14.05.2014 Natalia Zelentsova, Vyacheslav Suyazov, associates at Maxima Legal

Further amendments to Civil Code: intellectual property

Federal Law No 35-FZ introduces changes into provisions of the Civil Code of the Russian Federation (hereinafter referred to as the Civil Code) related to the rights to the results of intellectual activity and means of individualization. The most fundamental changes and legal developments should be observed.

Primarily it is necessary to mark out introduction of new provisions in Article 1232 of the Civil Code specifying that in case of transfer and pledge of the exclusive right and granting of rights to use the results of intellectual activity or means of individualization it is not necessary to register the corresponding agreement. It is necessary to register the transfer of the exclusive right and the moment of registration is treated as the moment of the transfer of right.

Article 1286.1 is introduced to the Civil Code; according to this article it is possible to grant an open license with respect to works of science, literature or art. Such license is non-exclusive, royalty-free (as a general rule) and besides it is considered as a contract of adhesion. Limits of intellectual property use may be determined by the parties to the contract.

Further with the entry into force of the amendments the owner of the right may grant to public at-large a royalty-free right to use intellectual property by posting a public statement on a website of an authorized authority (such authority to be determined by the RF Government). This novel refers to scientific, literary and artistic works and objects of related rights. It should be emphasized that this statement cannot be withdrawn and the conditions of use cannot be limited within the term of granted right. Besides, the following restrictions are introduced: the owner of the right may not make a statement if a license agreement had been entered into by him (an exclusive license or paid non-exclusive license agreement) granting the right to use the work.

In accordance with the changes to article 1229 of the Civil Code right owners obtain the right to dispose of the exclusive right jointly with the other owners not only in the limits prescribed by law but also in the manner established by the agreement between the owners. These provisions allow the holders of rights to govern legal relationship within the framework of disposition of intellectual property exclusive right.

It should also be noted that the list of royalty-free actions has been expanded. The list includes public live performance without any profit motives of legally published works, in particular in educational and medical organizations performed by the employees of such organizations or by persons receiving services in these organizations as well as electronic recording of a dissertation abstract and bringing it to a public.

Most of the amendments come into effect on October 1, 2014.