TABLE OF CONTENTS

1. Background, Methodology and Objectives
2. Key Findings
3. Aggregate Results
   1. Total Survey (N=135)
   2. AmCham Members (N=76)
   3. EBC Members (N=54)
   4. 50 Selected Major Brandholders and Trademark Owners

I. BACKGROUND, METHODOLOGY & OBJECTIVES

This report highlights the key conclusions and major findings from a self-administered survey of selected companies currently doing business in Russia.  A total of 135 complete responses were received.  The survey data was collected over a 10-week period beginning from 15 November 1999 through 31 January 2000.  All respondents were guaranteed confidentiality of their individual responses and were informed that results would be reported only on an aggregate basis.

From among the total of 135 responses, 76 were completed by members of the American Chamber of Commerce (AmCham) and 54 were completed by members of the European Business Club (EBC).  This report displays the results for all 135 completed surveys and compares responses between AmCham and EBC members.  Both AmCham and EBC are Associate Members of the Coalition for Intellectual Property Rights.

Another five surveys were completed by members of the German Business Association (GBA); because there were only five responses from this group, they are not included in the analysis.  Three additional questions were asked of AmCham members at the special request of AmCham to the Coalition for Intellectual Property Rights (CIPR).  Responses to those questions appear at the end of this report.

A separate analysis was performed comparing companies deemed to be major brandholders and trademark owners doing business in Russia (50 companies) and all other companies that responded to the survey (85 companies).  Where the responses of these major brandholders and trademark owners differ from the responses of executives at other companies, these differences are pointed out in this report.  A separate written report of findings of the major brandholders and trademark owners was released to AmCham, EBC, various government officials and the news media on 21 February 2000.

By polling members of the two leading business associations representing foreign companies in Russia — namely the European Business Club in the Russian Federation and the American Chamber of Commerce — the survey’s primary objective was to determine the opinions and practices of foreign companies on a range of intellectual property rights issues in Russia, including registration and regulation, protection and enforcement, adjudication and, interaction with Russian government authorities.  The survey also explored various private sector practices and opinions on actions to improve the protection and enforcement of intellectual property rights such as anti-counterfeiting measures, public education, legal and judicial reform, building public-private coalitions and, improving the technical and other resources of relevant Russian government agencies.

The survey was designed, implemented and analyzed for the Coalition for Intellectual Property Rights by two professional research firms:  MAGRAM Market Research, an experienced consumer opinion research company which operates throughout Russia and the CIS; and, The PBN Company, an international strategic communications firm with offices in Moscow, Washington, London and other CIS and Baltic countries.  Both firms are members of AmCham and The PBN Company is also a member of EBC.

This survey is not a statistically representative sample of companies doing business in Russia, nor is it a statistically representative sample of the opinions of members of CIPR, AmCham or EBC.  However, the survey sponsors believe this Report is a broadly applicable and objective statement of the intellectual property rights problems, practices and opinions faced by international companies in the Russian Federation.

II. KEY FINDINGS

• INTELLECTUAL PROPERTY PROTECTION: A KEY ISSUE

  Intellectual property protection is a crucial concern of major companies in Russia, especially members of the American Chamber of Commerce.

  Intellectual property protection is perceived to be a definite challenge confronting businesses in Russia.  In the survey, respondents were asked to rate a series of “challenges confronting the successful operations of your business in Russia” using a five-point scale, where one meant “least important” and five meant “most important.”  The average (mean) score for intellectual property protection was 3.54, and 30% of all those who responded gave it a rating of five.  This ranks intellectual property protection below taxes, government bureaucracy, customs, and government corruption, but ahead of investment laws, the court system, non-compliance with treaties, and shareholder rights.

  Notably, the average (mean) score for intellectual property protection was significantly higher among AmCham members (3.85) than among EBC members (3.25).  Among AmCham members, taxes, bureaucracy, customs, corruption, and intellectual property protection received roughly the same mean ratings, suggesting that they make little distinction among all these difficult challenges.  EBC members, however, clearly feel that taxes are the most onerous burden; intellectual property protection ranks third from the bottom for them.

  Ratings Of Challenges Facing Successful Operations Of A Business In Russia
  (From 1=Least Important To 5=Most Important)
   
  

  The average (mean) score for intellectual property protection was significantly higher among selected major brandholders and trademark owners doing business in Russia (4.15) than among other companies (3.15).  More than one-half (52%) of selected major brandholders gave a rating of five to intellectual property protection.  This ranks intellectual property protection on the same high level of concern as customs (54%) and taxes (52%) — which have historically been perceived as presenting the greatest challenges to business success in Russia.

  The proportion of EBC members who gave taxes a rating of five (59%) was significantly higher than the proportion of AmCham members who gave it this rating (42%) — though the mean scores were not significantly different (4.30 vs. 4.00).  Shareholder rights, given the lowest rating by all, was even more likely to receive a low rating from AmCham members than EBC members.

  Ratings Of Challenges Facing Successful Operations Of A Business In Russia
  (Percent Who Gave A Rating Of Five)
   
  

• PROTECTION & ENFORCEMENT OF TRADEMARKS:
  THE TOP IPR ISSUE

• Issues related to trademarks are perceived to be among the most abused intellectual property rights.  When asked to rate the importance of specific intellectual property rights problems, the top-rated problems were obtaining trademark protection (mean of 3.54), trademark infringement and enforcement (mean of 3.39), trademark piracy (mean of 3.18), and counterfeiting (mean of 3.06).

  Ratings Of Specific Intellectual Property Rights Problems
  (From 1=Not At All Important To 5=Extremely Important)
   
  

  Looking at the percent of respondents who gave each item the highest rating of five, we see that AmCham and EBC members were about equally likely to have high concern about obtaining trademark protection.  However, AmCham members were more likely than EBC members to express high concern over trademark infringement and, even more, counterfeiting.  EBC members were more likely than AmCham members to express high concern about Internet domain name piracy.

  Ratings Of Specific Intellectual Property Rights Problems
  (Percent Who Gave A Rating Of Five)
   
  

  The top-rated problems among major brandholders all concerned inadequate industrial property protection — namely, trademark protection (60% of major brandholders rated it as “extremely important” vs. 28% of other companies), trademark infringement and enforcement (53% rated it as “extremely important” vs. 14%), counterfeiting (49% rated it as “extremely important” vs. 12%), and trademark piracy (43% rated it as “extremely important” vs. 18%).

   

• COUNTERFEITING: AN EMERGING ISSUE

• Although not yet a pervasive problem, counterfeiting has emerged as a significant issue for several of these companies.  When asked what proportion of their companies’ products sold in Russia are counterfeit, 16% said none, and 66% said less than 10%.  However, 17% of executives said more than 10% of their products are counterfeited — and 9% said more than 25% of their products are counterfeited.  (There were no significant differences between AmCham and EBC members on this measure.)

  Counterfeiting appears to be more of a problem for major brandholders.  Three in ten (28%) of executives for major brandholders said more than 10% of their products are counterfeited — and 12% said more than 25% of their products are counterfeited.  (By way of comparison, only 12% of executives at companies not deemed major brandholders said more than 10% of their products are counterfeited.)

  Losses from inadequate enforcement of intellectual property rights in Russia can be quite large.  Among executives who were willing to share the information, one-third said their losses amounted to at least $1 million annually — and about two in ten said their losses ranged from $5 million to over $50 million annually.  American companies appear to be losing far more than European companies — or they are more willing to report their losses.  Almost one-half (48%) of AmCham members reported losses of at least $1 million annually, compared to only 13% of EBC members.  Three in ten (30%) AmCham members reported losses ranging from $5 million to over $50 million annually, compared to only 4% of EBC members.

  Among major brandholders who were willing to share the information, one-half said their losses amounted to at least $1 million annually — and about one-third said their losses ranged from $5 million to over $50 million annually.  (Among other companies, only 14% said their losses from counterfeiting amounted to more than $1 million annually.)

   

• IPR AND THE RUSSIAN GOVERNMENT:
    LOW PRIORITY, LIMITED EFFECTIVENESS

  Intellectual property protection is not perceived to be a priority of the Russian Government and there is a “crisis of confidence” in the perceived ability of Government agencies to provide adequate protection.

  Executives who responded to our survey clearly do not believe the Russian Government is giving a high degree of priority to trademark, patent, and copyright protection.  Executives rated this measure using a one-to-five scale, where one meant “least important priority” and five meant “most important priority.”  The mean rating for all respondents was 1.99, well below the 3.0 midpoint of the scale, with 79% giving this measure the lowest ratings of one or two.  AmCham members (mean of 2.14) rated the Russian government significantly more highly than did EBC members (mean of 1.79) — although neither mean could be considered high.

  Degree Of Priority Given By The Russian Government To Trademark, Patent, And Copyright Protection
  (Where 1=Least Important Priority And 5=Most Important Priority)
   
  

  Similarly, executives have little faith that any agency of the Russian government can help them defend their company’s intellectual property rights.  Ratings were done on a five-point scale where one meant the respondent felt the agency was “not at all effective” and five meant “very effective.”  Almost all mean scores fall below the 3.0 midpoint of the scale.  The Russian Agency for Trademarks and Patents (Rospatent) is seen as being nominally more effective than other government agencies.

  Ratings Of Governmental Agencies In Defending Intellectual Property Rights
  (From 1=Not At All Effective To 5=Very Effective)
   
  

  It should be noted that relatively small numbers of respondents (on average two in ten) were willing or able to rate the government agencies.  Even given these small numbers, there were distinct differences between AmCham and EBC members, with EBC members being far more critical than AmCham members of four agencies:  the Ministry of Internal Affairs, regional or local enforcement, the State Procurator’s Office, and the Ministry of Justice.

  Ratings Of Governmental Agencies In Defending Intellectual Property Rights
  (Percent Who Gave A Rating Of One Or Two)
   
  

• ENFORCING INTELLECTUAL PROPERTY RIGHTS:
  LOW SCORES FOR BOTH PUBLIC & PRIVATE SECTORS

  There is very little confidence in the demonstrated capabilities of the Russian Government, private enterprises, or trade associations to enforce intellectual property rights.

  Executives do not see the Russian government as being at all effective in enforcing intellectual property rights.  Although somewhat less negative about the private sector’s effectiveness, most respondents do not believe their own companies or trade associations are effective in enforcing intellectual property rights.  (Effectiveness was rated on a one-to-five scale where one meant “not at all effective” and five meant “very effective.”)

  Effectiveness Of Organization In Enforcing Intellectual Property Rights In Russia
  (From 1=Not At All Effective To 5=Very Effective)
   
  

  AmCham members were more likely than EBC members to think trade associations have little effectiveness enforcing intellectual property rights in Russia.  Conversely, EBC members were more likely than AmCham members to think their own company has little effectiveness in this area.

  Effectiveness Of Organization In Enforcing Intellectual Property Rights In Russia
  (Percent Who Gave A Rating Of One Or Two)
   
  

• RF GOVERNMENT:  INADEQUATE RESOURCES & INADEQUATE LAWS

  The Russian Government is perceived as extraordinarily ill-equipped to enforce intellectual property rights.

  The Russian government is not seen as having the resources, financial or otherwise, to enforce intellectual property rights.  (Respondents were asked to rate the Russian government’s capabilities to enforce intellectual property rights using a one-to-five scale where one meant “not at all effective” and five meant “very effective.”  There were no significant differences between AmCham and EBC members on these measures.)

  Ratings Of The Russian Government’s Capabilities For Dealing With Intellectual Property Rights Enforcement Issues
  (From 1=Not At All Effective To 5=Very Effective)
   
  

  Ratings Of The Russian Government’s Capabilities For Dealing With Intellectual Property Rights Enforcement Issues
  (Percent Who Gave A Rating Of One)
   
  

• ACTION AGENDA FOR IMPROVING IPR PROTECTION & ENFORCEMENT IN RUSSIA

  Cleaning up corruption, reforming laws and regulations, securing support from public officials and politicians, and education of government officials are viewed as key to improving protection and enforcement of intellectual property rights.

  While cleaning up corruption among enforcement authorities and overall legal reform are top concerns of survey respondents, many are also concerned with educating government officials regarding the economic consequences of inadequate intellectual property protection and reforming intellectual property laws specifically.  Many also feel it will be necessary to secure support for intellectual property rights protection from top politicians and officials.  (Ratings were done on a one-to-five scale where one was “least important” and five was “most important.”)

  Importance Of Actions In Improving The Protection And Enforcement Of Intellectual Property Rights In Russia
  (From 1=Least Important To 5=Most Important)

  	TOTAL		AMCHAM		EBC
  	mean	%=5	mean	%=5	mean	%=5
  Cleaning up corruption in enforcement authorities	4.31	58%	4.44	59%	4.21	60%
  Overall legal reform	4.13	49	4.06	48	4.19	50
  Reforming laws and regulations related to intellectual property protection	4.07	45	3.96	43	4.14	43
  Securing support for intellectual property rights protection from top Russian officials and politicians	4.05	38	4.15	40	3.96	38
  Educating government officials about negative economic effects of inadequate intellectual property protection	3.98	43	4.20	54	3.80	32
  Training of customs and other law enforcement officials	3.95	33	4.02	35	3.92	34
  Training of judges	3.81	34	4.00	36	3.61	31
  Organizing and coordinating joint actions by intellectual property owners	3.80	27	3.88	31	3.76	22
  Companies taking a more pro-active approach to enforce their intellectual property rights	3.76	27	3.80	23	3.82	34
  Educating news media and consumers about health, quality, and other consequences of inadequate intellectual property protection	3.66	28	3.86	33	3.48	22
  Forging coalitions of international and domestic intellectual property owners	3.55	19	3.58	20	3.60	19
  BASE	(135)		(76)		(54)

  AmCham members (54%) were significantly more likely than EBC members (32%) to say it was “most important” to educate government officials.

  While cleaning up corruption among enforcement authorities is the top concern of all executives, nearly as many major brandholders are concerned with educating government officials regarding the economic consequences of inadequate intellectual property protection and reforming intellectual property laws.  Many major brandholders also feel it will be necessary to secure support for intellectual property rights protection from top politicians and officials. 

• PERSUASIVE ARGUMENTS TO ENLIST SUPPORT OF RF GOVERNMENT

  A clear, dramatic delineation of the “lost taxes and duties to the Government” consequence would be the most persuasive argument to garner support among public officials and politicians for better intellectual property protection and enforcement.

  We asked respondents what arguments they thought would be the most effective in persuading the Russian government decision makers to make intellectual property protection and enforcement a higher priority.  One argument stood out as most persuasive:  lost taxes and duties to the government.  Other arguments seen as persuasive concerned the international reputation of Russia and the fact that inadequate intellectual property laws would act as a barrier to membership in the World Trade Organization.  (Ratings were done on a five-point scale where one meant “least persuasive” and five meant “most persuasive.”  There were no significant differences between AmCham and EBC members on these measures.)

  Arguments To Persuade The Russian Government To Make Intellectual Property A Higher Priority
  (From 1=Least Persuasive To 5=Most Persuasive)
   
  

  Arguments To Persuade The Russian Government To Make Intellectual Property A Higher Priority
  (Percent Who Gave A Rating Of Five)
   
  

  American Chamber of Commerce members (only) — particularly major brandholders — express more willingness to become involved in working groups than in submitting case studies.

  Three additional questions were asked of AmCham members at the special request of AmCham to the Coalition for Intellectual Property Rights (CIPR). 

  More than one-half (53%) of the AmCham members interviewed said they would be interested in participating in AmCham’s new Intellectual Property Rights Action Group, while more than four in ten (43%) said they would be interested in participating in an AmCham-sponsored Business/Russian Government Working Group on intellectual property.  However, only one-quarter of AmCham members (25%) said they would be interested in contributing a case study on intellectual property for use in AmCham’s public policy.  Major brandholders were significantly more likely than others to express interest in participating in an action or working group.

  Interest In Participating In AmCham-Sponsored Activities Regarding Intellectual Property Rights In Russia
  (Among AmCham Members Only)
   
  

   

  III. AGGREGATE RESULTS

  1. Total Survey

  N=135

  ABOUT YOUR COMPANY

  N=135; All Respondents

  1. What is your industry? (Multiple responses were permitted).

  AEROSPACE AUTOMOTIVE ENERGY FMCG HEALTHCARE INFORMATION TECHNOLOGY INVESTMENT & FINANCE REAL ESTATE SERVICES TELE-COMMUNICATIONS TRAVEL/TOURISM Other (Please specify)

  1% 4% 3% 20% 5% 8% 4% 1% 19% 1% 6% 31%

  2. Which of your products are traded in Russia? (Multiple responses were permitted).

  Alcoholic and Other Beverages Appliances and Furniture Automobiles and Auto Parts Clothes/Footwear Computer Hardware/ Office Equipment Cosmetics/Toiletries Food Products Household Chemical Goods Home Audio/Video Luxury Goods Medical Equipment Pharmaceuticals/Healthcare Services Software Tobacco Products Others (Please specify)

  7% 4% 4% 0% 4% 4% 8% 3% 1% 3% 4% 6% 38% 7% 2% 29%

  3. How long has your company had a presence in Russia?

  Less than 2 years 2 to 5 years 6 to 9 years More than 10 years REFUSED/NA

  12% 33 31 21 1

  4. Does your company maintain memberships in any of the following business organizations? (Multiple responses permitted).

  European Business Club German Business Association Russo-British Chamber of Commerce Russian Chamber of Commerce and Industry The American Chamber of Commerce US-Russia Business Council Others (Please specify)

  50% 10% 8% 7% 61% 10% 29%

  PROBLEM ASSESSMENT

  5. Please rate the following issues aschallenges confronting the successful operations of your business inRussia.  (Please type an “X” nextto the number below for each issue using a 1 to 5 scale where 1 is “leastimportant” and 5 “most important”).

  	1	2	3	4	5	MEAN	N
  Court System	15%	15%	22%	28%	21%	3.25	(121)
  Customs	8	9	19	23	41	3.80	(128)
  Investment Laws	9	18	27	19	27	3.35	(117)
  Intellectual Property Protection	9	11	28	22	30	3.54	(125)
  Government Corruption	4	13	18	33	32	3.76	(126)
  Government Bureaucracy and Red Tape	2	8	16	33	42	4.06	(127)
  Non-compliance with International Treaties	11	22	26	24	18	3.15	(125)
  Shareholders Rights	24	23	25	13	16	2.75	(119)
  Taxes	3	5	17	26	49	4.71	(131)

  6. On the subject of intellectual property rights, how important are each of the following specific problems to your company? (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means “not at all important” and 5 means “extremely important”).

  	1	2	3	4	5	MEAN	N
  Copyright Piracy	37%	22%	13%	12%	16%	2.48	(121)
  Counterfeiting	22	18	21	13	27	3.05	(124)
  Internet Domain Name Piracy	41	24	16	9	11	2.26	(121)
  Obtaining Patent Protection	25	23	18	10	25	2.88	(120)
  Trademark Infringement and Enforcement	15	12	21	22	29	3.39	(126)
  Trademark Piracy	22	14	17	21	27	3.18	(121)
  Obtaining Trademark Protection	15	13	15	17	40	3.54	(124)

  7. In your opinion, what degree of priority is given to trademark, patent and copyright protection by the Russian Government? (Please type an “X” next to the number below, using a scale of 1 to 5, where 1 means “least important priority” and 5 means “most important priority”).

  1	2	3	4	5	MEAN	N
  25%	54%	19%	1%	2%	2.44	(130)

  8. What percentage of your company’s products sold in the Russian market are counterfeited? (Please do your best to estimate).

  Less than 10% From 10% to 25% From 25% to 40% From 40% to 55% More than 55% % or no answer

  66% 8% 7% 1% 1% 16%

  9. To the best of your ability, please estimate the average annual cost to your company of inadequate enforcement of intellectual property rights in Russia. (Lost sales plus cost of enforcing your rights).

  $1,000,000 or less From $1,000,000 to $5,000,000 From $5,000,000 to $50, 000,000 Over $50, 000.000 The information is confidential Do not Know/Have Not Quantified No answer

  27% 5% 4% 4% 7% 42% 11%

  10. To the degree that counterfeits of your company’s products are sold in Russia, where, to the best of your knowledge, is the location of the counterfeit production? (Please select only one).

  Counterfeited Products are Mostly Produced in Russia Counterfeited Products are Mostly Produced in Third Countries and Imported into Russia Counterfeited Products are Both Produced in Russia and Imported into Russia No answer

  20% 14%   17%   49%

  PRACTICES & EXPERIENCE

  11. From where are your company’s anti-counterfeiting and trademark enforcement programs for Russia directed and controlled? (Please select only one).

  Worldwide Headquarters Europe Headquarters Russian Headquarters FSU/CIS Headquarters Other (Please specify) No answer

  31% 17% 27% 2% 4% 22%

  12. Who has lead responsibility for intellectual property protection and anti-counterfeiting programs for your company in Russia? (Please select only one responce).

  Legal Counsel Brand Manager Brand Protection/Security Manager Country Director Other (Please specify) No answer

  26% 4% 2% 43% 8% 17%

  13. For each governmental agency with which you have had experience defending your company’s intellectual property rights in the past 12 months, please rate your experience in dealing with that agency in terms of effectiveness. (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means ”not at all effective” and 5 means ”very effective”.  Use “n/a” for not applicable where appropriate).

  	1	2	3	4	5	MEAN	N
  RF Ministry of Internal Affairs	28%	16%	24%	16%	16%	2.76	(25)
  RF Anti-Monopoly Committee	13	30	30	22	4	2.74	(23)
  RF State Customs Committee	27	21	39	9	3	2.39	(33)
  Russian Agency for Trademarks and Patents (Rospatent)	7	29	22	36	7	3.07	(45)
  RF Ministry of Justice	25	25	17	9	4	2.13	(23)
  State Procurator’s Office	18	35	29	12	6	2.53	(17)
  Court System	27	27	30	7	10	2.47	(30)
  Regional/Local Enforcement Authorities	35	14	24	24	3	2.48	(29)

  14. In the last 12 months, which of the following activities have been undertaken by your company in Russia? (Please mark all that apply).

  1.	42%	Registered Trademarks with Rospatent (Russian Trademarks & Patent Agency)
  2.	10%	Contested Trademarks Registered or Used by Others
  3.	17%	Filed/Registered for Patent Protection
  4.	4%	Contested Patents Registered or Used by Others
  5.	15%	Registered Specific Products with the State Customs Committee
  6.	6%	Conducted Product Testing Surveys to Measure Levels of Counterfeiting of Your Brands
  7.	16%	Carried out Professional Investigations to Determine the Source and Methods of Counterfeiting Your Company’s Products and Brands
  8.	10%	Independently Conducted Anti-Counterfeiting Raids in the Field
  9.	2%	Conducted Joint Anti-Counterfeiting Raids in the Field in Cooperation with Other Brand Owners
  10.	6%	Conducted Joint Anti-Counterfeiting Raids in the Field in Cooperation with Government Authorities
  11.	13%	Taken Court and/or Administrative Actions to Enforce Your Intellectual Property Rights

  15. What intellectual property rights and anti-counterfeiting organizations does your company actively participate in?  (Please mark all that apply).

  1.	2%	BSA	– Business Software Alliance
  2.	5%	EWG	– Embassy Working Group
  3.	1%	IACC	– International Anti-Counterfeiting Coalition
  4.	10%	INTA	– International Trademark Association
  5.	3%	IIPA	– International Intellectual Property Alliance
  6.	0%	IFPA	– International Federation of Phonographic Industries
  7.	0%	MPAA	– Motion Picture Association of America
  8.	0%	RAPO	– Russian Anti-Piracy Organization
  9.	3%	UN/ECE	– United Nations Economic Commission for Europe Advisory Group on Protection and Implementation of Intellectual Property Rights for Investment
  10.	8%	Others	(Please specify)

EFFECTIVENESS RATINGS

16. How effective in your view are the following organizations in enforcing intellectual property rights in Russia? (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means ”not at all effective” and 5 means ”very effective”).

• 	1	2	3	4	5	MEAN	N
  Companies like Yours	15%	35%	29%	10%	11%	2.66	(111)
  Brandholders and Intellectual Property Owners in General	6	32	29	21	12	2.99	(111)
  The Russian Government	40	42	12	3	4	1.88	(111)
  Major Business/Trade Associations such as EBC, AmCham, Russian Chamber of Commerce, etc.	12	30	31	20	8	2.82	(113)

  17. In your opinion are the following capabilities effectively present within Russian law enforcement and judicial structures to enforce the rights of intellectual property owners? (Please type an “X” next to the number below and rate the following capabilities on a scale of 1 to 5, where 1 means “not at all effective” and 5 means “very effective”).

  	1	2	3	4	5	MEAN	N
  Technology	28%	42%	18%	5%	7%	2.20	(104)
  Training	40	39	18	3	1	1.87	(101)
  Staff Resources	33	39	14	11	3	2.11	(102)
  Financial Resources	50	31	9	7	5	1.85	(103)
  Established Methods for Cooperation with Private Sector	36	42	15	6	0	1.91	(99)
  Laws and Regulations.	17	38	24	14	7	2.55	(105)
  Civil Penalties and Damages	37	36	19	2	7	2.07	(101)
  Criminal Penalties	43	25	20	7	6	2.09	(101)
  Injunctive Relief	43	34	17	2	4	1.91	(96)

RECOMMENDATIONS

• 18. How important in your view are each of the following actions to improve the protection and enforcement of intellectual property rights in Russia? (Please type an “X” next to the number below to indicate the level of importance of each action on a scale of 1 to 5 with 1 being “least important” and 5 being “most important”).

  	1	2	3	4	5	MEAN	N
  Reforming Laws and Regulations Related to Intellectual Property Protection	2%	7%	19%	28%	45%	4.07	(123)
  Overall Legal Reform	4	4	15	28	49	4.13	(120)
  Educating Government Officials about Negative Economic Effects of Inadequate Intellectual Property Protection	5	7	17	29	43	3.98	(120)
  Companies Taking a More Proactive Approach to Enforce their Intellectual Property Rights	1	10	28	34	27	3.76	(120)
  Educating News Media and Consumers about Health, Quality and Other Consequences of Inadequate Intellectual Property Protection	3	12	28	29	28	3.66	(119)
  Securing Support for Intellectual Property Rights Protection from Top Russian Officials and Politicians	4	3	14	40	38	4.05	(120)
  Training of Judges	3	10	23	30	34	3.81	(122)
  Training of Customs and Other Law Enforcement Officials	2	6	22	38	33	3.95	(120)
  Organizing and Coordinating Joint Actions by Intellectual Property Owners	2	8	27	37	27	3.80	(119)
  Cleaning up Corruption in Enforcement Authorities	2	5	12	24	58	4.31	(119)
  Forging Coalitions of International And Domestic Intellectual Property Owners	3	13	28	37	19	3.55	(116)

  19. What arguments do you believe would be the most effective in persuading RF Government decision-makers to make intellectual property protection and enforcement a higher priority? (For each argument please type an “X” next to the number below on a scale of 1 to 5 with 1 being the “least persuasive” and 5 being the “most persuasive”).

  	1	2	3	4	5	MEAN	N
  Consumer Safety Considerations	7%	30%	22%	25%	16%	3.12	(121)
  International Reputation of the Country	7	16	17	36	26	3.58	(121)
  Lost Taxes and Duties to the Government	0	3	7	31	60	4.48	(122)
  Financial Losses to the Private Sector, including Lost Jobs	7	14	33	28	18	3.38	(120)
  Inadequate Intellectual Property Rights Laws and Enforcement as a Barrier to WTO Accession	6	14	30	28	22	3.46	(118)

   

  2. AmCham Members

  N=76

  ABOUT YOUR COMPANY

  N=76; AmCham members

  1. What is your industry? (Multiple responses were permitted).

  AEROSPACE AUTOMOTIVE ENERGY FMCG HEALTHCARE INFORMATION TECHNOLOGY INVESTMENT & FINANCE REAL ESTATE SERVICES TELE-COMMUNICATIONS TRAVEL/TOURISM Other (Please specify)

  1% 4% 5% 30% 8% 9% 4% 1% 16% 1% 5% 24%

  2. Which of your products are traded in Russia? (Multiple responses were permitted).

  Alcoholic and Other Beverages Appliances and Furniture Automobiles and Auto Parts Clothes/Footwear Computer Hardware/ Office Equipment Cosmetics/Toiletries Food Products Household Chemical Goods Home Audio/Video Luxury Goods Medical Equipment Pharmaceuticals/Healthcare Services Software Tobacco Products Others (Please specify)

  5% 4% 4% 0% 1% 7% 11% 5% 0% 4% 4% 8% 34% 8% 3% 28%

  3. How long has your company had a presence in Russia?

  Less than 2 years 2 to 5 years 6 to 9 years More than 10 years REFUSED/NA

  11% 38 35 14 3

  4. Does your company maintain memberships in any of the following business organizations? (Multiple responses permitted).

  European Business Club German Business Association Russo-British Chamber of Commerce Russian Chamber of Commerce and Industry The American Chamber of Commerce US-Russia Business Council Others (Please specify)

  22% 5% 5% 9% 93% 14% 26%

  PROBLEM ASSESSMENT

  5. Please rate the following issues as challenges confronting the successful operations of your business in Russia.  (Please type an “X” next to the number below for each issue using a 1 to 5 scale where 1 is “least important” and 5 “most important”).

  	1	2	3	4	5	MEAN	N
  Court System	12%	10%	22%	33%	22%	3.43	(67)
  Customs	9	7	22	20	42	3.80	(69)
  Investment Laws	10	25	25	19	21	3.16	(63)
  Intellectual Property Protection	6	3	28	25	37	3.85	(67)
  Government Corruption	4	13	15	35	32	3.78	(68)
  Government Bureaucracy and Red Tape	3	7	16	27	47	4.09	(70)
  Non-compliance with International Treaties	13	22	31	21	13	2.99	(68)
  Shareholders Rights	24	23	25	13	16	2.42	(65)
  Taxes	3	7	19	29	42	4.00	(72)

  6. On the subject of intellectual property rights, how important are each of the following specific problems to your company? (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means “not at all important” and 5 means “extremely important”).

  	1	2	3	4	5	MEAN	N
  Copyright Piracy	35%	24%	13%	12%	16%	2.50	(68)
  Counterfeiting	19	14	19	13	36	3.33	(70)
  Internet Domain Name Piracy	48	22	13	12	5	2.03	(67)
  Obtaining Patent Protection	22	22	19	9	27	2.96	(67)
  Trademark Infringement and Enforcement	14	10	24	17	36	3.51	(72)
  Trademark Piracy	23	10	19	17	30	3.22	(69)
  Obtaining Trademark Protection	13	17	17	11	41	3.51	(70)

  7. In your opinion, what degree of priority is given to trademark, patent and copyright protection by the Russian Government? (Please type an “X” next to the number below, using a scale of 1 to 5, where 1 means “least important priority” and 5 means “most important priority”).

  1	2	3	4	5	MEAN	N
  18%	57%	21%	1%	3%	2.93	(72)

  8. What percentage of your company’s products sold in the Russian market are counterfeited? (Please do your best to estimate).

  Less than 10% From 10% to 25% From 25% to 40% From 40% to 55% More than 55% % or no answer

  66% 11% 8% 1% 1% 13%

  9. To the best of your ability, please estimate the average annual cost to your company of inadequate enforcement of intellectual property rights in Russia. (Lost sales plus cost of enforcing your rights).

  $1,000,000 or less From $1,000,000 to $5,000,000 From $5,000,000 to $50, 000,000 Over $50, 000.000 The information is confidential Do not Know/Have Not Quantified No answer

  18% 7% 5% 5% 12% 43% 9%

  10. To the degree that counterfeits of your company’s products are sold in Russia, where, to the best of your knowledge, is the location of the counterfeit production? (Please select only one).

  Counterfeited Products are Mostly Produced in Russia Counterfeited Products are Mostly Produced in Third Countries and Imported into Russia Counterfeited Products are Both Produced in Russia and Imported into Russia No answer

  25% 13%   18%   43%

  PRACTICES & EXPERIENCE

  11. From where are your company’s anti-counterfeiting and trademark enforcement programs for Russia directed and controlled? (Please select only one).

  Worldwide Headquarters Europe Headquarters Russian Headquarters FSU/CIS Headquarters Other (Please specify) No answer

  32% 14% 36% 3% 5% 17%

  12. Who has lead responsibility for intellectual property protection and anti-counterfeiting programs for your company in Russia? (Please select only one responce).

  Legal Counsel Brand Manager Brand Protection/Security Manager Country Director Other (Please specify) No answer

  29% 3% 3% 43% 11% 12%

  13. For each governmental agency with which you have had experience defending your company’s intellectual property rights in the past 12 months, please rate your experience in dealing with that agency in terms of effectiveness. (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means ”not at all effective” and 5 means ”very effective”.  Use “n/a” for not applicable where appropriate).

  	1	2	3	4	5	MEAN	N
  RF Ministry of Internal Affairs	28%	6%	28%	17%	22%	3.00	(18)
  RF Anti-Monopoly Committee	11	28	33	22	6	2.83	(18)
  RF State Customs Committee	26	17	48	4	4	2.43	(23)
  Russian Agency for Trademarks and Patents (Rospatent)	6	27	27	32	9	3.12	(34)
  RF Ministry of Justice	29	35	18	12	6	2.29	(17)
  State Procurator’s Office	15	31	39	8	8	2.62	(13)
  Court System	23	32	32	5	9	2.45	(22)
  Regional/Local Enforcement Authorities	27	9	32	32	0	2.68	(22)

  14. In the last 12 months, which of the following activities have been undertaken by your company in Russia? (Please mark all that apply).

  1.	53%	Registered Trademarks with Rospatent (Russian Trademarks & Patent Agency)
  2.	13%	Contested Trademarks Registered or Used by Others
  3.	22%	Filed/Registered for Patent Protection
  4.	4%	Contested Patents Registered or Used by Others
  5.	18%	Registered Specific Products with the State Customs Committee
  6.	11%	Conducted Product Testing Surveys to Measure Levels of Counterfeiting of Your Brands
  7.	22%	Carried out Professional Investigations to Determine the Source and Methods of Counterfeiting Your Company’s Products and Brands
  8.	16%	Independently Conducted Anti-Counterfeiting Raids in the Field
  9.	3%	Conducted Joint Anti-Counterfeiting Raids in the Field in Cooperation with Other Brand Owners
  10.	11%	Conducted Joint Anti-Counterfeiting Raids in the Field in Cooperation with Government Authorities
  11.	17%	Taken Court and/or Administrative Actions to Enforce Your Intellectual Property Rights

  15. What intellectual property rights and anti-counterfeiting organizations does your company actively participate in?  (Please mark all that apply).

  1.	3%	BSA	– Business Software Alliance
  2.	7%	EWG	– Embassy Working Group
  3.	1%	IACC	– International Anti-Counterfeiting Coalition
  4.	12%	INTA	– International Trademark Association
  5.	4%	IIPA	– International Intellectual Property Alliance
  6.	0%	IFPA	– International Federation of Phonographic Industries
  7.	0%	MPAA	– Motion Picture Association of America
  8.	0%	RAPO	– Russian Anti-Piracy Organization
  9.	3%	UN/ECE	– United Nations Economic Commission for Europe Advisory Group on Protection and Implementation of Intellectual Property Rights for Investment
  10.	13%	Others	(Please specify)

  EFFECTIVENESS RATINGS

  16. How effective in your view are the following organizations in enforcing intellectual property rights in Russia? (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means ”not at all effective” and 5 means ”very effective”).

  	1	2	3	4	5	MEAN	N
  Companies like Yours	10%	32%	40%	10%	10%	2.78	(63)
  Brandholders and Intellectual Property Owners in General	6	38	30	20	6	2.83	(64)
  The Russian Government	40	43	10	5	3	1.89	(63)
  Major Business/Trade Associations such as EBC, AmCham, Russian Chamber of Commerce, etc.	14	35	31	14	6	2.63	(65)

  17. In your opinion are the following capabilities effectively present within Russian law enforcement and judicial structures to enforce the rights of intellectual property owners? (Please type an “X” next to the number below and rate the following capabilities on a scale of 1 to 5, where 1 means “not at all effective” and 5 means “very effective”).

  	1	2	3	4	5	MEAN	N
  Technology	30%	43%	18%	3%	5%	2.10	(60)
  Training	41	36	20	2	2	1.88	(59)
  Staff Resources	33	43	10	10	3	2.07	(60)
  Financial Resources	54	30	5	5	7	1.80	(61)
  Established Methods for Cooperation with Private Sector	40	41	12	7	0	1.86	(58)
  Laws and Regulations.	16	41	26	10	7	2.49	(61)
  Civil Penalties and Damages	36	39	17	2	7	2.05	(59)
  Criminal Penalties	48	25	15	5	7	1.98	(59)
  Injunctive Relief	43	35	16	2	5	1.91	(58)

  RECOMMENDATIONS

  18. How important in your view are each of the following actions to improve the protection and enforcement of intellectual property rights in Russia? (Please type an “X” next to the number below to indicate the level of importance of each action on a scale of 1 to 5 with 1 being “least important” and 5 being “most important”).

  	1	2	3	4	5	MEAN	N
  Reforming Laws and Regulations Related to Intellectual Property Protection	2%	12%	19%	24%	43%	3.96	(67)
  Overall Legal Reform	6	5	15	27	48	4.06	(67)
  Educating Government Officials about Negative Economic Effects of Inadequate Intellectual Property Protection	3	3	19	22	54	4.20	(65)
  Companies Taking a More Proactive Approach to Enforce their Intellectual Property Rights	2	8	23	45	23	3.80	(65)
  Educating News Media and Consumers about Health, Quality and Other Consequences of Inadequate Intellectual Property Protection	2	9	23	33	33	3.86	(64)
  Securing Support for Intellectual Property Rights Protection from Top Russian Officials and Politicians	3	2	12	43	40	4.15	(65)
  Training of Judges	2	8	17	38	36	4.00	(66)
  Training of Customs and Other Law Enforcement Officials	2	5	20	39	35	4.02	(65)
  Organizing and Coordinating Joint Actions by Intellectual Property Owners	2	8	23	36	31	3.88	(64)
  Cleaning up Corruption in Enforcement Authorities	0	3	9	29	59	4.44	(66)
  Forging Coalitions of International And Domestic Intellectual Property Owners	5	13	23	39	20	3.58	(64)

  19. What arguments do you believe would be the most effective in persuading RF Government decision-makers to make intellectual property protection and enforcement a higher priority? (For each argument please type an “X” next to the number below on a scale of 1 to 5 with 1 being the “least persuasive” and 5 being the “most persuasive”).

  	1	2	3	4	5	MEAN	N
  Consumer Safety Considerations	6%	28%	24%	27%	16%	3.19	(68)
  International Reputation of the Country	6	16	15	38	25	3.60	(68)
  Lost Taxes and Duties to the Government	0	0	6	40	54	4.48	(67)
  Financial Losses to the Private Sector, including Lost Jobs	8	15	25	34	18	3.40	(67)
  Inadequate Intellectual Property Rights Laws and Enforcement as a Barrier to WTO Accession	3	9	35	29	23	3.60	(65)

  20. Would your company be interested in AmCham’s new “Intellectual Property Rights Action Group”?

  53% Yes      39% No      8% No answer

  21. Would your company be interested in contributing a Case Study on intellectual property for use in AmCham’s public policy activities?

  25% Yes      62% No      13% No answer

  22. Would your company be interested in participating in an AmCham-sponsored Business/ Russian Government Working Group on intellectual property?

  43% Yes      43% No      13% No answer

   

  3. EBC Members

  N=54

  ABOUT YOUR COMPANY

  N=54; EBC members

  1. What is your industry? (Multiple responses were permitted).

  AEROSPACE AUTOMOTIVE ENERGY FMCG HEALTHCARE INFORMATION TECHNOLOGY INVESTMENT & FINANCE REAL ESTATE SERVICES TELE-COMMUNICATIONS TRAVEL/TOURISM Other (Please specify)

  0% 2% 0% 7% 6% 7% 6% 0% 22% 2% 7% 41%

  2. Which of your products are traded in Russia? (Multiple responses were permitted).

  Alcoholic and Other Beverages Appliances and Furniture Automobiles and Auto Parts Clothes/Footwear Computer Hardware/ Office Equipment Cosmetics/Toiletries Food Products Household Chemical Goods Home Audio/Video Luxury Goods Medical Equipment Pharmaceuticals/Healthcare Services Software Tobacco Products Others (Please specify)

  9% 4% 2% 0% 7% 2% 6% 0% 2% 2% 4% 4% 44% 6% 2% 30%

  3. How long has your company had a presence in Russia?

  Less than 2 years 2 to 5 years 6 to 9 years More than 10 years REFUSED/NA

  13% 28 28 31 0

  4. Does your company maintain memberships in any of the following business organizations? (Multiple responses permitted).

  European Business Club German Business Association Russo-British Chamber of Commerce Russian Chamber of Commerce and Industry The American Chamber of Commerce US-Russia Business Council Others (Please specify)

  89% 9% 13% 4% 22% 4% 33%

  PROBLEM ASSESSMENT

  5. Please rate the following issues as challenges confronting the successful operations of your business in Russia.  (Please type an “X” next to the number below for each issue using a 1 to 5 scale where 1 is “least important” and 5 “most important”).

  	1	2	3	4	5	MEAN	N
  Court System	20%	18%	20%	24%	18%	3.02	(50)
  Customs	7	13	15	26	39	3.76	(54)
  Investment Laws	10	10	31	16	33	3.51	(49)
  Intellectual Property Protection	13	15	30	17	25	3.25	(53)
  Government Corruption	4	13	19	30	34	3.77	(53)
  Government Bureaucracy and Red Tape	0	10	17	37	37	4.00	(52)
  Non-compliance with International Treaties	10	23	19	23	25	3.31	(52)
  Shareholders Rights	10	27	29	12	22	3.10	(49)
  Taxes	4	2	15	20	59	4.30	(54)

  6. On the subject of intellectual property rights, how important are each of the following specific problems to your company? (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means “not at all important” and 5 means “extremely important”).

  	1	2	3	4	5	MEAN	N
  Copyright Piracy	40%	21%	10%	13%	17%	2.46	(48)
  Counterfeiting	27	20	25	12	16	2.71	(49)
  Internet Domain Name Piracy	31	25	18	6	20	2.61	(49)
  Obtaining Patent Protection	27	23	17	10	23	2.79	(48)
  Trademark Infringement and Enforcement	14	14	20	29	22	3.31	(49)
  Trademark Piracy	19	17	15	26	23	3.17	(47)
  Obtaining Trademark Protection	16	8	12	22	41	3.63	(49)

  7. In your opinion, what degree of priority is given to trademark, patent and copyright protection by the Russian Government? (Please type an “X” next to the number below, using a scale of 1 to 5, where 1 means “least important priority” and 5 means “most important priority”).

  1	2	3	4	5	MEAN	N
  36%	49%	15%	0%	0%	1.79	(53)

  8. What percentage of your company’s products sold in the Russian market are counterfeited? (Please do your best to estimate).

  Less than 10% From 10% to 25% From 25% to 40% From 40% to 55% More than 55% % or no answer

  66% 4% 7% 2% 0% 20%

  9. To the best of your ability, please estimate the average annual cost to your company of inadequate enforcement of intellectual property rights in Russia. (Lost sales plus cost of enforcing your rights).

  $1,000,000 or less From $1,000,000 to $5,000,000 From $5,000,000 to $50, 000,000 Over $50, 000.000 The information is confidential Do not Know/Have Not Quantified No answer

  39% 4% 0% 2% 0% 41% 15%

  10. To the degree that counterfeits of your company’s products are sold in Russia, where, to the best of your knowledge, is the location of the counterfeit production? (Please select only one).

  Counterfeited Products are Mostly Produced in Russia Counterfeited Products are Mostly Produced in Third Countries and Imported into Russia Counterfeited Products are Both Produced in Russia and Imported into Russia No answer

  15% 17%   15%   54%

  PRACTICES & EXPERIENCE

  11. From where are your company’s anti-counterfeiting and trademark enforcement programs for Russia directed and controlled? (Please select only one).

  Worldwide Headquarters Europe Headquarters Russian Headquarters FSU/CIS Headquarters Other (Please specify) No answer

  31% 20% 17% 2% 4% 28%

  12. Who has lead responsibility for intellectual property protection and anti-counterfeiting programs for your company in Russia? (Please select only one responce).

  Legal Counsel Brand Manager Brand Protection/Security Manager Country Director Other (Please specify) No answer

  22% 4% 2% 43% 6% 24%

  13. For each governmental agency with which you have had experience defending your company’s intellectual property rights in the past 12 months, please rate your experience in dealing with that agency in terms of effectiveness. (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means ”not at all effective” and 5 means ”very effective”.  Use “n/a” for not applicable where appropriate).

  	1	2	3	4	5	MEAN	N
  RF Ministry of Internal Affairs	33%	50%	17%	0%	0%	1.83	(6)
  RF Anti-Monopoly Committee	20	40	20	20	0	2.40	(5)
  RF State Customs Committee	33	33	11	22	0	2.22	(9)
  Russian Agency for Trademarks and Patents (Rospatent)	9	36	9	46	0	2.91	(11)
  RF Ministry of Justice	60	40	0	0	0	1.40	(5)
  State Procurator’s Office	33	67	0	0	0	1.67	(3)
  Court System	43	14	29	14	0	2.14	(7)
  Regional/Local Enforcement Authorities	67	33	0	0	0	1.33	(6)

  14. In the last 12 months, which of the following activities have been undertaken by your company in Russia? (Please mark all that apply).

  1.	28%	Registered Trademarks with Rospatent (Russian Trademarks & Patent Agency)
  2.	6%	Contested Trademarks Registered or Used by Others
  3.	11%	Filed/Registered for Patent Protection
  4.	6%	Contested Patents Registered or Used by Others
  5.	11%	Registered Specific Products with the State Customs Committee
  6.	0%	Conducted Product Testing Surveys to Measure Levels of Counterfeiting of Your Brands
  7.	7%	Carried out Professional Investigations to Determine the Source and Methods of Counterfeiting Your Company’s Products and Brands
  8.	2%	Independently Conducted Anti-Counterfeiting Raids in the Field
  9.	2%	Conducted Joint Anti-Counterfeiting Raids in the Field in Cooperation with Other Brand Owners
  10.	0%	Conducted Joint Anti-Counterfeiting Raids in the Field in Cooperation with Government Authorities
  11.	7%	Taken Court and/or Administrative Actions to Enforce Your Intellectual Property Rights

  15. What intellectual property rights and anti-counterfeiting organizations does your company actively participate in?  (Please mark all that apply).

  1.	2%	BSA	– Business Software Alliance
  2.	4%	EWG	– Embassy Working Group
  3.	0%	IACC	– International Anti-Counterfeiting Coalition
  4.	6%	INTA	– International Trademark Association
  5.	2%	IIPA	– International Intellectual Property Alliance
  6.	0%	IFPA	– International Federation of Phonographic Industries
  7.	0%	MPAA	– Motion Picture Association of America
  8.	0%	RAPO	– Russian Anti-Piracy Organization
  9.	4%	UN/ECE	– United Nations Economic Commission for Europe Advisory Group on Protection and Implementation of Intellectual Property Rights for Investment
  10.	2%	Others	(Please specify)

  EFFECTIVENESS RATINGS

  16. How effective in your view are the following organizations in enforcing intellectual property rights in Russia? (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means ”not at all effective” and 5 means ”very effective”).

  	1	2	3	4	5	MEAN	N
  Companies like Yours	21%	42%	16%	9%	12%	2.49	(43)
  Brandholders and Intellectual Property Owners in General	7	26	26	21	21	3.23	(43)
  The Russian Government	42	40	14	0	5	1.86	(43)
  Major Business/Trade Associations such as EBC, AmCham, Russian Chamber of Commerce, etc.	9	23	28	28	12	3.09	(43)

  17. In your opinion are the following capabilities effectively present within Russian law enforcement and judicial structures to enforce the rights of intellectual property owners? (Please type an “X” next to the number below and rate the following capabilities on a scale of 1 to 5, where 1 means “not at all effective” and 5 means “very effective”).

  	1	2	3	4	5	MEAN	N
  Technology	25%	38%	20%	8%	10%	2.40	(40)
  Training	37	45	13	5	0	1.87	(38)
  Staff Resources	34	34	16	13	3	2.16	(38)
  Financial Resources	45	34	11	8	3	1.89	(38)
  Established Methods for Cooperation with Private Sector	32	43	19	5	0	1.97	(37)
  Laws and Regulations.	18	38	20	20	5	2.58	(40)
  Civil Penalties and Damages	40	29	21	3	8	2.11	(38)
  Criminal Penalties	37	24	26	8	5	2.21	(38)
  Injunctive Relief	44	29	21	3	3	1.91	(34)

  RECOMMENDATIONS

  18. How important in your view are each of the following actions to improve the protection and enforcement of intellectual property rights in Russia? (Please type an “X” next to the number below to indicate the level of importance of each action on a scale of 1 to 5 with 1 being “least important” and 5 being “most important”).

  	1	2	3	4	5	MEAN	N
  Reforming Laws and Regulations Related to Intellectual Property Protection	2%	2%	20%	33%	43%	4.14	(51)
  Overall Legal Reform	2	4	17	27	50	4.19	(48)
  Educating Government Officials about Negative Economic Effects of Inadequate Intellectual Property Protection	6	10	14	38	32	3.80	(50)
  Companies Taking a More Proactive Approach to Enforce their Intellectual Property Rights	0	10	32	24	34	3.82	(50)
  Educating News Media and Consumers about Health, Quality and Other Consequences of Inadequate Intellectual Property Protection	4	14	34	26	22	3.48	(50)
  Securing Support for Intellectual Property Rights Protection from Top Russian Officials and Politicians	4	6	18	34	38	3.96	(50)
  Training of Judges	4	14	31	20	31	3.61	(51)
  Training of Customs and Other Law Enforcement Officials	2	8	20	36	34	3.92	(50)
  Organizing and Coordinating Joint Actions by Intellectual Property Owners	0	8	30	40	22	3.76	(50)
  Cleaning up Corruption in Enforcement Authorities	2	8	17	13	60	4.21	(48)
  Forging Coalitions of International And Domestic Intellectual Property Owners	0	15	30	36	19	3.60	(47)

  19. What arguments do you believe would be the most effective in persuading RF Government decision-makers to make intellectual property protection and enforcement a higher priority? (For each argument please type an “X” next to the number below on a scale of 1 to 5 with 1 being the “least persuasive” and 5 being the “most persuasive”).

  	1	2	3	4	5	MEAN	N
  Consumer Safety Considerations	10%	31%	23%	23%	13%	2.96	(48)
  International Reputation of the Country	8	17	17	35	23	3.48	(48)
  Lost Taxes and Duties to the Government	0	4	8	20	68	4.52	(50)
  Financial Losses to the Private Sector, including Lost Jobs	6	15	38	23	19	3.33	(48)
  Inadequate Intellectual Property Rights Laws and Enforcement as a Barrier to WTO Accession	8	21	23	25	23	3.33	(48)

   

  4. Selected Major Brandholders and Trademark Owners

  N=50

  ABOUT YOUR COMPANY

  1. What is your industry? (Multiple responses were permitted).

  AEROSPACE AUTOMOTIVE ENERGY FMCG HEALTHCARE INFORMATION TECHNOLOGY INVESTMENT & FINANCE REAL ESTATE SERVICES TELE-COMMUNICATIONS TRAVEL/TOURISM Other (Please specify)

  2% 10% 8% 40% 14% 6% 6% 0% 6% 0% 4% 18%

  2. Which of your products are traded in Russia? (Multiple responses were permitted).

  Alcoholic and Other Beverages Appliances and Furniture Automobiles and Auto Parts Clothes/Footwear Computer Hardware/ Office Equipment Cosmetics/Toiletries Food Products Household Chemical Goods Home Audio/Video Luxury Goods Medical Equipment Pharmaceuticals/Healthcare Services Software Tobacco Products Others (Please specify)

  10% 4% 10% 0% 4% 10% 16% 6% 0% 4% 6% 16% 12% 2% 4% 32%

  3. How long has your company had a presence in Russia?

  Less than 2 years 2 to 5 years 6 to 9 years More than 10 years REFUSED/NA

  14% 30 34 18 4

  4. Does your company maintain memberships in any of the following business organizations? (Multiple responses permitted).

  European Business Club German Business Association Russo-British Chamber of Commerce Russian Chamber of Commerce and Industry The American Chamber of Commerce US-Russia Business Council Others (Please specify)

  38% 8% 4% 8% 74% 14% 30%

  PROBLEM ASSESSMENT

  5. Please rate the following issues as challenges confronting the successful operations of your business in Russia.  (Please type an “X” next to the number below for each issue using a 1 to 5 scale where 1 is “least important” and 5 “most important”).

  	1	2	3	4	5	MEAN	N
  Court System	24%	36%	11%	11%	18%	3.38	(45)
  Customs	54	15	21	4	6	4.06	(48)
  Investment Laws	32	11	27	25	5	3.41	(44)
  Intellectual Property Protection	52	19	21	8	0	4.15	(48)
  Government Corruption	28	34	19	17	2	3.68	(47)
  Government Bureaucracy and Red Tape	30	35	22	11	2	3.80	(46)
  Non-compliance with International Treaties	13	28	28	24	7	3.17	(46)
  Shareholders Rights	11	7	17	28	37	2.26	(46)
  Taxes	52	17	19	8	4	4.04	(48)

  6. On the subject of intellectual property rights, how important are each of the following specific problems to your company? (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means “not at all important” and 5 means “extremely important”).

  	1	2	3	4	5	MEAN	N
  Copyright Piracy	17%	9%	11%	28%	35%	2.46	(46)
  Counterfeiting	49	8	20	18	4	3.80	(49)
  Internet Domain Name Piracy	9	9	15	24	44	2.15	(46)
  Obtaining Patent Protection	36	6	15	26	17	3.19	(47)
  Trademark Infringement and Enforcement	53	14	20	6	6	4.02	(49)
  Trademark Piracy	43	26	11	11	11	3.79	(47)
  Obtaining Trademark Protection	60	17	8	8	6	4.17	(48)

  7. In your opinion, what degree of priority is given to trademark, patent and copyright protection by the Russian Government? (Please type an “X” next to the number below, using a scale of 1 to 5, where 1 means “least important priority” and 5 means “most important priority”).

  1	2	3	4	5	MEAN	N
  20%	53%	22%	2%	2%	2.12	(49)

  8. What percentage of your company’s products sold in the Russian market are counterfeited? (Please do your best to estimate).

  Less than 10% From 10% to 25% From 25% to 40% From 40% to 55% More than 55% % or no answer

  64% 16% 10% 2% 0% 8%

  9. 9. To the best of your ability, please estimate the average annual cost to your company of inadequate enforcement of intellectual property rights in Russia. (Lost sales plus cost of enforcing your rights).

  $1,000,000 or less From $1,000,000 to $5,000,000 From $5,000,000 to $50, 000,000 Over $50, 000.000 The information is confidential Do not Know/Have Not Quantified No answer

  26% 8% 10% 8% 8% 34% 6%

  10. To the degree that counterfeits of your company’s products are sold in Russia, where, to the best of your knowledge, is the location of the counterfeit production? (Please select only one).

  Counterfeited Products are Mostly Produced in Russia Counterfeited Products are Mostly Produced in Third Countries and Imported into Russia Counterfeited Products are Both Produced in Russia and Imported into Russia No answer

  20% 22%   28%   30%

  PRACTICES & EXPERIENCE

  11. From where are your company’s anti-counterfeiting and trademark enforcement programs for Russia directed and controlled? (Please select only one).

  Worldwide Headquarters Europe Headquarters Russian Headquarters FSU/CIS Headquarters Other (Please specify) No answer

  46% 10% 38% 6% 4% 6%

  12. Who has lead responsibility for intellectual property protection and anti-counterfeiting programs for your company in Russia? (Please select only one responce).

  Legal Counsel Brand Manager Brand Protection/Security Manager Country Director Other (Please specify) No answer

  30% 10% 2% 44% 12% 2%

  13. For each governmental agency with which you have had experience defending your company’s intellectual property rights in the past 12 months, please rate your experience in dealing with that agency in terms of effectiveness. (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means ”not at all effective” and 5 means ”very effective”.  Use “n/a” for not applicable where appropriate).

  	1	2	3	4	5	MEAN	N
  RF Ministry of Internal Affairs	21%	7%	29%	29%	14%	3.07	(14)
  RF Anti-Monopoly Committee	14	29	29	21	7	2.79	(14)
  RF State Customs Committee	26	21	42	11	0	2.37	(19)
  Russian Agency for Trademarks and Patents (Rospatent)	8	31	27	23	12	3.00	(26)
  RF Ministry of Justice	29	43	14	7	7	2.21	(14)
  State Procurator’s Office	18	36	27	18	0	2.45	(11)
  Court System	21	32	26	11	11	2.58	(19)
  Regional/Local Enforcement Authorities	33	11	17	33	6	2.67	(18)

  14. In the last 12 months, which of the following activities have been undertaken by your company in Russia? (Please mark all that apply).

  1.	60%	Registered Trademarks with Rospatent (Russian Trademarks & Patent Agency)
  2.	20%	Contested Trademarks Registered or Used by Others
  3.	24%	Filed/Registered for Patent Protection
  4.	4%	Contested Patents Registered or Used by Others
  5.	22%	Registered Specific Products with the State Customs Committee
  6.	14%	Conducted Product Testing Surveys to Measure Levels of Counterfeiting of Your Brands
  7.	32%	Carried out Professional Investigations to Determine the Source and Methods of Counterfeiting Your Company’s Products and Brands
  8.	20%	Independently Conducted Anti-Counterfeiting Raids in the Field
  9.	6%	Conducted Joint Anti-Counterfeiting Raids in the Field in Cooperation with Other Brand Owners
  10.	14%	Conducted Joint Anti-Counterfeiting Raids in the Field in Cooperation with Government Authorities
  11.	24%	Taken Court and/or Administrative Actions to Enforce Your Intellectual Property Rights

  15. What intellectual property rights and anti-counterfeiting organizations does your company actively participate in?  (Please mark all that apply).

  1.	2%	BSA	– Business Software Alliance
  2.	8%	EWG	– Embassy Working Group
  3.	2%	IACC	– International Anti-Counterfeiting Coalition
  4.	18%	INTA	– International Trademark Association
  5.	4%	IIPA	– International Intellectual Property Alliance
  6.	0%	IFPA	– International Federation of Phonographic Industries
  7.	0%	MPAA	– Motion Picture Association of America
  8.	0%	RAPO	– Russian Anti-Piracy Organization
  9.	6%	UN/ECE	– United Nations Economic Commission for Europe Advisory Group on Protection and Implementation of Intellectual Property Rights for Investment
  10.	14%	Others	(Please specify)

  EFFECTIVENESS RATINGS

  16. How effective in your view are the following organizations in enforcing intellectual property rights in Russia? (Please type an “X” next to the number below, using a 1 to 5 scale, where 1 means ”not at all effective” and 5 means ”very effective”).

  	1	2	3	4	5	MEAN	N
  Companies like Yours	8%	33%	33%	13%	13%	2.88	(48)
  Brandholders and Intellectual Property Owners in General	9	36	28	17	11	2.85	(47)
  The Russian Government	42	35	19	0	4	1.90	(48)
  Major Business/Trade Associations such as EBC, AmCham, Russian Chamber of Commerce, etc.	10	27	44	13	6	2.77	(48)

  17. In your opinion are the following capabilities effectively present within Russian law enforcement and judicial structures to enforce the rights of intellectual property owners? (Please type an “X” next to the number below and rate the following capabilities on a scale of 1 to 5, where 1 means “not at all effective” and 5 means “very effective”).

  	1	2	3	4	5	MEAN	N
  Technology	28%	42%	12%	7%	12%	2.33	(43)
  Training	38	33	24	5	0	1.95	(42)
  Staff Resources	36	33	17	12	2	2.12	(42)
  Financial Resources	55	24	10	7	5	1.83	(42)
  Established Methods for Cooperation with Private Sector	37	42	12	10	0	1.95	(41)
  Laws and Regulations.	14	34	27	16	9	2.73	(44)
  Civil Penalties and Damages	31	36	19	2	12	2.29	(42)
  Criminal Penalties	43	21	19	10	7	2.17	(42)
  Injunctive Relief	38	36	14	5	7	2.07	(42)

  RECOMMENDATIONS

  18. How important in your view are each of the following actions to improve the protection and enforcement of intellectual property rights in Russia? (Please type an “X” next to the number below to indicate the level of importance of each action on a scale of 1 to 5 with 1 being “least important” and 5 being “most important”).

  	1	2	3	4	5	MEAN	N
  Reforming Laws and Regulations Related to Intellectual Property Protection	2	10	17	15	56	4.13	(48)
  Overall Legal Reform	9	9	9	27	47	3.93	(45)
  Educating Government Officials about Negative Economic Effects of Inadequate Intellectual Property Protection	2	4	11	28	55	4.30	(47)
  Companies Taking a More Proactive Approach to Enforce their Intellectual Property Rights	2	8	27	40	23	3.73	(48)
  Educating News Media and Consumers about Health, Quality and Other Consequences of Inadequate Intellectual Property Protection	0	13	17	26	45	4.02	(47)
  Securing Support for Intellectual Property Rights Protection from Top Russian Officials and Politicians	2	2	11	40	45	4.23	(47)
  Training of Judges	2	9	23	34	32	3.85	(47)
  Training of Customs and Other Law Enforcement Officials	2	2	23	36	36	4.02	(47)
  Organizing and Coordinating Joint Actions by Intellectual Property Owners	2	6	32	26	34	3.83	(47)
  Cleaning up Corruption in Enforcement Authorities	0	4	11	26	60	4.40	(47)
  Forging Coalitions of International And Domestic Intellectual Property Owners	7	7	35	30	20	3.48	(46)

  19. What arguments do you believe would be the most effective in persuading RF Government decision-makers to make intellectual property protection and enforcement a higher priority? (For each argument please type an “X” next to the number below on a scale of 1 to 5 with 1 being the “least persuasive” and 5 being the “most persuasive”).

  	1	2	3	4	5	MEAN	N
  Consumer Safety Considerations	4	28	266	23	19	3.26	(47)
  International Reputation of the Country	2	13	19	36	30	3.79	(47)
  Lost Taxes and Duties to the Government	0	2	9	30	60	4.47	(47)
  Financial Losses to the Private Sector, including Lost Jobs	6	19	36	19	19	3.26	(47)
  Inadequate Intellectual Property Rights Laws and Enforcement as a Barrier to WTO Accession	4	11	24	37	24	3.65	(46)