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The new copyright law, approved by the Council of Ministers on Jan. 27 and published in the Official Gazette on Feb. 13, will take effect 180 days later on Aug. 12, according to multiple law firm analyses including a detailed briefing from Gowling WLG. It replaces the framework established under Royal Decree No. M/41 from 2003, which had been amended in 2018 but lacked provisions for contemporary issues such as artificial intelligence and online content distribution. The legislation transfers regulatory oversight to the Saudi Authority for Intellectual Property while assigning prosecution responsibilities to the Public Prosecution, measures originally introduced in the 2018 update but now embedded in a more comprehensive statute.
Penalties for infringement have increased substantially under the new regime, with the maximum fine rising fourfold to 1 million Saudi riyals and the prison term doubling to one year, Gowling WLG reported in its March assessment. Repeat offenders within three years of completing a prior sentence will face doubled sanctions, alongside mandatory confiscation and destruction of infringing materials and equipment. A settlement mechanism allows the authority to resolve cases for up to 2 million riyals before referring them for prosecution, with the option preserving civil claims for damages even after criminal resolution.
Provisions addressing artificial intelligence mark one of the law’s most forward-looking elements, permitting the copying of lawfully published and acquired works for developing AI products or algorithms provided the use remains limited and proportionate. Baker McKenzie noted in its July review that the exception aligns the kingdom with international standards while addressing gaps in the prior legislation that predated widespread AI adoption. The statute stops short of clarifying copyright status for purely AI-generated content, leaving that determination to forthcoming implementing regulations from the Saudi Authority for Intellectual Property.
Ownership rules for works created during employment receive explicit clarification, vesting economic rights in the employer when the creation falls within the scope of the employee’s duties and relates to business activities, according to analyses from Reed Smith and Allen & Overy. Moral rights remain perpetual, non-transferable and non-waivable, passing to heirs upon the author’s death and including protections against distortion that could harm the creator’s reputation. Neighbouring rights for performers, sound recording producers and broadcasting organisations gain formal definition with protections equivalent to those for authors, a step that several legal reviews describe as essential for the kingdom’s growing entertainment and media sectors.
Internet service providers and online platforms receive conditional safe harbour protections against liability for user-generated content, provided they engage in automatic transmission without modification, lack knowledge of infringements and act promptly to remove offending material upon notification. The law also introduces measures for orphan works, accessibility copies for persons with disabilities by non-profit entities, and a presumption of authorship for individuals named on a work unless proven otherwise. These additions address areas entirely absent from the 2003 framework and reflect commitments under treaties such as the Marrakesh Treaty, as highlighted in Baker McKenzie’s evaluation.
The legislation supports Saudi Arabia’s Vision 2030 objectives by modernising intellectual property rules to stimulate digital innovation, creative industries and foreign investment, according to assessments from multiple international law firms including Gowling WLG. It expands the territorial scope to cover works first published domestically or within 30 days in the kingdom regardless of the author’s nationality, while prohibiting assignments of an author’s entire future output. Businesses must now review licensing agreements, employment contracts and AI-related activities to ensure compliance before the August effective date.
Implementing regulations expected from the Saudi Authority for Intellectual Property will provide further detail on collective management organisations, online procedures and specific AI applications, as noted across legal commentaries published since the law’s approval. The authority may outsource certain inspection functions to the private sector and can order temporary business closures of up to seven days in infringement cases. Rights holders retain independent civil remedies for seizure, injunctions and damages irrespective of any criminal proceedings.
