FAS suggests taking a fine from companies up to 15% of the turnover for the unfair use of someone else's corporate identity

    The Federal Antimonopoly Service (FAS) is actively promoting amendments to the law on protection of competition. The fourth antitrust package of amendments included the FAS proposal to fine companies for the unfair use of elements of another’s brand. The size of the fine varies from 1% to 15% of the company's turnover.

    The State Legal Department (GPU) of the president and the Ministry of Economic Development opposed the project. They fear weakening competition and the emergence of additional problems for entrepreneurs. The Russian Union of Industrialists and Entrepreneurs also did not agree with the proposal: why do we need innovations if you can file an objection with Rospatent and with the court for registering the brand. The FAS adjusted the document based on comments and sent it to the government.

    Now a fine for using someone else's trademarkenshrined in the Code of Administrative Violations (CAO), recalls Yana Sklyarova, head of the department for protection against unfair competition of the antimonopoly service. FAS is not trying to rewrite the law, but simply proposes to prohibit copying unregistered designations, for example, design, corporate identity and other individual features that are already used by competitors in the market.

    According to the head of the legal department of the FAS Sergey Puzyrevsky, in 2014 more than 200 violations related to trademarks were recorded. The damage from such unfair competition can be very large, it’s a blow to the brand value, and the departure of some consumers who were misled, says the executive director of the Rusbrand communityAlexey Popovichev. The name of the product may be different, but the font or design of the product may resemble a well-known product and the copyright holder should have tools to deal with such violators, he explains.

    Fines will threaten all companies developing their own brands, fears Goltsblat BLP partner Elena Trusova. The essence of competition lies in the competition of brands, and the FAS proposes to virtually eliminate it, said Alexey Ulyanov, a member of the working group on the development of competition of the government’s expert council.

    Now the Civil Code of the Russian Federation provides for the payment of compensation in the amount of 10 thousand to 5 million rubles. It is easier for companies to go to court and receive compensation according to his decision, a lawyer of a large company notes: the FAS fine will go to the budget, and the company will not benefit from this, and a fine of 1% of the turnover may not cause significant harm to an unfair competitor.

    There are cases when violations formally do not fall under the Code of Administrative Offenses. For example, a company appeared that registered a trademark for a clothing class, although there is a similar sign registered with another watch manufacturer. Rospatent is registering precisely by product class. The FAS is not limited in collecting evidence for the investigation, these are requests for documents and raids. Companies and courts do not have such evidence, said Vedomosti Managing Partner KK&P Maxim Kulkov.

    Also popular now: