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TRADEMARKs war
Publication date: 
05/03/2010

[The kind of new fraud has appeared in Kyrgyzstan. In many countries it would be nonsense, but here nobody wonders.

To steal and to swindle

According to the State Intellectual Property Service, some enterprising people have invented an original way to become rich just in 2004. It is linked with legislative nuances in the field of trademarks protection. As is well-known a registered trademark under its designation should not be duplicated and products under this trademark would be protected.
“I think the situation is very strange in our country, - Mr. Ulan Melisbek, Kyrgyzpatent Director told to “Vecherka” – the recent case is a confirmation. Many people know conditioners of the Chinese Firm “Chigo”, which are popular among buyers thanks to cheapness. Recently a legal nonsense took place: any Kyrgyz joint stock company had filed the application for Chigo mark registration in the Kyrgyz Republic territory. Certainly we checked up that this brand had existed already and it was impossible to duplicate it. In this stage the most incomprehensible things started to happen.

According to the official the scheme is rather simple and well developed. An JSC declares to a court for annul a popular trademark on Kyrgyzstan territory. Kyrgyzpatent lawyers do all they can to prove that the Themis does not have any grounds or prerequisites for this request satisfaction. But mostly the public office loses such actions despite it protects foreign producers’ interests.

-“When a foreign trademark comes upon domestic moneymakers, they automatically obtain a right to blockade the real Chigo’s goods in Kyrgyzstan, detaining them at custom house – Mr. Melisbek comments – “It means that our country loses a trade partner and the foreign firm is deprived of a big market. Rights of ordinary consumer are infringed, too – he/she loses a possibility to choose this product as a potential purchase. I do not mention that groundless annulment of a trademark in the KR is nonsense!

According to Kyrgyzpatent Head the procedure is aimed at … ordinary blackmail. Sooner or later a producer, forfeited a right to deal in the KR will try to return it. He/she should negotiate with a new brand’s holder who would propose to buy out the right for trademark with a pot of money. The illegal owner may stipulate to appoint the Kyrgyz JSC as the producer’s official distributor in Kyrgyzstan that promises good profits.

-“In the countries with acting legislation and courts dealing in accordance with the law, they would simply reject suit for brand owner’s rights protection, - Mr. Melisbek continues, - “Our lawyers knowing on requests immediately try to connect with real brand holders, protecting in courts his rights in parallel. But firms are abroad thus it is difficult to find an owner, to contact with him, to translate case papers into foreign language etc. In this concrete case we addressed to the Chinese Embassy in Kyrgyzstan, however because of Chinese season greetings a fatal delay arose. The producer acknowledged on this crying fact too late – his trademark in Kyrgyzstan will belong to other person”.

Be gonna have to mantle?

According to Mr. Melisbek during last five years a several similar precedents took place. A series of companies has been formed, which occupy purposely by annulment and further drawing up of alien trademarks. Every time Kyrgyzpatent lawyers have combated in different authorities to prove illegality of these cases, but courts by any reason took a side with their opponents.
- “This kind of machination does not have any name and official definition; the similar actions at the Internet-addresses capture are called as “cyber squatting”, - Mr.Melisbek noted, - without Themis’s loyalty such situation would not be possible. Often law servants by unknown reasons accept decisions contradicting with common norms. For instance, at once four equal trademarks “Parliament” were registered under absolutely different juridical persons. Courts, including courts of the higher authority, support this legal nonsense. I would risk determining these precedents as captures relatively brands.

According to Kyrgyzpatent these cases contradict not only national but also to international legislation. As is known our country is the WTO member and is obliged to observe all relevant agreements. Moreover Kyrgyzstan is a member of the World Intellectual Property Organization (WIPO) with appropriate obligations.

- “When the “Chigo” (a quite big and influential Company) will defend its interests by diplomatic ways thought MFAs of both countries, such infringements from our party may influence negatively to the Kyrgyz-Chinese relations”, - Kyrgyzpatent Head believes. “If the suffered party will address for its rights protection to the WTO or the WIPO, Kyrgyzstan leadership would blush for courts’ wrongful acts. We could lose a face on the international arena, not counting a possible penalty in form of economic sanctions. Earlier or later a scandal will burst out, a matter of time.

Andrej Oreshkin
The picture by Roman Biakhov

P.S. Recently the Supreme Court, despite of active protests of the State Intellectual Property, annulled the registration of the trademark “Chigo” on Kyrgyzstan territory. Now the company, achieved this decision has a right to file an application for the brand renewal in our country, but under its own wind.