Article author:
Reuters
Jessica Dinapoli and Alexander Marrow
New York/Moscow — Western companies with iconic brands like Coca-Cola and withdrawing from Russia have spent years It faces a battle against counterfeits and unauthorized imports. It's a risky bid, as the court has shown little sympathy for the exiting company.
The company pulled out of Russia this spring after Moscow sent thousands of troops to Ukraine in response to investor and public pressure. Some companies, like Coca-Cola, confirmed their exit five months later in August, while others, such as McDonald's, sold their businesses. Some, including Procter & Gamble Co, remained and sold essentials.
They are defending their trademarks so they don't lose brand value and should they return to the country, intellectual property lawyers said.
But they face a sea of opportunists, importers and a dizzying array of court decisions.
According to court documents, Coca-Cola, which was first sold in the Soviet Union in 1979, was sold as unauthorized imports, gray market products and Russian imitations of the fruit-filled Fanta series. We are already caught up in the battle with goods. Interviews with relevant attorneys.
The battle for other companies is just beginning as Russian entrepreneurs look to capitalize on their famous names when exiting.
Rospatent, the Russian government's intellectual property agency, has been inundated with trademark applications for popular Western brands in the country, said the head of content strategy for the intellectual property group at analytics firm Clarivate Plc. said Robert Reading. Track your filing.
Governments typically reject applications for trademarks that are identical or very similar to existing brands, intellectual property experts said.
However, the Russian government this spring passed a decree allowing companies to use patents from countries deemed "unfriendly", such as the United States and the United Kingdom, without paying the intellectual property owners. adopted. Defensive.
Russia now allows "parallel imports," or gray market items, of products ranging from care-free feminine products to all brands of footwear.
of Philadelphia Carey Kulp, an attorney at intellectual property law firm Volpe Koenig PC, said the opaque realm of Russia's big brands is like the "Wild West."
"The big question in Russia is whether the courts will support Western brands," Reading said.
GIVE TO STATE
Moscow entrepreneurs Alexander Gerstein and Vadim Ryabchenko, who manufacture bandages and medical supplies, are co-founders of Coca-Cola, Adidas, Mercedes-Benz and P&G's Pampers. diaper brand.
Gershtein said his company could potentially manufacture products such as Pampers branded diapers, and could license other products if approved.
"For example, if the state wants production, we will give the state the Mercedes trademark," Gerstein said. "And there's nothing wrong with that."
He said he had yet to hear from the company about withdrawing its application.
Court closed
Coca-Cola has so far sided with a Russian judge in a lawsuit against a gray market soda imported from the United States. I almost fail to get it. Competitors with almost the same name, such as "Fantola", flooded the market.
His Pivoindustria LLC, an importer, has sold Fanta Peach, Pineapple, and Coca-Cola his cherries, even though the government has not added carbonated drinks to its list of commodities eligible for parallel imports. We were able to sell thousands of cans.
Pivoindustria buys sodas at US Costco and Walmart stores and is considering importing more, company executives said. The latest shipment arrived in Russia in April, said Pivoindustria attorney Maxim Sosov.
Coca-Cola is seeking judgment against Pivoindustria after unsuccessfully trying to order customs to block the shipment of soda, Sosov said. .
"[Judges] understand that parallel imports are competitive, cheaper and better for consumers," Sosov said, adding that Russia's business support added that it would also help.
Coca-Cola has appealed the court's decision, stating that it will "protect its goodwill and reputation should third parties attempt to trade off its world-famous brands."
Reuters was unable to attend a court hearing in one of three lawsuits filed by Coca-Cola against Pivoindustria. This is because the Atlanta-based company has obtained judge approval against Pivoindustria, Sosoff said the move was illegal.Coca-Cola attorneys said the information being considered at the hearing said it was "not public" and was not free to argue against sending a verdict to PivoIndustria.
declined to comment on
Coca-Cola also appealed in April against a Russian court's decision to approve Chernogorovka's 'Fantola' brand before the dispute in Ukraine, according to court documents. .
"This should normally be an easy win for Coca-Cola," said Peter Maggs, a research professor at the University of Illinois Law School and an expert in Russian law. Stated. "At the moment, Chernogorovka's only possible allegation is that Coca-Cola has abandoned its brand."
However, Chernogorovka officials told Reuters, We have already won this lawsuit multiple times in some countries."
"We continue to insist that what we do is not misleading the consumer," says CEO Natalia Sakunina, noting that Chernogorovka is someone else's recipe, design,
"'Fan' is in both words...in 'Fantastic'," Sakunina said. Told.
Chernogorovka is aiming for a 50% share of Russia's roughly $9 billion soft drink market now that Coca-Cola is downsizing, Reuters reports. The company he started producing his Chernogorovka cola in May.
'MOTHER'S BORSCH'
Some Russian entrepreneurs are trying to "Russify" Western brands, according to the founding of the law firm Gerben-Perot PLLC. Partner Josh Guerben said.
German confectionery maker Haribo, famous for its 'gummy' bears, filed a counter-notice to government officials in June against an application to use the name 'Russian Haribo' in Cyrillic script, a spokesperson said. Jennifer in charge said Milnes of him.
In May, one entrepreneur said he used McDonald's golden arches and a red sign reading "Mother's Borscht" in Cyrillic letters for cafes and bars, according to documents found by a law firm. asked permission to do so.
In June, another entrepreneur asked for permission to use the sports footwear brand New Balance in Cyrillic, according to separate documents.
Even after the chain first closed in March, McDonald's Golden His arch logo was still visible and its flagship Big Mac His burgers were still sold at select franchise locations.
McDonald's and New Balance did not return requests for comment.
(Reporting by Jessica DiNapoli, New York and Alexander Maro, Moscow. Hilary Russ, New York and Philip Lebedev, Moscow.) Additional reporting by, edited by Vanessa O'Connell and Lisa Shoemaker)