Information Technology in the UAE


Overview  Piracy    Cyber Crime    Cybersquatting
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Legal Environment
Overview:
Increased intellectual property rights awareness is prevalent throughout the world as software companies continue to lose substantial amounts of money each year from piracy. Illegal software copyrighting in the Middle East cost the information technology industry almost $200 million in 1998 alone.  The UAE has demonstrated a commitment to combating piracy and has begun efforts to enforce and enact legislation against violators. The legal environment is a critical catalyst or inhibitor of a successful IT industry.  Like the rest of the world, the UAE is just learning how to handle the questions relating to information technology.

Piracy:
Software piracy in the Middle East is a significant problem.  Until the nation-states take effective measures to decrease violations of copyright laws and increase awareness of the significance of the problem it will continue.  In 1998 alone, $190 million in profits for the information technology industry were forsaken as a result of illegal software copyrighting.  Over the last five years, the UAE has demonstrated a commitment to reduce such offenses and the efforts have been successful.  In fact, estimates suggest the UAE has achieved the highest reduction in piracy rates worldwide. One of the ways in which the Emirate of Dubai is increasing awareness is through broadcasting anti-piracy commercials.  The following table illustrates UAE reductions compared to other members of the GCC:
 


                           *ICANN (41)
It is readily apparent that the UAE has been taking the proper steps to decrease piracy.  The country is setting a good example for the rest of the GCC.  Hopefully, they will follow soon.

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Cyber Crime
In June 2000, hackers broke into the ETISALAT Internet servers and caused massive disruptions.   As a result of this ETISALAT, with government support, claimed it would take any action against any person that tried to damage its system again.  It was further noted that if the offenders were not UAE citizens, international law enforcement agencies would be called in (42) .  The man who was ultimately accused of the crime will be charged with damaging the UAE economy if they can prove he destroyed any information on the Internet.   This shows how serious the UAE is in fighting computer crimes. The incident will probably encourage enactment of legislation against cyber crimes. 
Cybersquatting:
The UAE is a member of the World Intellectual Property Organization (WIPO) and abides, for the most part, by the rules and stipulations set forth by the charter.  Very few incidents of cybersquatting have occurred in the UAE.  One of the very few incidences of cybersquatting was in December 1999 when a company registered in the UAE, United Artists, registered a website under the name Safmarine.com/.  Apparently, Safmarine is also the name of a South African shipping company.  United Artists tried to force Safmarine to pay $20,000 to relinquish the name.  Safmarine appealed to the WIPO arbitration service and the matter was resolved quickly without any financial reparations. 
Legal Issues:
The domestic legal environment in which the emerging information technology industry operates has a significant impact on the number and type of obstacles faced in both the domestic and international markets. This is particularly significant for IT because it is an emerging industry and legal questions are still being resolved (44). 

In 1992, the UAE federal government passed three laws in regards to intellectual property--a copyright law, a trademark law, and a patent law. These three pieces of legislation has made the UAE largely clean of selling pirated computer software because of a strong enforcement policy.  The UAE is a member of the World Intellectual Property Organization and has joined the Paris Convention for the Protection of Industrial Property.  However, the country was still on the U.S. Trade Representative (USTR) Watch List in 1997 because of inadequate protection of computer software and pharmaceutical patents. The UAE’s status for the USTR Watch List is currently under review and will most likely be revoked within the next year.  The primary difference for the UAE in terms of copyright law as compared to other nations is that any published material (to include computer software) must have a registered copyright before being commercialized in the UAE.

In 1991, the Law on Telecommunications was enacted which affirms that criminal law statute will be applied to the realm of telecommunications; however, specific Internet legislation has not yet been passed. 

In October 1999, the government banned the use of cellular handsets while driving.  Hands-free sets can still be used.  This is very similar to the U.S.  In fact, they may be ahead of the United States in regards to this matter.  Apparently, people making cellular phone calls while driving were responsible for a large proportion of traffic accidents.

It is interesting to note that ETISALAT, the state-owned telecommunications provider, claims that its proxy service is in effect partially to prevent commercial fraud and copyright infringements.  In reality, it is the means by which the government, via ETISALAT, advocates censorship.  The proxy refuses access to URLs that are on a list of banned sites or if a content check of the site by the proxy service turns up objectionable material (45).   For more information on ETISALAT and the proxy service please refer to Transborder Data Flows

ICANN:
Dubai Internet City has applied for membership to the Internet Cooperation for Assigned Names and Numbers (ICANN).  The application is still under review, however, if approved, DIC will have an operating division dedicated to registering Internet domain names.  It will be called the Dubai Internet Domains Registration (DIDRA).  DIDRA will be responsible for policy development and administration of new TLDs. It is unknown what other entities have applied or been accepted for ICANN membership.  Please refer to IT Geographics for more information on Dubai Internet City.

Impacts of National Information Technology Environments on Business
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