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Ukraine Takes Steps Towards AI Regulation

01/ 04/ 2024
  Authors: Dmytro Stefanovych, Senior Associate, Attorney-at-law Mamunya IP, Ihor Kharytonov, Associate Mamunya IP The European Parliament is on the verge of adopting a groundbreaking legislative framework – the EU Artificial Intelligence Act (EU AI Act). Meanwhile, Ukraine is keeping pace and gradually changing its legal environment to regulate AI. In December 2020, the Cabinet of Ministers of Ukraine issued a decree approving the Concept of AI Development in Ukraine. This document outlined the goals, principles, and tasks guiding the efforts in the AI field. According to the Concept, the utilization of AI is permissible only when upholding the supremacy of law, fundamental human and citizen rights and freedoms, democratic values, and ensuring appropriate guarantees for the use of AI technologies. Furthermore, Ukraine joined the Council of Europe Committee on Artificial Intelligence, which started working in January 2022. Consequently, elaborating a legal instrument on the AI development, design, and application based on the Council of Europe standards became one of the priority areas. AI also impacted the copyright legislation of Ukraine. Namely, the new Copyright Law, effective since January 1, 2023, introduced the concept of non-original objects generated by a computer program. Such objects are protected for 25 years under the so-called sui generis right. Most likely, this move reflects the evolving understanding and adaptation of copyright laws worldwide to address the complexities introduced by AI in content creation. In October 2023, the Ministry of Digital Transformation of Ukraine presented a comprehensive Roadmap for the Regulation of AI in Ukraine. It includes a bottom-up strategy to enhance the competitiveness of Ukrainian businesses and prepare for implementing the EU AI Act into Ukrainian legislation. The key Roadmap objectives are as follows: Supporting business competitiveness and ensuring access to global markets. Building the brand of Ukraine as a digital nation in the field of AI. Protecting human rights from the risks of developing and using AI systems. Creating and maintaining the culture of co- and self-regulation in the field of AI in Ukraine. Integrating into the European market and implementing EU standards as part of the overall European integration track of Ukraine. The Ministry also presented the Recommendations on the Responsible Use of Artificial Intelligence in Media in January 2024. Although the Recommendations are not a regulatory act and do not have mandatory force, they contain guiding principles for the responsible application of AI in media, namely focus stakeholders attention on: Preventing possible violation of IP rights of the AI developers or other persons whose works may be used by AI. Labelling AI-generated content with appropriate “AI-generated” markers. Raising legal significance and awareness of sui generis objects created by AI. Establishing principles of control over AI results and confidentiality of personal data. AI is becoming more widespread in all spheres of social relations. In parallel, Ukraine is preparing for AI regulation according to the upcoming EU AI Act. It is quite likely that future AI regulations in the country will concern law enforcement agencies, the healthcare system, and the Armed Forces of Ukraine, where AI gains more influence. Ukraine in the Global Innovation Index 2023 According to the Global Innovation Index Report 2023 issued by the World Intellectual Property Organization, Ukraine, despite the ongoing war, has climbed two positions and now ranks 55th. Additionally, Ukraine has entered the top three most innovative economies among lower-middle-income countries for the first time. The highest ratings were given to the level of development in Ukrainian education, information and communication technologies, and the intellectual level of human capital. The Supreme Court and WIPO Memorandum The Supreme Court and the World Intellectual Property Organization (“WIPO”) have signed a Memorandum of Understanding regarding the WIPO Lex-Judgments Database. As a result, Ukrainian court decisions will now be featured in the international IP database. The service offers access to key court decisions on IP from around the world. These decisions are chosen by the courts of each member state for their significance, importance, or precedent-setting nature. Commission “Ukraine” The Ministry of Economy of Ukraine passed a regulation on December 20, 2023, which will serve as the basis for the establishment of the Commission for the Approval of Issues on Inclusion of the Designation Comprising the Official Name of the State “Ukraine” into the Trademark (“the Commission “Ukraine””). The Commission “Ukraine” is a collegial body, created by the National Intellectual Property Authority, responsible for granting permission to use the official name and international literary code “UA” in trademarks and for incorporating imitations of the Small Coat of Arms of Ukraine, the “Tryzub” (Trident) into trademarks.  Updates in the Criminalization of Smuggling Amendments to the Criminal Code of Ukraine, which criminalize the smuggling of goods in significant and large amounts, became effective on January 1, 2024. The introduction of criminal liability is phased: smuggling of excisable goods has been criminalized starting from January 1, 2024, and the smuggling of all other goods will be criminalized starting from July 1, 2024. World Trademark Review Award According to the World Trademark Review research, Mamunya IP team is ranked “Gold” in Ukraine. Managing partner Oleksandr Mamunya has been recognized as a Golden League IP professional. Ganna Prokhorova and Anastasia Mindrul were awarded “Silver”. Landmark Victory in the Supreme Court Mamunya IP team developed a unique legal strategy that resulted in a precedent-setting victory in the Supreme Court regarding patent supplementary protection in Ukraine.

Authors: Dmytro Stefanovych, Senior Associate, Attorney-at-law Mamunya IP, Ihor Kharytonov, Associate Mamunya IP

The European Parliament is on the verge of adopting a groundbreaking legislative framework – the EU Artificial Intelligence Act (EU AI Act). Meanwhile, Ukraine is keeping pace and gradually changing its legal environment to regulate AI.

In December 2020, the Cabinet of Ministers of Ukraine issued a decree approving the Concept of AI Development in Ukraine. This document outlined the goals, principles, and tasks guiding the efforts in the AI field. According to the Concept, the utilization of AI is permissible only when upholding the supremacy of law, fundamental human and citizen rights and freedoms, democratic values, and ensuring appropriate guarantees for the use of AI technologies.

Furthermore, Ukraine joined the Council of Europe Committee on Artificial Intelligence, which started working in January 2022. Consequently, elaborating a legal instrument on the AI development, design, and application based on the Council of Europe standards became one of the priority areas.

AI also impacted the copyright legislation of Ukraine. Namely, the new Copyright Law, effective since January 1, 2023, introduced the concept of non-original objects generated by a computer program. Such objects are protected for 25 years under the so-called sui generis right. Most likely, this move reflects the evolving understanding and adaptation of copyright laws worldwide to address the complexities introduced by AI in content creation.

In October 2023, the Ministry of Digital Transformation of Ukraine presented a comprehensive Roadmap for the Regulation of AI in Ukraine. It includes a bottom-up strategy to enhance the competitiveness of Ukrainian businesses and prepare for implementing the EU AI Act into Ukrainian legislation. The key Roadmap objectives are as follows:

  • Supporting business competitiveness and ensuring access to global markets.
  • Building the brand of Ukraine as a digital nation in the field of AI.
  • Protecting human rights from the risks of developing and using AI systems.
  • Creating and maintaining the culture of co- and self-regulation in the field of AI in Ukraine.
  • Integrating into the European market and implementing EU standards as part of the overall European integration track of Ukraine.

The Ministry also presented the Recommendations on the Responsible Use of Artificial Intelligence in Media in January 2024. Although the Recommendations are not a regulatory act and do not have mandatory force, they contain guiding principles for the responsible application of AI in media, namely focus stakeholders’ attention on:

  • Preventing possible violation of IP rights of the AI developers or other persons whose works may be used by AI.
  • Labelling AI-generated content with appropriate “AI-generated” markers.
  • Raising legal significance and awareness of sui generis objects created by AI.
  • Establishing principles of control over AI results and confidentiality of personal data.

AI is becoming more widespread in all spheres of social relations. In parallel, Ukraine is preparing for AI regulation according to the upcoming EU AI Act. It is quite likely that future AI regulations in the country will concern law enforcement agencies, the healthcare system, and the Armed Forces of Ukraine, where AI gains more influence.

Ukraine in the Global Innovation Index 2023

According to the Global Innovation Index Report 2023 issued by the World Intellectual Property Organization, Ukraine, despite the ongoing war, has climbed two positions and now ranks 55th.

Additionally, Ukraine has entered the top three most innovative economies among lower-middle-income countries for the first time.

The highest ratings were given to the level of development in Ukrainian education, information and communication technologies, and the intellectual level of human capital.

The Supreme Court and WIPO Memorandum

The Supreme Court and the World Intellectual Property Organization (“WIPO”) have signed a Memorandum of Understanding regarding the WIPO Lex-Judgments Database. As a result, Ukrainian court decisions will now be featured in the international IP database.

The service offers access to key court decisions on IP from around the world. These decisions are chosen by the courts of each member state for their significance, importance, or precedent-setting nature.

Commission “Ukraine”

The Ministry of Economy of Ukraine passed a regulation on December 20, 2023, which will serve as the basis for the establishment of the Commission for the Approval of Issues on Inclusion of the Designation Comprising the Official Name of the State “Ukraine” into the Trademark (“the Commission “Ukraine””). The Commission “Ukraine” is a collegial body, created by the National Intellectual Property Authority, responsible for granting permission to use the official name and international literary code “UA” in trademarks and for incorporating imitations of the Small Coat of Arms of Ukraine, the “Tryzub” (Trident) into trademarks. 

Updates in the Criminalization of Smuggling

Amendments to the Criminal Code of Ukraine, which criminalize the smuggling of goods in significant and large amounts, became effective on January 1, 2024.

The introduction of criminal liability is phased: smuggling of excisable goods has been criminalized starting from January 1, 2024, and the smuggling of all other goods will be criminalized starting from July 1, 2024.

World Trademark Review Award

According to the World Trademark Review research, Mamunya IP team is ranked “Gold” in Ukraine. Managing partner Oleksandr Mamunya has been recognized as a Golden League IP professional. Ganna Prokhorova and Anastasia Mindrul were awarded “Silver”.

Landmark Victory in the Supreme Court

Mamunya IP team developed a unique legal strategy that resulted in a precedent-setting victory in the Supreme Court regarding patent supplementary protection in Ukraine.

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