| August 17, 2004
CIPR Alert: Russian Legislative Update
Two important changes to Russian legislation took place last week which we would like to update you on: first, an amendment to the Russian Federation Law on Copyrights and Related Rights and second, the adoption of a new Law on Trade Secrets. Both legislative changes are in agreement with Russia’s expressed goal to improve intellectual property (IP) protection. These are both imperative steps in the process of accession to the WTO and the international business community as a whole. Links to download this legislation are listed below (in Russian only). English-language versions will be available shortly here. Russian Federation Law on Copyrights and Related Rights. Russian President Putin signed into law the Federal Law on Changes to the Russian Federation Law on Copyrights and Related Rights, which was passed by the State Duma on 25 June 2004 and approved by the Federation Council on 7 July 2004. The new law conforms to the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), the Copyright Treaty of the World Intellectual Property Organization (WIPO) and the WIPO Phonograms Treaty. With the enactment of the copyright law, Russia also intends to sign both WIPO treaties. CIPR has voiced its support for amendments to the copyright law, particularly lobbying for a provision providing for the destruction of equipment that is seized at factories producing counterfeit goods. The law includes several new measures, including: language to recognize Internet copyright into the Russian legal code; protection of books in digital form (although this will be implemented in 2006); and extension of the term of copyright protection from 50 to 70 years after an author’s death. The amendments furthered compliance to the Bern Convention, which Russia joined in 1995, by providing for the retroactive protection of authors’ rights to the date of production in their country of origin. The most significant change in the new law provides for the destruction of equipment that is seized at factories producing counterfeit goods. Russian Federation Law On Trade Secrets. On 3 August 2004, Russian President Vladimir Putin signed into force the Law On Trade Secrets. This law aims to protect "… any scientific and technical, technological, production-related … and other information (including production secrets, or technique), which is of actual or potential commercial value because it is not known to third parties, to which there is no legal free access, and in relation to which its owner has established a trade secret regime." It should be noted that in some cases, it is indeed more prudent to protect technologies through classification because patenting entails mandatory publication of the information, meaning rivals from countries where a technology is not patented may use it freely. On the downside, the law does not provide specifics about consequences for those who disclose someone else's trade secrets. The law does state that the owner of a trade secret "is entitled to demand through the courts full compensation for losses incurred." (The law also states that upon the trade secret-owner filing charges, the court may bar a defendant from using information, which is deemed to be a trade secret). Beyond that, however, the violator will bear "disciplinary, civil, administrative or criminal responsibility in accordance with the legislation of the Russian Federation." Moreover, the law does not clarify one of the main issues that arise in protecting intellectual property rights: does the plaintiff or the defendant bear the burden of proof that the law was indeed violated (or not violated)? And how is it possible to estimate losses sustained as a result of such violations? The law goes into unexpectedly great detail about the right of "government authorities, government agencies and local governments" to request unhindered, free access to trade secrets. If the owner of a trade secret refuses, government authorities can obtain access through the courts. The law has corrected a long-standing Russian problem — no longer can all corporate information be kept confidential. The law now clearly states that trade secrets do not apply to: information contained in the founding documents of a legal entity, number of employees, the salary structure, employment vacancies, wages, and liability for legal violations. In reality, most types of business information can be kept confidential, but legal measures must be taken (by creating information lists, establishing a protocol for accessing it, maintaining a list of people with access, and stamping all confidential documents with the words "Trade Secret"). Additionally, trade secrets cannot be used in a way that infringes upon "the rights and legal interests of other entities." Finally, even information legally held secret can be lawfully accessed by third parties "when conducting an investigation, systematic surveillance or other such activities." This means that it will be difficult for a business to protest violations of its trade secrets simply because the details of its commercial activities have become available to the general public.
CIPR will continue to keep you informed about the latest IP-related developments and activities. I encourage you to visit CIPR's website at www.cipr.org for additional information on events, news and activities. Please do not hesitate to contact us if you have questions or need any additional information. Kind regards,
CIPR-Moscow Team
Download Newly Enacted Legislation: | 
