In early June, the Russian government submitted a bill to the State Duma to reduce compensation for violation of trademark rights. This is possible in the event that the offender has already paid it in a similar case.
The rule is necessary to combat the “serial” collection of compensation in favor of copyright holders for the same violation. RB.RU found out what will change for brand owners in relation to the new rule and whether the number of infringements in this area will decrease.
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What penalties for violation of trademark rights exist now?
Currently, the legislation of the Russian Federation provides for several methods for calculating compensation for illegal use of trademarks. One of the most common methods is compensation of a fixed amount for each violation: from 10 thousand to 5 million rubles.
Compensation is also provided for twice the cost of the goods on which the mark is illegally affixed, or for twice the cost of the right to use the mark, based on the price which, in comparable circumstances, is generally charged. for the lawful use of the trademark.
Risks for copyright holders and loopholes for infringers
“The main risk for copyright holders is that reduced compensation could reduce the deterrent effect of fines on infringers. In this way, companies may be less protected against repeated violations as the financial pressure on violators is reduced. This can also complicate the process of obtaining adequate compensation for the damage caused,” he told RB.RU Sergei Borovinskikh, founder of the Sergei Borovinskikh legal firm, specializing in legal support of IT and digital companies.
Reducing the amount of fines for infringers may encourage them to continue illegal use of trademarks, as they will be willing to risk a fine for the sake of potentially higher income from using other people’s trademarks, the expert believes. .
Additionally, reduced compensation may encourage unscrupulous companies to register trademarks that are confusingly similar to well-known trademarks in order to file more lawsuits.
The expert recognizes that the financial benefits of such actions may not be as significant as in the current environment, but the legal costs and expenses may have negative consequences for legitimate copyright holders.
How the bill should be improved
Borovinskikh believes that it is necessary to take into account several points when drafting the bill:
- Define clear criteria to reduce the amount of the fine, which will avoid execution problems.
- Introduce additional measures and sanctions against “repeat infringers” to eliminate the possibility of repeated trademark violations.
- Create provisions that protect legitimate trademark users from abuse by those seeking to exploit the system to destroy competitors.
- Introduce more detailed regulation of trademark confusing similarity disputes so that courts can more accurately determine whether it is an abuse or an accident.
“The introduction of new regulations always requires careful analysis of their consequences and potential loopholes for abuse. It is very important that such changes do not weaken intellectual property protection or increase the burden on the judicial system,” the expert concluded.
Author:
Anastasia Marina
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
