intellectual property

How Russia’s Theft Legality Will Cost Unfriendly Nations?

After President Vladimir Putin bombarded Ukraine, Russia is increasingly isolated from the western world. The United States, EU member countries, and others recently launched sanctions against Russia and issued trade restrictions. Russia currently meets its supply and demand needs in agriculture, energy, and natural resources. However, Russia’s isolation and growing shortage of skilled manufacturers has led to the fusion of technological manufacturing and innovation.

Major companies have shut down services in the country either partially or entirely including PayPal, TikTok, Netflix, Spotify, McDonald’s, Starbucks, Apple, Zara, Coca-Cola, etc.   

In response, Russian officials issued an executive order that could authorize intellectual property (IP) theft legally. Russian companies can now officially violate the intellectual property rights of the list of countries including the United States, Canada, Australia, Switzerland, Norway, Iceland, the United States, United Kingdom, Japan, South Korea, New Zealand, Singapore, Taiwan, and the 27  European Union (EU) member countries.

What’s on this Russian Decree?

Unsurprisingly, Prime Minister Mikhail Mishustin of Russia has signed a decree introducing significant changes to the compensation structure for companies that use or produce inventions without the inventor’s consent. Patent holders receive 0% of production profits sale and use of their inventions by Russian companies.

Patent infringements will have a devastating impact on Western companies and inventors, as Russian companies can now replicate inventions and use patented material without consequences. Above all, this means that Russian companies can access publicly available patent databases and monitor patents to boost the production of pinch technology. This could result in a loss of Western trade efforts, as the proposed measures would completely mitigate the current supply chain disruption.

As highlighted in a TASS report, such measures would “mitigate the impact on the market of supply chain brakes as well as shortages of goods and services that have arisen due to new sanctions of western countries.”

Stealing patent is one side and piracy is another i.e., if one user or individual uses pirated windows on their PC, in that case, he/she could use the paid software for free (Piracy) but couldn’t claim the software is his/her (stealing patent).

What will be the impacts?

The impact of piracy and intellectual property theft on Western businesses and economies may not be felt immediately, because Russia cannot increase its technological production in the short term, but the effects will become evident over time. Russian companies are likely to take advantage of the IP infringement opportunity to piracy and continue to violate the rights of patent holders even as global tensions ease.

Due to the lack of skilled labor and technological innovators, the transition to technological innovation will not be easy for Russia. Therefore, Russian companies will most likely pay external contractors and skilled personnel from Eastern European and Asian countries to fill this void. There is a great financial incentive for them to move to Russia to properly use their skills and improve their quality of life.

What’s now?

As tensions between the West and Russia increase and new decrees come into force every day, it will be interesting to see how Russian companies use this opportunity to legalize IP infringement and piracy, and how American companies react. One thing is certain: Russia’s activities have violated international rights and continue to do, soon or later Russia will become the world leader in intellectual property theft.

Why many countries have started supporting Russia?

Some of the countries that support Russia are Belarus, Pakistan, China, Syria, India, Cuba, Venezuela, Iran, etc. Some argue “Russia has right to defend itself” and a few keep mute.

Throughout Cold War, several countries had a robust relationship with Russia, and when the collapse of the USSR happened, friendly countries had taken a massive market of Russian arms. Throughout the 19’s Russia was been a huge exporter of iron, steel, and mineral Fuels & oil. After the conflict between Russia and Ukraine, friendly counties expected to be in fuel and iron crisis, and for inevitable purposes allied and friendly countries decided to stay silent about the conflict.

Read More: Why Russia Legalises Piracy and Steal Patents of Unfriendly Nations?

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