Published in the January 2009 issue of Business Today
http://www.zawya.com/Story.cfm/sidZAWYA20090103094648/Legal%20Developments%202008:%20An%20Overview/
Taimur Malik
The sultanate witnessed major legal developments in 2008 and more than 130 Royal Decrees (RDs) were issued covering a wide range of issues. These decrees created new laws, amended existing laws, and approved treaties with other countries, as well as dealing with administrative matters.
This article provides a brief summary of the various new laws issued this year. Landlord and tenant One of the most important legal amendments was RD 72/2008, which amends some provisions regulating the relationship between landlords and tenants. This reflects the desire of the government to control the unprecedented rent increases seen over the last few years.
The amendments prohibit landlords from increasing the rent till after the lapse of three years from the date of commencement of the tenancy/lease agreement.
Even after the lapse of three years, landlords are restricted to seeking a rent increase of a maximum of seven per cent annually of the annual rent specified in the tenancy agreement. Moreover, the amendments prohibit the landlord from requesting the tenant to vacate the premises before the lapse of four years from the date of commencement of the tenancy agreement if the premises were rented or leased for a residential purpose, and seven years if they were leased for a commercial, professional or industrial purpose.
The amendments also acknowledge and protect the ownership interest of the landlord and provide five situations in which the landlord may request the tenant to vacate the premises. Omanisation The government has been consistently pursuing its Omanisation targets and the success of these policies is reflected in the growing involvement of Omani nationals in the technical, financial and professional fields.
In this respect, an important development relating to the legal profession has been the amendments to the Advocacy Law by RD 78/2008. These amendments provide that only Omani lawyers will be eligible to appear and make submissions before the Primary Courts and courts of the same level after December 31, 2008.
E-legislation RD 69/2008 promulgates the Electronic Transactions Law. This law aims at promoting public confidence in the integrity and validity of electronic transactions. It endeavours to eliminate barriers to electronic transactions which may result from uncertainties over writing and signature requirements, and promote the development of the legal infrastructure necessary to implement secure electronic transactions.
The law also creates 15 offences with penalties of imprisonment for a term not exceeding two years and fine not exceeding RO5,000 or either of these two penalties. The law further creates three offences relating to information systems, encryption keys and for non-cooperation with authorities, which are punishable with imprisonment for a term not exceeding one year and fine not exceeding RO1,500 or any one of these two penalties. Industrial property rights.
There have been major developments in the legal regime regarding intellectual property and related rights and industrial property rights. In this respect, RD 65/2008 promulgating the Copyright and Related Rights Law is meant to protect the rights of authors of literary, artistic and scientific works.
RD 67/2008 promulgating the Industrial Property Rights Law replaces the laws relating to trademarks, industrial designs, geographical indications, integra-ted circuits and patents. The Industrial Property Rights Law consolidates all these laws into one law which complies with the conventions, agreements and laws adopted by the World Intellectual Property Organisation (WIPO).
This law regulates and protects a wide range of industrial property rights such as inventions, patents, utility models, industrial designs, layout designs (topographies), integrated circuits, trademarks, service marks, trade names and geographical indications.
The Industrial Property Rights Law clarifies the proprietary rights over patents with respect to inventions by employees. It provides that if the invention is a result of a work performed by the employee independently of the implementation of the employment contract in which he utilises materials, data or facilities of the employer, the proprietary right over the patent shall belong to the employer in the absence of an agreement to the contrary.
This law further provides that the employee shall be entitled to remuneration of not less than one third of the net direct or indirect benefits obtained by the employer from the utilisation of the invention. RD 86/2008 relates to the accession of the Sultanate of Oman to the Geneva Act of the Hague Agreement on the International Registration of Industrial Drawings and Designs, 1999.
The agreement was adopted by the diplomatic conference of the World Intellectual Property Organisation (WIPO) on July 2, 1999 and provides the framework for the international registration of industrial drawings and designs. Oil pollution RD 39/2008 relates to the accession of the sultanate to the International convention on Oil Pollution, Preparedness, Response and Cooperation 1990. The convention came into force on May 13, 1995 and its provisions cover such aspects as oil pollution emergency plans, oil pollution reporting procedures, national and regional response systems and international cooperation.
According to the convention, ships are required to report incidents of pollution to coastal authorities and the convention details the actions to be taken as a consequence of such pollution. The convention also calls for the stockpiling of equipment to combat oil spills, the holding of oil spill combating exercises and the development of detailed plans for dealing with pollution incidents.
Administrative matters A number of RDs were issued specifying the responsibilities and sanctioning the organisational structure of particular ministries such as the Ministry of Oil & Gas (RD 2/2008), Ministry of Housing (RD 3/2008), Ministry of Environment and Climate Affairs (RD 18/2008) and the Ministry of Transport and Telecommunications (RD 19/2008). Another important development in this respect is the issuing of the law regulating the Ministry of Foreign Affairs (RD 32/2008).
This RD provides a detailed framework for the organisational set-up and functioning of the Ministry of Foreign Affairs. Government tendering RD 36/2008 promulgates the Tender Law and provides the procedure for tendering. It also specifies the functions of the Tender Board, different types of tenders and the procedure for the submission and determination of tenders. Food safety RD 84/2008 promulgates the Food Safety Law.
This law aims at ensuring the safety and quality of food products in Oman and also deals with the import and export of food products. The Food Safety Law comprehensively deals with aspects of distribution and transportation of food products. The penalties for violating the provisions of this law include imprisonment for a period not exceeding one year and a fine not exceeding RO10,000.
Double tax treaties RD 114/2008 relates to the approval of the Treaty for the Avoidance of Double Tax and Prevention of Tax Evasion with respect to tax on income between the Government of the Sultanate of the Oman and the Government of the Socialist Republic of Vietnam. Another similar treaty which was approved by RD 100/2008 related to income generated from international aviation transport with Bangladesh.
Other Royal Decrees approved treaties on various subjects with countries including Morocco, Turkey and Singapore. Human trafficking Oman has reiterated its commitment to curb human trafficking by issuing the Human Trafficking Law (RD 126/2008).
According to the Human Trafficking Law, persons convicted of human trafficking offences may be sentenced to up to 15 years imprisonment (minimum of three years) and fined up to RO100,000 (minimum RO5,000). The offences include the deliberate exploitation of people, whether directly or by transporting them, sheltering, recruiting by force or under threat or by deception or by using one’s position or authority in exploiting other people’s weaknesses. The Human Trafficking Law further provides for the establishment of a national committee to combat human trafficking. The committee’s tasks include the drafting of an action plan and helping to rehabilitate the victims so as to integrate them into society. Meanwhile, RD 124/2008 earlier provided for the establishment of a human rights commission with an autonomous legal character. The laws discussed above reflect the key legal developments in 2008 and highlight the diversity of legal initiatives being undertaken by the Government of the Sultanate of Oman for the welfare of the general public as well as the business community.