Despite geopolitical tensions, Russia still guarantees the protection of Industrial Property (IP) rights for foreign individuals and entities, albeit with some limitations.

Restrictions:

• Compulsory Licenses: The government can grant licenses for the use of patents or other exclusive rights to third parties, compensating the rights holders with royalties. Russian regulations allow for the activation of compulsory licenses in emergency situations to protect national defense and security, as well as the health and lives of citizens. However, following the escalation of the conflict, an exemption was introduced that excludes the payment of compensation to intellectual property rights holders from hostile countries. This exemption is limited to patents deemed necessary for the defense and security of the country.
• Parallel Importation: The importation of Western goods without the consent of the IP rights holder has been permitted if the products have already been legitimately placed on the market in another country. In this case, the principle of international exhaustion of intellectual property rights, utilized in various nations, applies. However, this principle does not authorize the importation of counterfeit products.
• Temporary Nationalization: Temporary nationalization of foreign enterprises is possible, granting the right to use their industrial property rights.

Trademark Filings:

Rospatent continues to examine trademark applications without discrimination. Ownership by entities from “hostile countries” is not considered an obstacle to registration.

Issues:

• Cancellation for Non-Use: In Russia, trademarks that have not been used for three consecutive years can be canceled. Sanctions and parallel imports are not considered use of the trademark.
• Increase in Cancellation Actions: Local entities are exploiting the situation to file cancellation actions for non-use.

Recommendations:

• Maintain Trademark Use to Avoid Cancellation When Possible: Non-use due to sanctions does not constitute just cause, and parallel imports are not considered use of the trademark.
• Consider Re-filing the trademark with important precautions to avoid so-called “bad faith filings.”