• Counterfeit Laser Disks, CDs and video cassettes are seized
  In the Far East of Russia. Read
• US groups urge Bush action on Russian, other piracy. Read
• Government officials intend to ban the sale of unlicensed software. Read
• Software piracy rate climbs, hits $29 bln globally. Read
• Russia to get intellectual property council. Read
• Armenian brandy fakers detected in Moscow region. Read
• Europe’s software patent policy under siege. Read
• U.S. gives Russia more time to tackle IP piracy, Russian official says U.S.
  exaggerates problem. Read
• Government gets "Sovetskoye" Champagne. Read
• A Division in Customs. Read
• Federation Council Throws Ash in the WTO’s Eyes. Read
• Pirates loosing their market share. Read
• Philip Morris to help fund EU’s black market fight. Read
• U.S. assistant commerce secretary to visit Moscow. Read
• BSA demands legal rights over ISPs. Read
• Copyrights will be protected. Read
• World's biggest CD pirate jailed. Read
• Music stars queue up to sing the Brussels copyright blues. Read
• DVD piracy "more profitable than drugs". Read
• Left side of Russian business. Read
• Dangerous Games. Read
• Campaign to target rise in DVD piracy. Read
• Chains pay for their salespeople. Read
• Site of the Day: Everything was stolen before us. Read
• USA rates Russian Customs’ work highly for protecting intellectual property rights. Read
• Americans place counterfeits in front of Russia. Read
• The Fight with Brands. Read
• “Gzhelka” forbidden from changing owners. Read
• Cherkizovsky and Kampomos Produced Sossages with the Same Name. Read
• Schick Asks Judge to Force Gillette to Pull Latest Razor. Read
• Music Pirate Sales HIT RECORD 1.1 BLN DISCS. Read
• Russia to Remain GSP-eligible Beneficiary if IP Protection Plans are Realized
  — U.S. Ambassador. Read
• Nestle Loses Court Battle to Patent the Shape of Polo. Read
• Pirates Were Sentenced by the Judge. Read
• French Internet Companies Join Piracy Crackdown. Read
• OOO Baltimor-Stolitsa Will File an Appeal Against a Decision on the Illegality
  of Gurman Trademark Usage. Read
• Putin Makes Rules for Digital Libraries. Read
• AIPPI Backs Employers' Rights. Read
• Defining the Limits of Parody. Read

Counterfeit Laser Disks, CDs and video cassettes are seized In the Far East of Russia
Ria Novosti — July 1
Results of "Kontrafakt", an enforcement operation in far eastern Russia , have proved successful, with over 3.8 million rubles worth of pirated audio, video and software products already seized. During the first phase of the operation, over 8,000 counterfeit products were seized. Phase two included inspecting 979 organizations and companies, which led to 6 criminal cases being opened. This project has proved to be very effective in shutting down counterfeit producers and seizing goods. (Russian-language)

US groups urge Bush action
on Russian, other piracy
Reuters — July 3
U.S. music, movie and software groups urged the Bush administration on Friday to cut trade benefits for Russia if that country does make significant progress by October in reducing copyright piracy. This issue is becoming more urgent, as earlier this week, the White House put Brazil on 90-days notice that it could lose duty-free access to the U.S. market for about $2.5 billion worth of its exports because of piracy concerns raised by the IIPA in a petition three years ago. The White House also put off decisions on whether to suspend trade benefits for Lebanon , Kazakhstan and Uzbekistan because of piracy concerns.

Government officials intend to ban
the sale of unlicensed software
A&G Information Services — July 5
Under pressure from the US claiming that they will introduce extra duties on Russian export in the amount of more than $400 million a year, Russian government officials intend to introduce special measures to stop software piracy. They suggest that already this fall the street sales of CD and DVD products be stopped and import of raw materials for disk production be licensed. Experts believe however that even if the suggested measures satisfy the US , they will not be sufficient for complete extermination of piracy in Russia.

Software piracy rate climbs,
hits $29 bln globally
Reuters — July 7
The global trade in pirated software from knock-off versions of Microsoft Windows XP to Adobe Acrobat, hit nearly $29 billion in 2003. This means that pirated software accounts for nearly 60 percent of the $51 billion global software market according to the Business Software Alliance (BSA). The BSA has changed its methodology in research, opting this year to look at what pieces of software are on the typical computer user's machine to determine a piracy figure rather than devise a figure based on PC shipments and past buying trends.

Russia to get intellectual property council
Polit.ru — July 7
The Federal Service for Intellectual Property, Patents and Trademarks (FSIS) plans to establish an advisory council for intellectual property.  The council will unite Russian and international producers, who possess, produce and promote various types of intellectual property, including copyrightable and patentable goods. FSIS head Boris Simonov says the effective resolution of problems in this area is a pledge to return Russia to a leading position in the world. (Russian-language — The translation of this article is available upon request.)

Armenian brandy fakers detected
in Moscow region
ARMINFO — July 7
Armenian brandy has become the next victim to counterfeits. A group of Armenian brandy counterfeiters was found in the Moscow region by Russian and Armenian policemen. The illegal workshop held over 9,000 bottles of ready brandy and 2,500 liters of brandy blending and necessary equipment. Prestigious brands like Ararat, Akhtamar, Nairi , Armenia were bottled from the same cast. Bearing faked stamps of Yerevan Brandy Company, the illegal brandy was sold through wholesale firms. Now all the counterfeiters are facing charges of fraud and forgery.

Europe’s software patent policy under siege
The Wall Street Journal — July 7
The adoption of a European Union law on software patents is in doubt after accusations of missteps during the EU Competitiveness Council in Brussels . Officials say that votes cast by ministers did not represent their respective governments' positions. This included misinformation, coercion and confusion has let to more questions and debate on the EU directive.

U.S. gives Russia more time to tackle IP piracy, Russian official says U.S. exaggerates problem
Associated Press Worldstream — July 7
The United States has given Russia a few more months to get tough with music and video pirates or face possible trade sanctions of nearly US$500 million, a U.S. official said Wednesday, while the head of the Russian agency tasked with protecting intellectual property said Washington was exaggerating the problem. Industry experts say that more than 60 percent of Russian music recordings are pirated, while nine in every ten DVD's are bootleg. An embassy official said that the deadline could not be extended indefinitely and that intellectual property concerns rank "very highly" on the U.S. list of preconditions Russia needs to fulfill in order to join the World Trade Organization. (English-language)

Government gets "Sovetskoye" Champagne
Vedomosti — July 8
The patent office upheld Soyuzplodoimport's ownership of the "Sovetskoye" trademark. One of the biggest "Sovetskoye" champagne producers had filed a complaint, claiming the specific name of the word, which means Soviet in Russian, cannot be trademarked. By loosing this case, champagne producers have no basis to refuse licensing payments to Soyuzplodoimport, who was trademarked "Sovetskoye" this past March. (Russian-language — translation of this article is available upon request.)

A Division in Customs
Gazeta.ru — July 8
Aleksandr Zherikhov has replaced Mikhail Vanin as head of the RF Customs Commission. Observers say Vanin was replaced because he prevented the reorganization of the Customs Commission under the Ministry of Economic Development and Trade as the Federal Customs Service. (Russian-language)

Federation Council Throws
Ash in the WTO’s Eyes
Commersant — July 8
The RF Federation Council adopted amendments to the law "On Copyright and Related Rights" on July 7. These amendments, which passed the State Duma in mid-May but were vetoed by the Federation Council shortly after, bring the Russian copyright law closer to international standards, with a few exceptions, including the lack of copyright on the Internet. (Russian-language)

Pirates loosing their market share
Gazeta.ru — July 8
The Business Software Alliance has announced that the economic loss as a result of software piracy reached a record $29 billion in 2003.  However, that accounts for 36% of the overall software market, compared to 39% in 2002.  Pirates are losing their share of the software market.  In the United States, pirate software accounts for only 22% of all software, while in Russia, that number accounts for 87% of software installed. (Russian-language)

Philip Morris to help fund
EU’s black market fight
Associated Press Newswires — July 9
Philip Morris has agreed to pay $1.25 billion to help the European Union fight smuggling and counterfeiting, which costs tobacco companies hundreds of millions of dollars each year and deprives governments of tax revenue. The EU's head office has made an example of Philip Morris, saying other tobacco companies could follow.

U.S. assistant commerce secretary
to visit Moscow
Interfax — July 9
U.S. Assistant Secretary of Commerce William Lash will visit Moscow at the beginning of next week to discuss, among other things, intellectual property protection with Russian officials. He is scheduled to meet with officials from the Economic Development and Trade Ministry, the Industry and Energy Ministry, the Natural Resources Ministry, the Federal Customs Service, and the Federal Intellectual Property, Patent, and Trademark Service. In addition, he is meeting with other non-government organizations engaged in copyright protection.

BSA demands legal rights over ISPs
Computerworld Today, Techworld — July 9
The Business Software Alliance (BSA) has asked Australian ISPs to stop hosting content that it deems is infringing intellectual property rights. The BSA claims that under the Free Trade Agreement (FTA), they should be granted this power in Australia and have sent out over 3,000 copyright violation notices to ISPs in the Asia-Pacific region. The Australian office of federal communications rejected their claim, saying ISPs have required procedures which avoid copyright infringement liability. Observers point out that the BSA has a habit of pretending they have legal power, using pressure to get company cooperation.

Copyrights will be protected
Parlamentskaya Gazeta — July 9
The RF Federation Council passed the law “On Copyrights and Related Rights”. However, the new law does not provide for the destruction of equipment that is seized at factories producing illegal, counterfeit goods. The law does include recognition of Internet copyright into the Russian legal code as well as the protection of books in digital form. The law is waiting for President Putin's signature before going into effect.

World's biggest CD pirate jailed
Straits Times — July 10
The world's biggest counterfeiter of CDs has been jailed for 3 ? years. Over the last 11 years, Mark Purseglove counterfeited CDs which were sold at music festivals, shops and online through a worldwide network of contacts. It is estimated that he made over $47 million before he was finally caught in the UK for such a large-scale criminal operation.

Music stars queue up to sing
the Brussels copyright blues
Financial Times — July 12
Many music artists are protesting to the European Commission to protect their copyrighted works. Many performers with work copyrighted in the late 1950s and early 1960s are about to loose European copyright protection, which lasts 50 years. This means that their famous works can be freely re-released and copied. The music industry points out that authors, composers and film producers receive 70 years of European copyright protection, beginning only after the rights holder dies. In comparison, copyright protection in the US is 95 years and in Mexico, 75 years. The European Commission has promised to reconsider this policy, while music industry associations claim Europe is far behind other countries in protecting artists. If EU rules are not changed, artists could lose over 100 million in sales by 2010.

DVD piracy "more profitable than drugs"
Reuters — July 12
Organized crime is moving more into the profitable business of counterfeit movies, a market expected to reach 1 billion pounds by 2007. In a new anti-piracy effort, film companies and retailers launched a 1.5 million pound campaign to alert consumers that buying pirate DVDs is a crime. The campaign will highlight evidence that crime groups which once made their profit in drug dealing are now involved in the pirate DVD trade, stating that this is more profitable.

Left side of Russian business
Novaya Gazeta — July 12
The market for counterfeit pharmaceuticals is the third largest black market after weapons and illegal drugs. The biggest problem is identifying this counterfeit: when buying Gap jeans for $10 or Kenzo perfume for $3, most consumers understand the product is a counterfeit. However, pharmaceuticals are sold at similar prices and cannot be differentiated so easily. According to independent experts, income from selling counterfeit medicines is between $250 and $300 million a year. The article quotes AIPM and CIPR studies, stating that over 40% of counterfeit pharmaceuticals are produced in large Russian pharmaceutical companies, often after hours, saving money by not having to buy new equipment and getting a percent of the profits.

Dangerous Games
Vedomosti — July 13
The company "Vash Finansovoy Popechitel" (VFP), meaning "your financial trustee" opened a children's store in Moscow at the request of municipal authorities, only to find themselves in legal troubles with AFK "Sistema". VFP called their store "Detskiy Mir", meaning Children's World”, which didn't suit "Sistema," who already has a chain of seven stores established under the same name. "Sistema" plans to take action this week with a letter demanding the advertisement sign be removed, pointing out that they have the legal rights to the trademark "Detskiy Mir", and intend to take the matter to court if necessary. VFP states that it doesn't consider "Detskiy Mir" to be a trademark, and are willing to prove this in court. Experts believe that "Sistema" is most likely to win, should the dispute be taken to court.

Campaign to target rise in DVD piracy
Financial Times — July 13
Film distributors and retailers have launched a consumer awareness campaign highlighting the links between DVD piracy and organized crime. The Industry Trust for Intellectual Property Awareness, which is heading the campaign, said the explosion in DVD piracy had been reflected in a 207 percent increase in seizures of pirate DVDs in the first half of 2004, on top of a 405 percent year-on-year rise announced at the start of the year. The campaign will focus on the low quality of pirated DVDs as well as links with drugs-related crime, human trafficking gangs and terrorism.

Chains pay for their salespeople
Vedomosti — July 14
On June 28, Moscow's Chertanovskiy court found four former salespeople of the store "Svetofor", belonging to OOO "Partiya-Elektronika", guilty of copyright infringement. In September 2003, enforcement officials made purchases at "Svetofor", where employees offered to install unlicensed software for $100 per computer. This isn't the first time this has happened: the same incident occurred previously at "El Dorado" and "Mir", two Russian electoronic store chains. Microsoft is exploring the possibility of starting a court case against OOO "Partiya-Elektronika".

Site of the Day: Everything
was stolen before us
Vedomosti — July 14
On the internet, it is easy to steal text by just copy and pasting. However, a new site, Service Copyscape (www.copyscape.com) helps find this stolen text. A user simply needs to enter a site link and click search, and the search engine will search the internet for that text and identify where it has been copied. However, the search only finds Google-indexed sites and works best when the text is in the English language.

USA rates Russian Customs’ work highly for protecting intellectual property rights
Ria Novosti — July 14
US Deputy Minister of Trade, William Lash, announced that the US is happy with the work Russia's Customs Service is doing to protect intellectual property rights. This was announced following his meeting with the First Deputy Head of the Customs service on Wednesday. At this meeting, Leonid Lozbenko told the US representative about the efficient implementation of the new Customs code and how more effort has been focused on protecting and enforcing intellectual property rights.

Americans place counterfeits in front of Russia
Commersant — July 15
US Deputy Minister of Trade William Lash, in Russia for bilateral talks with the Russian government on several issues, including intellectual property, personally proved that intellectual property in Russia is not protected. In downtown Moscow , near the Kremlin, he was able to buy a variety of counterfeit items, including DVDs of "Troy" and "Kill Bill 2", which has yet to be released in the US . In addition, he bought "Windows 2003", a "Microsoft" software system that doesn't and never has existed, and a Zippo lighter with the symbol "KGB", which Zippo has never produced.

The Fight with Brands
Vedomosti — July 16
A new legislative measure authored by the Senator of the Penzenskiy Oblast, Boris Shpigel, proposes to take away generic pharmaceutical brand names. Senator Shpigel says that by calling all generic pharmaceuticals by the same name, prices will decrease and consumers will be satisfied. He provides the example: "Over 50 brands of aspirin are registered, so companies give money to doctors to write their brand in prescriptions. If all asprin medicine was just called "Asprin", producers would have to compete based on price only." The Ministry of Industry and Energy says this is a violation of the trademark law, which says that producers have the right to place their company's brand name on their products.

“Gzhelka” forbidden from changing owners
Commersant — July 16
On July 15, Moscow's arbitrary court ruled against the re-registration of the trademark "Gzhelka". This means that the St. Petersburg vodka factory can continue producing "Gzhelka". The dispute between ZAO Obyedineniye Gzhel and OOO Gzhelka is based on the registration of the "Gzhelka" trademark to organizations affiliated with TPG Kristal.

Cherkizovsky and Kampomos Produced Sossages with the Same Name
RosInvest.Com — July 21
Cherkizovsky and Kampomos meat processing plants started producing sausages under the same name «Poppuri». None of the plants had registered this trademark yet.

Schick Asks Judge to Force Gillette
to Pull Latest Razor
Financial Post — July 23
Energizer Holdings Inc.'s Schick yesterday asked a judge to force Gillette Co. to pull its new vibrating razor, the M3Power, from store shelves while a patent lawsuit is pending. Schick sued in February, claiming Gillette's Mach3 line for men and Venus line for women infringe three patents that cover a disposable razor with a razor head that can be removed. In court papers filed July 15, Schick says it will suffer irreparable harm if the M3Power is not blocked while the patent-infringement lawsuit is pending.

Music Pirate Sales
HIT RECORD 1.1 BLN DISCS
Asia Pulse — July 23
The recording industry's Commercial Piracy Report 2004 is published today by IFPI on behalf of more than 1400 hundred record companies worldwide. These are the highlights of a new report published today by the international music industry (IFPI). The report includes a wake-up call to governments, singling out ten priority countries — 4 in Asia, 3 in Latin America and 3 in Europe — where wholesale anti-piracy offensives are most urgently needed. Russia and China are in the top of this list. Global sales of illegal music discs rose 4% in 2003 and the global average piracy rate increased to a record 35%. The ratio of illegal to legal CDs sold continues to increase: in 2000, one in five CDs sold worldwide was a pirate copy; in 2003 the ratio was one in three, and rising.

Russia to Remain GSP-eligible Beneficiary
if IP Protection Plans are Realized
— U.S. Ambassador
Interfax — July 28
Ongoing implementation of Russia's planned improvements to legislation protecting intellectual property will help the country remain an eligible beneficiary of the Generalized System of Preferences (GSP). A. Vershbow gave positive marks to the Russian government's achievements at improving laws and the regulatory framework for protection of intellectual property rights, as well as improvements in enforcement practices, according to a press release from the Ministry of Economic Development.

Nestle Loses Court Battle
to Patent the Shape of Polo
Brand Republic — July 28
Nestle's case to trademark the shape of its Polo mint has been thrown out of court after a judge said there was a 'hole in the middle' of the company's argument. The ruling means that Nestle would have to take the case to the House of Lords, and potentially Europe, to get the shape trademarked without the word 'Polo' or any specification on size or colour. A Nestle spokesperson said: 'We are obviously disappointed and are considering the next steps. I think we have the opportunity to appeal but we will be looking where we go from here.

Pirates Were Sentenced by the Judge
Rossiyskaya Gazeta — July 28
The article provides readers with Boris Simonov's comments on the latest amendments to the law «On Copyright and Related Rights». Mr. Simonov is strongly convinced that the economic measures are the most powerful in the fight against piracy. (You will find detailed info on the amendments in the CIPR letter which is to be send Monday)

French Internet Companies
Join Piracy Crackdown
Associated Press Newswires — July 28
French Internet service providers agreed Wednesday to cooperate in a crackdown against Web surfers who illegally download music online. In a government-backed charter also signed by record labels and musicians' groups, France's leading Internet companies agreed to pull the plug on pirates and step up cooperation with copyright prosecutions. The agreement was signed by representatives of Internet service providers Free, Noos, Club-Internet, Wanadoo and Tiscali France. Christine Levet, Club-Internet CEO and head of France 's Association of Internet Service Providers, stressed that companies like her own "will cut subscriptions only upon the decision of a judge."

OOO Baltimor-Stolitsa Will File an Appeal Against a Decision on the Illegality
of Gurman Trademark Usage
RosBusinessConsulting — July 28
OOO Baltimor-Stolitsa will file an appeal to the Moscow Arbitration Court against a decision on the illegality of manufacturing products under the Vostochniy Gurman trademark.  Within a month's time specified by law the company will appeal against the July 27 court ruling that sustained the claim filed by the PomidorProm cannery holding on the illegality of the use of this brand, according to Vadim Uskov, OOO Baltimor-Stolitsa's lawyer.

Putin Makes Rules for Digital Libraries
Lenta.ru — July 29
On July 28 the Law on Copyrights and Related Rights, signed by President Putin on July 20, came into effect. In Point 2 of Article 19 the law details stipulations for publishing electronic versions of works: "Copies of works in digital form, including copies of works presented as library resources that can be borrowed, may be offered for temporary use only on the territory of the library and only on the condition that it is not possible to create a copy of those works in digital form."

AIPPI Backs Employers' Rights
Managing Intellectual Property — July/August
Members of the AIPPI, an international organization of IP professionals, have for the first time agreed on a resolution that hopes to harmonize international rules on employers' rights to intellectual property. According to the resolution employers should be granted ownership over their employees' inventions by contract or law and any disputes arising out of the relationship should be resolved by competent IP courts and authorities.

AIPPI Backs Employers' Rights
Managing Intellectual Property — July/August
Eugene Arievich, partner of Baker & McKenzie and CIPR member, explains why the trade mark owners need to be wary when translating their western trade marks into Cyrillic script, and highlights some pitfalls to avoid.

Defining the Limits of Parody
Managing Intellectual Property— July/August
The article gives us an overview of how the problem with the well known trademarks' parodies is being dealt with in the UK , Germany , France and US.