Russian Agency for Patents and Trademarks (Rospatent)
FOR IMMEDIATE RELEASE December 16, 2002	Contacts:	Sergey Luknitsky (ROSPATENT) (7-095) 240-4670
		Alexander Shelemekh (CIPR) (7-095) 775-0077

PRESIDENT PUTIN SIGNS LANDMARK IP LAW

"WAKE-UP CALL FOR TRADEMARK OWNERS AND INFRINGERS,"
SAY GOVERNMENT AND DUMA LEADERS

Moscow, Russia - "A wake-up call for IP owners and infringers alike," is how top Government and State Duma officials today analyzed President Putin's weekend signing of extensive amendments to the RF Law on Trademarks, Service Marks and Appellations of Origin of Goods.

"Designed to accelerate Russia's integration into the global economy and its admission to the WTO, these amendments help put teeth into intellectual property laws and give rights holders new tools to enforce their rights," stated Rospatent General Director Alexander Korchagin.

The new law ensures better protection of well-known marks, broadly defines counterfeits for the first time, and also provides for physical destruction of seized counterfeit goods. The law secures mechanisms to counter bad faith registrations of IP objects by trademark infringers and highjackers.

"Trademark counterfeiters, copyright pirates and other IP criminals should pay close attention to this wake-up call," said State Duma Deputy Peter Shelisch. "The President's signature on this legislation, including its broad-based definition of counterfeiting, opens the way for Duma enactment of much tougher financial penalties, jail sentences, asset confiscations and equipment seizures for IP offenders in Russia," he added.

Korchagin, Shelisch and leaders of the Coalition for Intellectual Property Rights (CIPR) also did not mince words when speaking to owners of trademarks, patents and copyrights at today's government news briefing.

"Too many IP owners act as if the Government alone should defend private rights," said Dr. Korchagin. "Now the Government has full credibility in saying to the private sector, the next step is yours."

"IP rights-holders must act responsibly by utilizing the many legal protections and enforcement options now available in Russia," Korchagin said. "Register your trademarks and patents. Seek protection for your well-known trademarks. Insist on destruction of counterfeits of your goods. Use the unfair competition laws to stop trademark rip-off artists and extortionists."

"The Government and Duma are far from washing their hands of the IP abuse problem in the Russian Federation," said Shelisch. "Together with the Coalition for Intellectual Property Rights, we have a pressing agenda for further IP reform. In addition to needed changes to the criminal laws, very important amendments to the Patent Law, the Law on Copyrights and the State Customs Code are currently being considered by the Duma. We welcome the active participation of both Russian and foreign IP owners, as well consumer organizations, in this urgent effort."

The Russian IP market continues to grow exponentially. Last year, Rospatent received 53,124 applications for trademark and service mark registrations of which 75% came from Russian companies and the balance from international applicants. Unfortunately, the number of IP violations, such as copyright piracy, trademark infringements and counterfeiting, has also increased at alarming rates.

According to Rospatent, for example, the number of attempted bad faith registrations exceeded 3000 cases in 2001. According to research conducted by CIPR, the incidence of counterfeit medicines has more than doubled while three of every four Moscow consumers report having encountered a counterfeit product, during the last two years.

"The system is still far from perfect," said Peter Necarsulmer, President of CIPR, a private-public-consumer partnership focused on IP rights and their enforcement in Russia, the CIS and the Baltics. "A truly broad base of Russian and foreign IP owners, as well as retailers, must do their part in the process, including consumer education and support for health, customs and all law enforcement authorities."

"Our experience in Russia over the past three years makes clear that future progress demands united efforts by the state authorities, copyright and industrial property rights holders, and consumers. Simply put, there is no alternative."