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Intellectual Property

Elena Trusova
Partner, IP Dispute Resolution
Goltsblat BLP

The interesting innovations of the amended Civil Code include, in particular: a complex of rules connected with relations on the Internet (basic definitions, group of respondent parties), amendments concerning the conditions and procedure for registering agreements on alienation and transfer of intellectual property rights, and others.

It should be noted that, while the new provisions of the Civil Code have been under development, in recent years courts have made several attempts to impose liability not on the user but the Internet provider, i.e., the company providing the user with access to the Internet. The courts have developed certain criteria on the basis of which Internet providers can, indeed, be held liable.

It should also be noted that amendments have been introduced into the Civil Code's provisions on recovering losses and penalties (Article 333 and Article 393 of the Civil Code of the Russian Federation). In general, these amendments may be described as being to the benefit of creditors. In particular, the new rules envisage that inability to prove the precise amount lost does not constitute grounds for dismissing a claim for recovery of losses and that the losses will be calculated by the courts proceeding from the principle of fairness and in consideration of all the circumstances of the case. The opportunities for applying article 333 of the Civil Code for reducing a penalty have been restricted. Procedurally, this is only possible given a relevant application from the respondent at the first instance. In general, penalties will be reduced only in exceptional circumstances.

The main goal of the amendments to the Civil Code concerning intellectual property is to make the regulations more detailed and provide greater compliance between modern business and the law. It is a good sign that the legislators are trying to come to grips with the information environment. The new norms concerning the internet are interesting. I am sure there will be further development, but it is the beginning.

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