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Domain	
  name	
  disputes	
  in	
  Russia
Briefing	
  note
14	
  March	
  2013

New	
  Court	
  for	
  Intellectual	
  Property	
  Rights
Russia’s	
  new	
  Court	
  for	
  Intellectual	
  Property	
  Rights	
  started	
  operating	
  recently	
  and	
  it	
  marked	
  a	
  
good	
  occasion	
  on	
  which	
  to	
  review	
  the	
  state	
  of	
  Russian	
  intellectual	
  property	
  law	
  as	
  it	
  relates	
  
to	
  domain	
  names.	
  

While	
  legislation	
  establishing	
  the	
  court	
  was	
  passed	
  in	
  2011,	
  judges	
  were	
  not	
  appointed	
  and	
  
the	
  court	
  did	
  not	
  start	
  functioning	
  until	
  February	
  2013,	
  so	
  it	
  is	
  quite	
  new.	
  It	
  is	
  a	
  specialized	
  
court	
  within	
  the	
  system	
  of	
  Arbitral	
  courts,	
  located	
  in	
  Moscow,	
  which	
  hears	
  disputes	
  related	
  
to	
  intellectual	
  property	
  regardless	
  of	
  the	
  nature	
  of	
  the	
  legal	
  parties	
  to	
  the	
  dispute.	
  In	
  
addition	
  to	
  being	
  the	
  court	
  of	
  first	
  instance	
  in	
  such	
  matters,	
  it	
  functions	
  as	
  a	
  cassation	
  court.

The	
  Russian	
  land	
  grab
The	
  “land	
  grab”	
  over	
  international	
  top-­‐level	
  domain	
  (TLD)	
  names	
  has	
  often	
  allowed	
  
opportunistic	
  trademark	
  infringers	
  to	
  pre-­‐empt	
  legitimate	
  brand	
  owners.

Russia	
  is	
  no	
  exception,	
  and	
  one	
  of	
  the	
  prime	
  issues	
  faced	
  by	
  foreign	
  companies	
  and	
  brands	
  
entering	
  the	
  Russian	
  market	
  —	
  whether	
  they	
  are	
  primarily	
  online	
  or	
  offline	
  players	
  —	
  is	
  
securing	
  the	
  rights	
  over	
  their	
  domain	
  names	
  in	
  the	
  Russian	
  TLDs.

High-­‐profile	
  domain	
  name	
  disputes	
  in	
  Russia	
  have	
  involved	
  leading	
  international	
  companies	
  
such	
  as	
  Nike,	
  Century	
  21,	
  Burger	
  King,	
  Forbes,	
  Kodak,	
  Volkswagen	
  and	
  many	
  more.	
  All	
  were	
  
decided	
  in	
  favour	
  of	
  the	
  foreign	
  entity	
  although	
  the	
  process	
  and	
  length	
  of	
  the	
  dispute	
  
procedures	
  has	
  varied	
  widely,	
  with	
  the	
  earlier	
  cases	
  taking	
  much	
  longer	
  to	
  decide.	
  As	
  the	
  
precedents	
  accumulate,	
  enforcing	
  rights	
  over	
  Russian	
  domain	
  names	
  is	
  becoming	
  a	
  much	
  
more	
  predictable	
  and	
  economical	
  process	
  for	
  foreign	
  companies.

Russian	
  Top-­‐Level	
  Domains
There	
  are	
  actually	
  three	
  Russia-­‐specific	
  TLDs,	
  namely:
• .ru	
  (“Russia”)
• .su	
  (“Soviet	
  Union”)
• .рф	
  (“Russian	
  Federation”	
  in	
  Cyrillic	
  script)

There	
  is	
  also	
  the	
  “.com.ru”	
  domain	
  administered	
  by	
  one	
  of	
  the	
  Russian	
  domain	
  registrars,	
  as	
  
well	
  as	
  “.ru.com”.	
  Some	
  foreign	
  companies	
  which	
  find	
  themselves	
  shut	
  out	
  from	
  their	
  
rightful	
  .ru	
  TLD	
  temporarily,	
  have	
  opted	
  to	
  establish	
  their	
  Russian	
  websites	
  on	
  these	
  less-­‐
than-­‐ideal	
  alternatives	
  (notably	
  PizzaExpress).
Legal	
  environment
There	
  is	
  no	
  Russian	
  law	
  specifically	
  covering	
  rights	
  to	
  Internet	
  domain	
  names.	
  Rather,	
  they	
  
are	
  covered	
  under	
  the	
  existing	
  laws	
  related	
  to	
  intellectual	
  property	
  and,	
  in	
  particular,	
  
trademarks.	
  The	
  main	
  law	
  regulating	
  this	
  sphere	
  is	
  Part	
  4	
  of	
  the	
  Civil	
  Code	
  of	
  the	
  Russian	
  
Federation,	
  which	
  came	
  into	
  force	
  on	
  1	
  January	
  2008	
  (latest	
  amendment	
  -­‐	
  8	
  December	
  2011).

The	
  Kodak	
  case	
  of	
  2001	
  was	
  a	
  landmark	
  in	
  this	
  field	
  (the	
  core	
  of	
  the	
  case	
  being	
  the	
  use	
  of	
  a	
  
trademark	
  in	
  a	
  domain	
  name).	
  The	
  court	
  decided	
  the	
  case	
  solely	
  on	
  the	
  basis	
  of	
  international	
  
law	
  (namely.	
  the	
  Paris	
  Convention,	
  of	
  which	
  Russia	
  has	
  been	
  a	
  party	
  since	
  1965).	
  The	
  federal	
  
law	
  on	
  trademarks	
  that	
  existed	
  at	
  that	
  time	
  did	
  not	
  provide	
  protection	
  against	
  the	
  use	
  of	
  a	
  
trademark	
  in	
  a	
  domain	
  name.	
  Still,	
  the	
  court	
  prohibited	
  the	
  usage	
  of	
  the	
  domain	
  name	
  in	
  
question.

Since	
  then,	
  the	
  Russian	
  courts	
  have	
  acquired	
  substantial	
  experience	
  in	
  resolving	
  intellectual	
  
property	
  disputes	
  related	
  to	
  domain	
  names.	
  There	
  are	
  guidelines	
  of	
  the	
  highest	
  courts	
  on	
  
such	
  matters	
  which	
  are	
  obligatory	
  for	
  lower	
  courts	
  to	
  follow	
  (even	
  though	
  —	
  officially	
  —	
  
case	
  law	
  does	
  not	
  exist	
  in	
  Russia,	
  being	
  a	
  civil	
  law	
  country).

Court	
  proceedings
The	
  first	
  thing	
  to	
  ensure	
  is	
  that	
  you	
  have	
  registered	
  your	
  trademarks	
  in	
  Russia,	
  as	
  these	
  
documents	
  must	
  be	
  submitted	
  to	
  the	
  court	
  in	
  order	
  to	
  commence	
  any	
  proceedings.

Under	
  the	
  old	
  system,	
  the	
  choice	
  of	
  court	
  for	
  intellectual	
  property	
  disputes	
  in	
  Russia	
  
generally	
  depended	
  on	
  the	
  nature	
  of	
  the	
  violator,	
  as	
  opposed	
  to	
  the	
  nature	
  of	
  the	
  violation).
• The	
  State	
  Arbitral	
  (arbitration)	
  court	
  system	
  hears	
  commercial	
  cases	
  involving	
  legal	
  
  entities,	
  registered	
  private	
  entrepreneurs,	
  and	
  state	
  enterprises,	
  whereas
• The	
  common	
  (general)	
  court	
  system	
  hears	
  civil	
  disputes	
  between	
  natural	
  persons	
  who	
  are	
  
  not	
  registered	
  as	
  entrepreneurs,	
  and	
  also	
  hears	
  all	
  criminal	
  cases.

For	
  the	
  purposes	
  of	
  foreign	
  legal	
  entities	
  involved	
  in	
  domain	
  name	
  disputes	
  in	
  Russia,	
  the	
  
arbitration	
  court	
  is	
  the	
  proper	
  choice	
  except	
  in	
  the	
  case	
  of	
  “substantial	
  damage”,	
  which	
  can	
  
be	
  considered	
  a	
  felony	
  and	
  would	
  be	
  heard	
  by	
  the	
  general	
  court.

While	
  the	
  law	
  provides	
  that	
  administrative	
  rulings	
  can	
  be	
  made	
  solely	
  on	
  the	
  basis	
  of	
  written	
  
submissions,	
  domain	
  name	
  disputes	
  do	
  not	
  fall	
  under	
  such	
  criteria.

There	
  is	
  also	
  the	
  possibility	
  that	
  the	
  arbitration	
  court	
  would	
  award	
  a	
  preliminary	
  injunction	
  
prior	
  to	
  filing	
  and	
  hearing	
  the	
  court	
  case,	
  although	
  this	
  is	
  unlikely	
  to	
  happen	
  in	
  the	
  case	
  of	
  
domain	
  name	
  disputes.	
  The	
  cases	
  where	
  courts	
  have	
  awarded	
  preliminary	
  injunctions	
  in	
  
intellectual	
  property	
  disputes	
  are	
  highly	
  limited.
Initiating	
  a	
  claim	
  via	
  the	
  arbitration	
  court	
  is	
  fairly	
  straightforward,	
  and	
  the	
  procedural	
  rules	
  
dictate	
  that	
  cases	
  must	
  be	
  decided	
  within	
  3	
  months	
  (although	
  they	
  are	
  usually	
  extended	
  to	
  4	
  
months).	
  Delaying	
  tactics	
  are	
  often	
  employed	
  by	
  defendants.	
  However,	
  as	
  a	
  rule,	
  it	
  is	
  quite	
  
difficult	
  to	
  extend	
  the	
  4-­‐month	
  period	
  under	
  the	
  arbitration	
  court	
  system	
  and	
  the	
  majority	
  of	
  
cases	
  are	
  decided	
  within	
  this	
  time	
  limit.	
  The	
  only	
  case	
  where	
  it	
  can	
  be	
  extended	
  is	
  when	
  an	
  
independent	
  expert	
  is	
  involved	
  (usually	
  this	
  occurs	
  when	
  trademarks	
  need	
  to	
  be	
  analyzed	
  as	
  
to	
  similarity	
  with	
  the	
  original,	
  and	
  would	
  not	
  include	
  domain	
  name	
  disputes).	
  When	
  experts	
  
are	
  involved,	
  the	
  period	
  can	
  be	
  extended	
  considerably	
  (8-­‐24	
  months).

For	
  foreign	
  entities,	
  in	
  addition	
  to	
  the	
  statement	
  of	
  claim,	
  they	
  must	
  submit	
  a	
  power	
  of	
  
attorney	
  authorizing	
  a	
  local	
  person	
  to	
  represent	
  them.	
  This	
  representative	
  need	
  not	
  be	
  a	
  
lawyer	
  -­‐-­‐	
  a	
  representative	
  of	
  a	
  legal	
  person	
  can	
  be	
  an	
  advocate	
  or	
  any	
  other	
  person,	
  providing	
  
legal	
  assistance	
  (per	
  article	
  59	
  of	
  the	
  Arbitral	
  Procedure	
  Code).	
  Additionally,	
  certified	
  copies	
  
of	
  incorporation	
  documents	
  and	
  registration	
  certificates	
  for	
  trademarks	
  and/or	
  patents	
  are	
  
required	
  before	
  initiating	
  a	
  proceeding.	
  All	
  documents	
  must	
  be	
  translated	
  into	
  Russian	
  by	
  a	
  
certified	
  Russian	
  translator.

Thus,	
  the	
  procedures	
  for	
  settling	
  domain	
  name	
  disputes	
  in	
  Russia	
  are	
  becoming	
  increasingly	
  
transparent	
  and	
  predictable,	
  and	
  help	
  to	
  support	
  the	
  overall	
  growth	
  and	
  international	
  appeal	
  
of	
  Russian	
  e-­‐commerce.



For	
  more	
  information
Interstice	
  Consulting	
  is	
  fully	
  equipped	
  to	
  register,	
  administer	
  and	
  enforce	
  domain	
  name	
  
rights	
  in	
  Russia.	
  To	
  discuss	
  your	
  specific	
  case	
  with	
  our	
  experts,	
  please	
  contact	
  us:	
  

Interstice	
  Consulting	
  LLC
Krasnoproletarskaya	
  ulitsa	
  31/1
Building	
  5,	
  Office	
  8
Moscow	
  127030
Russian	
  Federation
Tel:	
  +7	
  495	
  795	
  53	
  22
Email:	
  moscow@intersticeconsulting.com	
  

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Domain Name Disputes in Russia

  • 1. Domain  name  disputes  in  Russia Briefing  note 14  March  2013 New  Court  for  Intellectual  Property  Rights Russia’s  new  Court  for  Intellectual  Property  Rights  started  operating  recently  and  it  marked  a   good  occasion  on  which  to  review  the  state  of  Russian  intellectual  property  law  as  it  relates   to  domain  names.   While  legislation  establishing  the  court  was  passed  in  2011,  judges  were  not  appointed  and   the  court  did  not  start  functioning  until  February  2013,  so  it  is  quite  new.  It  is  a  specialized   court  within  the  system  of  Arbitral  courts,  located  in  Moscow,  which  hears  disputes  related   to  intellectual  property  regardless  of  the  nature  of  the  legal  parties  to  the  dispute.  In   addition  to  being  the  court  of  first  instance  in  such  matters,  it  functions  as  a  cassation  court. The  Russian  land  grab The  “land  grab”  over  international  top-­‐level  domain  (TLD)  names  has  often  allowed   opportunistic  trademark  infringers  to  pre-­‐empt  legitimate  brand  owners. Russia  is  no  exception,  and  one  of  the  prime  issues  faced  by  foreign  companies  and  brands   entering  the  Russian  market  —  whether  they  are  primarily  online  or  offline  players  —  is   securing  the  rights  over  their  domain  names  in  the  Russian  TLDs. High-­‐profile  domain  name  disputes  in  Russia  have  involved  leading  international  companies   such  as  Nike,  Century  21,  Burger  King,  Forbes,  Kodak,  Volkswagen  and  many  more.  All  were   decided  in  favour  of  the  foreign  entity  although  the  process  and  length  of  the  dispute   procedures  has  varied  widely,  with  the  earlier  cases  taking  much  longer  to  decide.  As  the   precedents  accumulate,  enforcing  rights  over  Russian  domain  names  is  becoming  a  much   more  predictable  and  economical  process  for  foreign  companies. Russian  Top-­‐Level  Domains There  are  actually  three  Russia-­‐specific  TLDs,  namely: • .ru  (“Russia”) • .su  (“Soviet  Union”) • .рф  (“Russian  Federation”  in  Cyrillic  script) There  is  also  the  “.com.ru”  domain  administered  by  one  of  the  Russian  domain  registrars,  as   well  as  “.ru.com”.  Some  foreign  companies  which  find  themselves  shut  out  from  their   rightful  .ru  TLD  temporarily,  have  opted  to  establish  their  Russian  websites  on  these  less-­‐ than-­‐ideal  alternatives  (notably  PizzaExpress).
  • 2. Legal  environment There  is  no  Russian  law  specifically  covering  rights  to  Internet  domain  names.  Rather,  they   are  covered  under  the  existing  laws  related  to  intellectual  property  and,  in  particular,   trademarks.  The  main  law  regulating  this  sphere  is  Part  4  of  the  Civil  Code  of  the  Russian   Federation,  which  came  into  force  on  1  January  2008  (latest  amendment  -­‐  8  December  2011). The  Kodak  case  of  2001  was  a  landmark  in  this  field  (the  core  of  the  case  being  the  use  of  a   trademark  in  a  domain  name).  The  court  decided  the  case  solely  on  the  basis  of  international   law  (namely.  the  Paris  Convention,  of  which  Russia  has  been  a  party  since  1965).  The  federal   law  on  trademarks  that  existed  at  that  time  did  not  provide  protection  against  the  use  of  a   trademark  in  a  domain  name.  Still,  the  court  prohibited  the  usage  of  the  domain  name  in   question. Since  then,  the  Russian  courts  have  acquired  substantial  experience  in  resolving  intellectual   property  disputes  related  to  domain  names.  There  are  guidelines  of  the  highest  courts  on   such  matters  which  are  obligatory  for  lower  courts  to  follow  (even  though  —  officially  —   case  law  does  not  exist  in  Russia,  being  a  civil  law  country). Court  proceedings The  first  thing  to  ensure  is  that  you  have  registered  your  trademarks  in  Russia,  as  these   documents  must  be  submitted  to  the  court  in  order  to  commence  any  proceedings. Under  the  old  system,  the  choice  of  court  for  intellectual  property  disputes  in  Russia   generally  depended  on  the  nature  of  the  violator,  as  opposed  to  the  nature  of  the  violation). • The  State  Arbitral  (arbitration)  court  system  hears  commercial  cases  involving  legal   entities,  registered  private  entrepreneurs,  and  state  enterprises,  whereas • The  common  (general)  court  system  hears  civil  disputes  between  natural  persons  who  are   not  registered  as  entrepreneurs,  and  also  hears  all  criminal  cases. For  the  purposes  of  foreign  legal  entities  involved  in  domain  name  disputes  in  Russia,  the   arbitration  court  is  the  proper  choice  except  in  the  case  of  “substantial  damage”,  which  can   be  considered  a  felony  and  would  be  heard  by  the  general  court. While  the  law  provides  that  administrative  rulings  can  be  made  solely  on  the  basis  of  written   submissions,  domain  name  disputes  do  not  fall  under  such  criteria. There  is  also  the  possibility  that  the  arbitration  court  would  award  a  preliminary  injunction   prior  to  filing  and  hearing  the  court  case,  although  this  is  unlikely  to  happen  in  the  case  of   domain  name  disputes.  The  cases  where  courts  have  awarded  preliminary  injunctions  in   intellectual  property  disputes  are  highly  limited.
  • 3. Initiating  a  claim  via  the  arbitration  court  is  fairly  straightforward,  and  the  procedural  rules   dictate  that  cases  must  be  decided  within  3  months  (although  they  are  usually  extended  to  4   months).  Delaying  tactics  are  often  employed  by  defendants.  However,  as  a  rule,  it  is  quite   difficult  to  extend  the  4-­‐month  period  under  the  arbitration  court  system  and  the  majority  of   cases  are  decided  within  this  time  limit.  The  only  case  where  it  can  be  extended  is  when  an   independent  expert  is  involved  (usually  this  occurs  when  trademarks  need  to  be  analyzed  as   to  similarity  with  the  original,  and  would  not  include  domain  name  disputes).  When  experts   are  involved,  the  period  can  be  extended  considerably  (8-­‐24  months). For  foreign  entities,  in  addition  to  the  statement  of  claim,  they  must  submit  a  power  of   attorney  authorizing  a  local  person  to  represent  them.  This  representative  need  not  be  a   lawyer  -­‐-­‐  a  representative  of  a  legal  person  can  be  an  advocate  or  any  other  person,  providing   legal  assistance  (per  article  59  of  the  Arbitral  Procedure  Code).  Additionally,  certified  copies   of  incorporation  documents  and  registration  certificates  for  trademarks  and/or  patents  are   required  before  initiating  a  proceeding.  All  documents  must  be  translated  into  Russian  by  a   certified  Russian  translator. Thus,  the  procedures  for  settling  domain  name  disputes  in  Russia  are  becoming  increasingly   transparent  and  predictable,  and  help  to  support  the  overall  growth  and  international  appeal   of  Russian  e-­‐commerce. For  more  information Interstice  Consulting  is  fully  equipped  to  register,  administer  and  enforce  domain  name   rights  in  Russia.  To  discuss  your  specific  case  with  our  experts,  please  contact  us:   Interstice  Consulting  LLC Krasnoproletarskaya  ulitsa  31/1 Building  5,  Office  8 Moscow  127030 Russian  Federation Tel:  +7  495  795  53  22 Email:  moscow@intersticeconsulting.com