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PROTECTING INTELLECTUAL PROPERTY IN RUSSIA

by Judith Robinson
 
Copyright infringement, particularly in computer software and electronic media,
occurs frequently in Russia.  Although Russia now has the basic legal framework
to protect intellectual property, enforcement remains very weak.  The good news is
that protection of intellectual property will receive increasing support from Russia's
growing private sector, as local companies develop a stake in protecting their own
proprietary ideas and technology.   

The problem of protecting intellectual property rights (IPR) in Russia lies partly in
the country's lack of a tradition of private property ownership.  Soviet law
reflected this shortcoming, which extended to both physical and intellectual
property.  Inadequate or low-level protection was accorded to inventions and
copyrightable works.  No protection was available at all for computer software or
trade secrets.   Laws that did exist evolved to accommodate the Russian need to
trade with and learn from the West. 

Legal Groundwork

Since 1991, Russian legislators have laid the legal foundation for the protection of
intellectual property, recognizing that such protection was essential to the inflow
of foreign technology.  As their products began to penetrate the Russian market,
Western companies insisted that proprietary technology and trademarks be safe
from infringement if they were to do business in Russia.  By the end of 1991,
Russia had signed 11 international agreements and conventions for the protection
of intellectual property.  Laws passed in 1992 and 1993 protect patents,
trademarks, copyrights, trade secrets, designs, and intellectual property in some of
the newer sciences, notably chemical and pharmaceutical substances and
information processing.  In 1994, Russia and 10 other NIS countries (except
Turkmenistan) joined a new Eurasian Patent Convention.  The new system permits
a single application, filed in Moscow in one language, Russian.  Patent applications
will be subjected to a single examination and will take effect in all member
countries.  

By 1995, when Russia jointed the Berne Convention and the Geneva Phonogram
Convention, Russia had acquired a basic, if far from perfect, legal system for the
protection of intellectual property.  The major effect of the new laws is to give
new inventors and authors, not the State, the opportunity to control their work,
including the right to contract its use to others.    

Enforcement Lacking

Enforcement is the chief problem in protecting IPR in Russia.  Few enforcement
mechanisms exist, and civil and criminal penalties are absent or too weak to be
effective.  The Administrative code has no IPR provisions and the Criminal Code is
still before the Russian Parliament.  There are no special courts for resolution of
IPR disputes, and judges lack adequate IPR training.  Finally, IPR is still an
unfamiliar concept to many Russians, and is still viewed negatively by some as a
capitalist concept. 

In the Interim

Until effective enforcement becomes a reality, a strong presence in the
marketplace is often the best alternative.  For example, after establishing offices in
Moscow in 1992, a major U.S. software company signed cooperation agreements
with leading Russian computer manufacturers, who now  have a stake in
protecting the integrity of its software.  Often, a Western company's mere
presence in Moscow makes it much easier to identify and thwart infringement.
  
Although individual solutions to IPR protection can often be devised, most U.S.
companies will need professional legal advice as they enter the Russian
marketplace.  For a list of Western law firms with offices in Moscow, call the
BISNIS Flashfax at (202) 482-3145, and order document #6571 
Judith Robinson covers legal issues for BISNIS.
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