Trademarks play an effective in market competition. Trademarks play a vital role in market competition. In the modern economy, consumers rely on brands and trademarks when choosing goods and services. For this reason, any conduct that disrupts consumer trust may be considered a violation of the legal framework governing trademarks. One of the most common disputes in this area arises when two or more parties use the same or a confusingly similar mark at the same time.

This leads to an important legal question: Can a trademark that has not been formally registered still receive legal protection in Iran? In other words, are unregistered trademarks protected under Iranian law?

 

Two Main Trademark Protection Systems Worldwide

Across different legal systems, trademark rights are generally recognized under two main approaches:

  1. First to File System

Under this system, exclusive rights belong to the person who files the trademark application first. Registration is the basis for acquiring rights.

  1. First to Use System

Under this approach, a person who first uses a trademark in commerce may obtain rights even if the mark has not been registered. In this system, actual commercial use of the mark is the key factor, rather than registration.

Countries such as the United Kingdom, the United States, India, Singapore, and several others follow this approach.

 

The Position of Iranian Law: Registration or Use?

In Iran, before the enactment of the Law on Protection of Industrial Property (2024), the governing legislation was the Patents, Industrial Designs, and Trademarks Registration Act of 2008. Under the former law, trademark protection was mainly based on registration, and there was no explicit recognition of prior users.

However, in practice, Iranian courts occasionally protected prior users by relying on general legal principles such as unfair competition, respect for acquired rights and prohibition of unjust enrichment.

Therefore, although the previous law did not expressly recognize prior users, judicial practice sometimes granted them protection.

With the adoption of the Law on Protection of Industrial Property in 2024, Iran’s legal system has taken a clearer position regarding prior users of trademarks.

According to Article 105 of this act, if a person registers a trademark while knowing that another person had already been using that mark, the prior user may request the cancellation of the registration before the competent court, provided that:

  • The prior user had used the mark continuously, and
  • Such use began at least one year before the filing date of the later application.

This provision shows that the legislator considers the bad faith of the applicant an important factor in protecting prior users.

The Note to Article 105 addresses another scenario. If a person had been using a mark for at least one year before another party registered it, the prior user may still continue using the trademark.

In this situation:

  • The prior user retains the right to continue use;
  • However, the prior user does not automatically obtain all exclusive rights arising from registration;
  • At the same time, the rights of a good faith registrant are not entirely removed.

This demonstrates that the new law seeks to balance the interests of both the prior user and the good faith registrant.

Assume that Person A began selling shoes in Iran under the trademark “Charmin” in February. A year later, Person B filed an application to register the same trademark.

If Person A can prove prior and continuous use of the mark, Person A may be able to:

  • Oppose the registration;
  • Seek cancellation of the registered mark under certain circumstances; or
  • At minimum, preserve the right to continue using the trademark.

 

Conclusion

Based on the most recent legislation in Iran, trademark rights are no longer derived solely from registration. Prior use may also be protected in certain circumstances. This development is an important step toward preventing unfair competition and protecting genuine market participants.

Nevertheless, due to existing legal ambiguities and practical limitations, formal trademark registration remains the safest and most effective way to secure brand protection and enjoy the broadest legal rights available. So, if you are already using a trademark but have not yet registered it in Iran, it is advisable to file for registration as soon as possible. You should also preserve evidence of prior and continuous use—such as invoices, advertisements, contracts, and promotional materials—to strengthen your position in the event of a future dispute.