Government Losing to Pirates

Sales of counterfeit products not affected by Russian government’s decrees

By Maxim Baranov
October 22, 2003

The Ministry of Economic Development and Trade of the Russian Federation suggests prohibiting the sale of computer media by street vendors and raising the status of trade inspectorates.

Yesterday the Ministry of Economic Development and Trade of the Russian Federation put forth a number of initiatives that officials think will help defeat counterfeiters. For these initiatives to be put into practice, however, it is necessary to introduce amendments to the Civil Code and issue a number of government decrees. The proposals concern not only those who deal with the sales of counterfeit audiovisual products. The Ministry is planning to restore government control over a number of private laboratories that check product authenticity.

Failure to live up to expectations

In July 2003, Russian Prime Minister Mikhail Kasyanov signed Decree No. 421 about changes in rules on commerce, and prohibited the sale of audiovisual products at portable stands and kiosks.

The trade inspectorate and law enforcement entities to date have closed down 2,500 retail outlets. The measure, however, did not have the expected effect - of 440 million copies sold in Russia, 80 percent are clearly counterfeit. The Ministry of Economic Development and Trade has organized a number of additional measures to defeat piracy, according to Nadezhda Nazina, Chief Trade Inspector of the Russian Federation. Some measures will be taken this year, and other tasks will be carried out next year.

Counterfeit products to be destroyed

This year Russian Prime Minister Mikhail Kasyanov will sign a decree “On the order to destruct counterfeit products,” in which plans are outlined for the destruction of all kinds of products.

The Ministry is proposing that the state trade inspectorate be given greater authority. State trade inspectorates will be entitled to independently conduct checks and draw up records. The period for checking the manufacturer of potentially counterfeit products will be extended from the ten-day period, currently in effect, to up to 30 days. There are also plans to prohibit the sale of computer media from portable stands and kiosks.

In the spring of 2004, the State Duma will consider draft legislation “On Examination.”

According to Nadezhda Nazina, the draft law is a result of the government’s desire to effectively control various laboratories that are currently conducting the examination.

“The legislation will clearly prescribe organizations that are authorized, on what terms, and with which methods the examination may be conducted. The law will deem the laboratories responsible for their results,” said Nadezhda Nazina.

Comments:

Oleg Dvoryankin, specialist in the protection of intellectual rights objects for the Main Directorate of the Fight Against Economic Crimes: “About 2,500 sales outlets, which sell audiovisual products on the street, have been closed down since the government decree was signed in July. In some regions, however, owners of portable stands and kiosks have received authorization to reopen. The problem now is that since these outlets have been closed, there is nowhere to buy tapes in many Russian regions.”

Level of piracy in Russia:

Most frequently counterfeited products in Russia: