Government actions related to Russia's invasion of Ukraine have had a wide range of impacts on innovative U.S.-based companies. Over the past few days, several changes have arisen which directly relate to the holders of patent rights in Russia. With a population of over 140 million, Russia has historically represented a substantial market for innovative companies, which have sought and obtained patent protection in Russia over wide-ranging innovations. In 2019, approximately 14,000 Russian patents were granted to non-Russian applicants.1
A decree2 adopted this week by the Russian government allows Russian companies and individuals to exploit inventions owned by patentees from "unfriendly countries" (including the United States) without consent or compensation. Accordingly, Russian patent rights may have little or no value to U.S.-based companies for the foreseeable future.
Additionally, recently announced and quickly evolving U.S. government sanctions may limit or prevent filing, prosecution, and maintenance of Russian patents. U.S.-based companies should ensure that any individual or entity that they are working with throughout the patent process has not been added to a list of restricted individuals including the Office of Foreign Assets Control's (OFAC) list of Specially Designated Nationals and Blocked Persons (SDN List) or any other list created in response to Executive Order 14024. This restriction includes parties involved in payments because many Russian banks have been added to the SDN list and other restricted parties lists. Additionally, the restrictions on sending U.S.-controlled technology to Russia have greatly increased. If you plan to send any information that is not in a patent or open (published) patent application in the United States, you should review this information with your counsel to ensure it can be sent to Russia without an export license.
Wilson Sonsini is carefully monitoring this situation in consultation with our trusted annuity payment services and foreign associate law firms, and we will provide further announcements as we gain further clarity of the effects of U.S. sanctions and the Russian decree. We welcome any questions you may have about possible effects to your business and its patent rights. For further information, please contact any member of Wilson Sonsini's national security or patents and innovations practices.
[1] https://www.statista.com/statistics/1148098/number-of-granted-patents-russia/.
[2] http://publication.pravo.gov.ru/Document/View/0001202203070005.
