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Copyright Licensor Collects Substantial Reward from Court

Copyright licensor collect substantial reward from court

An emphatic result took place for owners and exclusive licensor of media content and copyrights in Egypt when one of the largest compensatory awards made in the Middle East region was issued by the Economic Court of First Instance in Cairo (EC), with reference to the non-payment of royalty fees and the imposing of liquidated damages.

One of the leading broadcasting companies, enrolled into numerous license agreements with a broadcasting channel in Egypt in order to broadcast licensed and exclusionary material in terms of TV titles and series. The Egyptian broadcasting channel disregarded the payment of its royalty obligations, provided in the license agreement; therefore, the company filed a suit before the EC claiming an estimated four million USD for the recovery of the outstanding amounts due as well as two million USD of liquidated damages for the breach of the copyright licensing contracts. The contract binding both parties mentioned that the governing law for any disputes should be the UAE civil transaction code. The Egyptian court implemented the UAE regulations without any repressions and ordered the Egyptian channel to pay the demanded amount (four million USD). As for the liquidated damages, the UAE civil transaction code stated that it is up to the court’s discretion whether to waive, alter or conform to this type of damage in proportion to the breach committed by the other party. The court then reached a verdict and ordered the Egyptian broadcasting company to pay a sum of two million USD, the amount mentioned in the contract between both parties. This not only means that the Egyptian courts are progressing toward the benefit of owners of Intellectual Property Rights, but this is also a message from Egyptian Courts articulating that it will not hesitate to inflict large amounts of compensation through the contractual rights. In light of Egypt’s recent financial and development project, “The New Egypt”, it is apparent that Commercial courts in Egypt are developing in the favor of the owners of intellectual property rights. This is a significant step when it comes to sustaining and preserving economic growth in the country. Egyptian courts can and will aim to intervene with high compensations in order to protect foreign investors’ rights in Egypt.

Egypt’s Economic Development Conference

To promote more foreign investment in Egypt after a successful economic conference, Egypt has issued new laws that will allow easier foreign investment in the future. Please find hereunder news regarding the major developments that are currently ongoing in Egypt. NEW CAPITAL During the Economic Conference it was announced that a new administrative and commercial capital of Egypt, which will be located between the provinces of Cairo and the Red Sea, will be built and is estimated to be complete by 2022. It will have an area of 700 square kilometers, and should withstand a population of 5 million individuals as well provide 1.7 million jobs. NEW LAWS With the aim to guarantee more foreign investment leading up to the Egypt Economic Development Conference that took place this year, the country has implemented new beneficial initiatives; which include but are not limited to a feed-in tariff system for renewable energy, which gives power producers the opportunity to sell the renewable electricity they generate back to the national grid. Moreover, this month the cabinet approved the new investment law, which is essential to protect foreign investors from legal disputes, among other incentives. The Egyptian government also took this opportunity to implement new fiscal policies that will benefit foreign investment especially in the energy sector, including subsidy reforms for fuel and electricity. In order to develop upcoming energy projects, the Egyptian government has laid out new laws and regulations to accommodate private investment, in particular to benefit the foreign firms in Egypt. Egypt’s efforts during the Economic Development Conference succeed in regards to attracting multinationals, while the bulk of the investments were directed towards energy and electricity projects

New Suez Canal Project

A new dawn is upon Egypt with recent news of the major developments taking place with the Suez Canal. As one of the largest projects in the entire history of Egypt, we hope that it will bring countless new prosperous opportunities to our flourishing country. The project has already been able to raise more than 61 billion EGP ($8.5 billion) from investors. Moreover, the new canal section is projected to decrease the waiting period from 11 to 3 hours and to increase the number of ships that can navigate the canal simultaneously from an average of 23 to 97. With the new major improvements just beyond the horizon, officials expect a major economic, commercial, and industrial increase in Egypt. Eldib – Attorneys at Law would like to take this opportunity to offer our services in regards to this project

Vision:

The Suez Canal Area Development Project (SCADP) aims to transform the area into an international economic and logistics hub through the creation of industrial and logistic centers within the project area. The project’s goal is to benefit from the increased trade traffic through the Suez Canal by establishing relevant value-added activities and complementary industries in the area, as well as increasing exports and imports.

About the Project:

The Project’s geographical region includes:
East and West Port Said’s ports, as well as El Arish Port (in the northern region). Technology Valley Area, East Ismailia (in the central region). Ain Sukhna, El Tor, and Al-Adabia Ports, as well as the Economic Zone in North-west Gulf of Suez (in the southern region). The Project’s current phase aims to prepare a six-month Master plan, to include: A strategic and integrated master plan to develop the Suez Canal Area, including the establishment of industrial, logistics, agriculture and tourism-related projects and activities, as well as recommendations on the optimal use of the allocated land and human resources. Studies will also look at opportunities for improving utilities and infrastructure in the area to support these activities. The plan will also study the potential environmental and social impact of the project, in coordination with all concerned governmental bodies and civil society organizations. It will also offer a marketing, investment promotion and communication strategy, and a reference guide for perspective investors. The current phase also includes the review of legislation related to investment within the geographical zone of the project.

Project Benefits:

We expect to see development of the area surrounding the Suez Canal and establishment of new urban, industrial and economic zones as well as creation of job opportunities through increased economic activity. In addition, it is expected to attract new investment, which will contribute to state’s Treasury, and be reflected in Egypt’s public budget and services offered to citizens. Also, improvement in global confidence in Egypt’s national economy, and the country’s ability to carry out global economic Projects Many sectors will be affected by this new project including but not limited to shipping, operations management, industrial, and the commercial sector. In addition, Egypt is currently drafting new and improved Investment Laws as well as Labor Laws, which we would be more than happy to update you with. We will keep you closely informed about the project’s progress. If you have any enquiries or comments please feel free to contact: