Russia Report. A Quarterly Newsletter.
April, 2003

 

Protection for trade, service marks grows
Russian Federation upgrades registration, exam process

The Russian Federation has amended its law on trademarks and service marks to improve the registration and examination process, reports Anton A. Lyapin, of Russin Vecchi’s Moscow office. The changes -which went into effect Dec. 27, 2002 - also will strengthen enforcement against infringement, he notes. Important changes include:

  • a definition of counterfeit goods;
  • expanded protection for trademark owners’ exclusive rights and of grounds to unconditionally refuse registration of a mark;
  • limits on extensions of time for responses to official inquiries;
  • provisions to register otherwise indistinct trademarks on the basis of distinctiveness acquired through their use;
  • adoption of the concept of a well-known trademark, compatible with TRIPS language of the World Trade Organization, and protection of marks registered in other nations under treaties to which Russia is party;
  • provisions to cancel trademark registration if the owner engages in unfair competition;
  • potential to cancel protection of a mark due to non-use of a mark for three years; and
  • restrictions on import of “gray goods” whose owners’ trademark rights have been exhausted in another jurisdiction but not in Russia.

Lyapin, who specializes in trademarks and service marks, recently earned certification as a patent agent. This enables him to directly represent clients in matters before the Russian Agency on Patents and Trademarks and the Federal Institute of Industrial Property.

Russia moves to embrace new accounting system
Law would require use of International Accounting Standards

As part of the Putin administration’s overall economic reforms, the government has begun moving to transfer the Russian accounting system to International Accounting Standards (IAS), reports Rinat Zakirov-Ziev, of Russin Vecchi’s Moscow office. “International financial institutions like the International Monetary Fund and the World Bank long have stressed the need to replace the current, modified Soviet-era system,” Zakirov-Ziev notes.

“Early this year, the government approved a draft law to amend current accounting laws and make IAS compulsory for all Russian businesses,” he reports. He notes that the Ministry of Finance says that the mandatory change will come in steps - banks and publicly traded companies by July 2004, holding companies by 2005, and all other organizations by 2007-2008. The Federal Assembly (Russian Parliament) is scheduled to enact the draft law later this year, Zakirov-Ziev explains.

“Bringing the Russian system up to international standards is likely to have a positive effect on investment activity, including portfolio and direct foreign investment,” Zakirov-Ziev comments. “IAS should help make Russian businesses more transparent for potential investors. It also may have an indirect influence on tax accounting issues,” he observes.

“With the conversion, subsidiaries of international companies and domestic companies with international exposure - who have adhered to IAS for years already - will no longer need to keep parallel accounting under Russian standards,” he adds.


 


 


Reforms aim to strengthen judicial system
Civil Procedure Code revised, jury trials begin, resources hiked

Significant reforms are bolstering the Russian Federation judicial system - including a new Code on Civil Procedures, introduction of jury trials in criminal cases, and big increases in resources - reports Natalya Prisekina, of Russin & Vecchi’s Vladivostok office.

She explains that the new Code, which went into effect Feb. 1, preserves most institutions of the 1964 Code it replaces, but does contain a number of new provisions. They include:

  • abolition of one-professional-and-two-associate-judge panels, in favor of one-judge trial courts, for most cases;
  • provisions outlining jurisdiction for courts of general jurisdiction, arbitrage courts (economic and other disputes), and magistrates; and establishing procedures for cases in which subject matter jurisdictions overlap;
  • extension of the Supreme Court’s jurisdiction to oversee governmental actions that affect citizens’ rights, freedoms or legal interests;
  • removal of courts’ power to demand production of evidence on their own initiative, requiring judgments based only on evidence parties present;
  • definition of the legal status of foreign citizens and stateless persons in civil legal proceedings; and
  • establishment of procedures to challenge arbitration tribunals’ judgments.

A new Code on Criminal Procedures began introducing jury trials in stages since going into effect last July, Prisekina reports. By Jan. 1, 70 regions had started a jury trial system for numerous types of criminal cases, she notes. Jury trial systems will start in 14 more regions and Moscow on July 1; in most remaining circuits, on Jan. 1, 2004; and in the Chechen Republic in January 2007.

Meanwhile, administration officials say salaries for judges in courts of general jurisdiction will increase fourfold by 2006, Prisekina reports. The government also plans to allocate “considerable funds to improve the material and technical basis of courts - like repairs, construction and acquisition of buildings,” she notes.

“The boost in judicial pay is necessary to ensure the real independence and impartiality of judges, and for the rising prestige of the judicial profession and judicial power,” Prisekina explains.

 

Top court elects new/old chairman
Constitutional Court surprises many by picking Zorkin

Surprising many observers, the Constitutional Court of the Russian Federation Feb. 21 returned Valery Zorkin to its chairmanship, reports Sergei Lazarev, of Russin Vecchi’s Moscow office. “This is Zorkin’s second ‘coming into power,’ as he had held this position in 1991-1993, quitting it in October 1993 after his unsuccessful opposition to President Boris Yeltsin,” Lazarev notes.

Many had expected re-election of Marat Baglai. The consensus in Russian legal and political circles is that Zorkin’s election will not change the Court’s role in the structure of power in Russia, Lazarev says. “It could be even more independent with a new/old chairman who has said that the Court would keep its nose out of politics and that nobody should bother hoping that it could be pulled to the political left, right or center. It is in the legal center,” Lazarev comments.

“Mr. Zorkin was my professor of political sciences at Moscow State University law school back in 1978 - and he was the best professor,” Lazarev reports.



R&V News

The Moscow office of Russin & Vecchi will be featured in the "Member Spotlight" at the annual Meritas meeting in Washington, DC on April 26. Jonathan Russin and Sergei Lazarev will be on hand to offer information on "Russian Representation: Marketing to Other Lawyers & Oil/Gas Contractors in Sakhalin."
Meritas is the world's largest organization of independent business and commercial litigation law firms. For additional information on Meritas, click here www.meritas.org

© 2003 Russin & Vecchi, LLP
  www.russinvecchi.com