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Responsibility for Violation of Patents to Inventions, Utility Models or Industrial Designs

Any liability may be imposed on the person infringing the patents:

1. Civil Law Liability

According to Article 1406.1 of the Civil Code of the Russian Federation in case of infringement of any exclusive right to any invention, utility model or industrial design, the Author or any other right holder, in addition to other applicable remedies and liabilities set by Articles 1250, 1252 and 1253 of the Civil Code of the Russian Federation, may at its own discretion request the infringing party to pay compensation instead of reimbursement of losses:

1) In the amount of 10,000 RUB to 5,000,000 RUB determined by the Court depending on the nature of infringement;

2) Two times the cost of right to use the invention, utility model or industrial design determined on the basis of the price which is under comparable circumstances usually paid for legal use of the relevant invention, utility model or industrial design in a way applied by the infringing party.

According to Article 1253 of the Civil Code of the Russian Federation, if any legal entity repeatedly or grossly infringes exclusive rights to intellectual properties or brand identity, the Court may decide on its liquidation, if such legal entity infringes the exclusive rights, upon the Prosecutor’s request subject to Clause 2, Article 61 of this Code. If such infringements are committed by any individual being a sole proprietor, its activities may be terminated, provided that it infringed exclusive rights and it was determined by the Court judgement or ruling in accordance with the established procedure.

2. Administrative Liability

According to Part 2, Article 7.12 of the Code of Administrative Offences of the Russian Federation, the illegal use of any invention, utility model or industrial design, save for cases provided by Part 2, Article 14.33 of the Code, disclosure of the essence of any invention, utility model or industrial design before formal publication of the related data without the consent of the Author or Applicant, appropriation of copyrights or coercion to coauthorship lead to administrative penalties:

● For individuals, from 1,500 RUB to 2,000 RUB;

● For officers, from 10,000 RUB to 20,000 RUB;

● For legal entities, from 30,000 RUB to 40,000 RUB.

According to Part 2, Article 14.33 of the Code of Administrative Offences of the Russian Federation, unfair competition in the form of sale of goods with illegal use of intellectual properties and brand identity of any legal entity, brand identity of products, works and services results in administrative penalties:

- For officers, 20,000 RUB or disqualification for three years;

- For legal entities, from 0.1% to 0.5% of the revenues gained by the infringing party from the sale of goods (works, services) in the market where the rights have been infringed, but at least 100,000 RUB.

 3. Criminal Liability

According to Article 14.33 of the Criminal Code of the Russian Federation:

1) Illegal use of any invention, utility model or industrial design, disclosure of the essence of any invention, utility model or industrial design without the consent of the Author or Applicant before formal publication of the data, appropriation of copyrights or coercion to coauthorship, if such actions resulted in material damages,

shall be punishable by penalties in the amount of up to 200,000 RUB or salary or any other income of the convicted for a period up to 18 months or by mandatory work from 180 to 240 hours, or by imprisonment for up to two years.

2) The same acts committed by a group of persons in collusion or organized group shall be punishable by penalty in the amount of 100,000 RUB to 300,000 RUB or salary or any other income of the convicted for a period from one year to two years, by arrest for up to six months or imprisonment for up to five years.