RESTRICTED
WORLD TRADE IP/C/W/91
13November 1997
ORGANIZATION(97-4969)
Original: English Council forTrade-Related Aspects
ofIntellectual Property Rights
REVIEW OFLEGISLATION ONENFORCEMENT
Replies from Bulgaria toquestions posed byJapan1
Thefollowing communication, dated 11November 1997, hasbeenreceived fromthePermanent
Mission oftheRepublic ofBulgaria.
REPLIES TOQUESTIONS POSED BYJAPAN
1. Please indicate the"competent authorities" stipulated inArticle 51oftheTRIPS Agreement.
Under Bulgarian Lawthecompetent authorities stipulated inArticle 51oftheTRIPS Agreement
areCustoms Authorities.
2. Please explain whether "proceedings leading toadecision onthemerits ofthecase" stipulated
inArticle 55oftheTRIPS Agreement, arejudicial oradministrative.
Under Bulgarian legislation theproceedings leading toadecision onthemerits ofthecase
stipulated inArticle 55oftheTRIPS Agreement arejudicial.
When thesubject ofviolation isatrade mark, industrial design orindication oftheplace of
origin andthisviolation hasbeenestablished inadministrative order through penal enactment under
theprovisions ofArticle 52oftheLawonTrade Marks andIndustrial Designs, thelawsuit shallbe
filedbefore theDistrict Court ontheterritory ofwhich theviolation hasoccurred. When violation
ontheabove-stated objects ofintellectual property isestablished bythecourt under theprovisions of
Article51oftheLawonTradeMarksandIndustrialDesignsthecompetentauthorityshallbetherelevant
District Court.
Incaseofinfringed rights oninvention orutility model thecompetent authority shallbethe
Sofia CityCourt.
Incaseofinfringed rights related tocertificate onnewplant variety thecompetent authority
shallbetheSofia Country Court andwhen theviolation isestablished intheadministrative order stated
above thecompetent authority shallbetheDistrict Court according totheplace ofviolation.
1IP/C/W/82.IP/C/W/91
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3. Arethere anyways other thantheapplication stipulated inArticles 51and52oftheTRIPS
Agreement (hereafter referred toas"theApplication") which enable aright holder torequest the
competent authorities tosuspend therelease ofthegoods which infringe IPRsorwhich aresuspected
toinfringe IPRs?
Thelegislation oftheRepublic ofBulgaria includes the"guarantee procedure", envisaged in
Article 308andthefollowing Articles oftheCivilProcedure Code. Inaccordance withtheseprovisions
theclaimant, atanystage ofthelawsuit orbefore lodging theclaim forestablishment ofrightviolation
onanyintellectual property right, inorder toprevent entry intothechannels ofcommerce ofinfringing
goods, mayfurnish adequate written evidence ormaypresent aguarantee incashorinproperty. The
possible collateral measures, which thecourt shall enact aredistraint ongoods which involve
infringements ofIPRs, aswellasother appropriate measures determined byit.These measures deprive
thedefendant from hiscontrol authority, oblige himtokeepthedistraint property andmayleadto
submission oftheproperty toakeeper.
When theviolation isestablished inadministrative order under theprovisions ofArticle 46
oftheLawonAdministrative Violations andPenalties, thegoods which involve infringement ofIPRs
shallbesubmitted forresponsible keeping tothe:
- office oftheauthority which hasdrawn uptheadministrative order;
- municipal administration intheplace ofviolation;
- violator orother persons.
Perishable products shallbesoldbystateowned ormunicipal companies andthesum,decreased
bythecommitted expenses, shallbedeposited withtheState Saving Bank.
4. Please explain what termyourcountry regards as"areasonable period within which the
competent authorities shall inform theapplicant whether ornottheyhaveaccepted theApplication"
stipulated inArticle 52oftheTRIPS Agreement.
Theholder ofIPRsmayusetheopportunity oftheguarantee procedure, stated above inreply
toquestion 3,andthrough court decision maygetasuspension ofgoods atthecustoms.
Procedures related tothesuspension ofimport ofgoods, which involve infringement ofIPRs
ofathirdparty, areprovided intheDraft LawonMarks andGeographical Indications. TheDraft
Lawisinitsfinallegislative stage anditsenactment bytheNational Assembly ispending. Under the
provisions ofArticle 75,paragraph 1oftheDraft LawonMarks andGeographical Indications with
thereceipt oftherequest oftherightholder thecustoms authorities shallsuspend theimport ofthe
goods andshallnotify theimporter, giving hima7daystermforobjection. Incasewhen within that
termthere isnoobjection from theimporter thecustoms authorities shallseize thegoods onbehalf
ofthestate-Article 75,paragraph 2oftheDraft Law.
5. Please explain thetermduring which theApplication iseffective.
Theprovisions ofArticle 309ofCivil Procedure Code stipulate thattheterm, within which
thecaseshallbebrought before thecourt, isdetermined bythecourt itself.
Article 77,paragraph 1oftheDraft LawonMarks andGeographical Indications provides
thatthesuspended from import goods atthecustoms shallbereleased incasewhen therightholder
within 14daystermfrom thedayofhisnotification ofthesuspension failstolodge anapplicationIP/C/W/91
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withSofia CityCourt toenact suspension ofgoods asaguarantee tohislawsuit forviolated rights
filedbefore thecourt.
6. Please explain whether aright holder isobliged topayanyfeestolodge theApplication.
Article 74oftheDraft LawonMarks andGeographical Indications stipulates thatcustoms
authorities shalldetermine thefeeforkeeping thesuspended goods andcashguarantee forensuring
theinjuries, which theimporter would haveundergone bythegroundless suspension ofhisimported
goods. Thecashguarantee shallbedeposited atdisposal oftheCustoms Authorities.
7. Please indicate provisions oflawsandordinances which "prescribe theproceedings leading
toadecision onthemerits ofthecase" stipulated inArticle 55oftheTRIPS Agreement. Andplease
summarize theircontents.
Theproceedings leading toadecision onthemerits ofacasestipulated inArticle 55ofthe
TRIPS Agreement shallbeinitiated bytheright holder through filing aclaim forestablishment of
infringement ofhisintellectual property rights before theSofia CityCourt (Article 64ofthePatent
Law, Article 51oftheLawonTrade Marks andIndustrial Designs, andArticle 51,paragraph 1,
subparagraph 3oftheLawonProtection ofNewPlant Varieties andAnimal Breeds).
There isalsoapossibility thatanadministrative authority mayissueadecision oninfringement
ofintellectual property rights. Article 52oftheLawonTrade Marks andIndustrial Designs andArticle
52oftheLawonProtection ofNewPlant Varieties andAnimal Breeds stipulate thattherightholder
oftheregistered object maylodge anapplication forinfringement ofhisexclusive intellectual property
rights. Theadministrative penal body (Patent Office orMinistry ofAgriculture) shallconsider the
application andmayinitiate aninspection. Incasewhen theinspection concludes thattheclaims in
theapplication arewell-grounded, anactshallbedrawn upanddelivered totheinfringer, bywhich
thegoods shallbedistraint andleftforresponsible keeping. Onthebasisofthatactapenal ordinance
forconfiscation onbehalf ofthestateofthegoods which involve infringements ofIPRsshallbeenacted.
Thepenal ordinance maybeappealed against before theRegional Court intheplace ofviolation.
8. Please explain thespecific procedure, ifany,tobeapplied tothegoods which arenotevident
whether ornottheyinfringe IPRs, inArticle 55oftheTRIPS Agreement.
Seereply toquestion 5.
9. Please explain theresponsibility thatthecompetent authorities andother related authorities
taketotherightholders whentheyfailtosuspend therelease intofreecirculation ofgoods which infringe
IPRswithregard tothesuspension based ontheApplication ortheExOfficio Action stipulated inArticle
58oftheTRIPS Agreement.
Seereply toquestion 11.
10. Please explain theresponsibility thatthecompetent authorities andother related authorities
taketotherightholders when theyexamine goods which infringe IPRsandnevertheless release them
intofreecirculation withregard tothesuspension based ontheApplication ortheExOfficio Action
stipulated inArticle 58oftheTRIPS Agreement.
Seereply toquestion 11.
11. Please explain theresponsibility thatthecompetent authorities andother related authorities
taketotheimporters when theysuspend therelease intofreecirculation ofgoods which donotinfringeIP/C/W/91
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IPRs withregard tothesuspension based ontheApplication ortheExOfficio Action stipulated in
Article 58oftheTRIPS Agreement.
TheprovisionsoftheLawonStateResponsibilityforInjuriesCausedtoCitizensshallbeapplied
inthecases specified inquestion 9.Stateowes tocitizens compensation forinjuries, caused tothem,
asaresult ofillegal acts,actions ornon-actions ofstateagencies orofficials infulfilment oftheir
administrative obligations. Theinjured person mayfilealawsuitforinjuries before thecourt inthe
place ofviolation orinhisdomicile. Article 5oftheabove-stated lawprovides thatthestateauthorities
andofficials shallberelieved from responsibility onlyincasewhen theinjury iscaused because of
theexplicit guiltoftheinjured person.
12. Istherightholder informed ofidentities oftheimporters andconsignors when thecompetent
authorities "suspend" thegoods which infringe onIPRsorwhich aresuspected toinfringe IPRs, as
wellasthecasewhere therightholder isinformed ofidentities oftheimporters andconsignors stipulated
inArticle 57oftheTRIPS Agreement?
Article 75,paragraph 1oftheDraft LawonMarks andGeographical Indications provides
thatcustoms authorities shallnotify theimporter forthesuspension ofhisimport, allowing hima7days
termforobjection. Ifthere isanobjection within thattermtherightholder shallbedulyinformed
under theprovisions ofArticle 76oftheabove-stated Draft Lawabout thename andaddress ofthe
importer, theplace oforigin andquality ofthegoods aswellastheplace oftheirstorage.
13. Please explain themeasures toprotect confidential information inthecourse oftheinspection
stipulated inArticle 57oftheTRIPS Agreement. Andplease indicate provisions oflawsandordinances
which prescribe suchmeasures.
Theprovisions ofArticle 14paragraph 4oftheLawonProtection ofCompetition which
explicitly prohibit theuseanddissemination ofcommercial secrets apply totheinspection stipulated
inArticle 57oftheTRIPS Agreement.
14. Please explain theprocedures ofdetentions andseizures tobeordered bythecompetent
authorities based onArticles 51and55oftheTRIPS Agreement.
Article 52ofLawonTrade Marks andIndustrial Design stipulates thatimported goods,
unlawfully bearing atrademark ofathirdpartyaswellasgoods manufactured according toanindustrial
design ofathirdcountry, registered inBulgaria, orproducts bearing falseappellations oforigin shall
besubject toseizure onbehalf ofthestate.
Theprocedures ofdetentions andseizures tobeordered bythecompetent authorities arestated
inthereply toquestion 7.
15. Please explain theprocedures toappeal against anydecisions ordered bythecompetent
authorities based onArticles 51and55oftheTRIPS Agreement.
Thecustoms authority ’sdecision onseizure ofgoods fromimport isanadministrative actand
shallbeappealed before theRegional court intheplace ofseizure.
TheSofia CityCourt ’sdecision shallbeappealed before theSupreme Court oftheRepublic
ofBulgaria. TheConstitution oftheRepublic ofBulgaria stipulates thattheprocedure shall be
three-staged.IP/C/W/91
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16. Please explain thebasisforcalculating thesecurity orequivalent assurance stipulated inArticle
53ofTRIPS Agreement thatthecompetent authorities mayrequire anapplicant when theysuspend
therelease intofreecirculation.
Article 74oftheDraft LawonMarks andGeographical Indications provides thatcustoms
authorities shalldetermine thefeeonthetermforkeeping goods andcashguarantee forensuring the
injuries, which theimporter would hasundergone bythegroundless suspension ofimport. Thecash
guaranteeshallbedepositedatthedisposalofcustomsauthorities.Thecompensationshallbedetermined
onthebasis ofthetype, quality, quantity oftheimported goods, durability andthepossible profit,
which theimporter might haverealized ifthegoods hadnotbeensuspended atthecustoms.
When thecourt isrequested tosuspend thegoods, which areconsidered toviolate IPRs of
athirdperson, theopportunities ofguarantee procedure shallbeused. Insuchcasetheclaimant shall
deposit acashguarantee serving asacompensation forpossible injuries, caused tothedefendant by
theactions undertaken against him.
17. Please explain whoshallpaythecostofdetentions based onArticle 51oftheTRIPS Agreement
ordestruction stipulated inArticle 59oftheTRIPS Agreement.
Theclaimant shallpayaninitial feeforkeeping thesuspended goods. Incasewhen thecourt
establishes thatthesuspended goods infringe claimant ’sIPRs, thecourt shalldetermine whoshallpay
thecostofdetention.
18. Please explain whatkindofcases areregarded as"theexceptional circumstances" inwhich
thecompetent authorities mayallow re-exportation ofcounterfeit trademark goods stipulated inArticle
59oftheTRIPS Agreement.
There isnopractice related toanalogous cases.
19. Please indicate names oflawsandordinances andtheirprovisions inwhich thesuspension
oftherelease ofgoods which infringe IPRsorwhich aresuspected toinfringe IPRsisprescribed, as
stipulated intheArticle 51oftheTRIPS Agreement.
Thelawswhich provide forthesuspension oftherelease ofgoods which infringe IPRsorwhich
aresuspected toinfringe IPRs are:theLawonTrade Marks andIndustrial Designs andtheCivil
Procedure Code. Their respective provisions arestated above inreplies toquestions 14,15and16.
20. Please indicate which IPRsareprotected based ontheApplication byaright holder.
Article 52oftheLawonTrade Marks andIndustrial Designs provides thatIPRsontrademarks,
industrial designs andappellations oforigin areprotected based ontheApplication byarightholder.
21. Please explain kinds andcontents ofdocuments which shall beprovided bytheapplicant to
lodge theApplication.
Article 73,paragraphs 1and2oftheDraft LawonMarks andGeographical Indication requires
thattheapplication forthesuspension ofimport ofgoods shallbeinwritten formandshallcomprise
ofdetailed description ofthegoods which arerequested tobesuspended. Enclosed totheapplication
shallbeacopyofthecertificate fortrademark registration andadocument acknowledging thevalidity
ofregistration.IP/C/W/91
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22. Please explain theremedies which thejudicial authorities order regarding acopyright and
other related rights, patents, industrial designs, trademarks andlayout-designs (topographies) of
integrated circuits, including injunctions, damages, expenses, destruction orotherdisposal ofinfringing
goods andmaterials/implements fortheirproduction.
ThePenal Code provides forcriminal penalties incases ofcopyright piracy onacommercial
scaleandillegal useofatrademark, service mark, appellation oforigin orindustrial design trademark
counterfeiting.
Article 172(a) paragraphs 1and2ofthePenal Code stipulate thatthecourt mayenact decision
onimprisonment ofnotmore than3years and/or fines from leva1000000to3000000for
infringement ofcopyright andneighbouring rights. Article 172(a) paragraph 3provides imprisonment
from1to5years and/or finesfromleva3000000to5000000forrepeated infringement ofcopyright
andneighbouring rights. When theobject ofviolation belongs totheguilty person itsdeprivation on
behalf ofthestateisobligatory.
Incases ofinfringements ofcopyright andneighbouring rights Article 94andArticle 95of
theLawonCopyright andNeighbouring Rights stipulate that thecourt mayenact thefollowing
decisions:
- oncompensation forendured injuries;
- ontermination oftheillegal useoftherights;
- onseizing anddestroying illegitimately produced copies ofthework, including
negatives, master copies, printing forms andothers usedforthepurposes ofcopying;
- onseizing andputting outofoperation thecopying andreproducing equipment used
exclusively forcommitting violations;
- onreceiving theobjects under above mentioned itematcostprice withthisamount
being deducted from thecompensation due.
Article 28ofthePatent Lawprovides thatwhen aclaim forviolation ofrights onregistered
invention orutility model isbrought before thecourt, andthefactofviolation isestablished, thecourt
mayenact thefollowing decisions:
- oncompensation forendured injuries andmissed benefits;
- ontermination ofviolator ’sactions, infringing patent rights;
- onpublication ofthedecision in2dailies onbehalf oftheviolator;
- onprocessing ordestruction ofthesubject oftheviolation, andincaseofintention;
- aswellasofthemeasures usedforitscommitment.
UnderthePenalCodechargesmaybepressedagainstinfringersofIPRsincasetheyuseillegally
atrademark, service mark, appellation oforigin orindustrial design. Article 227andArticle 227(a)
ofthePenal Code provides thatinsuchcases thecourt mayenact adecision onimprisonment from
3months tonotmore thanoneyearand/or afineofuptoleva1000000. When theobject ofviolation
belongs totheguilty person itsdeprivation onbehalf ofthestateisobligatory.IP/C/W/91
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Article 52oftheLawonTrade Marks andIndustrial Designs stipulates thatthemunicipality
intheplace ofviolation shallseize thegoods infringing trade marks andindustrial design incaseof
penal order.
TheLawonProtection ofNewPlant Varieties andAnimal Breeds provides thatincaseof
lawsuitsforinfringed rights filedbefore thecourt under Article 29,thecourt mayenact thefollowing
decisions:
- oncompensation forendured injuries andmissed benefits;
- ontermination ofviolator ’sactions, infringing patent rights;
- incaseofenforced penal regulation under Article 52themunicipality intheplace of
violation confiscates theviolation goods andcollects thefineimposed.
23. Please explain whether theamount ofdamages which judicial authorities order theperson who
infringes IPRs topaytheright holder isadequate compensation fortheinjury theright holder has
suffered, andwhatcriteria andthewayforcalculation todecide theamount forcompensation.
Thecompensation fortheinjuries caused totherightholder determined bythecourt isadequate
totheendured injuries andmissed benefits. Thepossible profit, which therightholder would have
realized iftherehadbeennoviolation orrealized bytheviolator profit, isalsotaken intoconsideration
bythejudicial authorities.
24. Please explain whether theamount ofdamages which judicial authorities order theperson who
infringes IPRstopaytherightholder includes investigations expense andappropriate attorney ’sfees.
Theamount ofthedamages which judicial authorities order theperson whoinfringes IPRs
topaytherightholder mayinclude thecourt expenses aswellastheappropriate lawyer ’sfeesincases
when therightholder requests thatamount ofdamages.
25. Please describe towhat extent theamount ofdamages havebeenestimated bycourts since
1January 1996. Please explain whether theamount ofdamages isadequate compensation forthe
injury therightholder hassuffered, andhowsuchcivilprocedures areconsistent withArticle 45of
theTRIPS Agreement.
Seereply toquestion 23.
26. Please explain thekinds andamounts ofpenalties (imprisonment orfines) incriminal cases.
Please alsoexplain whether thesepenalties areconsistent withArticle 61oftheTRIPS Agreement which
requires provisions forasufficient deterrent, consistently withthelevelofpenalties applied forcrimes
ofacorresponding gravity.
ThePenal Code provides forcriminal penalties incases ofcopyright piracy onacommercial
scale andillegal useofatrademark, service mark, appellation oforigin orindustrial design.
Article 172(a) paragraphs 1and2ofthePenal Code provide imprisonment ofnotmore than
3years and/or finesfromleva1000000to3000000forinfringement ofcopyright andneighbouring
rights. Article 172(a) paragraph 3provides imprisonment from 1to5years and/or fines from
leva3000000to5000000forrepeated infringement ofcopyright andneighbouring rights. When
theobject ofviolation belongs totheguilty person itsdeprivation onbehalf ofthestateisobligatory.IP/C/W/91
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Chapter III,Part4,Article. 227andArticle 227(a) ofthePenal Code provide fortheuse
ofcounterfeited trademarks imposition ofimprisonment from3months tonotmorethan5years, and/or
afineofuptoleva1000000.When thesubject ofviolation belongs totheguilty person itsdeprivation
onbehalf ofthestateisobligatory.
Theabove stated penalties inthePenal Code comply withtherequirements ofArticle 61of
theTRIPS Agreement andprovide sufficient deterrent, consistent withthelevelofpenalties applied
forcrimes ofacorresponding gravity.