Initiatives of Patents’ Changes Through the Lens of Industrial Business

Patenting challenges in industrial business and ideas to enhance relevant norms were considered by dedicated experts at the IX St. Petersburg International Legal Forum. The session was organized by SIBUR LLC.

The discussion was moderated by Elena Sharomova, Business Unit Manager of Intellectual Property, Legal Support at SIBUR LLC. The speakers were Grigoriy Ivliev, Director General at the Federal Service for Intellectual Property, Andrey Kashevarov, Deputy Head of the Federal Antimonopoly Service of the Russian Federation, Georgiy Kotlyar, Head of the Division at the Ministry of Economic Development of the Russian Federation, Vladimir Mescheriakov, Counsel at Law firm Gorodissky & Partners, Yoshiyuki Takagi, Assistant Director General at the World Intellectual Property Organization, Ekaterina Ulyanova, Assistant of the Chief Judge, Intellectual Property Court, as well as Natalia Stolyarova, Deputy Head of Intellectual Property Department, Legal Counsel to the General Director at PAO TMK steel pipes production company, Dmitry Artyomov, Head of Competence Center at the United Metallurgical Company (AO OMK), Dmitry Donov, Legal Director at ‘Novartis Pharma’ Oncology Department, Legal Director at Novolipetsk Steel (NLMK Group).

In his opening remarks the moderator explained the reasoning behind the SIBUR LLC initiative to organize this discussion. ‘Inarguably, industrial businesses today have to deal with some specific changes in patenting, which cannot be overlooked. On the one hand, businesses have to pursue innovations, develop new technologies and impart new properties to materials. We are bound to step to the challenge of an evident technology gap with respect to foreign competitive environment. On the other hand, lots of patents are registered in the Russian Federation. We should be aware of this fact as well. Meanwhile, Russia has joined a number of international agreements on intellectual property and the agreement on trade. We comply with obligations imposed on the Russian Federation. <…> Largest industrial manufacturers like us obviously care about the business reputation of such large governmental agencies. In this setting any transformations affect our business interests, therefore we do care about these changes’ she said.

Yoshiyuki Takagi noted that in large companies the share of intangible assets is up to 70 percent today, which is an important fact. ‘Partnership system is changing very rapidly, because technology is changing, so you have to keep up with the pace. <…> Most cautious forecasts claim that 70 percent of company assets are intangible assets. Those are intellectual capital, intellectual property, trade and commercial secrets, lists of secrets, know-how. This stands true for the majority of strategic company assets. <…> Presumably, not everyone is aware of the shift that arrived 40 years ago. I started my career in a petrochemical company, when values used to be entirely different. We studied crude oil and its value, the value of natural gas, oil refining technology, petrochemical and natural gas products’, he clarified.

In his turn Grigoriy Ivliev claimed that the body of patents is the most complicated information system of all in the world. ‘The reason is that it comprises all technical data, including specific patent information. Only high-caliber experts are able to embrace it. And those experts should be well-paid. We are going to draw focus to this fact in information search. I would add that preliminary analysis should be there as well, because even in the area of information search you should immediately look at what stands behind. We can offer all the dedicated technologies. This process never stops,’ Deputy Head of the Federal Antimonopoly Service of the Russian Federation said.

In turn, Andrey Kashevarov joined Yoshiyuki Takagi in saying that currently patents, commercial secrets, know-how, etc., constitute 70 percent of company capitalization; he also claimed that one has to choose between public and commercial interests. ‘At some stage public and private interests start to intermingle; one should make their choice in favor of public interests, that are bound to present private ones, as a matter of fact,’ he noted.

In his concluding remarks the moderator referred to the text of Rospatent Declaration 2019 which was favored by representatives of large companies: ‘A sustainable system and ability to respond upfront to the demands of innovative economy is required’. She expressed her hope that initiatives, put forward by innovative industrial companies, will be considered and taken into account.

St. Petersburg Legal Forum takes place 14 to 18 May, 2019 in the Eastern wing of the General Staff Building, State Hermitage. SPBILF is supported by the Russian Federation President and organized by the Ministry of Justice of Russian Federation.