COURT PROCEDURE

Trademark Infringement Damages in the Saudi System

MAY 2026 · 7 min read

A cease order is a step, but it does not return what you lost. Damages are what turn a judgment from "symbolic win" into actual compensation. But proving harm value in trademark cases is harder than many other types — here is what the judge requires and how we build the file.

Legal Bases for Damages

Saudi law recognizes three components of damages in trademark cases: (1) direct material harm, (2) lost gain, (3) moral harm.

Each has a different evidentiary basis. Proving all three together requires an integrated file.

1. Direct Material Harm (Lost Profits)

The difference between your profits before infringement and during the infringement period, with causation proof: that the drop stems from unfair competition, not other market factors.

Proof requires: audited financials, detailed sales data, an accounting expert report linking the drop to the infringer's conduct.

2. Infringer Profits

The owner may claim the profits the infringer earned from selling counterfeits. This is meant to prevent the offender from benefiting from unlawful conduct.

Proof is harder: theoretically requires access to the infringer's books. In practice, the judge estimates based on visible trade volume, seized inventory count, and infringement duration.

3. Moral Harm

Includes: damage to brand reputation, harm to customer trust, loss of the "emotional charge" built around the brand over years.

Moral damage assessment is inherently discretionary. The judge weighs brand fame, infringement duration, geographic scope, and sector impact.

Evidence That Persuades the Judge

Audited financial statements before and during the infringement period.

An accounting expert report linking the drop to the infringement and ruling out other factors.

Market and consumer research reports on "infringement impact on perception."

Evidence on seized goods volume, points of sale, and infringement duration.

Typical Damage Ranges in Precedent

Small cases (limited infringement): SAR 50,000–250,000. Mid cases (wide infringement of a local brand): SAR 500,000–2,000,000. Large cases (counterfeiting of an internationally famous brand): may reach millions of riyals.

These figures are approximate from available precedent — each case is assessed individually.

How We Build the Damages File at Rights

From day one of filing, we build a parallel financial evidence file: gathering financials, engaging an independent accounting expert, documenting the scope of counterfeit goods spread.

This advance preparation is what differentiates a SAR 100,000 judgment from a SAR 500,000 judgment in the same case.