RESTRICTED
WORLD TRADE WT/ACC/GEO/7/Add.2
27February 1998
ORGANIZATION(98-0795)
Original: English Working Party onthe
Accession ofGeorgia
ACCESSION OFGEORGIA
Additional Questions andReplies
(Documents WT/ACC/GEO/4 andWT/ACC/SPEC/GEO/1)
Addendum
ThePermanentMissionofGeorgiahassubmittedrepliestoadditionalquestionsraisedconcerning
documents WT/ACC/GEO/4 andWT/ACC/SPEC/GEO/1, withtherequest thattheybecirculated
tothemembers oftheWorking Party. Thequestions andreplies arereproduced hereunder.
_______________
Table ofContents
Page Question
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME
1. General 2 1-2
2. Substantive standards ofprotection, including procedures forthe
acquisition andmaintenance ofintellectual property rights
(a) Copyright andrelated rights 2 3-8
(b) Trademarks, including service marks 12 9-12
(c) Geographical indications 16 13
(d) Industrial designs 16 14
(e) Patents 16 15-20
(h) Requirements onundisclosed information 18 21
4. Enforcement
(a) Civil judicial procedures andremedies 18 22-23
(d) Anyspecial border measures 19 24-25
(e) Criminal procedures 19 26-27
VI. TRADE RELATED SERVICES REGIME
2. Policies Affecting Trade inServices 20 28-29
Financial services 21 30-33
Professional andbusiness services 22 34-38
Transport services 25 39-44
Tourism 27 45WT/ACC/GEO/7/Add.2
Page2
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME
1. General
Question 1
Itisstated thatthedraft Civil Code, thedraft lawsonPatents, Trademarks, theProtection of
Appellations ofOrigin andonGeographical Indications maybeavailable inEnglish bytheend
ofMay1997. Could theGovernment ofGeorgia provide copies ofthese laws?
Answer:
Translations inEnglish ofthedraft lawsonPatents, onTrademarks, ontheProtection of
Appellations ofOrigin andonGeographical Indications areavailable forconsultation intheWTO
Secretariat (Accession Division, Room 1126)
Question 2
Furthermore, could theGovernment ofGeorgia giveanup-date onthestateofplaywithregard
todevelopments inthelegislative process?
Answer:
TheCivil Code ofGeorgia wasadopted bytheParliament andcame intoforce on
25November 1997. Book 4oftheCivil Code regulates Intellectual Property matters: Chapter one
-Copyright Law, Chapter 2-Industrial Property.
ThedraftLawonPatents isscheduled tohavethefirsthearing inParliament inMay1998.
Thedraft lawonTrademarks wasdiscussed intheState Chancellery andreviewed bythe
governmental bodies. Amendments weremade bydrafters toreflect results ofdiscussions. Currently
remarks havebeenreceived fromWIPO and,afterreviewing andreflecting theWIPO proposals, the
draftwillbereturned totheState Chancellery andthensubmitted totheParliament.
ThedraftlawontheProtection ofAppellations ofOrigin andGeographical Indications isin
theprocess ofreviewing toreflect remarks from theMinistries andDepartments.
2. Substantive standards ofprotection, including procedures fortheacquisition and
maintenance ofintellectual property rights
(a) Copyright andrelated rights
Question 3
Thechapter oncopyright andrelated rights refers exclusively tothecontents ofthedraft Civil
Code which isexpected toenter intoforce bytheendof1997. Could theGovernment ofGeorgia
alsoexplain theactual system ofprotection? Furthermore, please outline what changes willbe
introduced bythenewlawincomparison totheexisting protection?WT/ACC/GEO/7/Add.2
Page3
Answer:
ThenewCivil Code ofGeorgia already entered intoforce. English translation oftheBook 4
-Intellectual Property, issubmitted totheWTO Secretariat.
Question 4
Arethere anyexceptions and/or limitations totheexclusive right? Please explain.
Answer:
Anauthor enjoys theexclusive rightinhiswork. Adescription ofexclusive rightandexceptions
from itareasfollows:
TheCivil Code ofGeorgia
Article 1045. Exclusive Rights ofAuthor
Theauthor orother person enjoying copyright obtains theexclusive right tousethework
inanykindandbyanymeans.
Theexclusive rightonuseofthework means therighttoperform, allow orban:
- reproducing ofthework (right ofreproduction);
- distribution: sale,rental, etc.oforiginal work ofitscopies byanymeans (right ofdistribution);
- importing copies ofhiswork fordistribution, including those copies prepared withconsent
oftheauthor orother person obtaining copyright (right ofimport);
- public showing ofthework (right ofpublic show);
- public performance ofthework (right ofpublic performance);
- public broadcast ofthework (broadcast ofthework forgeneral familiarization), including
cable transmission (right ofpublic broadcast);
- broadcast ofthework forgeneral familiarization, including thefirstand/or further broadcast
(right ofbroadcast);
- transmission viacableforgeneral familiarization, including thefirstand/or further transmission
(right oftransmission viacable);
- translation ofthework (right oftranslation);
- remake, arrangement orother kindofworking upofthework (right ofremake).
Restrictions ofproperty rights stipulated byparagraph 2ofthisArticle isdetermined bythelaw.
Article 1046. Distribution ofPublished Works
Ifthecopies oflawfully published works aresoldtheirfurther distribution isallowed without
theauthor ’spermit andpayment ofroyalty.
Theauthors orother persons obtaining copyright onmusical works expressed inmusic, on
software, database,works fixedonphonograms andvideograms enjoy theexclusive rightofdistribution
oftheoriginals orcopies ofthesaidworks bylease, notwithstanding theproperty rightonthoseoriginals
andcopies.WT/ACC/GEO/7/Add.2
Page4
Article 1047. Exclusive Right onUseofArchitectural Designs
Theexclusive rightonuseofarchitectural, town-planning andplanting design includes also
therightofimplementation ofsuchdesigns.
Article 1049. Rights ofAuthor ofWorks ofFineArt
Theauthor ofawork offineartisentitled todemand fromtheowner ofhiswork thepossibility
ofreproducing hisworks (right ofdistribution); atthesametimetheowner cannot beobliged todeliver
thework totheauthor.
After thealienation oftheoriginal ofthework offineartforthefirsttimeineachseparate
caseofpublic saleofsuchawork (auction, artsaloon, fineartgallery, shoporbyother means), the
author orhisheirhastherighttoreceive royalties from theseller attheamount of5percentofthe
selling price.
Alienation oftherightmentioned inparagraph 2ofthisArticle isnotallowed intheauthor ’s
life. Itistransferred, bylaworwill,totheheirs forthetermofvalidity ofthecopyright only.
Article 1050. Reproducing Copies ofLawfully Published Works
Reproducing ofcopies ofthelawfully published works bynatural persons isallowed onlyfor
theirpersonal usewithout theconsent oftheauthor oranother person obtaining thecopyright and
payment ofroyalty, except inthose cases determined byArticles 1051 and1052.
Clauses stipulated byparagraph 1ofthisArticle arenotapplied:
- incaseofreproducing works ofarchitecture inkindofbuilding andsimilar construction;
- reproducing databases;
- reproducing software except those cases stipulated byArticle 1060;
- when reprographically reproducing books (inwhole), music andworks offineart
(copy-making).
Article 1054. Reprographic Copying ofWorks
Reprographiccopying(copy-making)notforgainingdirectandindirectprofitisallowedwithout
theconsent oftheauthor orother person obtaining copyright andpayment ofroyalty isallowed only
withobligatory indication oftheauthor andborrowing source and,inseparate cases, intheamount
thatisdetermined forthesaidpurpose. Such reprographic copying isallowed:
- inasingle copybylibraries andarchives forsubstitution ofthelost,worthless copies oflawfully
edited works; forsubstitution oflost,orworthless copies ofworks tobepassed tootherlibraries
ifreceipt ofsuchcopies inordinary conditions otherwise isnotavailable;
- inasingle copyofthelawfully edited separate articles andother small works orshort extracts
ofwritten works (lesssoftware) bythelibraries andarchives –atrequest ofnatural persons
forstudy, scientific orpersonal purposes;
- separate articles andother small works edited lawfully orshort extracts ofwritten works (less
software) byeducational institutions forstudies.WT/ACC/GEO/7/Add.2
Page5
Article 1055. Right toUseWorks Without theAuthor ’sConsent
Thefollowing isallowed without theconsent oftheauthor orother owner ofcopyright and
payment ofroyalty onlywithobligatory indication oftheauthor andborrowing source:
- quotation fromoriginal ortranslated lawfully published works forscientific, research, polemic,
critical andinformational purposes –inanamount which isjustified bythequotation purpose,
including reproducing ofshort extracts from newspapers andmagazines, inkindofprinted
review;
- useofsmall extracts from legally published works inkindofillustration, ineditions, radio-
andtele-programs, inaudio- andvideo recordings ofaneducational nature –intheamount
determined bytheexpressed purpose;
- reproducing articles oncurrent economical, political, social andreligious problems legally
published inperiodicals orsimilar works broadcast bynewspaper andmagazines ortheirpublic
broadcast –inthose caseswhen suchreproducing orpublic broadcast isnotspecially prohibited
bytheauthor oranother owner ofcopyright. Atthesame time, theauthor preserves theright
topublish suchawork inacollection;
- reproducing orpublic broadcast ofworks shown orheard within theprocess ofcurrent events
inareview ofcurrent events byphotography, broadcast orcable transmission inanamount
justified bytheinformational purpose;
- reproducing, innewspapers andmagazines andotherperiodicals orpublic broadcast, ofpolitical
reports, speeches, addresses, lectures, sermons andother similar works, including speeches
made atthelegalproceedings inanamount determined bytheinformational purpose. Atthe
same time, theauthor preserves theexclusive righttoeditsuchworks inaseparate collection
orabook;
- reproducing legally published works witharaised point typefaceorwithother special means
created fortheblind, notforthepurpose ofgaining profit, except forthose works specially
created forsuchmeans ofuse.
Article 1056. Right toUseWorks onPlaces ofPublic Assemblage
Reproducing orpublic broadcast ofworks ofarchitecture permanently located inplaces open
foreasyvisit, photography, andfineartisallowed without theconsent oftheauthor oranother owner
ofcopyright andpayment ofroyalty –except those cases when theimage oftheworks represents the
mainobject ofsuchreproduction orpublic broadcast, orwhen theimage oftheworks isusedforgaining
profit.
Article 1057. Public Performance ofLegally Published Musical Works
Public performance oflegally published musical works without theconsent oftheauthor or
other owner ofcopyright andpayment ofroyalty isallowed within official, funeral andreligious
ceremonies –inanamount justified bythecharacter ofsuchaceremony.
Article 1058. Reproducing ofWorks forCourt Proceedings
Reproducingofworkswithouttheconsentoftheauthororotherownerofcopyrightandpayment
ofroyalty isallowed forcourt proceedings inanamount determined forsuchapurpose.WT/ACC/GEO/7/Add.2
Page6
Article 1059. Short-term Recording ofWorks byaBroadcast Organization
Abroadcast organization mayrecord those works broadcast ofwhich theorganization obtained
therightonbroadcast without theconsent oftheauthor orother owner ofcopyright andpaying them
additional royalty withobservance ofthefollowing conditions:
- recording bythebroadcast organization byitsownfacilities andforitsownprogram;
- deletion ofsucharecord onexpiration ofsixmonths afterrecording unless alonger termis
agreed withtheauthor oftherecorded work; sucharecord maybekeptintheofficial archives
without theconsent oftheauthor iftherecord isofadocumentary nature only.
Article 1060. FreeUseofSoftware andDataBase
Aperson wholegally owns acopyofsoftware oradatabase isentitled, without theconsent
oftheauthor orother owner ofcopyright andpaying thenroyalty:
- tomake changes tothesoftware ordatabase which arerequired formaintenance ofthe
consumer ’sfacilities, aswellasconduct anyaction connected withmaintenance ofthesoftware
ordatabase including recording andsaving inthecomputer memory (foronecomputer orone
userofnetwork) andcorrection ofevident errors unless theauthor contract provides otherwise;
- tomake areserve copyofthesoftware ordatabase onthecondition thatthiscopyisintended
onlyforarchive purposes andforsubstitution ofthelost,destroyed orworthless copyofthe
legalowner. Thereserve copyofthesoftware ordatabase cannot beusedforpurposes other
thanthose determined byparagraph 1ofthisarticle andshallbedestroyed onexpiration of
thetermofrightofsoftware ordatabase owner.
Article 1061. Right toDecompile Software
Aperson wholegally owns acopyofsoftware isentitled, without theconsent oftheauthor
orother owner ofcopyright andpaying himroyalty, tomake adecompilation ofsoftware (toreproduce
andprocess theobjective codeintheinitial text). Thatperson mayalsoentrust other persons tomake
thedecompilation incaseswhen itisnecessary toobtain theability ofcoordination between thesoftware
independently created bysuchaperson andothersoftware, withobservance ofthefollowing conditions:
- iftheinformation required forobtaining ability ofcoordination wasnotavailable forthatperson
from other sources;
- thementioned actions arelimited tothose parts ofdecompiled software which arerequired
forobtaining ability ofcoordination;
- information received asaresult ofdecompilation willbeusedonlyforobtaining theability
ofcoordination between theindependently processed software andother software. Itshall
notbepassed toother persons andcannot beusedforprocessing ofnewsoftware similar in
subject tothedecompiled programs, orforperforming anyother action thatinfringes the
copyright.WT/ACC/GEO/7/Add.2
Page7
Question 5
What rights doestheholder ofacopyright enjoy?
Answer:
Thecopyright onworks ofscience, literature andartarises fromthemoment oftheircreation.
Theworks aredeemed ascreated when theyareexpressed intheobjective form required fortheir
performance andreproduction. Theauthor enjoys moral rights andproprietary rights
Civil Code
Article 1031. Copyright Protection Mark
Fordeclaration ofhisrighttheperson enjoying copyright mayusethecopyright protection
mark tobeputoneachcopyofthework andcomposed ofthree elements:
- Latin letter Cinacircle: ©
- name (title) ofaperson enjoying exclusive right;
- yearofthefirstedition oftheworks.
Article 1043. Personal Non-property Rights oftheAuthor
Thepersonal non-property rights oftheauthor areasfollows:
- rightofauthorship;
- rightoftitle;
- rightofpublication;
- righttoallow other persons tomake changes bothinthework anditstitleandauthor ’sname
aswellastorestrict making changes inthework without hisconsent;
- therighttorestrict corrections orsuchchanges ofthework thatmaycompromise theauthor ’s
dignity orbusiness reputation;
- therighttogivepermission toattach hiswork withtheworks ofother authors (illustration,
introduction, concluding remarks, comments, explanation, etc.);
- therighttomake alterations andsupplements inthepublished works;
- therighttoclaim termination ofuseofthework (right torecall theworks). Insuchcasethe
author shalldeclare onrecalling thework inpublic.
Therightofrecall ofthework isnotapplied inconnection withofficial works.
Article 1045. Exclusive Rights ofAuthor
Theauthor orother person enjoying copyright obtains theexclusive right tousethework
inanykindandbyanymeans.
Theexclusive rightonuseofthework means therighttoperform, allow orban:
- reproduction ofthework (right ofreproduction);
- distribution: sale,lease, etc.oforiginal work ofitscopies byanymeans (right ofdistribution);
- importing copies ofhiswork fordistribution, including those copies prepared withconsent
oftheauthor orother person obtaining copyright (right ofimport);
- public showing ofthework (right ofpublic show);WT/ACC/GEO/7/Add.2
Page8
- public performance ofthework (right ofpublic performance);
- public broadcast ofthework (broadcast ofthework forgeneral familiarization), including
cable transmission (right ofpublic broadcast);
- broadcast ofthework forgeneral familiarization, including thefirstand/or further broadcast
(right ofbroadcast);
- transmission viacableforgeneral familiarization, including thefirstand/or further transmission
(right oftransmission viacable);
- translation ofthework (right oftranslation);
- remake, arrangement orother kindofworking upofthework (right ofremake);
Restriction theproperty rights stipulated byparagraph 2ofthisArticle isdetermined bythelaw.
Question 6
What kindofacts, when undertaken without authorization, canbeprevented byaperformer,
aproducer ofaphonogram andabroadcasting organization respectively?
Answer:
Civil Code ofGeorgia
Article 1081. Personal andProperty Rights ofPerformer
Theperformer obtains thefollowing personal andproperty rights onhisperformance:
- rightoftitle;
- righttoprotect performance fromanyperversion oranother interference thatmaycause damage
totheperformer ’sdignity andreputation (right ofrespect ofreputation);
- righttousehisperformance inanyform, including therighttoreceive honorarium forany
useofperformance.
Article 1082. Exclusive Right toUsePerformance
Theexclusive righttouseperformance implies therighttoallow orban:
- recording ofaperformance thatwasnotrecorded before;
- reproducing therecord oftheperformance except those cases when reproducing ofthe
performance recorded withtheperformer ’sconsent takes place forthesame purpose when
theperformer ’sconsent forsuchrecording wasgiven;
- broadcast orcable transmission oftheperformance oranother public transmission of
performance, except those cases when there thetransmission isofaperformance recorded
ortransmitted earlier withtheperformer ’sconsent;
- broadcast orcable transmission ofaperformance, unless therecording ofthisperformance
forthefirsttimewascarried outforthepurpose ofgaining profit;
- letofthatpublished phonogram orvideogram which includes performance withparticipation
oftheperformer.
Thepermit stipulated inparagraph 1ofthisArticle willbeusedbytheperformer andforperformance
byacollective ofperformers –bythemanager ofsuchacollective onthegrounds ofwritten contract
made withthebeneficiary.WT/ACC/GEO/7/Add.2
Page9
Article 1083. Agreements Between Performer andPossessors ofOther Related Rights
Making anagreement between theperformer andabroadcast organization orbroadcast orcable
transmission ofaperformance results intheassignment oftheperformer ’srightonrecording, itsfurther
broadcast andreproducing onlyifthisisdirectly provided bytheagreement made between theperformer
andbroadcast organization. Incaseofsuchusetheamount ofroyalty tobepaidtotheperformer
shallbedetermined bythesaidagreement.
Making anagreement between theperformer andproducer ofaudiovisual work onthecreation
ofanaudiovisual work arises assignment oftheperformer ’srights stipulated byArticle 1082. Transfer
ofrights bytheperformer islimited bytheuseofaudiovisual works and,unless theagreement provides
otherwise, doesnotcontain therightofseparate useofvoice andimage fixedintheaudiovisual work.
Making anagreement between theperformer andproducer ofaphonogram orvideogram on
recording oftheperformance onthephonogram orvideogram arises assignment oftheperformer ’s
rightonleaseofphonogram orvideogram. Atthesametime, according toArticle 1093, theperformer
reserves therightonroyalty forthelease ofthephonogram orvideogram copy.
Article 1086. Exclusive Rights ofProducer ofPhonogram
Theproducer ofaphonogram obtains theexclusive righttousethephonogram inanyform,
including therighttoreceive feesforanyuseofphonogram.
Theexclusive rightonuseofaphonogram implies therighttoallow orprohibit:
- aphonogram reproduction;
- phonogram remake orprocessing withanyother means;
- distribution ofphonogram copies byanymeans: sale,lease, etc;
- importing phonogram copies fordistribution, including those copies which areproduced with
theconsent oftheproducer ofthephonogram.
Article 1088. Exclusive Rights ofProducer ofVideogram
Theproducer ofavideogram obtains theexclusive righttousethevideogram inanyform,
including therighttoreceive feesforanyuse.
Theexclusive rightonuseofthevideogram implies therighttoallow orprohibit:
- avideogram reproduction;
- remake orprocessing ofvideogram withother means;
- distribution ofvideogram copies byanymeans: sale,lease, etc;
- importing videogram copies fordistribution, including those copies which areproduced with
theconsent oftheproducer ofthevideogram.
Article 1089. Distribution ofPhonogram andVideogram
Ifthecopies oflegally published phonograms orvideograms aresold,theirfurther distribution
isallowed without consent oftheproducer ofthephonogram orvideogram andpaying feestohim.
Therighttodistribute copies ofphonograms orvideograms byleasebelongs totheirproducer,
independent oftheownership ofthose copies.WT/ACC/GEO/7/Add.2
Page10
Theexclusive rights ofproducers ofphonogram orvideogram stipulated byArticle 1086and
1088 maybetransferred toanother person under theagreement.
Article 1091. Exclusive Rights ofBroadcasting Organization
Thebroadcasting organization obtains theexclusive right touseitsprogram inanyform,
including therighttoreceive feesforanyuseoftheprogram.
Theexclusive rightonuseoftheprogram implies therightofthebroadcast organization to
allow orprohibit:
- program recording;
- reproducing ofaprogram recording, except inthecasewhen theprogram isrecorded with
theconsent ofthebroadcast organization andthereproduction isconducted forthesamepurpose
forwhich therecording isperformed;
- synchronous broadcast oftheprogram byanother broadcast organization;
- broadcast oftheprogram;
- public broadcast oftheprogram ataplace where entrance ispayable.
Article 1092. FreeUseofObjects ofRelated Rights
Useofperformance, phonogram, videogram, program ofabroadcast organization anduse
oftheirrecordings isallowed withtheconsent oftheperformer, producer ofphonogram orvideogram
andbroadcast organization, andwithout payment ofroyalties tothem inthefollowing cases:
- when quoting inkindofshortextracts fromtheperformance, phonogram, videogram, program
ofbroadcast organization ifsuchquotation takesplaceforscientific, research, polemical, critical
andinformational purposes, intheamount determined forthesaidpurpose;
- when studying orscientific researching inkindofashort extract orillustration intheamount
determined bythesaidpurpose;
- when including short extracts from theperformance, phonogram, videogram, program ofa
broadcast organization inareview ofcurrent events;
- inother cases established inconnection withtherestriction ofproperty rights ofauthors of
works ofscience, literature andart.
Usebynatural persons oftheperformance, program ofbroadcast organization andtheirrecords
aswellasreproduction ofphonograms andvideograms forthepersonal useisallowed without the
consent oftheperformer, producer ofphonogram orvideogram, broadcast organization. Such
reproduction iscarried outoncondition ofpayment oftheroyalties inaccordance withtherulestipulated
byArticle 1051 and1052.
Article 1093. UseofPhonograms Produced forCommercial Purposes
Thefollowing isallowed forthepurpose ofgaining profit without theconsent oftheproducer
ofthephonogram orvideogram andtheperformer recorded onthephonogram orvideogram, butwith
payment ofroyalties:
- public performance ofphonogram orvideogram;
- broadcast ofphonogram orvideogram;
- cable transmission ofphonogram orvideogram.WT/ACC/GEO/7/Add.2
Page11
Collection, distribution andpayment ofroyalties stipulated byparagraph 1ofthisArticle is
performed byoneoftheorganizations managing therightofthephonogram producer andperformer
onacollective basis according totheagreement between those organizations.
Theamount ofroyalties andtheterms ofitspayment aredetermined bytheagreement between
theuserorusers ofthephonogram ononehand, andoneofthose organizations managing therights
ofproducers ofphonograms andvideograms andperformers ontheother hand, and,iftheparties do
notachieve suchanagreement, byaspecially authorized body. Theamount ofroyalties isestablished
foranykindofuseofthephonogram andvideogram.
Theusers ofphonograms shallpresent totheorganizations mentioned inparagraph 2ofthis
Article their programs (plans) which shall contain trueinformation about theamount ofuseof
phonograms andvideograms aswellasother information anddocuments required forcollection and
distribution oftheroyalties.
Question 7
Does Georgian Legislation provide forrental rights inrespect ofcomputer programs,
cinematographic works andphonograms andwhat aretheconditions?
Answer:
According totheCivil Code ofGeorgia "ifthecopies oflawfully published works aresold,
theirfurther distribution isallowed without theauthor ’spermit andpayment ofroyalty. Theauthors
orother persons obtaining copyright onthemusical works expressed inmusic, onsoftware, database,
works fixed onphonograms andvideograms enjoy theexclusive rightofdistribution oftheoriginals
orcopies ofthesaidworks byrental notwithstanding theproperty rightonthose originals andcopies".
Question 8
How arecompilations ofdataprotected?
Answer:
Civil Code
Article 1045. Exclusive Rights ofAuthor
Theauthor orother person enjoying copyright obtains theexclusive right tousethework
inanykindandbyanymeans.
Theexclusive rightonuseofthework means therighttoperform, allow orban:
- reproduction ofthework (right ofreproduction);
- distribution: sale,lease, etc.oforiginal work ofitscopies byanymeans (right ofdistribution);
- importing copies ofhiswork fordistribution, including those copies prepared withconsent
oftheauthor orother person obtaining copyright (right ofimport);
- public showing ofthework (right ofpublic show);
- public performance ofthework (right ofpublic performance);
- public broadcast ofthework (broadcast ofthework forgeneral familiarization), including
cable transmission (right ofpublic broadcast);WT/ACC/GEO/7/Add.2
Page12
- broadcast ofthework forgeneral familiarization, including thefirstand/or further broadcast
(right ofbroadcast);
- transmission viacableforgeneral familiarization, including thefirstand/or further transmission
(right oftransmission viacable);
- translation ofthework (right oftranslation);
- remake, arrangement orother kindofworking upofthework (right ofremake);
Restriction theproperty rights stipulated byparagraph 2ofthisArticle isdetermined bythelaw.
Article 1050. Reproducing Copies ofLawfully Published Works
Reproducing ofcopies ofthelawfully published works bynatural persons isallowed onlyfor
theirpersonal usewithout theconsent oftheauthor oranother person obtaining thecopyright and
payment ofroyalty, except inthose cases determined byArticles 1051 and1052.
Clauses stipulated byparagraph 1ofthisArticle arenotapplied:
- incaseofreproducing works ofarchitecture inkindofbuilding andsimilar construction;
- reproducing databases;
- reproducing software except those cases stipulated byArticle 1060;
- when reprographically reproducing books (inwhole), music andworks offineart
(copy-making).
Article 1060. FreeUseofSoftware andDataBase
Aperson wholegally owns acopyofsoftware oradatabase isentitled, without theconsent
oftheauthor orother owner ofcopyright andpaying thenroyalty:
- tomake changes tothesoftware ordatabase which arerequired formaintenance ofthe
consumer ’sfacilities, aswellasconduct anyaction connected withmaintenance ofthesoftware
ordatabase including recording andsaving inthecomputer memory (foronecomputer orone
userofnetwork) andcorrection ofevident errors unless theauthor contract provides otherwise;
- tomake areserve copyofthesoftware ordatabase onthecondition thatthiscopyisintended
onlyforarchive purposes andforsubstitution ofthelost,destroyed orworthless copyofthe
legalowner. Thereserve copyofthesoftware ordatabase cannot beusedforpurposes other
thanthose determined byparagraph 1ofthisarticle andshallbedestroyed onexpiration of
thetermofrightofsoftware ordatabase owner.
(b) Trademarks, including service marks
Question 9
Please explain therights conferred byatrademark.
Answer:
Current situation
Anowner ofatrademark hastheexclusive rightinit.Foradetailed description ofrights please
seearticles 15,26,27,28,36and42oftheStatute onTrademarks of16March 1992. Thetextof
thestatute hasbeensubmitted totheWTO Secretariat (WT/ACC/GEO/3/Add.1).WT/ACC/GEO/7/Add.2
Page13
According tothedraftlawonTrademarks:
Theexclusive rightoftheowner toatrademark arises from thedateofthemark registration.
Thetrademark owner isauthorised toprevent allother parties from theuseofsuchatrademark in
theeconomic turnover which:
(a) isidentical totheprotected trademark, ifthegoods andservices areidentical aswell;
(b) isidentical, orsimilar totheprotected trademark tosuchanextent that,because oftheidentity
andresemblance islikely tocreate confusion orassociation ofonetrademark withanother;
(c) isidentical, orsimilar totheearlier trademark having good reputation inGeorgia andthe
exploitation ofthisidentical orsimilar trademark undeservedly creates theadvantageous
conditions forhisowner, ordamage thereputation oftheearlier trademark. Thisruleisapplied
inthecasewhen there aredifferent listsofgoods and/or services.
4.2. InthecaseofexistenceoftheconditionsconsideredunderArticle4.1.ofthisLaw,itisprohibited
forthethirdparty todothefollowing:
(a) toimprint aprotected trademark ongoods ortheirpacking;
(b) tostore, putintocirculation, offerorsellsuchgoods which aremarked withthistrademark,
tooffer andprovide services byusing thistrademark;
(c) toimport orexport thegoods marked withthistrademark;
(d) tousethismark foradvertisement orbusiness papers.
4.3. Without theconsent ofthetrademark owner, itisprohibited forthethird party todothe
following:
(a) toimprint asignidentical, orsimilar tothistrademark onthepacking materials, labels, tags,
etc.
(b) tooffer, putincirculation, sell,orprepare forsalethepacking material, orthepacking marked
withthesign identical, orsimilar tothistrademark;
(c) toimport orexport thepacking material, orthepacking marked withthesignidentical orsimilar
tothetrademark.
Article 5:Scope ofProtection
Atrademark registration doesnotauthorise itsowner toprohibit thethird party from itsusing in
economic turnover:
(a) hispersonal name, oraddress;
(b) asign,orcombination ofsigns which isusedforindication ofthesort,quality, quantity, the
properties, thevalue, aplace ofproduction (making), orsale,thetimeorother properties of
thegoods and/or services;
(c) atrademark when itisneeded fortheindication ofthepurpose ofhisoutput orservices, in
particular, when itrepresents some component, oraspare part.WT/ACC/GEO/7/Add.2
Page14
Theabovementionedappliestothosecaseswhentheuseofatrademarkcorrespondstotherulescommon
forthecommercial activity.
Article 6.TheScope ofExclusive Rights
6.1. Atrademark registration doesnotauthorise itsowner toprohibit thethirdparty from using
thismark onsuchgoods which havebeenputincivilcirculation directly bytheowner ofthetrademark,
oronthebasis ofhispermission.
6.2. Article 6.1ofthisLawisnotapplied ifthetrademark owner hasgrounds tooppose thefurther
commercial exploitation ofthetrademark ifthefeatures ofthegoods havebeenaltered, orthequality
hasbecome worse.
Question 10
Isuserequired tomaintain theregistration ofatrademark orservice mark? Ifso,what arethe
consequences ofnon-use? DoesGeorgian legislation recognize reasons which justify suchnon-use?
Answer:
Current situation
Useisnotrequired tomaintain theregistration ofatrademark orservice mark.
Future legislation
According totheArticle 24.2ofthedraftlawontrademarks: "Ifaregistered trademark, for
fivecontinuous years, hasnotbeenusedinGeorgia onthegoods andservices forwhich ithasbeen
registered, theregistration ofthetrademark canbecancelled inaccordance withArticle 25ofthisLaw".
Article 25.2:
Atrademark registration shallbecancelled attherequest ofaninterested person if:
(a) ithasnotbeenusedinaccordance withArticle 24within fivecontinuous years, although nobody
isauthorised todemand acancellation ofregistration iftheuseofatrademark hasstarted or
hasbeenrenewed during theinterval between expiration oftheestablished fiveyears termand
filing therequirement forcancellation ofthetrademark registration;
(b) atrademark hasbecome ageneric concept ofthegoods and/or services forwhich ithasbeen
registered;
(c) useofatrademark, byitsowner, orinagreement withhim,isconducted insuchaway,that
itcanmislead aconsumer astothesort,quality, theproperties, thevalue, oraplace of
geographical origin..."WT/ACC/GEO/7/Add.2
Page15
Question 11
How doestheactual andfuture legislation determine whether amark iswell-known?
Actual legislation: Statute onTrademarks ofMarch 16,1992 fordetermination whether amark
iswell-known refers toarticle 6bisfortheParis Convention ontheProtection ofIndustrial
Property.
Answer:
Future legislation
Draft lawonTrademarks fordetermination whether amarkiswell-known refers toarticle 6bis
fortheParis Convention ontheProtection ofIndustrial Property.
Question 12
Arewell-known marks protected inrelation togoods orservices which arenotsimilar tothose
inrespect ofwhich atrademark isregistered, provided thatuseofthattrademark inrelation
tothose goods orservices would indicate aconnection between those goods orservices andprovided
thattheinterests oftheowner oftheregistered trademark arelikely tobedamaged bysuchuse?
Answer:
Well-known marks areprotected evenwithout registration although registration ispossible
ofcourse. Wellknown marks areprotected against allgoods andservices, including those which are
notsimilar tothose inrespect ofwhich atrademark isregistered. According toarticle 36oftheStatute
onTrademarks "itisprohibited toregister ortousesuchatrademark which, orpartofwhich, issimilar
orconstitutes imitation orrepetition ofatrademark wellknown inGeorgia andmaycause confusion
withthatmark".
Draft law:Article 3
Atrademark shallnotberegistered if:
3.1. itisidentical toatrademark ofanother person having theearlier priority, andthelistofthe
goods and/or services forwhich theregistration isrequired isidentical tothelistofthegoods and
services forwhich thetrademark having theearlier priority isprotected;
3.2. itisidentical toatrademark ofanother person having theearlier priority, orissimilar tosuch
anextent that,because ofresemblance andidentity ofthelistofgoods and/or services, itcreates the
possibility ofconfusion orassociation ofonetrademark withanother;
3.3. while existence oftheprovisions considered under Articles 3.1.and3.2.ofthisLawthe
trademark filedforregistration isidentical orsimilar toanother trademark wellknown inGeorgia,
tosuchanextent thatitmayresult inconfusion orassociation withit.
Thisparagraph shallnotapply ifanapplicant hasbeenauthorised bytheowner ofthemark inquestion
toregister awellknown trademark;WT/ACC/GEO/7/Add.2
Page16
3.4. itisidentical orsimilar togeographical indication orappellation oforigin ofthegoods protected
inGeorgia tosuchanextent thatitmaycause confusion withit.Thisprovision doesnotapply in
cases where thegeographical indication, ortheappellation oforigin ofthegoods isincluded ina
trademark bymeans ofelements incapable ofprotection, andthesignregistration isrequired bythe
person whoisentitled tousetheindicated name;
3.5. itisidentical totheindustrial design protected inGeorgia, withtheexception ofcases when
atrademark registration isrequired bytheowner oftheindustrial design;
3.6. itisidentical orsimilar toatrademark withearlier priority which hasagood reputation in
Georgia, andtheexploitation ofthisidentical orsimilar trademark undeservedly creates advantageous
conditions foritsowner ordamages thereputation oftheearlier trademark. Thisruleisapplied in
thecasewhen there aredifferent listsofgoods and/or services.
(c) Geographical indications
Question 13
How aregeographical indications currently protected?
Answer:
Geographical indications assuchcurrently arenotprotected inGeorgia.
(d) Industrial designs
Question 14
What isregarded asbeing an"unauthorized use"ofanindustrial design?
Answer:
Useofapatented industrial design without permission ofapatent holder isregarded as
"unauthorized use"ofanindustrial design.
(e) Patents
Question 15
Could theGovernment ofGeorgia provide adefinition andpossible examples ofwhat isconsidered
asbeing an"anti-social action" which could exclude aninvention from being patented?
Answer:
According toarticle 1.5oftheregulations ofpreparing andfiling anapplication oninvention
"apatent shallnotbegranted onaninvention ofwhich theuseandpublishing ofmaycause orencourage
immoral orantisocial action, forexample onthose inventions which concern substances ofnuclear
transformation, arms, etc". There isnoother special definition of"anti-social action", according to
general understanding human cloning andsuchactivities would constitute an"anti-social action". So
farnoapplication wasdenied onthatbasis.WT/ACC/GEO/7/Add.2
Page17
Question 16
Please explain theterm "patent ofaddition" andhowdoesitrelate totheoriginal patent (e.g.
what isthepurpose ofhaving a"patent ofaddition" which "shall bevalid within theremaining
period oftheprincipal patent").
Answer:
"Patent ofaddition" isinterchangeable termwith"imported patent" or"confirmed patent".
Article 2ofthedraftPatent Lawprovides:
(i) theowner oftheforeign patent onaninvention maybegranted animported (confirmed) patent;
(ii) animported patent shallbegranted onaninvention which waspatented abroad onwhich a
patent examination wasconducted astoallcriteria ofpatentability;
(iii) animported patent grants apatent owner theexclusive right touse,tomake andtosella
product, butdoesnotgivetherighttoprohibit athirdperson fromimporting suchproducts.
Animported patent shallbevalidfortheperiod oftheforeign patent 'svalidity, butfornotmore than
tenyears from thedateofthepatent application inSakpatenti.
Thepurpose of"Patent ofaddition" or"imported patent" or"confirmed patent" istopromote import
oftechnical innovations andinvestments intoGeorgia.
Question 17
TheGovernment ofGeorgia explains thatinthose cases where theinvention ismade inexecution
ofacommission, theemployer isentitled tothenon-exclusive license from adateofpriority. Are
there anyadditional conditions which needtobefulfilled before suchalicense isgranted? Ifso,
please explain.
Answer:
There arenoadditional conditions tobefulfilled before granting thenon-exclusive license
Question 18
Does theimportation ofapatented invention fulfil thecondition of"working thispatent"?
Answer:
Georgian legislation doesnotcontain adescription of"working thepatent". There isnowording
anywhere inthelegislation thatimportation doesnotmean "working thepatent".
Question 19
Article 71oftheStatute oninventions saysthatacompulsory license shall begranted where the
requirements fortheuseofthepatented invention arenotmet.Does Georgian Lawprovide for
therefusal ofacompulsory license ifthepatentee justifies hisinaction bylegitimate reasons?
Ifso,what reasons would berecognized?WT/ACC/GEO/7/Add.2
Page18
Answer:
Georgian legislation doesnotcontain wording regarding thepatentee 'slegitimate reasons of
inaction.
Future legislation
According tothedraftPatent Law"anexclusive license shallbegranted afterfouryears from
thepatent issuance, taking intoconsideration eachparticular case: whether ornotinvention wasin
useontheterritory ofGeorgia, orwhether itwassufficient use.Anexclusive license canbegranted
onlyinthecaseofaninterested person trying togetitfromthepatent holder onthereasonable terms
andwithin reasonable timebuthe/she failing togetalicense".
Question 20
Arethere anyadditional conditions tobefulfilled incases ofcompulsory licenses under article 72
oftheStatute onInventions, which states that"proceeding from theinterest ofthestateorsociety,
thestate shall have theright toeffect compulsory licensing ofanypatent"?
Answer:
There arenoadditional conditions tobefulfilled incasesofcompulsory licenses under article 72
oftheStatute onInventions which states that"proceeding from theinterest oftheState orsociety,
theStateshallhavetherighttoeffect compulsory licensing ofanypatent". Nosuchlicense wasgranted
sofar,nosuchissue wasraised. Thedraftlawdoesnotcontain suchwording.
(h) Requirements onundisclosed information
Question 21
Could theGovernment ofGeorgia explain howtestdataandother dataisprotected inthecontext
ofthemarketing approval ofpharmaceutical andagricultural chemical products?
Answer:
Agricultural chemical products aretested andregistered bythePlant Protection Department
oftheMinistry ofFood andAgriculture. Testandother dataareprotected andnotsubject todisclosure
untiltheirregistration.
Pharmaceutical products aretested bytheMinistry ofHealthcare. Applications regarding these
areregistered andhaveanote"forinternal useonly". Theyshallnotbecopied andshallnotbedisclosed
topersons from outside.
4. Enforcement
(a) Civil judicial procedures andremedies
Question 22
Dojudicial authorities have theauthority toorder aparty todesist from aninfringement inter
aliatoprevent theentry intochannels ofcommerce ofimported goods thatinvolve theinfringement
ofanintellectual property rights? Ifyes,what aretheconditions?WT/ACC/GEO/7/Add.2
Page19
Answer:
Judicial authorities havetheauthority toorder aparty todesist from aninfringement. There
isnospecific wording inthelegislation about judicial authorities 'rights toprevent particularly the
entry ofimported goods thatinvolve theinfringement ofanintellectual property rights intochannels
ofcommerce. Thisiscovered under thegeneral rightofjudicial authorities.
Question 23
CouldtheGovernmentofGeorgiaexplainwhetheritslaw/regulationsprovidefor"otherremedies",
i.e.thatinfringing goods aredisposed ofoutside channels ofcommerce insuchamanner asto
avoid anyharm totherightholder orbedestroyed. Ifso,please explain.
Answer:
According toarticle 44oftheStatute onTrademarks "rightholder, whose rights wereviolated
canfileacivilsuitandrequest thedefendant:
(i) tocease anddecease from infringing activities;
(ii) toreimburse damages;
(iii) todestroy allthose labels, drawings, imprints, packages andadvertisements, which contain
theregistered trademark orcopy, likeness orimitation therewith andviolates therights ofthe
trademark owner;
(iv) theowner ofthetrademark mayalsorequest thedestruction ofthose matrixes andother tools,
which wereusedformaking those trademarks and,ifitisimpossible toseparate trademarks
from thegoods, eventhedestruction ofthose goods.
(d) Anyspecial border measures
Question 24
What kindofborder measures existwithregard topirated goods? Please explain?
Answer:
Please seeanswer tothequestion 181,182inthedocument WT/ACC/GEO/4, page124.
Question 25
Please explain theprocedures which arightholder hastofollow inorder toobtain theseizure
ofgoods attheborder ofGeorgia which infringe atrademark.
Answer:
Please seeanswer tothequestion 181,182inthedocument WT/ACC/GEO/4, page124.
(e) Criminal procedures
Question 26
Arethere criminal procedures andpenalties inGeorgian Criminal Lawincases ofwilful copyright
piracy? please explain.WT/ACC/GEO/7/Add.2
Page20
Answer:
According toarticle 172(Violation ofIntellectual Property Rights) oftheCriminal Code of
Georgia:
"Appropriation oftheauthorship ofascientific, literary, musical andfictional work, invention, utility
model orindustrial design, orauthorship rights orother results ofintellectual-creative activity, or
appropriation ofrelated rights shallbeasubject toapenalty of300to500times theminimum wage
ortwoyears ofcorrective labour.
Misappropriation oftheresults ofintellectual-creative activities ofothers thatareobjects ofcopyright
andrelated rights, ortheotherwise unlawful useofthese rights andpublicizing ofdataonautility
model orindustrial design without theauthorization oftheauthor orofanother owner oftherightof
authorship shallbesubject toapenalty of500to1000times theminimum wageortwoyears ofrestraints
offreedom.
Actsenvisaged inparts1and2ofthisarticle, ifconducted repeatedly, oriftheyresult insignificant
harm totheinterests oftheauthor oranother owner ofthecopyright, aswellasfalseattribution of
shared authorship shallbesubject torestraints offreedom foruptothree years orimprisonment for
uptooneyear".
Question 27
Does Georgian Criminal Lawprovide fortheseizure, forfeiture anddestruction oftheinfringing
goods incases ofwilful trademark counterfeiting andcopyright piracy?
Answer:
Georgian Criminal Lawdoesnotprovide fortheseizure, forfeiture anddestruction ofthe
infringing goods incases ofwilful trademark counterfeiting andcopyright piracy.
VI. TRADE RELATED SERVICES REGIME
2. Policies affecting trade inservices
Commercial presence
Question 28
Wearepleased tonotethattheestablishment ofacompany withforeign investment doesnot
requireapprovalandthatproceduresare"essentially"thesameforforeignanddomesticcompanies
alike. However, canclarification beprovided about thesumofUS$100,000 which appears to
bearegistration fee?Thisseems ahighfigure, isthisinfacttheinvestment limit above which
registration iscompulsory?
Answer:
Seeanswer totheQuestions 186,187and188inthedocument WT/ACC/GEO/4, pages 127
and128.WT/ACC/GEO/7/Add.2
Page21
Temporary Presence
Question 29
Could thecriteria forgranting ofavisaandtheconditions ofthevisaitself bemore thoroughly
explained? Forexample, which categories ofnatural person arepermitted toenter Georgia to
provide services -intra-corporate transferees? Keypersonnel? Persons seeking temporary entry
forthenegotiation ofcontracts orsales? Persons setting upacommercial presence inGeorgia?
Service suppliers incertain service categories?
Answer:
Thecriteria forgranting ofavisaandtheconditions ofthevisaitselfaregiven inthedocument
WT/ACC/GEO/SPEC/4.
Financial services
- Insurance services
Question 30
Could more detail beprovided about thetimetable fortheadoption ofthenewinsurance law
andabout thelikely content ofthislaw? What principles have guided thedrafting ofthelaw?
Isitintended thatforeign companies willbeabletoenter theGeorgian market onanequal footing
withdomestic companies?
Answer:
Seeanswer totheQuestion 190inthedocument WT/ACC/GEO/4, page129.
- Banking services
Question 31
Could Georgia explain what criteria areapplied inthelicensing offoreign banks andtherelated
discussions between theNational Bank andthecompetent authorities inthehome country ofthe
applicant bank? Arespecific guarantees sought bytheGeorgian National Bank? Isreciprocity
oftreatment required inanyform?
Answer:
SeeanswertotheQuestions191and192inthedocumentWT/ACC/GEO/4,pages130and132.
Question 32
Could themeaning ofthesentence "The national bank isauthorised tomake anexception only
fortheshareholder possessing alicence onbanking activities orrepresents thebank itself (on
itsown)". Does thismean thatonlyother banks arepermitted totakeshareholdings exceeding
25percentinGeorgian banks?WT/ACC/GEO/7/Add.2
Page22
Answer:
Inaccordance withparagraph 1ofArticle 10oftheLawofGeorgia onActivities ofCommercial
Banks -nopartner (shareholder) orgroup ofpartners (shareholders) acting inconcert havethelegal
righttoholdortransact theamount ofshares which exceeds 25percentofsubscribed orpaidincapital
ofbank. TheNational Bank ofGeorgia isauthorised toexclude fromthisruleonlysuchshareholders
which themselves arelicensed toengage inbanking activities orthemselves arebanks.
Ifafounder ofthebankmeets theprovisions stipulated bytheparagraph 1oftheArticle 10
oftheLawonActivities ofCommercial Banks andwants hisshare insubscribed orpaidincapital
ofthebanktobeinexcess of25percent, thenhe/she hastoapply totheNational Bank ofGeorgia
withtherelevant request andpresent documents describing his/her financial situation. After examination
ofthese documents theNational Bank asanexception cantaketheappropriate decision.
Only onebankexists today inGeorgia inwhose paidincapital theshare offoreign partner
bankamounts to75percent.
- Securities
Question 33
Forthepurposes oflicensing, areforeign applicants subject tothesame criteria asdomestic
applicants?
Answer:
Forthepurposes oflicensing foreign applicants aresubject tothesame criteria asdomestic
applicants.
Professional andbusiness services
- Legal services
Question 34
Could theGeorgian authorities explain whether anyaspects oflegal services isopen toforeign
professionals? Itappears from theinformation provided thatlegalservices arereserved entirely
forGeorgian citizens, while legal services provided byforeign lawyers arenotregulated. Does
thismean thatforeign lawyers arefreetoprovide advisory services? Cantheyprovide services
relating totheir home country lawandinternational law?
Answer:
Existing Georgian legislation doesnotrestrict foreign lawyers fromproviding legalservices
inGeorgia which donotcontradict theGeorgian legislation inforce. Thisrequirement equally concerns
Georgian andforeign nationals.
Hence, atthepresent stage, aforeign lawyer isfreetoprovide legalservices within theterritory
ofGeorgia.WT/ACC/GEO/7/Add.2
Page23
- Accounting services
Question 35
Could theinformation onauditing beexplained further? Isitpossible forforeign auditors to
practice inGeorgia and,ifso,what criteria areapplied fortheir access totheprofession?
Other thanauditing, howareaccountancy andbook-keeping services regulated? Areforeign service
suppliers permitted toenter themarket?
Istheprovision oftaxation advisory services always linked totheauditing profession? Istheir
anyopportunity fortheprovision ofthese services byforeign service suppliers outside theauditing
profession?
Answer:
Seeanswer totheQuestion 199inthedocument WT/ACC/GEO/4, page135.
Auditing services include accountancy, book-keeping services, expertise andadvisory services
infinancialandtaxationfields.Hence,therulesofprovidingtheabove-mentionedservicesintheterritory
ofGeorgia aresubject totheprovisions oftheAudit Lawof7February 1995.
- Architectural services andconstruction-related services
Question 36
Could theGeorgian authorities supply more specific information about thelicensing procedure,
thecostoflicensing andthecriteria applied inthelicensing ofservice suppliers inthese sectors?
Areforeign service suppliers treated onenequal basis withdomestic service suppliers?
Arethelicensing feesofU$10,000 andUS$2,000 extra peractivity applied equally todomestic
firms? Ifnot,what isthereason forthedifference intreatment between foreign anddomestic
firms?
Answer:
Inaccordance withtheDecree ofthePresident ofGeorgia No221of16March 1996 "On
Licensing theConstruction Activities" theforeign anddomestic service suppliers enjoy thesamerights
intheprocess oflicensing. ThisDecree defines theamount offeesonissuance ofalicence.
Theequivalent amount ofUS$6,000 inGeorgian Lari(GEL) isestablished forforeign firms
andnatural persons foranythreekinds ofconstruction activities plustheequivalent amount ofUS$1,000
inGeorgian Lariforeachadditional types ofconstruction activities.
Lari600isestablished fordomestic firms andnatural persons foranythreekinds ofconstruction
activities plusLari150foreachadditional types ofconstruction activities.
Thedifference intreatment isatemporary event andcaused bythedifference ofliving standards
between Georgia andforeign countries.WT/ACC/GEO/7/Add.2
Page24
Question 37
Couldfurtherdetailsbegivenaboutthe51percentshareholdingrulefor"constructionsundertaken
byforeign investments" inthefields ofenergy andtelecoms? What doesthisrestriction mean
inpractice?
Answer:
Theabove-mentioned ruleforconstructions undertaken byforeign investments inthefields
ofenergy andtelecoms hasbeenabolished.
- Communication services
Question 38
Could more specific information besupplied about thestructure ofthetelecoms sector -the
information supplied sofarindicates thatthere isamonopoly inthesector, butalsoindicates
thatother companies areinvolved andthere isalicensing process fornewentrants. Could the
Georgian authorities specify inwhich, ifany,telecoms sectors isthere competition?
Could theposition regarding liberalisation bespecified forthemajor telecoms sectors? Isitplanned
toremove theexisting monopolies?
Could theGeorgian authorities supply more information about theregulation oftheindustry
andtheroles ofthevarious bodies? Isthetelecoms operator aseparate legal entity orpartof
theMinistry ofTelecommunication? Could therules governing interconnection beclarified?
Answer:
Inaccordance withDecree No334of20MayofthePresident ofGeorgia, subjects ofmonopoly
inthissector which areincluded intheState register ofnatural monopolies arethefollowing:
Under theMinistry ofCommunication andPost:
- State PostService ("Georgian Post");
- Distribution ofFrequency Spectrum.
Supplying services inthecommunication sector arenotmonopolised. AnyGeorgian orforeign
juridical ornatural person whoisregistered inGeorgia hastheright togetlicence forsupplying
communication services.
Independent companies exist inthissector, namely: "MegaCom Ltd.", "GeoCell Ltd".,
MagtiCom Ltd.,which provide wireless communication services (mobile phone services). TheMinistry
ofCommunicationandPostpossesscertainsharesonlyinMegaCom(itprovidesservicesfor20percent
theoftotalmarket, andtheremaining 80percentisprovided byGeoCell Ltd.andMagtiCom Ltd.);
Telecom Ltd., NewNetworks Ltd.andPelicom Ltd.serve fixed telephone networks. From
theseorganisations onlyTelecom Ltd.is fullyowned bythestate, other firms areprivate organisations.
Thefirms Georgian PostLtd., IMSLtd,andDHL Ltd.provide courier andpostal services
inGeorgia. From these firms onlytheGeorgian Postisfullyowned bytheGovernment, asregards
theother firms theyareprivate property.WT/ACC/GEO/7/Add.2
Page25
Ayety TVLtd.isaprivate organisation andperforms paging services inGeorgia.
TheJointStock Company "Bond" isaprivate structure. Themain direction ofitsactivities
iscommunication designing works.
Infocom Ltd.andGood WillLtd.perform thefollowing types ofactivities: conducting audio
conferences, internet, faxservices etc.Infocom Ltd.is100percentowned bytheState, while Good
WillLtd.isaprivate organisation.
Transport services
- Airtransport services
Question 39
Could theGeorgian authorities explain whatisprecisely meant bythesentence intheMemorandum
reading "Tousethesignificant airlineforbusiness trips regularly ornon-regularly, Georgian
orforeign country natural orlegal person istohave apermission (licence)"? What ismeant by
airline andbusiness tripinthiscontext?
Answer:
Providing airtransport services inGeorgia isregulated bytheintergovernmental agreements
signed between Georgia andforeign countries, according towhich contracting parties grant eachother
rights which stipulate thetypes ofservices tobeprovided.
Thesignificant airline means anairline which hasbeendesignated andauthorised inaccordance
withanintergovernmental agreement signed between Georgia andaforeign country;
Question 40
What isthecurrent situation regarding auxiliary services inthedifferent transport modes such
asrepair andmaintenance, andsales andmarketing? Areforeign service suppliers permitted
toenter themarkets andoperate inthese areas onthesame terms asdomestic counterparts?
Answer:
Seedocument WT/ACC/GEO/SPEC/4.
- Road transport
Question 41
Onroadtransport, could thecriteria forlicensing beexplained andanindication given ofwhether
foreign service suppliers arepermitted access tothesector onanequal basis withdomestic legal
andnatural persons?
Answer:
Thelicenses onroadtransport services areissued bytheDepartment ofRoad Transport under
theMinistry ofTransport ofGeorgia onthebasis ofpresentation ofthefollowing documents:WT/ACC/GEO/7/Add.2
Page26
- written application inaccordance withestablished form;
- copies ofthedocuments certifying theappropriate profession;
- passport oftheobject tobelicensed;
- permission oftheowner ofprincipal facilities necessary forcarrying outtheactivities described
intheapplication anddocuments certifying thesuitableness oftheir technical exploitation
(technical passport, certificate).
Theowner ofthelicense isnotallowed:
- totransfer thelicense toother juridical ornatural person;
- tocarry outthetransportation ofpassengers andgoods iftransport means donotmeet
exploitation orenvironmental requirements.
Incases ofinfringement ofthelicensing rules thefollowing measures areapplied:
- cancellation oflicense;
- administrative responsibility.
Foreign service suppliers haveaccess tothissector onanequal basiswithdomestic legaland
natural persons.
Question 42
Could Georgia confirm their dates ofaccession toandratification oftheUNinstruments listed
intheir paper -inparticular thefollowing :TIR, CMR, ADR, AETR andATP, allofwhich are
important road transport Agreements orconventions?
Answer:
TheTIRConvention hasbeeninforce inGeorgia since 24September 1994. Georgia acceded
totheATP (Agreement ontheInternational Carriage ofPerishable Foodstuffs andontheSpecial
Equipment tobeUsed forSuch Carriages, 1May on5September 1995. Theprocess ofaccession
ofGeorgia totheCMR Convention isgoing on.Georgia hasnotacceded totheADR andAETR
Conventions.
Question 43
Could clarification beprovided ofthesection on"Road transportation Service", inparticular
thefourth, eighth andninth indents inthatsection? Could theparagraph commencing withthe
words "Onthebasis oftheLaw…"alsobeclarified, inparticular withregard towhether Georgian
andforeign vehicles aresubject tothesame charges forentry andtransit.
Answer:
Inaccordance withArticle 7oftheLaw"OnRoad Fund" No.802,dated 22September 1995:
"entering charges andcharges fortransit traffic within theterritory ofGeorgia havetobepaidbyowners
ofvehicles registered outside ofGeorgia (including special vehicles), aswellasowners ofvehicles
registered inGeorgia which areloaded oraretobeloaded within theterritory ofGeorgia fordelivering
thecargo ofaforeign country toaforeign country".WT/ACC/GEO/7/Add.2
Page27
- Maritime transport
Question 44
Could Georgia explain thecurrent rules covering theapplication ofportfees? Arethefeescharged
onanon-discriminatory basis toforeign- anddomestically- registered vessels calling atGeorgian
ports?
Answer:
Thenewversion ofportfeesiselaborated. Thiscorresponds totheEuropean standards and
needs approval bytheMinistry ofTransport andtheMinistry ofFinance.
Portfeesarechargedonanon-discriminatorybasistoforeignanddomesticallyregisteredvessels
calling atGeorgian ports.
Tourism
Question 45
Could some information besupplied about thecurrent regulation ofthetourism industry?
Answer:
TheGovernment recognises theTourism andResort sector asoneofthepriority directions
fordeveloping thenational economy andcreates favourable conditions forperforming tourism and
related services.
TheGovernment facilitates thedevelopment ofinternational co-operation inthefields oftourism
andresorts. International agreements concluded bytheGovernment ofGeorgia inthisfieldarethe
legalframework forinternational co-operation.
Theregulation ofthetourism industry inGeorgia isimplemented inaccordance withtheLaw
ofGeorgia onTourism andResorts (adopted on6March 1997, No599-IIs) andother appropriate
Georgian legislation.
Inaccordance withtheabove-mentioned LawtheGeorgian Tourism Department, jointly with
theMinistry ofHealth Care, isaState regulatory body inthefields oftourism andresorts.
TheMinistry ofHealth CareofGeorgia adopts thetreatment methodology forresorts.
Thecreation ofnewtourist andresort objects ontheterritory ofGeorgia ispermitted in
agreement withState regulatory bodies inthisfieldandlocaladministrative authorities.
Certification oftourist andresort activities isimplemented inaccordance withtherelevant law.
Asregards thelicensing ofthetourist andresort services, itsimplementation willstartafteradoption
oftheLicensing Law.WT/ACC/GEO/7/Add.2
Page28
Thefollowing normatives areestablished:
(i) certification rules oftourist andhotel services;
(ii) requirements forproviding thesecurity oftourist-excursion services andtourists and
excursionists;
(iii) hotel classification;
(iv) principal requirements oftourist services.
__________