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Digest 111

April 25, 2019 Subsribe

SPBILF 2019 News

The schedule of the Forum’s events is published on the Forum’s site – pencil the dates in your diary. The Agenda is open for download.

Go to the Agenda ►

See you on May 14-18, 2019!


Legal Run 2019

International Charity Legal Run 2019 – a fundraising project that has been uniting representatives of the global professional community of lawyers in support of the children under the care of a long-standing project partner «Gift of Life» Charity Fund. In 2019 Legal Run celebrates its 5th anniversary.

Geography of the Run – more than 15 countries all over the world.
Expected number of participants – over 5000.
Official web-site: www.legal.run

Date in St. Petersburg – 18 May, 10.00 - 14.00
Location in St. Petersburg: Primorsky park Pobedyi on Krestovskyi island (Krestovskyi pr. 23A)

Participation on the event is possible only with preliminary registration on the web-site http://legal.run/place/spb/


“The most daring ideas often shape the era”

The world evolves – scientific breakthroughs, technological advances, changing needs and visions of human quality of life and many other things… All these lead to changes that are sometimes so rapid that we do not have enough time to realise what caused the changes, we just take them as given, or bitterly resist them. What appears to us now as normal and natural, sometimes started out as an innovation, generating a striking discord regarding the right for such an innovation to exist.

The most controversial artworks, discoveries and inventions have an impact on future generations. Painters, writers and artists exhibit their works before the public hoping that their works will trigger emotions and feedback from the viewer. Scientists and inventors demonstrate the results of their scientific and technical creativity to the enlightened community. Similarly, manufacturers are willing to give consumers a choice.

  • Works of Galileo, who dared suggest that Earth revolves around the Sun and was condemned for his theory, were prohibited until the beginning of 19th century.
  • Paintings of Van Gogh, who was not recognised during his lifetime, now go under the hammer at Sotheby’s for tens of millions of dollars.
  • In the 18th century, smallpox vaccinations were feared as much as smallpox itself, until Catherine the Great tried it herself and thereby set a good example to her subjects. As a result, smallpox was totally eradicated by 1980, as declared by the WHO.
  • Nowadays, there are discussions around reduced-risk products. Nobody knows how long it will take for the concept of reduced risk for public health, through the promotion of innovations with scientifically proved advantages, to be understood and supported.

Groundbreaking ideas, pioneering art and breakthrough innovations change us and map out future development.

The relationship: artist–viewer, innovator–end-user, manufacturer–consumer, being a public relationship in nature, are associated with the state and positive law. The regulator decides what is to be permitted or banned through developing and adopting regulations. During this process results of scientific studies, the economic situation, public opinion and many other factors should be taken into account.

The discussion session panelists will turn to historical examples demonstrating how the state and the society treated innovations in art and other areas in different eras.

Мikhail Piotrovsky, Еlena Kalnitskaya, Till Olbrich and Alexander Sergeev, together with other panelists, will wrap their minds around the evolution of the freedom of expression and the right to information, regulation spurring the development of culture and economy, and lessons we can learn from past.

“As part of the discussion, the participants are expected to make a model business-case based on the new regulations”

The relevance of the topic is explained by changes in the residential development legislation following the adoption on December 25, 2018 of the Federal Law No.478-FZ "On amendments to the Federal Law 'On participation in shared-equity construction of apartment houses and other real estate objects and on modification of some legal acts of the Russian Federation' and other legal acts of the Russian Federation”. The law will facilitate transition to project financing of residential development.

As part of the discussion, the participants are expected to make a model business-case based on the new regulations that will take effect on July 1, 2019. The discussion may be of interest to the banking community, real estate practicing lawyers, and state agencies.

“‘industry of machines’ is fast transforming into an industry of knowledge, where leadership belongs to players that create and offer new technological solutions”

Patent protection for industrial technologies is a highly relevant subject at this time as industrial business becomes increasingly science-intensive and innovation-driven.  

In fact, the “industry of machines” is fast transforming into an industry of knowledge, where leadership belongs to players that create and offer new technological solutions.  

Patenting and providing technology with the level of legal protection that valuable knowhow deserves now emerge as key contributors towards competitive edge. 

At this time, Russia finds itself on the periphery of technological progress. If Russian corporations wish to close the existing technological gap, they should get more serious about R&D.  

SIBUR takes technology protection very seriously and realizes the importance of joining forces in this effort with the principal regulators, including Rospatent, FAS and the Ministry of Economic Development. 

SIBUR’s discussion panel at the SPBILF will focus on a number of issues central to the protection of Russian companies’ technological assets. 

The discussion should be of interest primarily to business players that consider protection of their research and development outputs to be a high priority.

“Big data market holds significant growth potential”

Big data technology and algorithms offer solutions for a wide range of tasks, so the big data market holds significant growth potential. Currently the market observes substantial preconditions for this growth, however excessively tight regulation might neutralize the existing benefits of Russian big data processing and Russian services. Certain changes must be introduced in regulation and institutions in order to fully unlock the big data potential for citizens, the state and its economy. The session will discuss the most debatable and relevant issues of the data market.

The discussion might be of particular interest to legal professionals in big data, legal counsels at tech companies, and researchers.

“VEB.RF is becoming a key tool of implementation of national projects for the fulfillment of the President’s Executive Order signed in May”

At a new stage of its development, VEB.RF is becoming a key tool of implementation of national projects for the fulfillment of the President’s Executive Order signed in May.

Pursuant to the new law, VEB.RF coordinated the development institution’s activities aimed at long-term social and economic development of the Russian Federation, first of all, due to the support to industries with high added value and projects related to high-end technologies, exports and infrastructural development providing for the economic growth. The projects within major lines covered by the May Executive Order will get through to 2024 the financing amounting to 3 trillion rubles. VEB.RF engages in the said activities in cooperation with commercial banks and investors.

One of the principles of the activities is a non-competition with commercial banks, transparency, break-even project financing.

VEB.RF is included into all the government bodies regulating all the areas mentioned in the Executive Order.

VEB.RF as a pivotal development institution has been involved into all national projects providing for human life quality improvement. VEB.RF’s attention is focused on support to strategic projects related to industries with high added value, support to non-resource exports and urban economy.

At the session, the participants will speak on application the modern efficient legal tools necessary for the May Executive Order implementation.

As long as the subject is a most relevant and new, we except that lawyers from both Russian and foreign credit institutions, major companies and legal firms and judiciary representatives will show their interest to the session.

“Artificial intelligence, automated systems, and electronic document management are reshaping our understanding of some legal aspects”

Digital technologies are increasingly affecting every aspect of our lives and insolvency is no exception. We can't deny the fact that sweeping changes of the past few years have changed the way we see insolvency handling. Artificial intelligence, automated systems, and electronic document management are reshaping our understanding of some legal aspects. During the session called ‘Digital Technologies in Insolvency Procedures’ we will discuss the areas that have already or are now embracing new technologies.

The first discussion item is electronic information resources. Every insolvency expert uses them in one way or another. Official data resources are now available, for example, kad.arbitr.ru (information about court cases) and bankrot.fedresurs.ru (information about bankruptcy cases). Using electronic resources is much easier than traditional paper ones. However, this area faces new challenges. For example, we still don't have comprehensive statistics free of information noise and distorted input data. Furthermore, big data based analytics and insolvency forecasting are still in the early stages of development.

The second discussion item is digital technologies and insolvency auctions. It is hard to believe that ten years ago the idea of electronic auctions within an insolvency procedure seemed innovative and hardly feasible. Today, they are a household name, while traditional auctions have become a remnant of the past. Despite high costs and suboptimal bidding ecosystem, it is clear that great progress has been made in insolvency – have a look at property sale in enforcement proceedings. In addition, new technologies bring down insolvency procedures costs because they automate most standard operations. They also dramatically reduce the number of technical errors, for example, missing critical deadlines.  

The third discussion item is relevant software tools. There are certain software products designed to facilitate arbitration. Bankro.TECH is one of the greatest examples – it is a cross-functional product suitable for all stakeholders. You can hold online creditor meetings and committees using this tool. It organizes critical information related to the case, categorizes disputes and relevant cases, and formulates meetings takeaways.

Speaking of enforced recovery, digital technologies introduce both new opportunities and challenging risks to the area. For example, risk of data being lost, corrupted, or accessible to unauthorized parties. Our dependency on electronic devices is growing, making it impossible for us to do our work without them. Every little step is now part of the public domain, making insolvency a more and more transparent area. This change can make some actors who are not ready to work in the new reality leave the market.

All of these issues will bring together experts in insolvency-related digital technologies, software developers, professional community, and legal experts from Russia and abroad. Digital technologies are ubiquitous, therefore this session will be of interest to a wide range of insolvency experts.

“These creditors are able to benefit from the lien right of set-off and so called lien stemmed from asset seizure”

According to statistics unsecured bankruptcy claims satisfy not more than 1.7% of a debt. Meanwhile, secured claims usually filed by banks satisfy almost 20% of a debt. The primary instrument to create collateral rights is a contractual lien which is traditionally used in lending.

Creditors who are not engaged in this business on a professional level cannot benefit from this instrument due to a specific nature of noncredit relationships. These creditors are able to benefit from the lien right of set-off and so called lien stemmed from asset seizure (England, Germany, France).

The session is supposed to discuss these two models securing claims, being the lien right stemmed from asset seizure (Article 174.1 of the Civil Code of the Russian Federation) and set-off (Article 410 of the the Civil Code of the Russian Federation). Contrary to other countries, the case law of the Russian Federation does not acknowledge these tools for bankruptcy cases, and this adversely affects civil-right transactions and the rights of unsecured creditors including major companies actively engaging contractors with an authorized body.

“Phenomenon of preferential regimes is a subject of large interest from both theoretical and practical points of view”

Currently, investors in Russia have access to a wide range of legal instruments for investing in the development of various areas of the economy: from contractual structures (public-private partnership, concession agreement, special investment contract) to special territorial regimes (special economic zones, territories of advanced social and economic development, etc.). At the same time, there is a need to unify investment legislation due to the redundancy of a large number of investment regimes, the haphazard approach to legal regulation and the existence of terminological differences. In addition, one of the main problems for both investors and the state is the unresolved issue of the possibility of combining preferences when an investor conducts activities simultaneously under several preferential regimes. Thus, at the moment, a number of legislative initiatives to create new framework investment legislation are already under discussion.

In this regard, the phenomenon of preferential regimes is a subject of large interest from both theoretical and practical points of view – is it reasonable that within a State there are several investment regimes which constitute certain exceptions from general legal regulation for certain groups of persons. The discussion session “Preferential regimes: separation in the conditions of unification” is intended to discuss the relationship between two diametrically opposed global trends – the unification of legal regulation in the context of globalization and convergence between legal systems, on the one hand, and on the other, the establishment of sectoral regimes within the same legal system – as well as to identify the extent to which the existence of separate legal regimes leads to the degree of fragmentation of legislative regulation, which raises the question of the need for its unification.

The session is likely to be of great interest to lawyers of large investment corporations, lawyers specializing in investment law, representatives of legislative authorities, experts involved in drafting legislation, as well as to researchers and judges.

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