Establishing A Court On Intellectual Property Rights In Russia

Two laws concerning establishment of a Court on Intellectual Property Rights were ratified in December 2011.

A conceptual amendment to the Federal Constitutional Law «On Judicial System of the Russian Federation» that allows establishing a special-purpose arbitrazh court in the arbitrazh system of courts was introduced by the Federal Constitutional Law No. 4-FKZ «On Amendments to the Federal Constitutional Law „On Judicial System of the Russian Federation“ and to the Federal Constitutional Law „On Arbitrazh Courts in the Russian Federation“ in connection with creation of a Court on Intellectual Property Rights in the arbitrazh court system» dated December 6, 2011. Formerly, a specialized court could be established solely in the branch of the courts of general jurisdiction. On the grounds of this amendment, the Law now provides for formation of the first specialized arbitrazh court: the Court on Intellectual Property Rights. The aforementioned Law (No. 4-FKZ) introduces amendments into the Federal Constitutional Law «On Arbitrazh Courts in the Russian Federation», said amendments specifying provisions relative to establishment of special arbitrazh courts, along with the powers, formation and operation procedure of the Court on Intellectual Property Rights.

The Federal Law No. 422-FZ «On amendments to certain legislative acts of the Russian Federation in connection with establishment of the Court on Intellectual Property Rights in the arbitrazh court system» dated December 8, 2011 provides for detailed provisions regarding competence and consideration of cases by the Court on Intellectual Property Rights to be entered in the Russian Federal Law No. 3132–1 «On the Status of Judges in the Russian Federation» dated June 26, 1992, and the Arbitrazh Procedural Code of the Russian Federation.

The Court on Intellectual Property Rights (further — the Court) considers cases as a first instance and a cassation instance court. Cases are considered in the first instance by a panel of judges. Proceedings under cassation procedure are held by the Presidium of the Court (in the event of appeal of cases considered by the Court in the first instance), or by a jury of the Court in the event of appeal of cases considered by arbitrazh courts of subjects of the Russian Federation, and arbitrazh courts of appeal. As a first instance court, the Court considers cases concerning contestation of non-regulatory acts, decisions, and acts (or acts of omission) of the following federal executive authorities and officers thereof:

• the Russian Patent Office (Rospatent);
• bodies authorized by the Russian Government to consider patent applications for issuing patents on secret inventions; authorities dealing with plant varieties and animal breeds;
• the antimonopoly body in cases concerning recognition of actions associated with acquisition of the exclusive right to the means of individualization of legal entities, goods, work, services, and enterprises, as acts of unfair competition.

Moreover, as a first instance court, the Court considers disputes:

• concerning ascertainment of a patent holder;
• concerning early cancellation of trademarks due to non-use, as well as cases concerning contestation of regulatory acts issued by Federal executive bodies that affect the rights and lawful interests of an applicant in the field of protection of results of intellectual activities and means of individualization, including the sphere of patent rights and rights to plant varieties and animal breeds, topologies of integrated circuits, trade secrets (knowhow), means of individualization of legal entities, goods, works, services, and enterprises, the right to use results of intellectual activities in combined technologies. The above-listed types of cases are included in the jurisdiction of the Court regardless of the composition of the parties to a dispute (individuals or legal entities).

As a cassation instance, the Court deals with:

• a) cases considered by the Court in the first instance;
• b) cases concerning infringement of exclusive rights, including disputes about protection of intellectual rights that involve organizations collectively managing copyright and neighboring rights, considered in the first instance by arbitrazh courts of subjects of the Russian Federation, and arbitrazh appeal instances.

Therefore, the Court considers two major kinds of disputes:

• grant of the exclusive right and validity thereof (excluding subject matters of copyright and neighboring rights), i.e. disputes with the Russian Patent Office, federal executive authorities dealing with patents for secret inventions, the federal executive body for plant varieties and animal breeds achievements, the antimonopoly body;
• infringement of exclusive rights on all objects of intellectual rights considered in the first instance by arbitrazh courts of subjects of the Russian Federation, and arbitrazh courts of appeal.

What is absolutely new is the delegation of disputes concerning the early termination of legal protection of trademarks due to non-use to the jurisdiction of the Court. At the same time, petitions for non-use cancellation of trademarks has to be filed with the Arbitrazh Court of Moscow since December 8, 2011 (the effective date of Federal Law No. 422-FZ) to the date of formation of the Court. Certain practical difficulties arise in this connection, though. One of them is vagueness of the procedure for initiating this kind of disputes: should it be actionable or of a different kind? The actionable procedure seems quite logical, in which the right holder, whose acts (or omission) are reasons for initiating such a dispute, is the defendant. Another difficulty is the tactics of parallel prosecution of interconnected cases: contestation of a decision of the Russian Patent Office (FIPS) to refuse a trademark registration motivated by a reference to someone else’s trademark in the Russian Patent Office (Chamber of Patent Disputes), and contestation of legal protection of this opposed trademark due to nonuse thereof in the Court (and so far in the Arbitrazh Court of Moscow).

It would be reasonable to legally fix a provision, subject to which the Russian Patent Office should suspend consideration of an objection to the decision of refusal until the Court has resolved on the dispute concerning non-use cancellation of the opposed trademark. Cases considered in the first instance by the Court are examined by the Presidium of the Court as a cassation instance pursuant to the consideration rules applicable to the first instance.

In addition, the Court:

• addresses the Constitutional Court of the Russian Federation with a request to examine the constitutionality of a law that was applied or is subject to application within the case under consideration;
• studies and summarizes practice of law;
• prepares its suggestions regarding improvement of laws and other regulatory acts;
• analyses judicial statistics.

It can be summed up that the Court will specialize in disputes arising in this sphere and will serve as an independent and qualified body involved not only in the examination of constitutionality of laws applicable in this field, but also in the improvement of such laws, as well as other regulatory acts, including those traditionally issued by the Russian Patent Office.

Another crucial procedural novelty is provisions regarding experts and their consultancy to judges of the Court. A citizen having expertise in a corresponding field of science and engineering may serve as said expert.

Unfortunately, he/she does not act as a judge of the Court like in the German Patent Court. However, this specialist is not the expert traditional for domestic civil proceedings who is appointed by the court and gives a written opinion on issues posed by the court. Both members of the Court and those who are not a part of the Court may act as such expert. They provide counseling on all special questions emerging during a court session.

Furthermore, specialized arbitrazh courts and, particularly, the Court on Intellectual Property Rights, have the right to forward inquiries to relevant authorities, organizations, and persons to obtain appropriate explanations, consultations, and expert opinion of scientists, specialists and other persons having theoretical and practical knowledge in the essence of the dispute under consideration.

Lawyers additionally having relevant scientific and engineering education are preferred when forming the Court. The Court on Intellectual Property Rights should be established by February 1, 2013.