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Evolving Legal Landscape: IP Law Developments and AI Legislation in Pakistan

Evolving Legal Landscape: IP Law Developments and AI Legislation in Pakistan

When it comes to fostering innovation, Intellectual Property (IP) Laws can play a crucial role. Last year, the Copy Right (Amendment) Bill, 2023, was introduced in parliament and is still pending with the standing committee on commerce. The past year also saw the enactment of the Trademark (Amendment) Act, 2023, meant to facilitate local brand owners of Pakistan to protect their trademarks in up to 130 countries by filing a single international application. Besides these legislative enactments, judicial decisions have also played a vital role in the development of IP laws in Pakistan.

To demonstrate, five recent judgments in 2024 have contributed to the evolving landscape of intellectual property law in the country, mainly concerning trademarks and copyright protection. In Hilal Foods (Pvt.) Ltd v. Dabur India Limited [PLD 2024 Karachi 184], in which Mohsin Tayebaly & Co. was counsel for Dabur, the High Court of Sindh underscored the necessity for plaintiffs to approach the court with “clean hands,” reaffirming that equitable principles apply in enforcing IP rights. This judgment serves as a reminder that litigants must fully disclose all relevant information before filing proceedings regarding intellectual property.

Additionally, in Ch. Shaukat Ali Noon v. Tehzeb Bakers (Pvt.) Ltd [2024 C L D 113], the Lahore High Court reiterated that intellectual property disputes must be resolved through specialized forums, reinforcing the need for IP-related issues to be addressed within the framework of laws like the Trademarks Ordinance and Copyright Ordinance rather than through broader legal mechanisms like petitions under the Companies Act. Specialised forums facilitate standardized development of IP related precedent, allows faster dispute resolution, and ensures that judges can adequately interpret complex IP laws.

In yet another judgement in Samsara Couture House (Pvt.) Ltd v. Syeda Khadija Batool [2024 C L D 484], the Lahore High Court further refined procedural guidelines, particularly in relation to unregistered trademarks, where the court clarified that interim injunctions require robust and clear evidence and cannot be granted based on unsubstantiated claims. It is especially important when the trademark on the basis of which the ruling is sought is unregistered. Meanwhile, in Nestle Pakistan Limited v. Shehryar Kureshi [2024 CLD 502], the provincial court made a significant contribution by clarifying that copyright registration is not mandatory for pursuing infringement claims, drawing attention to Section 39 of the Copyright Ordinance, 1962. This ruling broadens access to copyright enforcement, emphasizing that protection is automatic upon the creation of work. Like other judgements, this one also reinforced that the Intellectual Property Tribunal is the appropriate forum for disputes regarding copyright infringement.

Lastly, while not binding judicial precedent, the Competition Appellate Tribunal in Options International (SMC-Private) Ltd v. Competition Commission of Pakistan [2024 CLD 874] added clarity to the jurisprudence on the protection of well-known trademarks under Section 86 of the Trademarks Ordinance, 2001, asserting that foreign entities, such as Starbucks, can enforce their trademark rights in Pakistan even without registration or conducting business there. Even if the trademark owner does not operate in Pakistan, they can still protect their well-known marks from unauthorized use as long as the mark is recognized either globally or in Pakistan. This principle will hopefully contribute to stronger cross-border IP protection, boosting collaboration with multinational companies.

These bills and case law demonstrate Pakistan’s pioneering approach to addressing novel legal issues. Similarly, our legislature has also recognized the transformative potential of artificial intelligence (AI), which is constantly revolutionizing numerous fields. On 19th August, The Regulation of Artificial Intelligence Bill 2024 was tabled in the Senate and is currently pending with the Standing Committee on Information Technology and Telecommunication. The bill seeks to regulate the use of Artificial Intelligence (AI) in the country to mitigate the “various risks” associated with the technology, imposing fines amounting to billions of rupees for violators. Its key features include the establishment of a “National Artificial Intelligence Commission” with its headquarters in Islamabad. It is tasked with maintaining human oversight over AI matters, particularly in areas such as national security, health, and education. The first of its kind, this legislation can promote the ethical use of AI in Pakistan.

Sameer Tayebaly, Senior Associate
Haniya Rehman, Paralegal