Unfair competition in Russian law
The differing economic interests of market participants often result in the use of unlawful methods of competition, which are commonly combined into the concept of “unfair competition.”
In accordance with the Russian Federal Law of July 26, 2006, No. 135-ФЗ, “On Protection of Competition” (hereinafter the Law on Protection of Competition), unfair competition means any actions of business entities (groups of persons) that
According to Paragraph 1 of Article 10bis, “Unfair Competition,” of the Paris Convention for the Protection of Industrial Property, an act of unfair competition is any act of competition that contradicts fair customs in industrial and commercial affairs. According to said international legal norm, the following actions are prohibited:
The Law on Protection of Competition contains the special chapter 2.1, “Unfair Competition.” In accordance with this chapter, along with a direct infringement of the competitor’s IP rights, the following actions relating to intellectual property are prohibited:
Thus, parasitic competition is not allowed, i.e., actions on the market aimed at
Fighting unfair competition
At present, unfair competition can be stopped both administratively (by the Federal Antimonopoly Service) and by courts (based on a lawsuit filed by an interested party).
The Federal Antimonopoly Service (FAS), to suppress unfair competition, is entitled to
In addition to appealing to the FAS in an administrative procedure, as indicated above, an injured party may appeal to the arbitration court for the protection of its rights. Article 15 of the Civil Code of the Russian Federation and Part 3 of Article 37 of the Law on Protection of Competition allow a person affected by a violation to recover both real damages and lost profits. At the same time, in such processes, the plaintiff must prove both violation by the respondent of the Law on Protection of Competition and infliction of losses by such violation. In this regard, in practice, claims for damages are initiated after the antimonopoly body has ruled that the antimonopoly law is violated (such a decision eliminates the need for the plaintiff to prove that the violator has committed acts contrary to the Law on Protection of Competition).
The problem of combating unfair competition today is quite large, and it can only be solved through the interaction of law enforcement agencies, the judiciary, the legislature, the rights holders themselves, and other organizations, including patent law firms.
Protecting the interests of participants in competitive market relations is an important area of Sojuzpatent’s service to its clients. Our lawyers have many years of experience in successfully representing clients in cases involving breaches of antitrust laws. Sojuzpatent’s specialists are ready to provide step-by-step guidance on how to protect clients’ rights and represent them at all stages of the antimonopoly proceedings.
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