PROTECTING INTELLECTUAL PROPERTY IN RUSSIA by Judith Robinson Copyright infringement, particularly in computer software and electronic media, occurs frequently in Russia. Although Russia now has the basic legal framework to protect intellectual property, enforcement remains very weak. The good news is that protection of intellectual property will receive increasing support from Russia's growing private sector, as local companies develop a stake in protecting their own proprietary ideas and technology. The problem of protecting intellectual property rights (IPR) in Russia lies partly in the country's lack of a tradition of private property ownership. Soviet law reflected this shortcoming, which extended to both physical and intellectual property. Inadequate or low-level protection was accorded to inventions and copyrightable works. No protection was available at all for computer software or trade secrets. Laws that did exist evolved to accommodate the Russian need to trade with and learn from the West. Legal Groundwork Since 1991, Russian legislators have laid the legal foundation for the protection of intellectual property, recognizing that such protection was essential to the inflow of foreign technology. As their products began to penetrate the Russian market, Western companies insisted that proprietary technology and trademarks be safe from infringement if they were to do business in Russia. By the end of 1991, Russia had signed 11 international agreements and conventions for the protection of intellectual property. Laws passed in 1992 and 1993 protect patents, trademarks, copyrights, trade secrets, designs, and intellectual property in some of the newer sciences, notably chemical and pharmaceutical substances and information processing. In 1994, Russia and 10 other NIS countries (except Turkmenistan) joined a new Eurasian Patent Convention. The new system permits a single application, filed in Moscow in one language, Russian. Patent applications will be subjected to a single examination and will take effect in all member countries. By 1995, when Russia jointed the Berne Convention and the Geneva Phonogram Convention, Russia had acquired a basic, if far from perfect, legal system for the protection of intellectual property. The major effect of the new laws is to give new inventors and authors, not the State, the opportunity to control their work, including the right to contract its use to others. Enforcement Lacking Enforcement is the chief problem in protecting IPR in Russia. Few enforcement mechanisms exist, and civil and criminal penalties are absent or too weak to be effective. The Administrative code has no IPR provisions and the Criminal Code is still before the Russian Parliament. There are no special courts for resolution of IPR disputes, and judges lack adequate IPR training. Finally, IPR is still an unfamiliar concept to many Russians, and is still viewed negatively by some as a capitalist concept. In the Interim Until effective enforcement becomes a reality, a strong presence in the marketplace is often the best alternative. For example, after establishing offices in Moscow in 1992, a major U.S. software company signed cooperation agreements with leading Russian computer manufacturers, who now have a stake in protecting the integrity of its software. Often, a Western company's mere presence in Moscow makes it much easier to identify and thwart infringement. Although individual solutions to IPR protection can often be devised, most U.S. companies will need professional legal advice as they enter the Russian marketplace. For a list of Western law firms with offices in Moscow, call the BISNIS Flashfax at (202) 482-3145, and order document #6571 Judith Robinson covers legal issues for BISNIS.