INTELLECTUAL PROPERTY COURT SUPPORTED FAS DECISION AND ORDER REGARDING PODOLSK ELECTRIC-INSTALLATION WORKS
Cassation Court – Intellectual Property Court – upheld FAS decision and order with regard to “Podolsk Electric-Installation Works” JSC (“PEZMI” JSC) upon the fact of violating the antimonopoly law
Earlier the FAS Commission found that “PEZMI” JSC violated Article 14.5 of the Federal Law “On Protection of Competition”.
Podolsk Electric-Installation Works put hermetic cable penetrations (hermetic cable entries) for nuclear power stations into civil circulation in Russia. At the same time, the Works unlawfully used trade secrets (know-how), exclusive rights for which are owned by “Elox-Prom” JSC.
FAS issued a binding order to “PEZMI” JSC to stop actions violating the antimonopoly law.
Then Shareholding Company disagreed with the decision and order of the antimonopoly body and filed a lawsuit.
The Court of Fist Instance, Appeal Court and now Cassation Court dismissed the claim.
“FAS case against “PEZMI” JSC can be considered unique because the Works unlawfully used not simply, intellectual property of others but know-how, i.e., trade secrets, pointed out Natalia Kononova, Deputy Head of FAS Department for Control over Advertising and Unfair Competition. “The specifics of know-how is that its developers and right-holders do not disclose the details of their R&D in public and on the contrary keep them in secret.
In the course of the investigation, Podolsk Electric-Installation Works could not provide neither contracts and agreements assigning it the right to use such know-how, nor evidence confirming development of the unique production method by its own efforts and resources”.
Reference:
Article 14.5. Prohibits unfair competition related to use of the intellectual activity results.
Unfair competition through an economic entity exercising actions to sell, exchange or other wise introduce goods into commercial circulation is forbidden if results of intellectual activity were used unlawfully, except means of individualization that belonged to competitors.