1. Protection of Intellectual Property in the Customs Union of Russia, Belarus and Kazakhstan By Natalia Gulyaeva

2. www.hoganlovells.com 2 Territory of the Customs Union

3. www.hoganlovells.com 3 Aims of the Customs Union -Freedom of movement of goods and persons, free market zone -Intensification of trade between the member-states

4. www.hoganlovells.com 4 Potential new members UKRAINE Joining the Customs Union is complicated due to its membership in WTO. However "3+1" scheme may be considered. KYRGYZSTAN Highly probable, unless political instability in the country and membership in WTO would effect the plans of Kyrgyzstan. TAJIKISTAN Joining is also being considered.

5. www.hoganlovells.com 5 Establishing the united customs border Abolition of customs control on the internal borders: Abolition of customs clearance and control on the Russian-Belorussian border – July 01, 2010 Abolition of customs clearance and control on the Russian-Kazakh border – start on July 01, 2010; to be finalized by July 01, 2011

6. www.hoganlovells.com 6 What's next? Once the customs border checkpoints are abolished, the territory of the three Customs Union's member-states shall be considered a united customs territory.

7. www.hoganlovells.com 7 Any risks? YES!

8. www.hoganlovells.com 8 Are the Customs Union's borders well secured? NOT YET!

9. www.hoganlovells.com 9 Customs registrations The Unified Customs Register is provided for by the Customs Code of the Customs Union, however: no certain deadlines as to when the Register will start operating; no certain date as to when the right owners may start registering their IPRs with the Register; no information as to what agency will operate the Register.

10. www.hoganlovells.com 10 What should the right owners do to protect their IPRs? STEP 1: Register your IPRs with the registers of the national PTOs of each member-state of the Customs Union

11. www.hoganlovells.com 11 What should the right owners do to protect their IPRs? STEP 2: Register your IPRs with the national customs registers of each member- state of the Customs Union

12. www.hoganlovells.com 12 STEP 3: After the launch of the Unified Customs Register, record your IPRs with this Register What should the right owners do to protect their IPRs?

13. www.hoganlovells.com 13 Enforcement of rights Use national instruments for IPRs enforcement! Civil law Administrative law Criminal law

14. www.hoganlovells.com 14 Parallel Imports Russia should avoid adopting further contradicting rulings by the Russian courts and refrain from any legislative steps. By way of the well-known Porsche Cayenne case the Higher Arbitrazh Court has undermined the ability of the Russian customs to stop unauthorized importation of the original products through administrative code procedures. The Higher Arbitrazh Court proposed an alternative option in its recent draft resolution – determining the liability of parallel importers based on unfair competition rules. The Federal Antimonopoly Service considers such approach controversial.

15. www.hoganlovells.com 15 Parallel Imports Russia and Belarus stick to the national exhaustion of rights principle while Kazakhstan adheres to the international exhaustion of rights principle

16. www.hoganlovells.com 16 THANK YOU!

17. www.hoganlovells.com Hogan Lovells has offices in: Abu Dhabi Alicante Amsterdam Baltimore Beijing Berlin Boulder Brussels Budapest* Caracas Chicago Colorado Springs Denver Dubai Dusseldorf Frankfurt Hamburg Hanoi Ho Chi Minh City Hong Kong Houston Jeddah* London Los Angeles Madrid Miami Milan Moscow Munich New York Northern Virginia Paris Philadelphia Prague Riyadh* Rome San Francisco Shanghai Silicon Valley Singapore Tokyo Warsaw Washington DC Zagreb* "Hogan Lovells" or the "firm" refers to the international legal practice comprising Hogan Lovells International LLP, Hogan Lovells US LLP, Hogan Lovells Worldwide Group (a Swiss Verein), and their affiliated businesses, each of which is a separate legal entity. Hogan Lovells International LLP is a limited liability partnership registered in England and Wales with registered number OC323639. Registered office and principal place of business: Atlantic House, Holborn Viaduct, London EC1A 2FG. Hogan Lovells US LLP is a limited liability partnership registered in the District of Columbia. The word "partner" is used to refer to a member of Hogan Lovells International LLP or a partner of Hogan Lovells US LLP, or an employee or consultant with equivalent standing and qualifications, and to a partner, member, employee or consultant in any of their affiliated businesses who has equivalent standing. Rankings and quotes from legal directories and other sources may refer to the former firms of Hogan & Hartson LLP and Lovells LLP. Where case studies are included, results achieved do not guarantee similar outcomes for other clients. New York State Notice: Attorney Advertising. © Copyright Hogan Lovells 2010. All rights reserved. * Associated offices YOUR CONTACT: Natalia Gulyaeva Partner Hogan Lovells CIS Voznesensky Pereulok 22, Usadba-Centre, 125009 Moscow Russia Telephone: +7 (495) 933 3000 Fax: +7 (495) 933 3001 E-mail: natalia.gulyaeva@hoganlovells.com