From Russia with love: disposing commercial & IP strategy in Russia and Eurasia Evgeny Enbert Russian and Eurasian Patent Attorney PATENTICA © 2014 Russian AUTOMOTIVE market Russian Automotive Market: $69 bln in 2013 High growth potential: 156 cars/1,000 Russians (525 in UK) 2013: 9% growth in sales of locally produced foreign cars Local factories: Ford (2002) Renault (2005) Volkswagen (2007) Toyota (2007) GM (2008) Nissan (2009) Peugeot/Citroen/ Mitsubishi (2010) Hyundai (2011) Top 10 brands, 2013 Lada (456 309) Renault (210 099) KIA (198 018) Hyundai (181 153) Chevrolet (174 649) Volkswagen (156 247) Toyota (154 812) Nissan (146 196) Ford (106 734) Russian TELECOMMUNICATION market The telecom market value reached $42bn in 2013, that is 2% of Russia’s GDP Growing sectors: Fixed and mobile internet access pay TV services broadband internet access 3G-LTE development vs. WiMAX and CDMA Russian PHARMACEUTICAL market • Russian Pharma market grows 10% in average annually • Expenditure per capita in RU is 170$, in US it is 770$, in JP – 730$, in EU –400$ 2/3 of medicine in Russia cost less than $5 $ 24.2 bln $ 28.1 bln $ 29.7 bln PUBLIC RTU DRUG SECTOR (ca.25%) COMMERCIAL PARAPHARMA SECTOR (CA. 17%) COMMERCIAL RTU DRUG SECTOR (ca.58 %) Source: DSM group 2012 Russian MEDICAL DEVICEs & MEDICAL TECHNOLOGY market In 2013, the Russian medical device market was $6.7bln, or $47 per capita, with import being $4,8 bln, i.e. 72%. 1,200 manufacturers are engaged in medical device production 40% of equipment obtained via budget funds is not fully used $ 4.1 bln $ 3.6 bln $ 3.0 bln PUBLIC SECTOR (ca. 80%) 12 % 16 % COMMERCIAL SECTOR (ca. 20%) Source: Ministry of Industry and Trade 2010 2011 2012 5 Regional patents: TREND FOR COMMERCIAL INTEGRATION CIS free trade agreement between Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan signed in 2011 Customs Union of Russia, Belarus and Kazakhstan signed in July 2010 Car sales in 2013: Russia 2,777,000 Belarus: 24,966 Kazakhstan: 48,327 Ukraine: 261,001 Uzbekistan: 94,400 Two patent offices to file with Russian Patent Office (Rospatent) Eurasian Patent Office IP objects EAPO: inventions only (Art. 6 of the EAPC) RUPTO: Inventions and other IP objects 8 What does Russian IP legislation Inventions offer? Utility models Designs Selection achievements Integrated micro-circuits topologies Trade Secrets (Know-How) Works of science, literature and art Computer programs Databases Performances Audio records Broadcasting or radio- or television programs by cable Company names Trademarks Geographical Indications Commercial designations 9 9 OVERVIEW The Eurasian Patent Organization consists of Administrative council and the Eurasian Patent Office. 8 Contracting states: EA: RU, BY, KZ, AM, AZ, KG, MD, TJ, TM with total population 200 mln. Headquarters: Moscow, M. Cherkassky per., 2 10 LEGAL BASIS The EAPC (signed September 9, 1994, came into force August 12, 1995) EA Patent Regulations Patent Rules for Drafting, Filing and Examining a EA patent application http://www.eapo.org/en/documents/norm/ 11 Clear benefits of the EAPO: patent protection in up to 8 countries single prosecution procedure protection by one single patent in Russian language no designation of contracting states until the grant no validation/translation after grant is required 12 B. PATENTABLE CLAIMS IN RU/EA = US+EP Compound A [for treatment of disease Y] Crystalline/amorphous forms of compound A A composition [for treatment of disease Y] A combination of compounds A and B for Y A method of treatment of disease Y using compound A Use of compound A or method B for purpose Y (Art.1350, 01.10.2014) Apparatus for purification of substance A A Kit containing composition A and instruction for use. YES YES YES YES YES YES YES YES Statistics: applications file 30% filed by foreign applicants 45000 41849 38564 40000 42500 41414 44211 44914 35000 30000 25000 RUPTO 20000 EAPO 15000 10000 5000 3066 2801 3329 3560 3946 3435 0 2008 2009 2010 2011 2012 2013 14 Eurasian applications by country of residence in 2013 1000 900 800 921 779 700 600 500 400 300 200 100 0 368 353 212 189 175 129 121 95 93 Recent Developments in the Russian/Eurasian patent system 23 August 2012, as result of Russia’s access to WTO, the official Rospatent patent and TM fees were equalized for both resident and nonresident entities and physical persons 1 July 2013 Russian IP court started to operate to ensure qualified IP enforcement mechanism 01 Oct 2014 amendments to IP legislation, CCRF Part 4, have come into force to harmonize the legal IP provisions in Russia with legislation of other WTO countries and generate better opportunities to protect IP rights in Russia. NOVELTY OF UTILITY MODEL, Art 1351 CCRF, Art 1351, 01.10.2008 CCRF, Art 1351, 01.10.14 1. Prior art for Utility Model includes: - published information world-wide and - public use in Russia before the priority date 1. Prior art for Utility Model includes: - any information including prior use world-wide before the priority date 2. Formal examination only 2. Examination in essence: novelty, industrial applicability, sufficiency of disclosure PATENTABILITY OF INDUSTRIAL DESIGN, Art. 1352 CCRF Art. 1352 (01.01.2008) Art. 1352 (01.10.2014) 1. A set of essential features of 1. A set of essential features of industrial design includes industrial design includes aesthetic and ergonomic aesthetic features, such as features, such as shape, shape, configuration, configuration, ornament, ornament, combination of combination of colours. colours, lines, contour, texture. 2. The industrial design is new if 2.The industrial design is new if the set of features reflected on the set of features reflected the drawings and indicated in on the drawings is not known the list of essential features is in the prior art. not known in the prior art. NOVELTY AND ORIGINALITY OF INDUSTRIAL DESIGNS, Art. 1352 CCRF Art. 1352 (01.01.2008) For the purposes of novelty of the ID, the prior art includes all the information available world-wide and all ID applications filed in Russia. Grace period 6 months for disclosure by inventor or other person Art. 1352 (01.10.2014) For the purposes of novelty and originality of the ID, the prior art includes all the available information worldwide and all applications for inventions, UMs, IDs, TMs filed in Russia. Grace period 12 months for disclosure by inventor or other person B. INVENTIVE STEP Rule 19.5.3 (RU) & EA (1) “An invention shall be considered to involve an inventive step if, having regard to the prior art, if it is not obvious to a person skilled in the art”, in particular, - where no technical solutions are found having features coinciding with the characterizing features of the invention, or - when such solutions are found, but the influence of these features on the claimed technical effect is not described. Thus, in RU/EAPO inventive step objections can/shall be argued by proving that a different technical effect is achieved in comparison to “a problem solution approach” under EPO. The new regulations, Art. 1378 CCRF, limits the freedom to change formulation of technical effect after filing of the application. DEPENDENT INVENTION/UTILITY MODEL/INDUSTRIAL DESIGN, Art. 1358’ CCRF, 01.10.2014 1. A patent for invention, utility model, industrial design, which cannot be used without using another patent for invention, utility model, industrial design, having earlier priority, is called a dependent invention, utility model, industrial design. Example 1: Use for a new purpose of a product protected by a patent having earlier priority Example 2: A patent for a product or method having claims which differ in a new purpose only. NEW GROUNDS FOR INVALIDATION OF A PATENT/ UTILITY MODEL, Art.1398 CCRF Art. 1398 (01.01.2008) Art. 1398 (01.10.2014) A patent for invention or A patent for invention or utility a utility model can be model can be deemed invalid if deemed invalid if the the invention or utility model: invention or utility model: - does not comply with one of patentability criteria; - does not comply with one of patentability - does not correspond to criteria; patentable subject matter; - contains features in - disclosed insufficiently for its claims absent from implementation; original application - contains features in claims materials absent from original application INFRINGEMENT OF A PATENT/ UTILITY MODEL, Art. 1358 CCRF Art. 1358 (01.01.2008) A patent for invention or a utility model is considered as used in a product if the product contains all the features indicated in an independent claim, or a feature equivalent thereof and become known as such before the priority date of the invention. Art. 1358 (01.10.2014) A patent for utility model is considered as used in a product if the product contains all the features indicated in independent claims, or a feature equivalent thereof. TWO WAYS TO ENFORCE THE IP IN RUSSIA ADMINISTRATIVE Fast, cheap and easy to stop the infringement BUT the damages cannot be collected JUDICIAL Compensation of damages and lost profits is possible Administrative Authorities to Apply and Enforce: ROSPATENT Chamber for Patent Disputes Municipal and Economic Police Customs Federal Antimonopoly Service (FAS) State Patrol for Commerce Russian Commercial Courts and procedure First instance court (i.e. Moscow Commercial Court) Appeal Court of appeals (i.e. 9th Commercial court of Appeals) Cassati on Cassation court (i.e. Moscow District Court) 2nd cassation Supervisio n Common case Intellectual rights court Pure IP case IP related case Cassati on Economic Disputes Bench of the Supreme Court Cassation (no appeal) Presidium of the Intellectual rights court 2nd cassatio n Presidium of the Supreme Court Two ways for patent in Russia each providing equal enforcement rights Do not know which patent to choose? APPLY FOR BOTH! With all the amendments to the legislation, possibility to get EA and RU identical patents having the same priority date – collision which still has to be solved! 27 THANK YOU! Evgeny Enbert, MSc. Optoelectronics, MSc. Economics Russian and Eurasian Patent Attorney Head of the Mechanics & Electronics Team of BOX 1125, Saint Petersburg, 190000, Russia 15 Malaya Morskaya Street, Office 5, St. Petersburg, 190000, Russia Phone: (007) 812 6002427, Fax: (007) 812 314 4569 www.patentica.com evgeny.enbert@patentica.com 28