Unofficial translation

Moscow, February 21, Interfax -  Losses caused by counterfeiting on the Russian market includingintellectual property right protection costs in Russia amount to approximately$1 billion a year.

This statement was made by President of the Coalition forIntellectual Property Rights (CIPR) Peter Necarsulmer at a round-tablediscussion that dealt specifically with intellectual property rights protectionand enforcement in Russia.  He referred,in particular, to what was established as a result of a survey of 135 majorinternational companies operating in Russia which was conducted betweenNovember 15, 1999 and January 31, 2000. 

The above survey was conducted on behalf of CIPR, GermanBusiness Association, American Chamber of Commerce in Russia and EuropeanBussines Club (these associations combine over a thousand internationalcompanies doing business in Russia).

Findings obtained as a result of the survey demonstrate thatthe way most western companies see it, counterfeit industry does not onlycontribute to the abuse of international brand holder rights but also runscounter to the efforts taken by the Russian Government to attract investmentinto the economy.  In addition, itcontributes to foregone profits of privately-owned companies ($5 to $50 millionannually) and budget arrears (estimated at a few hundred thousand US dollars).

Event participants assume that bureaucracy,  government corruption, faulty legislation,absence of relevant judicial experience which in turn results in the shortageof local expertise stand in the way of improving the situation.

According to Alexander Korchagin, Director General of theRussian Agency for Patents and Trademarks (Rospatent), intellectual propertyrights are currently subject to the Trademark Act, Patent Act and some otherlaws.  Korchagin informed that proposalson tightening sanctions against companies producing and marketing counterfeitproducts have been submitted to the government and following approval will bepassed by the State Duma as amendments to the current legislation.

According to Rospatent, in 1999 one third of 120 trademarkssued at local courts of arbitration was terminated.  According to the survey findings, only 60% of Russian companieshave their trade market registered.