SAIP

Mortgage of A trademark

The Trademark Pledge Service is an official service provided by the Saudi Authority for Intellectual Property (SAIP) that allows the trademark owner to use their trademark as legal collateral (financial or legal security) in favor of another person or entity under a legally recognized pledge agreement. Through this arrangement, the pledgee gains legal rights to the trademark according to the terms of the pledge contract, in exchange for financing, settling obligations, or as security in partnership agreements. The pledgor retains ownership of the trademark but grants the pledgee specific rights of control until obligations are settled or the pledge is officially lifted.

The pledge process is initiated by submitting an electronic application by the trademark owner to the Authority, attaching:

A certified copy of the pledge agreement stating the trademark name, number, and covered categories;
Details of both parties and the reasons for the pledge;
The trademark registration certificate;
Any supporting documents such as commercial registration or national ID.

After examination and fee payment, the Authority registers the pledge, which appears officially in the trademark registry. The trademark ownership or disposition cannot be transferred without the notary’s or pledgee’s approval until the pledge is formally released.

Importance of the Trademark Pledge Service

Enables companies and individuals to obtain financing or financial guarantees using a protected trademark, supporting business flows without relinquishing ownership.
Provides legal protection for both parties by documenting rights and responsibilities, ensuring compliance with the pledge contract terms.
Increases the investment value of trademarks as financial assets that can be leveraged in partnership agreements, financing, or mergers.
Enhances confidence in commercial dealings, as the pledge is recognized as official proof in lawsuits or before banks and regulatory authorities.

Challenges in Completing or Issuing a Trademark Pledge

Necessity to draft a precise and comprehensive pledge contract covering all terms and regulatory requirements.
Thorough Authority examination and document auditing, which may delay the process if deficiencies or conflicts are found.
Disposition or transfer of the trademark is prohibited during the pledge period without the pledgee’s consent or formal pledge release documentation.
Service fees may be relatively high compared to other amendment services, depending on the type and value of the pledge.
In cases of dispute or financial default, the trademark may be used to settle debts or obligations to the pledgee, potentially resulting in some loss of rights for the original owner until full repayment.
Target Sector Trader
Affiliated Authority Saudi Authority for Intellectual Property
Estimated Duration10 days
Gov Approval Window5 working days
Service Pricing4144
Government Fee1500

Mandatory Conditions

  • ✓ Availability of the required documents according to the type of applicant (individual-institution-company).

Required Documents

  • ✓ If the applicant is an individual, the following must be submitted: 1- A mortgage contract from the trademark owner (it must stipulate the name of the trademark, the number, date, and category of the registration certificate) 2- Power of attorney for the buyer to complete the mortgage procedures for the mark. 3- Attach a power of attorney or a certified power of attorney for the person who has the power to apply, “a power of attorney duly certified or certified by an apostille certificate.” -If any-.
  • ✓ If the applicant is an institution, the following must be submitted: 1- A mortgage contract from the trademark owner on his printed materials, authenticated by the Chamber of Commerce (it must stipulate the name of the trademark, the number of the registration certificate, its date, and its category). 2-Submitting a letter from the mortgagee to him (the buyer) on his printed documents to the administration requesting the transfer of ownership, mentioning the name of the mark, registration certificate number, date and category. 3-Attach a notarized power of attorney or authorization for the person who has the capacity to apply, “a duly certified power of attorney or certified by an apostille certificate.” -If any-.
  • ✓ If the applicant is a company, the following must be submitted: 1- A mortgage contract from the trademark owner on his printed materials, authenticated by the Chamber of Commerce (it must stipulate the name of the trademark, the number of the registration certificate, its date, and its category). 2- The contract of incorporation of the mortgaged company, to ensure the validity of signing the attached mortgage contract.-3 Submitting a letter from the mortgagee to the administration (the buyer) on his prints requesting the transfer of ownership, mentioning the name of the mark, registration certificate number, date and category. 4- Attach a notarized power of attorney or authorization for the person who has the capacity to apply, “a duly certified power of attorney or certified by an apostille certificate.” -If any-.