Ukraine, Europe and the global community need to develop effective mechanisms for the management of the russian federation’s confiscated intangible assets. This call to action was made by Olena Orliuk, Director of the Ukrainian National Office for Intellectual Property and Innovations, during her speech at the IV EU-Eastern Partnership Legal Forum held in Warsaw.
According to Olena Orliuk, this issue of managing such assets has gained urgency in the wake of russia’s full-scale invasion of Ukraine and the subsequent imposition of sanction pressure on the aggressor:
“In general, intangible assets are rarely identified as an object of management. When we speak of agencies’ work, these types of assets receive the least attention. Although their value, alongside the scale of the investments made in them, is constantly increasing. This trend is evident globally, as highlighted in recent reports by WIPO, EUIPO, and the EPO, as well as in analyses done by the authorities of the USA or commissioned by the European Commission.
This is not merely Ukraine’s problem: inadequate attention to the management of confiscated intangible assets is a global challenge. In Ukraine, we were able to clarify this issue because of russia’s full-scale invasion of Ukraine, which marked yet another phase in a war that has already been lasting over a decade. It was precisely at this point that sanctions regimes began to operate effectively.
We have suspended all operations involving russian entities in the field of intellectual property in Ukraine. Similar sanctions have also been implemented at both the EU level and within WIPO frameworks.
However, mere blocking does not resolve the issue of effective management of confiscated intangible assets. Primarily, this is due to the absence or imperfection of appropriate legal instruments. We are actively discussing these matters in Ukraine with the relevant authorised bodies, primarily with ARMA (Asset Recovery and Management Agency), as well as with our European partners on international platforms”.
Olena Orliuk’s presentation was a part of a discussion on the challenges and strategies of managing assets seized due to corruption and other crimes. Delivering her presentation, Ms Orliuk noted that the IP Office is involved in implementing the sanctions policy and presented specific steps and statistical data during the forum.
At the same time, with regard to confiscated assets, UANIPIO is not entitled to take legally binding actions concerning IP rights that are subject to confiscation, especially those recorded in state registries, outside of court decisions.
The discussion also addressed the issue of the appropriate evaluation of confiscated property. In this regard, the Ukrainian IP Office’s Director informed that UANIPIO has the legal capacity to evaluate intangible assets.
“Speaking of intangible assets, we must proceed from an understanding of their nature and characteristics in the context of managing confiscated property. Particularly, we should take into account the presence of patent-protected technologies in the production of products at the production facilities transferred to management. Or the presence of trademarks in the seized assets. Additionally, we should consider their validity, value, ownership, brand reputation, etc. Moreover, there is a separate issue of Ukrainian geographical indications, whose origin is being blatantly violated by russia.
“When working with law enforcement or customs authorities, including European ones, we are accustomed to seeing intangible assets viewed mainly as objects of infringement, such as counterfeiting or piracy. Typically, these situations involve the destruction of the relevant goods, in line with European practices and national legislation.
“However, there is still a lack of sufficient practical experience in using intangible assets as a component of effective management within a confiscated asset complex”, stated the Head of the IP Office.
Olena Orliuk believes that Ukraine could become a country to develop such effective management mechanisms. Relevant ideas are already in development:
“There is an understanding that Ukraine is in a unique position to offer a mechanism for confiscating intangible assets and a model for their effective management. European judicial practice can guide and support our efforts, particularly the application of Protocol No. 1 to the European Convention on Human Rights in respect of intellectual property rights.
We have already drafted several proposals to amend national legislation and plan to refine them in cooperation with our international partners”.
The panel discussion “Challenges and Asset Management Strategies for Assets Seized Due to Corruption and Other Crimes in Current Conditions“ was moderated by Jill Thomas, Chair of the BAMIN Supervisory Board (Germany). The following participants joined Olena Orliuk in the discussion:
For reference:
The IV EU–Eastern Partnership Legal Forum brings together the professional legal communities of Europe, the Eastern Partnership countries, Central Asia, the Caucasus, and the United States of America.
The aim of the event is to promote the development of international legal cooperation between the EU and Eastern Partnership countries by sharing experiences, discussing the current challenges of the legal profession, and establishing new professional ties to jointly implement strategic initiatives in the legal and business sectors.
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