#04 April 2014

In focus – Intellectual Property

As evidence proves intellectual property can be the most valuable asset held by any business. It is logical that IP needs legal security from infringements and any losses, either financial or to a firm’s reputation.

Demand for intellectual property rights protection can withstand economic fluctuations. It is acquiring a global flavor with the expansion of multinational corporations which are generators of enforcement of their own IP rights when they arrive on new markets…

With the support of Tax Regulation

Special taxation rules have been established for major Ukrainian exporters for certain commodities.

Temporarily, until 1 January 2018, it applies to imports/exports of commodities under the Codes 1001-1008, 1501-1522, 2601-2621, 2701-2716, 2801-2853, 2901-2942, 7201-7229, 7301-7326 of the Foreign Trade Classification of Commodities with non-resident contractors registered in the countries where the income tax rate (corporate tax) is 5% or less than in Ukraine, or who pay income tax (corporate tax) at the rate of 5% or less than in Ukraine.

Special rules will apply in such industries as coal mining, chemical, metallurgy, agriculture…

Expert Opinion

Intellectual Property Rights: Emerging Issues

Anton A. Zhdanov

From the time of Ukraine’s independence in 1991 the state authorities of Ukraine began the process of developing a new system of legislation that has to regulate relations in different spheres of public life, and would establish an effective mechanism to protect the rights and interests of the different subjects of law. While a lot of legal areas had to be developed ab initio, some legislative purposes for state bodies were simplified with the necessity of implementation of a number of existing standards and rules into domestic Ukrainian legislation…

In Re

Refusal to License IPRs under Ukrainian Competition Law

Sergiy O. Glushchenko

Intellectual property (IP) laws confer exclusive rights on holders of patents, copyright, design right, trademarks and other legally protected rights (IPRs). The rationale behind this exclusivity is that those who produce intellectual goods are not sufficiently awarded or incentivized to innovate, unless they benefit from the right to prevent others from using their innovations. On the other hand, exploitation of intellectual asset sometimes goes beyond the boundaries provided by IP laws and amounts to anti-competitive conduct that chills innovation, hinders long-run consumer welfare and thus requires intervention of competition law…

Online Advertising: Rule of Law?

Olena A. Vardamatska

Having appeared in the early 1990s of the past century, online advertising has become a lucrative business in the space of a decade. Putting it on legal track was another challenge among others introduced by developing IT technologies. The diversity of forms of online ads makes the challenge even greater. However, in the developed countries, this battle is fought successfully and the phenomenon is now largely regulated.

What is at stake? The scope of the Ukrainian online advertising market was UAH 680 million in 2012 and UAH 1,060 billion in 2013, with year-on-year growth coming to 35%. Considering that online advertising ensures better returns on investment than in other media, the speed of increase in coming years is likely to remain at the same level…

The Defence of Methods for Individualization of Political Parties as Intellectual Property Assets

Dmitriy V. Shapoval

Today, the political situation in Ukraine is at a special standard of activity. The post-revolutionary period shall obviously cause the replacement not only in political personages, but also among collective players.

Political life of Ukraine was always saturated with collective participants. Collective amalgamation of like-minded persons to a political party stipulates the appearance of subjective rights which, in its turn, makes the question about the effective defense of subjects’ rights of electoral process pertinent.  

It applies to those rights of the establishments of the intellectual properties, which parties use in their activities…

Cover Story

Stop Counterfeiting

Alexander Pakharenko

Fighting counterfeiting became the leading light in the IP industry over the past decade. Indeed, anti-counterfeiting policies have been introduced at all levels — starting from business (big multinationals succeed here a lot), states and even at global level. We asked Alexander Pakharenko, attorney-at-law, patent attorney and partner with Pakharenko & Partners, to share his expert views on the current state of play and solutions in Ukraine…


Biosimilars Trying to Enter the Ukrainian Market

Evgenia V. Paliy

The past few decades have seen a real breakthrough in the field of biotechnology, which is being increasingly used in various fields, but especially in medicine. Patents for exclusive marketing of a number of original biotech drugs are expected to expire within the next few years. This provides an opportunity for manufacturing and development of biosimilars — official copies, reproduced of biotech medicinal products…


Sensitive Pointes of IP Landscape

With approaching harmonization of IP legislation with EU provisions, a certain advance has been noted by IP practitioners. However, enforceability of IP rights and sharp legislative loopholes of newly-adopted provisions retain room for infringers to go ahead. We have asked experts to be more specific across sensitive issues of present Ukrainian IP landscape.


Oksana Yefimchuk

Ukraine is a party to many international treaties in the sphere of intellectual property. Moreover, in recent years Ukraine has adopted a range of amendments to legislation aiming to make its IP protection system more harmonized with the European system. This enables us to say that the legislation of Ukraine in the area of intellectual property basically complies with EU legislation…


Oleksandr Padalka

Generally, the goals of IP due diligence vary from project to project and depend on the needs of the parties involved in a particular project. In the vast majority of cases the key to the goal of IP due diligence is to detect legal risks (so-called “red flags”) that are associated with IP objects in those transitions where IP objects are regarded as valuable or even key assets (e.g., licensing-in IP, start-up investments, obtainment of financial loans)…

Tatiana Sardelli

Court practice shows that the collision between the provision of the Article 429 of Civil Code of Ukraine of 16 January 2003 (the Code) and Article 16 of On Copyright and Related Rights Act of Ukraine of 12 December 1993 is to be solved with the help of the Decree of 4 June 2010, No.5 of Plenum of Supreme Court of Ukraine and Decree of 12 October 2012, No.12 of Plenum of Supreme Economic Court of Ukraine. Those decrees confirm the provisions of the Code as of higher priority, despite the clear theoretical mishap — as is known, that the newer norm is of higher priority than the older one; and a special norm has greater priority than a general one… 


Andriy Sydorenko

The order of the customs control and customs clearance of goods with the intellectual property rights is established by the Customs Code of Ukraine (the Code). According to Article 397 of the Code the customs control and customs clearance of the goods with intellectual property is carried out in accordance with the general procedure.

However, in addition to the general procedure, the Code provides for the customs register of intellectual property rights (the Register)…


Anton Polikarpov

There is no doubt that Ukrainian legislation on personal data protection has a significant influence on intellectual property rights protection in the Internet. Thus, under the provisions of the On Personal Data Protection Act of Ukraine of 1 January 2011 (the Act), third parties were prohibited from transmitting the personal data of individuals without their prior consent…


Aleksey Prudkyy

Legal disputes involving intellectual property are known to be some of the most complex, but also the most interesting categories of cases considered by Ukrainian courts. The complexity of these cases can obviously be explained by the peculiarity of subject matter in such cases. Intellectual property assets are part of the most complex group of civil law matters, which explains the vast amount of standard acts, both national and international, regulating the peculiarities of their definition, civil turnover, means of protection, etc…


Irina Pavliuk

It is worth mentioning that royalty payments are not subject to VAT. However, payment of royalty may be subject to transfer pricing. The rules of transfer pricing will be applied to transactions exceeding a threshold of UAH 50 million (approximately EUR 3.5 million) for the respective calendar year between…

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