source; among others.

It is reported that piracy of audio, video and software by end users remains a problem, despite the government implemented a copyright enforcement campaign that included inspections, shutdowns and a better focus on raising public awareness. This campaign, started already in 1997, focused on the video, audio and software industries, achieving significant results. Most commercial markets selling pirated products have been eliminated. It is also reported that the rate of unlicensed software installation in the country was 52% in 2017, for an estimated commercial value of USD 32 million.

Bahrain has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.

Patent applicants are required to appoint a local agent if the applicant is not a resident of Bahrain. Any attorney or lawyer registered to practice before the Patent Office can act as an agent. Art. 5 of Law No. 1 of 2004 in respect of the Patent and Utility Module provides that: "any natural or legal person shall be entitled to file a patent application and acquire the subsequent rights ensuing therefrom subject to the provisions of this law. Eligible applicants may be nationals of the Kingdom, nationals of countries that are members in the World Trade Organization, or nationals of any other country who enjoy national treatment."

Bahrain is a party to the Patent Cooperation Treaty (PCT).

Under the Legislative Decree No. 21 of 2001 (the Commercial Companies Law) all investments and transactions in Bahrain are subject to a screening process conducted by the Ministry of Industry, Commercen, and Tourism (MoICT). The investments and transactions must observe national security requirements and public order. Those that are considered by the authorities to pose a national security risk will not be approved. Over the past year, the Ministry of the MoICT created an additional disclosure requirement where companies are required to disclose the ultimate beneficial owner of their shareholders owning at least 10% of the share capital.

It is reported that price preferences are given in public procurement to goods produced in Bahrain and in other Gulf Cooperation Council (GCC) member States, provided that the prices of these goods are within specified margins of the value of their imported equivalents (10% for goods produced in Bahrain and 5% for goods produced in the GCC).

Bahrain is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2008.

The Legislative Decree No. 36 of 2002 established a public procurement regime in Bahrain. The Decree distinguishes between local tenders and international tenders. Local tenders are limited to suppliers or contractors who are authorized to carry on business activities in the Kingdom of Bahrain according to the applicable laws and regulations. International tenders are open to both local suppliers and contractors and international suppliers and contractors who are unregistered in the Kingdom may participate. The criteria for distinction between local and international tenders shall be based upon the nature of goods, constructions or services required to be purchased, volume thereof, extent of their complexity and standards required. The Board shall be empowered to determine the reasons for selection of an international tender on the basis of such criteria.

The Cabinet’s Resolutions No. 2416-06 of 2017 allocates a 20% share of the value of government procurements and tenders to SMEs and grants them 10% preference in the biddings of service facilities for all public tenders, except for those of a special nature. The classification criteria through the size of the enterprises in the SMEs Registration System, excludes a branch of a foreign company from the SMEs classification. The SMEs Registration System is a window launched under the Resolution to enables SMEs to apply for classification certificates according to their size.

Bahrain 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).