Russia encroaches on Intellectual Property Rights


Russia prepped their economy for a swift victory in Ukraine. A prolonged war effort; a dwindling skilled workforce; and an exit of Western companies, creates the perfect storm of technological stagnation. In response, the Kremlin passed Decree 299 that notes individuals and companies can use and reproduce intellectual property without having to compensate countries in situations where a country is classed as being “unfriendly”. By definition, “unfriendly countries” include the “US, Canada, Australia, Switzerland, Norway, Iceland, the United Kingdom, Japan, South Korea, New Zealand, Singapore, Taiwan, and all 27 European Union (EU) member countries.

6 days prior (March 1st), “a Russian court in Kirov cleared a citizen to use the “Peppa Pig” and “Daddy Pig” trademarks” for free. These trademarks are owned by Hasbro Inc’s Entertainment One UK Ltd. Merely 5 days after the decree (March 12th), a trademark application was filed for the McDonald’s logo on its side with the words “Uncle Vanya” in Cyrillic. It is not uncommon for intellectual property rights to be contested during wartime. The US passed the Trading with the Enemy Act in 2017. This legislation conferred powers that were used to set up the Office of Alien Property Custodian (APC). When the US entered into war against Germany, the German company that patented aspirin had its US assets seized, auctioned and purchased by US’ Sterling Products Company.   

Considering Russia’s lack of a skilled workforce, it is argued that reproducing intellectual property would prove difficult. However, the disclosure requirement means that “patent holders explain their inventions in sufficient detail so that someone skilled in the art can make and use the invention.” In practice, Russia would likely rely on Asia, where they have a large skilled workforce that is either unpaid or lacks the opportunity to put their skills to use. Whilst most are likely to consider the US, and other western countries for work opportunities, the US met their work visa (H1-B) quota for the current fiscal year in February. This means that Russia is a likely alternative to be considered. 

Intellectual Property theft will likely play out in the long run as Russia rebuilds their workforce. The debate remains as to whether copyrights will fall next. Considering that copyright has been previously used to censor the publications of Western Books in Russia, copyright may stay intact. Secondly, questions remain as to whether it is worth registering rights, particularly in relation Western IP in Russia, considering that individuals and companies can encroach without receiving compensation.

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