The Russian Government has adopted a decree[1] which will allow local companies and individuals to use inventions, utility models and industrial designs held by owners from “unfriendly countries” without their consent and without paying any compensation.
The decree relies on the provisions in the Russian Civil Code which give the government the right, in case of extreme necessity associated with supporting the defense and safety of the state, the protection of citizens’ life and health, to allow the use of inventions, utility models or industrial designs without a patent owner’s consent at short notice and for “proportional” compensation. The decree envisages compensation in the amount of 0% of the revenue of the person using a patent, payable to patent owners connected with foreign countries which perform unfriendly actions in relation to Russian legal entities and individuals, including:
The decree envisages compensation in the amount of 0% of the revenue of the person using a patent, payable to patent owners connected with foreign countries which perform unfriendly actions in relation to Russian legal entities and individuals, including:
- patent owners having citizenship of such countries,
- patent owners having such countries as a place of registration, a principal place of business activities or a principal place of receiving revenues.
The current list of “unfriendly countries” as of today consists of 48 states.[2]
Comments
We believe this new regulation would allow persons who will be granted by the Russian Government the right to use certain patents of third parties without the owners’ consent, not to pay any compensation for the use of the respective invention, utility model or industrial design to patent owners from “unfriendly” countries.
It is likely that this measure will apply to patented developments, devices and technologies that disappear from the Russian market or will be in short supply.
[1] Decree of the Government of the Russian Federation dated 6 March 2022 No. 299 “On Amending item 2 of the Methodology of calculation of compensation’s amount to be paid to patent owner resulted in decision to use invention, utility model or industrial design without patent owner’s consent, and procedure of its payment”
[2] Order of the Government of the Russian Federation dated 5 March 2022 No. 430-р
