Franchising has recently experienced a rapid boom in Russia. A number of foreign franchises are entering the Russian market in order to develop their businesses, while many local companies are expanding within the country through application of the franchising model. This update highlights the primary legal considerations for franchises in Russia.
While the Russian domain name registration procedure may seem easy, domain names are always at risk – especially when they overlap with traditional IP rights belonging to third parties. Nearly all domain name conflicts result in dispute resolution involving national and international principles of law and practice. Where the dispute is subject to Russian jurisdiction, a reliable and efficient domain name litigation process is available to rights holders.
Brand protection in the digital space has become more complicated recently, with cybersquatters and bad-faith market participants adopting new tactics. This update summarises the different categories of online trademark infringement and related court practice in Russia, and provides an overview of enforcement strategies against infringing domain names and websites and the unauthorised use of trademarks in metatags or as keywords.
Advertisers are increasingly using online messenger systems to promote businesses, as well as their goods and services. In this context, the Federal Anti-monopoly Service recently issued an official letter clarifying, among other things, the application of the Federal Law on Advertising to messenger systems such as Viber and WhatsApp. The letter is notable as it reveals the regulator's approach to advertising campaigns disseminated via various instant messaging services.
The president recently signed the Digital Rights Law, which will take effect on 1 October 2019. The law has introduced a number of new legal concepts into Russian legislation, including digital rights, e-transactions, smart contracts and Big Data. Companies doing business on the digital level in Russia should familiarise themselves with the background and key provisions of the law to ensure that they are ready to operate in the new legislative environment.
Bill 424632-7 on the Amendment of Parts 1, 2 and 4 of the Civil Code of the Russian Federation (the Digital Rights Bill) and Bill 571124-7 on the Amendment of the Federal Law on Information, Information Technologies and Data Protection (the Big Data Bill) were recently submitted to Parliament for discussion. Both bills are essential developments, especially given the increasing interest in and high value of Big Data in the current digital reform.
New data storage rules recently took effect for telecoms operators in Russia. Although the rules are aimed at fighting e-terrorism and preserving national cybersecurity, their application and implementation will inevitably lead to substantial financial and material investments by telecoms operators. Therefore, it will be interesting to see how this legislation will be complied with in practice.
New data storage rules recently took effect for online data distributors (organisers) in Russia. The new rules form an integral part of the ongoing reform of the legislation on the national governance of internet sovereignty, data privacy and cybersecurity, which includes the package of laws known as the 'Yarovaya Law'. However, both the Yarovaya Law and the new data storage requirements have been widely criticised.
The Audiovisual Services Law recently took effect and has introduced an innovative legal regime for the operation of streaming and video on demand services in Russia. The law has defined 'audiovisual services', imposed special obligations on audiovisual service owners and introduced penalties for non-compliance with the law.