Situation in Russia

   |   news

Monetary compensation in case of governmental order for exploitation suspended; still the hurdles for such a governmental order remain high.

By Decree No. 299 of the Russian Government dated March 6, 2022, the conditions for a monetary compensation of the holder of a patent, utility model or industrial design, the holder being associated with a so-called unfriendly state (according to a list currently comprising over 40 states, including the US and all EU member states), in result of a governmental order for exploitation under Art. 1360 of the Russian Civil Code, i.e. use of an invention, utility model or industrial design in the interests of national security without the consent of the patent holder, has been cut from 0.5 percent to 0 percent of the actual revenues obtained from such use:

"With regard to patent holders associated with foreign states that commit unfriendly acts in relation to Russian legal entities and individuals (including if such patent holders have citizenship of those states, the place of their registration, the place of their preferential business activity or the place of their preferential profit derived from activity is those states), the amount of compensation is 0 percent of the actual revenues of the person who has exercised the right to use the invention, utility model or industrial design without the consent of the patent holder, from the production and sale of goods, performance of work and rendering of services, for the production, performance and rendering of which the respective invention, utility model or industrial design was used".

Therefore, this measure relates only to a decision of the Russian government on the use of a patent, utility model or industrial design in the event of extreme necessity related to ensuring defense and security of the state or protecting the life and health of citizens.