Russian companies, starting in 2022, are trying to take the positions of foreign companies that have left Russia and operate under the name of their brand. At the same time, the number of applications from them increased trademark registrationpreviously owned by foreign businesses or imitating well-known brands.

There are quite a lot of such examples and, as a rule, small companies create similar signs that imitate the designations of large companies that have become famous in the Russian market and have earned the trust of consumers. Suffice it to recall the same Adidas - Abibas - Adasdas.

Such violations occur quite often because the temptation is great for individuals seeking to make quick money. This can also be caused not only by the consumer’s desire to buy a high-quality but cheaper analogue, for example, a fake instead of an original Louis Vuitton handbag, but also by simple inattention of the buyer.

     The prolonged absence of products from foreign companies on the Russian market also plays an important role - due to the appearance of counterfeits under imitation designations, the original designations will be forgotten and the marks will be “blurred”, and trust in previously known brands may be lost.

     When counterfeits enter the market, companies that produced the original product suffer - their sales volume decreases, as a result of which they suffer large financial losses. Reputational losses are also possible due to the low quality of counterfeits - as a result, the image of the company from which customers leave deteriorates.

     An important disadvantage is the increase in the number of legal disputes with violating companies trying to register identical trademarks.

     Despite the fact that in Russia, unfair competition associated with copying other brands is regulated by the Law of the Civil Code of the Russian Federation “On Protection of Competition” and entails a fine in the amount of 10 thousand to 5 million rubles, there are still quite a lot of cases of such violations. 

In order not to be at risk, it is necessary to timely register trademarks for companies entering the Russian market, after which their unauthorized use, even if the business in the Russian Federation is closed, will be quite problematic.

     Rospatent may refuse representatives of domestic businesses to register marks of foreign companies because they mislead the consumer about the manufacturer of the goods or because the consumer forms an erroneous assumption about maintaining production ties with a foreign manufacturer.

     However, designations of companies that have left the Russian market can be registered if: their ten-year validity period has not been extended or their copyright holder has abandoned his designation; the trademark was not used and was canceled for this reason; the trademark was terminated by decision of Rospatent or a court. 

     But subject to all the rules for its registration and timely renewal of its validity, the trademark will be protected. 

     Thus, registering a business under the trademark of a foreign company is difficult due to restrictions and rules developed by law to protect the interests of not only copyright holders, but also buyers.

     I would like to note that actions to register someone else’s designations or their imitations are considered by Russian law to be unfair and can be challenged in court.

     It is more profitable to create your own brands, produce high-quality goods under your own unique trademark registered to the company, protect them, promote them, ensuring fame and recognition, which will allow you to gain a foothold in the market and become a competitive player.