In the past few months, there has been a significant increase in the number of cancellation requests for non-use of trademarks against foreign entities in Russia, especially those that have announced their withdrawal from the Russian market. This trend is mainly due to the changing geopolitical dynamics and the intensification of market competition. Local Russian companies are now initiating more lawsuits for non-use of more trademarks.
The increase in non-use trademark cancellation requests reflects the increasingly tense and complex relationship between foreign and local Russian companies. As more partnerships are dissolved or withdrawn, local Russian companies are seizing the opportunity to take over businesses previously held by their foreign counterparts.
According to Russian Trademark Law, a trademark must be actively used within three years after the completion of the registration of the trademark or within three years before the cancellation lawsuit is filed due to non-use to avoid loss of rights. As a trademark owner, you must provide comprehensive evidence of actual use of the trademark in Russia. For companies that exit the Russian market in 2022, it will be a very big challenge to prove the use of the trademark to maintain the validity of their rights in Russia in the near future.
Among these well-known trademarks that have been withdrawn are the well-known Starbucks and Ericsson. For these companies that have announced their withdrawal from the Russian market, it will become more difficult to defend against lawsuits for non-use of trademarks.
Russian Trademark Law requires that Russian trademarks may be used by their registered holders or third parties with their consent, but proving consent for use requires filing of a licensing agreement, which complicates the enforcement of trademark rights. In addition, the use of trademarks through parallel imports will be considered unacceptable. At the same time, the question of whether sanctions and counter-sanctions can be a legitimate reason for non-use of a trademark has also arisen.
Since Russia has not officially declared a state of war, the rule of force majeure will not apply. The outcome of the first pending legal disputes currently taking place in Russia will determine the principles for registration of Russian trademarks.
