Lecture at Wisconsin International University

1. Intellectual Property Rights
Basics
Dmytro Gadomsky
Senior associate
Anton Polikarpov
Associate

2. Why IPR are important (1)
=
111,5 bln USD
2 Intellectual Property Rights: basics

3. Why IPR are important (2)
=
= 8,5 bln USD
=
3 Intellectual Property Rights: basics

4. Why IPR are important (3)
= 3 bln USD
=
4 Intellectual Property Rights: basics

5. Why IPR are important (4)
IPR > 25% of United States export
IT outsourcing in Ukraine = 1,5 bln. USD
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6. About us
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7. Our clients
Some of our clients for Dispute Resolution:
• Raiffeisen Bank Aval • Ukrsibbank
• Raiffeisen Leasing Aval • Prominvestbank
• Universalbank • ING bank
• Swedbank • OeKB Versicherung AG
• Citibank • Kredobank
• Aerosvit Airlines • SEB Bank
• Bayer AG • Porsche
• Commerzbank / Bank • Bunge
Forum • Marfin Bank
• Alfred C.Toepfer
International
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8. Contents
1. Introduction
2. Trademarks
3. Copyright
4. Inventions (patents)
5. Case study
6. AOB
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9. Rules
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10. Intro
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11. IPR: structure
IPR
Industrial property Copyright
Intellectual Property Rights: basics

12. TM
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13. TM’s: main purpose
To distinguish the goods or services
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14. Literal trademarks
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15. Arbitrary/ Fanciful trademarks (no meaning)
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16. Names
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17. Slogans
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18. Devices
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19. Numbers
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20. Letters
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21. Pictures or symbols
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22. Distinctive character?
Distinctiveness - the ability of TM to cause in the minds of the consumer
associations with a specific manufacturer of marked products,
but not with the TM itself
For
Computers For apples
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23. Deceptive trademark
Deceptive trademark would be one that says that the goods for which it is used have
certain quality when they don’t have one
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24. Is this trademark distinctive?
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25. Registration of TM (1)
The most common way of protecting a trademark is to have it registered
in the Trademark Register
Registration is not the only way of protecting a trademark, however:
unregistered trademarks are also protected but it is a less reliable form
of protection
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26. Registration of TM (2)
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27. Copyright
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28. Scope of ancient copyright
Y 1660: copyright = right to copy
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29. History of copyright (1)
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30. History of copyright (1)
Y 1400 Y 1948
548 years…
36 years…
Y1999
Y1963
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31. History of copyright (3)
∞
∞
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32. History of copyright (4)
∞
∞
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33. Scope of modern copyright
Copyright is a legal concept, enacted by most governments, giving the creator of
an original work exclusive right to it, usually for a limited time
Objects Exclusive rights
Music literature Copy distribute sell
photo software import/export
movies theater transmit display
architect derivative
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34. Origination of copyright
Moment of creation (poor men’s copyright)
Protects works and not ideas
No registration is required, but is possible
Valid for 70 years after author’s death
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35. Substance of copyright
Property rights
Personal non-property rights
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36. Copyrights owners
Authors: writers, artists, singers, programmers…
Property rights owners: music labels, software giants, movie producers…
Collective rights managers: AGICOA, УААСП, Дім авторів музики…
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37. End use
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38. Patents
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39. Patents
Patent is not the object of intellectual property
rights. Patent is a document.
Patent protects an invention, and grants to the owner
the exclusive rights to use his/her invention
for a limited period of time
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40. Inventions
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41. What can be patented?
Processes for
developing or
making things
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42. What can not be patented
Human genes
Things that already exist in
nature
Machines, which goes against
the laws of nature
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43. Case study
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44. IPR disputes
VS ГОУ ОГЛЕ
google.ua
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45. Vodka wars - 1
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46. Vodka wars - 2
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47. Mineral water - original
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48. Mineral water - counterfeit
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49. Mineral water - original
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50. Mineral water - counterfeit
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51. IPR disputes
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52. IPR disputes
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53. IPR disputes
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54. IPR disputes
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55. IPR disputes
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56. IPR disputes
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57. IPR disputes
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58. IPR disputes
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59. AOB
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60. Tax optimization structure (1)
Dividends
$ 63,91
PIT
$13,09
Business
CPT
-$23
License royalty
$100
End Users
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61. Tax optimization structure (2)
ForeignCo CPT
Origination $10
of IP rights
License Low tax jurisdiction
Ukraine
royalty
$100 Owner of the
Group
PIT Dividends
$17,3 $72,7
End Users
Intellectual Property Rights: basics

62. Royalty deduction restrictions
Maximum 4% of gross
revenue for the previous tax
year
Royalties paid to offshore?
Beneficial owner?
Ukrainian IP asset?
ARE YOU
Are royalties taxed in the BENEFICIAL
recipient's country?
OWNER?
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63. Customs value of imported goods: royalty for use of IP
Royalties paid with respect to
imported goods?
Importer pays royalties
directly or indirectly as a
condition of sale of goods?
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64. Thanks a lot for attention!
64 Правоохранительные органы Украины