In any foreign market, companies should consider several general principles for effective management of their intellectual property.

In 2018, Russia remained on the Special 301 Priority Watch List, a report on countries that engage in substantial intellectual property rights (IPR) violations. Several general principles are important for U.S. companies to effectively manage IPR in Russia. First, it is important to have an overall strategy to protect IPR. Second, IPR is protected differently in Russia than in the United States. Third, IPR must be registered in order to be enforced under Russian law.

U.S. firms should take proactive steps to protect their intellectual property in Russia, including registering their trademarks with the Federal Service for Intellectual Property (Rospatent), as well as having the patents recorded in the Russian Federal Customs Service’s IPR Register. It is vital that companies understand that intellectual property is primarily a private right and that the U.S. government generally cannot enforce rights on behalf of private individuals in Russia. While the U.S. government is willing to assist, there is little recourse if the right holder has not taken the fundamental steps necessary to secure and enforce its IPR.

It is always advisable to conduct due diligence on potential partners, as reliable business partners can be important allies in protecting IP rights. The U.S. Commercial Service in Russia can produce a due diligence report to assist in this effort. Additionally, allowing a business to register the U.S. entity’s IP rights warrants careful consideration. Doing so may create a risk that the local partner will list itself as the IP owner and fail to transfer the rights when the partnership concludes. One should closely evaluate the cost structure and reduce the margins (and the incentive) of would-be bad actors. Projects and sales in Russia require constant attention. As with all partnerships, U.S. companies are recommended to work with legal counsel familiar with Russian law to create a robust contract that includes non-compete clauses and confidentiality/non-disclosure provisions. U.S. businesses are encouraged to contact the U.S. Commercial Service for a list of law firms that may be able to assist with registering intellectual property.

It is also recommended that small- and medium-sized companies work with trade associations and organizations to support IPR protection and prevent counterfeiting. There are a number of these organizations based in the United States and Russia including: (1) American Chamber of Commerce in Russia (AmCham), (2) National Association of Manufacturers (NAM), (3) International Intellectual Property Alliance (IIPA), (4) International Trademark Association (INTA), (5) Coalition Against Counterfeiting and Piracy, (6) International Anti-Counterfeiting Coalition (IACC), (7) Pharmaceutical Research and Manufacturers of America (PhRMA), (8) Biotechnology Industry Organization (BIO), (9) Russian Anti-Piracy Organization (RAPO) (represents the Motion Picture Association of America), (10) National Federation of Music Industry (NFMI), (11) Russian Software Association (Russoft), (12) Association of Branded Goods Manufacturers in Russia (RusBrand), (13) Federal Service for Intellectual Property (Rospatent), (14) Russian Federal Customs Service, (15) Russian Ministry of the Interior, Economic Security Department.