1. Which exhaustion regime Russia currently applies?
Russia is a member of the EAEU (which also includes Armenia, Belarus, Kazakhstan, and Kyrgyzstan), which adheres to the regional regime of exhaustion.
The regional regime means the exhaustion of IP rights after the original product is put on the market in the EAEU by the IP owner or with his consent. However, in the case of unauthorized imports from outside the EAEU, the IP rights are not exhausted.
At the same time, in Russia, rights holders have recently limited the ability to object to parallel imports.
Exceptions from the regional exhaustion principle for certain goods are also anticipated at the EAEU level (Order EEC Council N 12 of 17 March 2022).
2. What regulatory acts in Russia introduced exceptions from the regional exhaustion regime, partially legalizing parallel imports?
Under Article 18(1) of this law, in 2022, the Government has the right to set a list of goods (groups of goods) for which certain provisions of the Civil Code (CC RF) on the protection of exclusive rights to intellectual property will be excluded.
The Government instructed the Ministry of Industry and Trade (MIT) to approve a list of goods (groups of goods) that are not subject to restrictions on the parallel import of goods containing trademarks, inventions, utility models, and industrial designs.
The corresponding list has been approved. Its updated version came into effect on 5 July 2022.
Federal Law No. 46-FZ supplemented with Article 18(3), which, in confluence with the above Resolution and Executive Order, should be interpreted as excluding liability for parallel imports of particular goods (groups of goods) from the approved list.
3. What does the list of goods for parallel imports look like?
The list includes items from most industries, from car parts, building materials, and electrical equipment to cosmetics, textiles, and toys. The list contains both entire product groups and goods under specific trademarks. A complete list is available on the MIT official website.
4. What is the term for the introduced exceptions?
Currently, exceptions partially legalizing parallel imports are valid in Russia until the end of 2022.
5. Does allowance of parallel imports mean permission to import counterfeit products?
No. The import of counterfeit goods is an infringement that entails civil and administrative or criminal liability (depending on the amount of damage caused).
6. What are the advantages of legalizing parallel imports?
The main advantage is that Russian consumers retain access to goods of foreign origin, which are not currently supplied to Russia through official distribution channels. In addition, the mere possibility of purchasing foreign goods prevents the monopolization of the market by local producers and contributes to the preservation of a competitive environment.
7. What are the disadvantages of parallel import?
The disadvantages of parallel imports are mainly the lack of a full warranty and service support from the foreign manufacturer and the higher risks of counterfeit products distribution.
Russia is a member of the EAEU (which also includes Armenia, Belarus, Kazakhstan, and Kyrgyzstan), which adheres to the regional regime of exhaustion.
The regional regime means the exhaustion of IP rights after the original product is put on the market in the EAEU by the IP owner or with his consent. However, in the case of unauthorized imports from outside the EAEU, the IP rights are not exhausted.
At the same time, in Russia, rights holders have recently limited the ability to object to parallel imports.
Exceptions from the regional exhaustion principle for certain goods are also anticipated at the EAEU level (Order EEC Council N 12 of 17 March 2022).
2. What regulatory acts in Russia introduced exceptions from the regional exhaustion regime, partially legalizing parallel imports?
- Federal Law No. 46-FZ of 8 March 2022 (as amended on 28 June 2022) 'On Amendments to Certain Legislative Acts of the Russian Federation'
Under Article 18(1) of this law, in 2022, the Government has the right to set a list of goods (groups of goods) for which certain provisions of the Civil Code (CC RF) on the protection of exclusive rights to intellectual property will be excluded.
- Resolution Government RF N 506 of 29 March 2022
The Government instructed the Ministry of Industry and Trade (MIT) to approve a list of goods (groups of goods) that are not subject to restrictions on the parallel import of goods containing trademarks, inventions, utility models, and industrial designs.
- Executive Order MIT RF N 1532 of 19 April 2022 (as amended on 3 June 2022)
The corresponding list has been approved. Its updated version came into effect on 5 July 2022.
- Federal Law No. 213-FZ of 28 June 2022 'On Amendments to Article 18 of the Federal Law 'On Amendments to Certain Legislative Acts of the Russian Federation'
Federal Law No. 46-FZ supplemented with Article 18(3), which, in confluence with the above Resolution and Executive Order, should be interpreted as excluding liability for parallel imports of particular goods (groups of goods) from the approved list.
3. What does the list of goods for parallel imports look like?
The list includes items from most industries, from car parts, building materials, and electrical equipment to cosmetics, textiles, and toys. The list contains both entire product groups and goods under specific trademarks. A complete list is available on the MIT official website.
4. What is the term for the introduced exceptions?
Currently, exceptions partially legalizing parallel imports are valid in Russia until the end of 2022.
5. Does allowance of parallel imports mean permission to import counterfeit products?
No. The import of counterfeit goods is an infringement that entails civil and administrative or criminal liability (depending on the amount of damage caused).
6. What are the advantages of legalizing parallel imports?
The main advantage is that Russian consumers retain access to goods of foreign origin, which are not currently supplied to Russia through official distribution channels. In addition, the mere possibility of purchasing foreign goods prevents the monopolization of the market by local producers and contributes to the preservation of a competitive environment.
7. What are the disadvantages of parallel import?
The disadvantages of parallel imports are mainly the lack of a full warranty and service support from the foreign manufacturer and the higher risks of counterfeit products distribution.
