Intellectual property (IP) is being created daily across businesses through branding, technology, software, content, designs and internal know-how. However, legal and business experts warn that many companies still fail to properly identify, protect or manage these assets, exposing themselves to significant legal and commercial risks.

As intangible assets increasingly underpin company valuations, IP audits are emerging as a key tool for businesses seeking to understand what they own, how it is protected and whether it can be commercially exploited.

An IP audit is commonly described as a systematic review of a company’s intellectual property portfolio. Much like a financial audit, it aims to identify assets, assess ownership and evaluate risks. Without such a review, businesses may remain unaware of weaknesses until disputes, investments or exit negotiations bring them to light.

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A former employee filed a case against his ex‑employer seeking Dh120,000, claiming reputational, financial, and psychological harm caused by a termination letter. However, an Abu Dhabi court has dismissed the lawsuit, finding it lacked a legal basis.



The Abu Dhabi Family, Civil and Administrative Claims Court rejected the claim in full, noting that the plaintiff had participated in the employer’s internal investigation procedures and had not demonstrated any actionable fault by the company.


The employee alleged that he had been wrongfully accused of “gross misconduct” and a “serious violation of company policy” in the termination letter, which he argued damaged his reputation. Following a grievance filed with the Ministry of Human Resources, the employer amended the letter to indicate that the dismissal was at the employer’s sole discretion, a change the plaintiff claimed proved the initial allegations were unfounded.


As part of his evidence, the plaintiff submitted the original termination letter and documents from the Ministry grievance, including a settlement agreement between him and the employer. The company argued that the claim was without merit and requested that the plaintiff be ordered to pay legal costs.


The court observed that, under UAE Civil Transactions Law, a party causing harm is generally liable for compensation. However, the plaintiff’s claim rested on the assertion that the termination letter constituted wrongful conduct.


The judge noted that the dismissal was later amended by mutual agreement and that the plaintiff had agreed to the internal procedures. Considering the signed settlement, the court concluded the employer had not acted in a manner warranting compensation.


The lawsuit was dismissed, and the plaintiff was ordered to bear the legal costs and expenses.

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