Saudi Arabia Tightens Software Licensing Compliance Rules

Saudi Arabia has introduced tighter rules on software copyright and licensing that will affect enterprise software vendors and the businesses that use their products. The framework comes under a new Copyright Law issued by Royal Decree M/169 of 14/08/1447H, published on 13 February 2026 and set to enter into force 180 days later, on 12 August 2026.

Under the law, computer programs, applications, and databases are expressly protected as copyrighted works, and software licences are enforceable by statute. License terms — including shrink-wrap, click-wrap, and installation-time agreements — are binding on purchasers and users unless they breach public order or morality. Licences must clearly state the scope of use, duration, territorial reach, and any restrictions, while unilateral changes require prior notice and user acceptance.

Companies are expected to set up internal software licence compliance management systems, standardise their contracts, and clearly define copyright ownership and permitted uses for both employee-created and third-party software. At the same time, lawful users keep statutory permitted uses — such as backup, maintenance, error correction, interoperability, and security testing — which cannot be waived by contract.

Registration and enforcement

Software can be registered as a literary work with the Saudi Authority for Intellectual Property (SAIP), creating a rebuttable presumption of ownership and strengthening a company's position in disputes. Registration requires an application with a copy of the program and ownership or authorisation documents. Protection arises automatically on creation, but registration is recommended to support enforcement, and SAIP's online portal is the main channel for filings and complaints.

Authorities have stepped up IP enforcement in the digital space, including blocking infringing websites and streaming platforms and seizing infringing materials. A dedicated software copyright protection guide has been issued for the ICT sector, covering registration, licensing structures, and how complaints are received and investigated. Businesses distributing digital content or running software platforms in the Kingdom are advised to review their contracts and compliance practices ahead of the August deadline.

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