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Russia's countermeasures: zero per cent compensation to patent holders from "unfriendly countries"

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The last weeks have seen the imposition of several Russian counter-/retaliatory-measures in response to the sanctions imposed against Russia by the EU, the USA and others. One such measure that has gained a lot of attention, is the new Governmental Order No. 299. This order allows – under certain circumstances - the right to use the patents of third parties without the third party's consent and without paying any compensation. Below we provide further information on the content of Governmental Order No. 299 and what it entails.

Please note that these updates do not provide an exhaustive description of the sanctions and countermeasure in place, and they may not be construed as legal advice. Any person or entity involved in business activities in any way related to Russia, should carefully assess whether and how they are affected by the new sanctions. Schjødt's sanctions team is ready to assist in this regard.

Governmental Order No. 299

"With regard to patent holders, associated with foreign states who commit unfriendly actions against Russian legal entities and individuals (including if such patent holders have citizenship of these states, the place of their registration, the place of their primary business activities or the place of their primary profit from activities are these states), the amount of compensation is 0 percent of the actual revenue of the person who exercised the right to use the invention, utility model or industrial sample without the consent of the patent holder from the production and sale of goods, performance of work and provision of services for the production, performance and provision of which the corresponding invention, utility model or industrial sample was used."

The list of “unfriendly countries” has been approved by the Governmental Order of March 5, 2022 No. 430-p[4] and currently includes:

The current situation is very fluid and more measures are expected in the coming days. We will continue to monitor the situation closely.

 

[1] Article 1360 of the Civil Code of the Russian Federation (Part 4) of December 18, 2006.

[2] Order of the Government of Russia "On Approval of the Methodology for Determining the Amount of Compensation Paid to the Patent Holder when Deciding to Use an Invention, Utility Model or Industrial Sample without its Consent, and the Payment Procedure" of October 18, 2021 No. 1767.

[3] Order of the Government of Russia “On an Amendment to Clause 2 of the Methodology for Determining the Amount of Compensation Payable to a Patent Holder When a Decision is Made to Use an Invention, Utility Model or Industrial Sample without its Consent and the Payment Procedure” of March 6, 2022 No.299.

[4] Order of the Government of Russia "On a List of Countries and Territories Committing against Russia, Russian Legal Entities and Individuals Unfriendly Actions" of March 5, 2022 No. 430-p.

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