Intellectual property reform needs to be brought to completion

09/ 06/ 2021

The European Business Association drew the attention of the state authorities to the problem of incomplete intellectual property reform in Ukraine in its recent letter to President Volodymyr Zelensky. The EBA experts support the efforts aimed at reforming the sphere of intellectual property and revising the legislation of Ukraine in this field. On June 16, 2020, there was an adoption of the Law of Ukraine №703 which should have relaunched the state system of intellectual property protection. However, the initiated reform has not been completed and requires additional actions by state authorities. A new institution, the National Intellectual Property Authority (NIPA), was due to be established in Ukraine. Under the respective CMU Order, the functions of this body are assigned to the SE Ukrainian Institute of Intellectual Property - Ukrpatent. At the same time, no further changes were made to reform the system. Thus, the Mineconomy has so far not reorganized Ukrpatent into the NIPA and has not provided for an open competition for the position of the NIPA’s head. The Supervisory Board, Attestation, and Appeals Commissions have not been established yet. Furthermore, contrary to the deadlines provided by Law №703, the Government did not bring its regulations into line. For example, the entry into the profession of intellectual property representative (patent attorney) is currently blocked – a certification for it has not been carried out for more than four years. The EBA member companies consider that failure to take action to comply with the Law №703actually stops the reforming of the intellectual property and further building a holistic National Intellectual Property Authority. This situation threatens to disrupt reform in the industry. Svitlana Mykhailovska. EBA Deputy Director for Advocacy. Intellectual property reform is an extremely important factor for the development of innovative economy, creative industries and increase the investment attractiveness of the state. Implementing the changes envisaged by the laws adopted during this time will help Ukraine achieve the European level of protection and enforcement of intellectual property rights, ensure transparency of procedures for acquiring and disposing of such rights, introduce an effective protection mechanism and, ultimately, lead to the growth of our economy. We expect that work in this direction will be resumed as soon as possible. The EBA experts call on the President to continue the process of reforming the industry and instruct the competent authorities to take the following measures in due time: Bring the legal organizational form of the legal entity of public law, which performs the functions of the NIPA, following the requirements of Law №703; Announce and hold an open competition for the position of the head of the state institution performing the functions of the NIPA; Ensure transparency and independence of the activities of the NIPA and all its bodies, including the Appeals Chamber, by bringing them into line with the requirements of Law №703 and open discussion with the professional community and business; Ensure the implementation of the reform by professionals of public authorities with the prevention of persons whose actions or omissions led to non-compliance with the requirements of Law №703 and mass dismissals of Ukrpatent specialists. These steps will enable the successful completion of the intellectual property in Ukraine, create additional jobs, contribute to the state budget, reduce corruption pressure on business, and increase Ukraines attractiveness to investors due to their confidence in the reliable protection of intellectual property rights. Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

The EBA experts support the efforts aimed at reforming the sphere of intellectual property and revising the legislation of Ukraine in this field. On June 16, 2020, there was an adoption of the Law of Ukraine №703 which should have relaunched the state system of intellectual property protection. However, the initiated reform has not been completed and requires additional actions by state authorities.

A new institution, the National Intellectual Property Authority (NIPA), was due to be established in Ukraine. Under the respective CMU Order, the functions of this body are assigned to the SE “Ukrainian Institute of Intellectual Property” – Ukrpatent. At the same time, no further changes were made to reform the system. Thus, the Mineconomy has so far not reorganized Ukrpatent into the NIPA and has not provided for an open competition for the position of the NIPA’s head. The Supervisory Board, Attestation, and Appeals Commissions have not been established yet. Furthermore, contrary to the deadlines provided by Law №703, the Government did not bring its regulations into line. For example, the entry into the profession of intellectual property representative (patent attorney) is currently blocked – a certification for it has not been carried out for more than four years.

The EBA member companies consider that failure to take action to comply with the Law №703actually stops the reforming of the intellectual property and further building a holistic National Intellectual Property Authority. This situation threatens to disrupt reform in the industry.

Svitlana Mykhailovska EBA Deputy Director for Advocacy

Intellectual property reform is an extremely important factor for the development of innovative economy, creative industries and increase the investment attractiveness of the state. Implementing the changes envisaged by the laws adopted during this time will help Ukraine achieve the European level of protection and enforcement of intellectual property rights, ensure transparency of procedures for acquiring and disposing of such rights, introduce an effective protection mechanism and, ultimately, lead to the growth of our economy. We expect that work in this direction will be resumed as soon as possible.

The EBA experts call on the President to continue the process of reforming the industry and instruct the competent authorities to take the following measures in due time:

Bring the legal organizational form of the legal entity of public law, which performs the functions of the NIPA, following the requirements of Law №703;
Announce and hold an open competition for the position of the head of the state institution performing the functions of the NIPA;
Ensure transparency and independence of the activities of the NIPA and all its bodies, including the Appeals Chamber, by bringing them into line with the requirements of Law №703 and open discussion with the professional community and business;
Ensure the implementation of the reform by professionals of public authorities with the prevention of persons whose actions or omissions led to non-compliance with the requirements of Law №703 and mass dismissals of Ukrpatent specialists.

These steps will enable the successful completion of the intellectual property in Ukraine, create additional jobs, contribute to the state budget, reduce corruption pressure on business, and increase Ukraine’s attractiveness to investors due to their confidence in the reliable protection of intellectual property rights.

Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.