Russia legalizes trademark theft? Ericsson's case is only the beginning
Russia’s Rusklimat has acquired the Ericsson trademark under a law allowing unused trademarks to be re-registered after three years. This sets a dangerous precedent for foreign companies that left Russia after its 2022 invasion of Ukraine, raising concerns about intellectual property protection.
Various news outlets, including Forbes.ru in Russia, have reported today that the Russian company Rusklimat has recently acquired the rights to use the Ericsson trademark in Russia because Russian law permits it if a trademark has not been used in the past three years.
This case poses a serious threat to all foreign companies that previously operated in Russia but ceased their operations after Russia's aggression against Ukraine began in February 2022. It also sets a precedent for all countries that operate under a similarly non-rules-based order.
Timeline
Forbes.ru reports that in March 2024, Rusklimat filed a lawsuit in Russia requesting the termination of legal protection for the Ericsson trademarks, which was granted in October 2024.
On March 12, Rospatent (Russia's Federal Service for Intellectual Property) registered the Ericsson trademark under the Russian air conditioner manufacturer Rusklimat.
“Russian company “Rusklimat” received the rights to use the “Ericsson” trademark, previously owned by a Swedish manufacturer of telecommunications equipment. The decision was made by Rospatent on the basis of legislation that allows the legal protection of a trademark to be terminated if it is not used by the owner for three years in a row”
A final peculiar quote—especially intriguing given Russia's close relationship with IP protection indifferent China—comes from Pavel Simonov, Legal and Corporate Affairs Director at Rusklimat, who stated that the company is registering this trademark "in the interests of a partner company from a friendly country".
Future implications
While Ericsson has stated that legal proceedings regarding the October 2024 ruling are ongoing, this precedent poses a serious threat to international IP protection agreements, including the Paris Convention for the Protection of Industrial Property and the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), both of which Russia is a signatory to.
Russia is approaching this issue slyly. If the legal proceedings go against Ericsson, it could set a precedent for further nationalization of foreign assets, including 'trademark squatting', potentially later expanding their use in China and the Global South.
Russia may also choose to spare certain American and European companies if they resume operations in the country, further pressuring Western policymakers to go easy on the sanction regime.
Russian IP law also allows the transfer of foreign trademarks to local companies if the owner consents. If Western companies choose this route, they risk falling into a de facto "sanction trap". Major reputational risk too.
With the tense political relationship between the EU and the US, the global response to Russia's de facto nationalization of intellectual property remains uncertain.
Global appeal mechanisms are present, but they are slow, expensive, and rarely imperatively enforceable.
