On June 29, 2023, a long-awaited amendment to Part IV of the Russian Civil Code came into force, fundamentally expanding who can own a trade mark in Russia. Federal Law No. 193-FZ removed the decades-old requirement that trade mark rights could belong only to legal entities and registered individual entrepreneurs, opening registration to all natural persons regardless of their business status.
The Previous Rule: Legal Entities and Individual Entrepreneurs Only
Under the former Article 1478 of the Civil Code, the exclusive right to a trade mark could belong only to a legal entity (юридическое лицо) or an individual entrepreneur (индивидуальный предприниматель). This restriction was based on the logic that trade marks exist to individualise goods and services in commercial activity, and therefore only persons formally engaged in business should hold them.
This created a significant practical barrier. Individuals who wanted to protect a brand — freelancers, self-employed persons, creators, inventors — had to first register as an individual entrepreneur or establish a legal entity before filing a trade mark application with Rospatent. The requirement also created an inequality between Russian and foreign nationals: under the Madrid System and the laws of many countries (including Austria, Germany, China, and the United States), foreign individuals could register trade marks in their own names and extend protection to Russia through international registrations, while Russian citizens without entrepreneur status could not.
What Changed
Federal Law No. 193-FZ, adopted on June 28, 2022, and entering into force on June 29, 2023, made two key amendments:
- Article 1478 was repealed entirely. The provision restricting trade mark ownership to legal entities and individual entrepreneurs was removed from the Civil Code.
- Article 1492, paragraph 1, was amended: the words “individual entrepreneur” were replaced with the word “citizen” (гражданин). The amended provision now reads that a trade mark application may be submitted to Rospatent by “a legal entity or a citizen.”
The combined effect is clear: any natural person, whether or not they hold individual entrepreneur status, can now file a trade mark application, own a registration, and exercise the exclusive right to a trade mark in Russia.
Why the Change Was Made
The legislative explanatory note identified several motivations:
- Equality of participants in civil circulation: The old restriction discriminated against Russian citizens compared to foreign nationals who could obtain trade mark protection in Russia through international registrations without proving entrepreneur status.
- The rise of self-employed professionals: Federal Law No. 422-FZ of November 27, 2018, introduced the “tax on professional income” regime (самозанятые), allowing citizens to conduct business activities and pay taxes without registering as individual entrepreneurs. These self-employed persons could lawfully produce and sell goods but could not own trade marks under the old regime.
- International harmonisation: Aligning Russian law with the practice of major jurisdictions that allow individual trade mark ownership.
Practical Implications
The amendment has immediate practical consequences:
- Self-employed persons (самозанятые): Individuals operating under the professional income tax regime can now register trade marks for the goods and services they produce, without the cost and administrative burden of establishing a legal entity or registering as an entrepreneur.
- Creators and inventors: Individuals who develop brands, product names, or creative identities can secure trade mark protection in their own names before commercialisation.
- Asset protection: Individuals can hold trade marks as personal intellectual property assets, separate from any business entity they may control.
- Succession and estate planning: Trade marks owned by individuals can be inherited, simplifying succession compared to marks held through business entities.
Potential Risks
The expanded access also introduces risks that applicants should consider:
- Non-use vulnerability: A trade mark registered by an individual who does not engage in commercial activity may be vulnerable to cancellation for non-use after three years under Article 1486. The mark must be used in Russia in connection with the registered goods or services.
- Increased filing volume: The additional “layer” of individual applicants is expected to increase the volume of applications at Rospatent, potentially affecting examination timelines.
- Speculative filings: The lower barrier to entry may encourage speculative registrations by individuals with no genuine intent to use, increasing the risk of trade mark squatting.
Strategic Recommendations
- Self-employed persons should file: If you operate under the professional income tax regime and use a brand name, register it as a trade mark. The amendment was designed for you.
- Plan for use: Registration alone is not enough. Develop a plan to use the mark commercially within three years to avoid non-use cancellation.
- Consider the entity structure: For businesses that may scale, consider whether individual ownership or ownership through a legal entity is more appropriate for licensing, assignment, and enforcement purposes.
- Foreign individuals benefit equally: The amendment confirms equal treatment of Russian and foreign citizens, eliminating the previous asymmetry.
Key Takeaway
The June 2023 amendment represents a significant modernisation of Russian trade mark law, removing an outdated restriction and aligning Russia with international practice. Any natural person — regardless of business registration status — can now file, own, and enforce trade marks in Russia. For self-employed professionals, freelancers, and creators, this opens a direct path to brand protection that was previously unavailable without the formality of establishing a legal entity or registering as an entrepreneur.
Comments
0 comments
Please sign in to leave a comment.