Resolving Family IP Disputes while Preserving Silaturrahim in the Spirit of Ramadhan and Syawal
As the reflective days of Ramadhan transition into the celebratory spirit of Syawal, the theme of silaturrahim (maintaining family ties) takes center stage. There is a profound piece of wisdom from Prophet Muhammad (PBUH) that sits at the very heart of this: “Whoever would like his provision (rezeki) to be increased and his lifespan to be extended, let him maintain the ties of kinship.” (Sahih Al-Bukhari).
It is a powerful reminder that true wealth and business blessings are inherently tied to family harmony. Yet, from the vantage point of an Intellectual Property litigator, this season also highlights how tragically fragile those ties become when valuable intangible assets and the pursuit of that very wealth are involved.
We tend to picture IP litigation as corporate warfare between rival conglomerates. In reality, some of the most complex, protracted, and fiercely contested battles over trademarks and copyrights happen across the family dining table.
The “Grandfather’s Legacy” Fallacy
A common scenario in our practice involves the generational family business. It usually starts with a grandfather founding a modest enterprise. The second generation maintains it, but eventually, a grandchild from the third generation steps up. They modernize the operations, register the IP rights under a newly formed corporate vehicle, and turn the brand into a highly profitable venture.
Suddenly, extended family members want in. Cousins who previously showed no interest often rely on a dangerous legal fallacy: the assumption that biological descent gives them an inherent right to use a brand founded by a shared ancestor. They start rival businesses using identical or confusingly similar marks, forgetting that the trademark is now a legally registered corporate asset.
Malaysian courts have seen this repeatedly. In the battle between Original Penang Kayu Nasi Kandar and Restoran Kayu Nasi Kandar over word “Kayu” in the case of Burukan bin Mohamed & Ors v Sirajudin bin Y Mohamed Mydin & Ors [2012] MLJU 118, the court had to untangle the complexities and confusion arising from family members leveraging a shared legacy under a loosely drafted co-existence agreement.
Similarly, the Federal Court in Low Chi Yong v Low Chi Hong & Anor [2018] 1 CLJ 287 of a bitter dispute between brothers over the ‘Reynox’ trademark, had to determine the legal boundaries of verbal “family permission.” The apex court’s ruling served as a clear reminder that without formal licensing agreements, the line between shared family heritage and exclusive statutory rights quickly disappears.
When the Marriage Ends, Who Owns the Brand?
If generational rivalries are complicated, IP litigation between ex-spouses is often scorched-earth. When a marriage collapses, the fight over shared business assets frequently centers on brand custody.
We frequently see IP claims used as leverage during divorce proceedings. In one recent matter, a bitter separation led to an ex-spouse attempting to claim joint ownership of a highly successful trademark registered solely to the founder. It took multiple injunctions and an appeal before a mediated settlement secured the mark for the founder’s corporate use, while placing the long-term asset in trust for their children.
In other scenarios, a spouse might register a trademark personally, but the business operates under a jointly owned company. Post-divorce, this creates an intricate battle over whether the individual holds the trademark on trust for the company or retains exclusive rights to license it. And as the heavily reported High Court case of Syarikat Faiza Sdn Bhd v Faiz Rice Sdn Bhd [2017] 1 LNS 1581 demonstrated, IP battles can escalate even between a mother and her own son.
IP as Matrimonial Property (Harta Sepencarian)
This brings us to a fascinating, underexplored frontier in Malaysian jurisprudence which is the intersection of IP rights and Islamic family law. While the Syariah Courts routinely divide physical assets like real estate or vehicles upon divorce, Intellectual Property is frequently overlooked.
From a statutory standpoint, both Section 62 of the Trademarks Act 2019 and Section 27 of the Copyright Act 1987 explicitly recognize registered trademarks and copyrights as movable property. They are intangible assets with distinct commercial value. If a brand’s valuation skyrockets during the subsistence of a marriage, a compelling argument exists. Even if the mark is registered entirely under one name, the ex-spouse may rightfully claim a portion of its commercial value, royalties, or licensing fees as harta sepencarian (jointly acquired matrimonial property).
As our economy shifts heavily toward digital and brand assets, IP lawyers and family law practitioners must increasingly bridge this gap.
The Spirit of Settlement
The financial cost of IP litigation is heavy, but in family disputes, the emotional damage is permanent. Public court battles erode consumer trust and destroy the very silaturrahim we reflect upon during Ramadhan and celebrate during Syawal. This is why mediation is often the most strategic route. It allows families to craft co-existence agreements or delayed IP transfers that strict judicial rulings cannot offer.
The ultimate lesson here is proactive protection. The law dictates who owns a logo, but it cannot fix family grievances. To protect both the business and family ties, founders must separate emotion from corporate governance. Register trademarks early, document ownership explicitly, and formalize licenses even among siblings.
As we seek forgiveness in these final days of Ramadhan and prepare to celebrate Syawal, remember this: a trademark certificate secures your commercial rights, but clear corporate governance and a forgiving heart preserve both your rezeki and your family’s peace of mind.
Written by:
Ahmad Hafiz Zubir (Partner) hafiz.zubir@azmilaw.com
Corporate Communications, Azmi & Associates – 13 March 2026
