General Overview of the Ipr Protection in Russia

GENERAL OVERVIEW OF THE IPR PROTECTION IN RUSSIA

Russia is a member of all most important International Conventions, Treaties and Agreements, like Paris Convention, WIPO Convention, TRIPS, РСТ, PLT, Madrid Agreement and Protocol, Singapore Treaty, TLT, Berne Convention for the Protection of Literary and Artistic Works, etc.

part 1 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com STRUCTURE OF RUSSIAN LEGISLATION for protection of intellectual Property Rights |

STRUCTURE OF THE RUSSIAN LEGISLATION for Intellectual Property Rights Protection

CONSTITUTION OF THE RUSSIAN FEDERATION CIVIL CODE CRIMINAL CODE CODE OF ADMINISTRATIVE OFFENCES CODE OF CIVIL PROCEDURE CODE OF COMMERCIAL COURT PROCEDURE CODE OF CRIMINAL COURT PROCEDURE Special Acts, e.g. Act on Protection of Competition New: Decisions of the Russian Supreme Commercial Court

Government Enactments, e.g. Statute of Patent Fees Administrative Regulations for the RU PTO Activity part 1 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com STRUCTURE OF RUSSIAN LEGISLATION for Intellectual Property Rights Protection | cont.

CIVIL CODE PART IV: RIGHTS TO THE RESULTS OF INTELLECTUAL ACTIVITY AND TO MEANS OF INDIVIDUALIZATION

Art. 1225 – 1551

Completely dedicated to IPR matters

Last amendments – 2008

Further changes are expected by the end of 2013

part 1 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com STATIC DATA OF IP ACTIVITY IN RUSSIA (Annual report for 2012) |

STATIC DATA OF IP ACTIVITY IN RUSSIA Inventions: The dynamics of filing and examination of patent applications 2008 2009 2010 2011 2012 Filed with the RU PTO, totally including: 41849 38564 42500 41414 44211 Russian applicants 27712 25598 28722 26495 28701 Foreign applicants 14137 12966 13778 14919 15510 Examined, totally 38909 40966 41031 42860 42054 Granting decisions, including: 29903 32144 30998 32250 32428 Russian applicants 22668 23502 21307 22339 21752 Foreign applicants 7235 8642 9691 9911 10676 Refusal decision, including: 1230 959 963 844 873 Russian applicants 1078 816 809 728 693 Foreign applicants 152 143 154 116 180 Decisions to withdraw the application, including: 6888 6982 8095 8687 6848 Russian applicants 4503 4060 4161 5161 3975 Foreign applicants 2385 2922 3934 3526 2873 part 1 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com STATIC DATA OF IP ACTIVITY IN RUSSIA (Annual report for 2012) | cont.

Inventions: The number of valid Russian patents as of 31.12.2012

Valid as of 31.12.2011 168558 Number of patents for inventions granted in 2012 32880

Terminated in 2012 (after the period of validity and / or for non-payment 19923 annual maintenance fee, or in effect on the decisions of RU PTO)

Valid as of 31.12.2012 181515

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Utility Models: The dynamics of filing and examination of UM applications 2008 2009 2010 2011 2012 Filed with the RU PTO, totally including: 10995 11153 12262 13241 14069 Russian applicants 10483 10728 11757 12584 13479 Foreign applicants 512 425 505 657 590 Examined, totally 10715 11953 11285 12541 13410 Granting decisions, including: 10000 11094 10514 11614 12282 Russian applicants 9555 10710 10059 11090 11766 Foreign applicants 445 384 455 524 516 Refusal decision, including: 25 42 20 0 56 Russian applicants 25 39 20 0 52 Foreign applicants 0 3 0 0 4 Decisions to withdraw the application, 690 817 751 927 1072 including: Russian applicants 648 775 724 887 1033 part 1 | ForeignGENERAL OVERVIEW applicants OF THE IP PROTECTION IN RUSSIA 42 42 27“ARS UNA − SPECIES40 MILLE”39 | www.ars - patent.com STATIC DATA OF IP ACTIVITY IN RUSSIA (Annual report for 2012) | cont.

Utility Models: The number of valid Russian UM patents as of 31.12.2012

Valid as of 31.12.2011 46876

Number of patents for UM granted in 2012 11671

Terminated in 2012 (after the period of validity and / or for non-payment 7801 annual maintenance fee, or in effect on the decisions of RU PTO)

Valid as of 31.12.2012 50746

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Industrial Designs: The dynamics of filing and examination of designs applications 2008 2009 2010 2011 2012 Filed with the RU PTO, totally including: 4711 3740 3997 4197 4640 Russian applicants 2356 1972 1981 1913 1928 Foreign applicants 2355 1768 2016 2284 2712 Examined, totally 5194 5460 4557 4101 4025 Granting decisions, including: 4360 4538 3940 3400 3374 Russian applicants 2273 2055 1940 1485 1342 Foreign applicants 2087 2483 2000 1915 2032 Refusal decision, including: 179 120 112 143 140 Russian applicants 139 99 94 103 100 Foreign applicants 40 21 18 40 40 Decisions to withdraw the application, 655 802 505 558 511 including: Russian applicants 495 614 392 403 375 part 1 | ForeignGENERAL OVERVIEW applicants OF THE IP PROTECTION IN RUSSIA 160 188 113“ARS UNA −155 SPECIES MILLE”136 | www.ars - patent.com STATIC DATA OF IP ACTIVITY IN RUSSIA (Annual report for 2012) | cont.

Industrial Designs: The number of valid Russian ID patents as of 31.12.2012

Valid as of 31.12.2011 21295

Number of patents for ID granted in 2012 3381

Terminated in 2012 (after the period of validity and / or for non-payment 2046 annual maintenance fee, or in effect on the decisions of RU PTO)

Valid as of 31.12.2012 22630

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Trade Marks and Service Marks: The dynamics of filing and examination of TM applications

2008 2009 2010 2011 2012 Applications for registration of marks, totally, 57112 50107 56848 59717 61923 including: Russian applicants 30024 26448 32735 33252 34851 Foreign applicants, including: 27088 23659 24113 26465 27072 International marks for which legal protection is claimed in the RF under the Madrid Agreement or 16738 15113 14289 16083 15875 Protocol Examined totally, including: 50586 55852 53408 54993 57528 Granting decisions 43002 46440 43920 39553 41830 Refusal decisions 7333 9106 8950 9145 10424 Withdrawal decisions 251 306 538 328 791 Withdrawal and refusal on the formal examination 4211 4635 6828 5967 4483 part 1 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars-patent.com STATIC DATA OF IP ACTIVITY IN RUSSIA (Annual report for 2012) | cont.

Trade Marks and Service Marks: The dynamics of TM registrations

2008 2009 2010 2011 2012 Number of Registered Marks, totally 36617 36436 35178 35954 40106 including: From Russian applicants 19895 19585 20116 16311 19284 From foreign applicants 16722 16851 15062 19643 20822 of all of that International marks for which legal protection is claimed in the RF 8518 8101 6019 12724 13067 under the Madrid Agreement or Protocol Number of TM which term of validity was 6431 6690 9554 11915 11746 extended, Totally, including from Russian applicants 3550 4243 6119 8525 7852 From foreign applicants 2881 2447 3435 3390 3894 Valid registrations as of 31.12.2012 222208 246607 268165 281784 296631 part 1 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars-patent.com PECULIARITIES OF INTELLECTUAL PROPERTY OBJECTS IN RUSSIA |

PECULIARITIES OF INTELLECTUAL PROPERTY OBJECTS IN RUSSIA

Civil Code Article 1225. Protectable Results of Intellectual Activity and Means of Individualization 1. Results of intellectual activity and equated to them means of individualization of legal persons, goods, work, services, and enterprises that are provided with legal protection (intellectual property) are: 1] Works of science, literature, and art; 2] Computer programs (software); 3] Databases; 4] Performances; 5] Phonograms;

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6] Communication over the air or by cable of radio or television transmissions (broadcast by organizations of over-the-air or cable broadcasting); 7] Inventions; 8] Utility models; 9] Industrial designs; 10] Selection attainments; 11] Topology of integrated circuits; 12] Secrets of production (know-how); 13] Company names; 14] Trademarks and service marks; 15] Appellation of origin of goods; 16] Commercial designations.

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Civil Code Article 1349. Objects of Patent Rights 1. The objects of patent rights are the results of intellectual activity in the scientific and technical area that meet the requirements established by the present Code for inventions and utility models and the results of intellectual activity in the area of art design that meet the requirements established by the present Code for industrial designs. 2. Relates to secret inventions. 3. Stipulates that patent protection may not be granted to secret utility models and secret industrial designs. 4. The following may not be objects of patent rights: 1] Methods of cloning of a human being; 2] Methods of modification of the genetic integrity of cells of the embryonic line of a human being; 3] Use of human embryos for industrial and commercial purposes; 4] Other solutions contradicting social interests, principles of humanity and morality. part 2 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars-patent.com PECULIARITIES OF INTELLECTUAL PROPERTY OBJECTS IN RUSSIA | cont.

Civil Code Article 1350. Conditions of Patentability of an Invention 1. A technical solution in any area related to a product (including a structure, substance, microorganism strain, or culture of cells of plants or animals) or a means (a process of affecting a material object by material means) shall be protected as an invention. An invention shall be granted legal protection if it is new, has an inventive level, and is industrially applicable. 2. An invention is new if it is not known from the prior art. An invention has an inventive level if for a specialist it does not obviously follow from the prior art. The prior art includes any information that became publicly available in the world before the priority date of the invention. 3. Grace period – 6 month

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4. An invention is industrially applicable if it may be used in industry, agriculture, health care, other branches of the economy, or the social sphere. 5. These objects are not inventions: 1] Discoveries; 2] Scientific theories and mathematical methods; 3] Solutions involving only the shape of articles and directed at the satisfaction of aesthetic needs; 4] Rules and methods for games and for intellectual or economic activity; 5] Computer programs; 6] Solutions consisting only of presentation of information. In accordance with the present paragraph a possibility of classifying these objects as inventions shall be excluded only in the case when the patent application involves these objects as such.

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6. Legal protection as inventions shall not be granted to: 1] Varieties of plants, breeds of animals and biological methods of obtaining them, with the exception of microbiological methods and products obtained through the use of such methods; 2] Topology of integrated circuits.

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Civil Code Article 1351. Conditions of Patentability of a Utility Mode 1. A technical solution relating to a device shall be protected as a utility model. A utility model shall be granted legal protection if it is new and industrially applicable. 2. A utility model is new if the totality of its essential features is not known from prior art. Prior art includes information on means for the same purpose as the utility model published in the world and information on their use in the Russian Federation if such information became publicly available before the priority date of the utility model. 3. Grace period – 6 month. 4. A utility model is industrially applicable if it may be used in industry, agriculture, health care, other branches of the economy, or the social sphere. 5. Legal protection as utility models shall not be granted to: 1] Solutions involving only the shape of articles and directed at the satisfaction of aesthetic needs; 2] Topology of integrated circuits. part 2 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars-patent.com PECULIARITIES OF INTELLECTUAL PROPERTY OBJECTS IN RUSSIA | cont.

Civil Code Article 1352. Conditions of Patentability of an Industrial Design 1. An art design solution of a articles of industrial or handicraft production defining its shape shall be protected as an industrial design. An industrial design shall be granted legal protection if it is new and original in its essential features. The essential features of an industrial design are the features determining the aesthetic and/or ergonomic peculiarity of the external view of the article, including form, configuration, ornamentation, and combination of colors. 2. An industrial design is new if the totality of its essential features reflected in images/pictures of the article and included in the list of essential features of the industrial design (Paragraph 2 of Article 1377) is not known from information that had become publicly available in the world before the priority date of the industrial design. 3. An industrial design is original if it’s essential features are determined by the creative nature of the peculiarity of the article. part 2 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars-patent.com PECULIARITIES OF INTELLECTUAL PROPERTY OBJECTS IN RUSSIA | cont.

4. Grace period – 6 month 5. Legal protection as an industrial design shall not be granted to: 1] Solutions determined exclusively by the technical function of the article; 2] Objects of architecture (other than small architectural forms), industrial, hydro technical, and other stationary structures; 3] Objects of instable form from liquid, gas, flowing or similar substances.

part 2 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars-patent.com DURATION AND EXTENSION OF VALIDITY TERM |

DURATION AND EXTENSION OF VALIDITY TERM

Civil Code Article 1363. Time Periods of Validity of the Exclusive Rights to an Invention, Utility Model, and Industrial Design (extract) 1. The time period of validity of the exclusive right to an invention, utility model, or industrial design … shall be calculated from the filing date of the original application for the issuance of a patent to the RUPTO and …shall constitute: 20 years – for inventions; 10 + 3 years – for utility models; 15 + 10 years – for industrial designs. 2. If from the filing date of an application for the issuance of patent for an invention relating to drugs, pesticide, or agrochemical, for the use of which a permission is…

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required, and until the day of receipt of the first permission for its application more than 5 years have elapsed, the time period of validity of the exclusive right to the corresponding invention and of the patent certifying this right shall be extended on request by the patent holder by the RUPTO. This time period shall be extended for the time that has passed from the filing date of the patent application to the day of receipt of the first permission for the use of the invention, minus 5 years. In such a case, the time period of validity of the patent for the invention may not be extended for more than 5 years. An application for extending the term shall be filed by the patent holder during the time period of validity of the patent and before the expiration of six months from the date of receipt of the permission for application of the invention or from the date of issuance of the patent, depending upon which of these time period expires later.

part 2 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars-patent.com PRIOR USE RIGHT AND AFTER USE RIGHT |

PRIOR USE RIGHT AND AFTER USE RIGHT

Civil Code Article 1400. Reinstatement of Validity of a Patent for an Invention, Utility Model, or Industrial Design. Right of After Use (extract) 1. Validity of a patent for an invention, utility model or industrial design, which effectiveness was terminated due to the fact that the patent fee for maintaining the patent was not paid within the established time period may be reinstated by the RUPTO on petition of the patent owner. The petition for reinstatement may be filed with the RUPTO within three years from the day of expiration of the time period for payment of the patent fee but before the expiration of the time period of validity of a patent. A document confirming payment in the established amount of the patent fee for reinstatement of the effectiveness of the patent must be attached to the petition.

part 2 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars-patent.com PRIOR USE RIGHT AND AFTER USE RIGHT | cont.

3. A person which in the period between the date of termination of the patent and the date of publication in the official gazette of the RUPTO of information on the reinstatement of the patent, began use of the invention, utility model or industrial design or made the preparations necessary for this within the indicated time period shall keep the right to its further uncompensated use without broadening the scope of its use (the right of after use).

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CIVIL CODE OF RUSSIA

Article 1252. Protection of Exclusive Rights (extract) 1. Protection of exclusive rights to the results of intellectual activity and to means of individualization shall be conducted in particular by the lodging of following claims: 1) On the recognition of the right; 2) On stopping of activities infringing the right or creating a threat of its infringement; 3) On compensation of damages; 4) On the taking off the physical carrier; 5) On publication of the decision of a court on the infringement committed with an indication of the actual right-holder.

part 2 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com LIABILITY FOR INFRINGEMENT of Intellectual Property Rights | cont.

2. As a security for a claim in cases of the violation of the exclusive rights preliminary injunctions established by procedural legislation may be applied, among which seizure may be applied to material carriers, equipment, and materials.

3. In some cases it is possible to demand from the infringer a payment of compensation for the infringement of the right instead of compensation for damages. Compensation shall be subject to recovery upon proof of the fact of infringement of a right. In such case the right-holder applying for protection of a right, shall be freed from proof of the amount of damages caused to him. - not for inventions yet

The amount of compensation shall be determined by the court …. taking into account the requirements of reasonableness and justice.

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4. In the case when the preparation, distribution, or other use, and also the import, transportation, or storage of physical carriers in which the result of intellectual activity or the means of individualization is expressed lead to infringement of the exclusive right to such a result or to such means, such physical carriers shall be considered counterfeit and on decision of a court shall be subject to removal from circulation and destruction without any compensation. 5. Equipment, other facilities and materials mainly used or meant for commission of infringements of exclusive rights, shall be subject to removal from circulation and destruction at the expense of the infringer, unless a statute provides for their being transferred to the income of the Russian Federation. 7. In cases when an infringement of an exclusive rights has been recognized as bad faith competition, protection of the infringed exclusive right may be exercised both by the means provided by the present Code and in accordance with antimonopoly legislation. part 2| GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars-patent.com LIABILITY FOR INFRINGEMENT of Intellectual Property Rights | cont.

CRIMINAL CODE OF RUSSIA Three articles dedicated to IPR Article 146.1. Violation of Rights of Authors and Related Rights 1. Commitment of a usurpation of authorship (plagiarism) if this action caused major damage to the author or other copyright holder – shall be punished by a fine of up to 200 000 rubles or the salary or other income of the convict for a period of eighteen months, or by compulsory labor for a term of up to 480 hours, or correctional labor for up to one year, or arrest for up to six months. 2. Illegal use of copyright or related rights, as well as the acquisition, storage, transportation of counterfeit copies of works or phonograms for sale, committed on a large scale – shall be punished by a fine of up to 200 000 rubles or the salary or other Income of the convict for a period of 18 months, or by compulsory labor for a term of up to 480 hours, or correctional work for up to two years, or forced labor for a term not exceeding two years, or imprisonment for the same term. part 2| GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com LIABILITY FOR INFRINGEMENT of Intellectual Property Rights | cont.

3. Actions envisaged in the second part of this Article, if committed: a] A group of persons by prior conspiracy or by an organized group; b] On an extra large scale; c] A person using his official position, - punishable by compulsory work for a term not exceeding 5 years, or imprisonment for up to 6 years with a fine of up to 500 000 rubles or the salary or other income of convict for a period of up to 3 years or without it. Note. The actions provided for in this article shall be deemed committed in large scale if the cost of copies of works or phonograms or the value of the rights to the use of copyright and related rights exceeds 100 000 rubles, and on an extra large scale – 1 000 000 rubles. Article 147. Violation of Rights of Inventors and Patent Rights 1. Illegal use of an invention, utility model or industrial design, disclosure without the consent of the author or of the applicant essence of the invention, utility model or industrial design before the official publication of information about them, commitment part 2| GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars-patent.com LIABILITY FOR INFRINGEMENT of Intellectual Property Rights | cont.

of a usurpation of authorship or co-authorship coercion, if these acts have caused major damage – shall be punished by a fine of up to 200 000 rubles or the salary or other income of the convict for a period of eighteen months, or by compulsory works for a term of up to 480 hours, or forced labor for a term not exceeding two years, or deprivation of liberty for the same term. 2. The same actions committed by a group of persons by prior conspiracy, or by an organized group – shall be punished by a fine of 100 000 to 300 000 rubles or the salary or other income of the convict for a period of one to two years, or compulsory labor for a term not exceeding 5 years, or arrest for up to 6 months, or by deprivation of liberty for up to 5 years. Article 180. Illegal Use of Trademark 1.Illegal use of a trademark, service mark, appellation of origin or similar designations for similar goods, if the offense is committed repeatedly or caused major damage – part 2| GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com LIABILITY FOR INFRINGEMENT of Intellectual Property Rights | cont.

shall be punished by a fine of up to 200 000 rubles or the salary or other income of the convict for a period of 18 months, or by compulsory labor for a term of up to 480 hours, or correctional labor for up to two years. 2. Illegal use of the label warning against not registered in the Russian Federation, trademark or appellation of origin if the act committed repeatedly or caused major damage – shall be punished by a fine of up to 120 000 rubles or the salary or other income of the convict for a period of up to one year, or by compulsory labor for a term of up to 360 hours, or correctional labor for up to one year. 3. Actions stipulated by the first or second paragraph of this article, done by a group of persons by prior conspiracy or by an organized group, − shall be punished by a fine of 500 000 to 1 000 000 rubles or the salary or other income of the convict for a period of 3 to 5 years, or forced labor for a term not exceeding five years, or deprivation of liberty for up to 6 years with a fine of up to 500 000 rubles or the salary or other income of the convict for a period of up to 3 years or without it.

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RUSSIAN CODE OF ADMINISTRATIVE OFFENCES Three articles dedicated to IPR Article 7.12. Violation of Rights of Authors and Related Rights, Rights of Inventors and Patent Rights 1. Importation, sale, lease, or otherwise unlawful use of copies of works or phonograms for the purpose of deriving income in cases where copies of works or phonograms are counterfeit, according to the legislation of the Russian Federation on Copy- right and Related Rights or on copies of works or phonograms contains false information their manufacturers, the location of their production, as well as the holders of copyright and related rights, as well as a violation of copyright and related rights in order to generate income, except as provided for by Part 2 of Article 14.33 of this Code – shall entail the imposition of an administrative fine on citizens in the amount of 1 500 to 2 000 rubles with confiscation of infringing copies of works or phonograms, as well as materials and equipment used for their playback, and other instruments of part 1 | GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com LIABILITY FOR INFRINGEMENT of Intellectual Property Rights | cont.

committing the administrative offense; for officials – from 10 000 to 20 000 with confiscation of infringing copies of works or phonograms, as well as materials and equipment used for their 30 000 to 40 000 rubles with confiscation of infringing copies of works or phonograms, and materials and equipment used for their playback, and the other instruments of committing the administrative offense. 2. Illegal use of an invention, utility model or industrial design, except as specified in paragraph two of Article 14.33 of the Code, the disclosure without the consent of the author or of the applicant an essence of the invention, utility model or industrial design before the official publication of information about them, commitment of a usurpation of authorship or co-authorship coercion – shall entail the imposition of an administrative fine on citizens in the amount of 1 500 to 2 000 rubles; for officials – from 10 000 to 20 000 rubles; for legal entities – from 30 000 to 40 000 rubles.

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Article 14.10. Illegal Use of Trademark 1. Illegal use of a trademark, service mark, appellation of origin or similar designations for similar goods – shall entail the imposition of an administrative fine on citizens in the amount of one 1 500 to 2 000 rubles with confiscation of items containing illegal reproduction of a trademark, service mark, appellation of origin; on officials – from 10 000 to 20 000 rubles with confiscation of items containing illegal reproduction of a trademark, service mark, appellation of origin; for legal entities – from 30 000 to 40 000 rubles with confiscation of items containing illegal reproduction of a trademark, service mark, appellation of origin. Article 14.33. Unfair Competition 1. Unfair competition, if these actions do not contain a criminal offense, except in cases provided for in Article 14.3 of this Code and Part 2 of this article – punishable by an administrative fine on officials in the amount of 12 0000 to 20 000 rubles; for legal entities from 100 000 to 500 000 rubles. part 2| GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com LIABILITY FOR INFRINGEMENT of Intellectual Property Rights | cont.

2. Unfair competition, expressed in the commercialization of goods with illegal use of intellectual property and similar means of individualization of a legal person, means of individualization of products, works and services – punishable by an administrative fine on officials in the amount of 20 000 rubles or disqualification for a period of up to 3 years; and on legal entities – from 1/100 to 15/100 of the income of the violator from selling goods (works, services) on the market where the violation, but not less than 100 000 rubles.

part 2| GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com RUSSIAN FEDERATION COURT STRUCTURE |

RUSSIAN FEDERATION COURT STRUCTURE

RUSSIAN CONSTITUTIONAL COURT Russian Supreme Court Russian Supreme Commercial Court

Regional Appellation and Cassation Courts

Regional Appellation and Cassation Commercial Courts

Regional Federal Courts Regional Commercial Courts

Specialized Court: Court for Intellectual Rights (Moscow) – from 2013

Part 2| GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com RUSSIAN COURT FOR INTELLECTUAL RIGHTS

FEDERAL CONSTITUTIONAL ACT ―On Commercial Courts in the Russian Federation‖ (extract) Article 43.2. Court for intellectual rights Court for intellectual rights is a specialized commercial court considering within its jurisdiction as a court of first instance and appeal courts cases of disputes relating to the protection of intellectual rights. Article 43.4. The powers of the Court for intellectual rights 1. Court for intellectual rights as a court of first instance, consider: 1] cases challenging the normative legal acts of federal executive authorities, con- cerning the rights and legitimate interests of the applicant in the legal protection of intellectual activity results and means of individualization, including in the field of patent rights and rights for selection attainment, the right to integrated circuits, the rights on trade secrets (know-how), the right to the means of individualization of legal persons, goods, services and businesses; part 2| GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com RUSSIAN COURT FOR INTELLECTUAL RIGHTS | cont.

2] cases of disputes regarding the granting or termination of legal protection of the results of intellectual activity and means of individualization of legal persons, goods, services and businesses (with the exception of copyright and related rights, topog- raphies of integrated circuits), including: • challenging the non-legislative acts, decisions and actions (or inaction) of the federal executive authority on intellectual property …; • of challenging the decision of the federal antimonopoly authority on the recognition of unfair competition actions related to the acquisition of the exclusive rights of the means of individualization of legal persons, goods, works, services and businesses; • of establishing of the patent ownership; • of invalidating a patent for an invention, utility model, industrial design or selection attainment, and invalidating decision to grant legal protection to a trademark appellation of origin and to grant exclusive rights to a name, if federal law does not provide for a different procedure for the invalidation; • early termination of the legal protection of a trademark due to its non-use. part 2| GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com OVERVIEW OF THE IMPORTANT RUSSIAN COURT CASES

Part 3| GENERAL OVERVIEW OF THE IP PROTECTION IN RUSSIA “ARS UNA − SPECIES MILLE” | www.ars- patent.com OVERVIEW OF THE IMPORTANT RUSSIAN COURT CASES |

RU 2178649 1. Phyto tea, comprising • 40-70% of hibiscus petals, • 20-35% of cassia, and • flavoring (…).