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The IPR Court of the Russian Federation

The IPR Court was ..1.. by the Federal constitutional law of 6 December 2011 № 4-FKZ that amended the Federal constitutional law “On the Judicial System of the Russian Federation”, and the Federal constitutional law “On Commercial Courts of the Russian Federation”.

According to Article 26.1 of the ..2.. Federal constitutional law of 1 December 1996 № 1-FKZ “On the Judicial System of the Russian Federation” the court for intellectual property rights is a specialized commercial court that has jurisdiction to adjudicate cases related to the protection of intellectual property rights as a court of first instance and cassation instance.

According to Article 43.3 of the amended Federal constitutional law of 28 April 1995 № 1-FKZ “On Commercial Courts in the Russian Federation”, as a court of first instance, the IPR Court will in particular ..3.. the following cases:

I. Appeals against legal regulations of the Russian Patent O ce related to intellectual property rights.

II. Disputes concerning the registration or cancellation of intellectual property rights (except copyrights and related rights) including:

appeals against the decisions, actions or a failure to act of the Russian Patent O ce;

appeals against decisions of the Federal Antimonopoly Service on recognition of actions concerning the acquisition of exclusive rights of means of individualisation of ..4.. entities, goods, works, services and enterprises as acts of unfair competition;

establishment of the patent ..5..;

declaration of invalidity of a patent on an invention, industrial design, unless other proceedings in consideration of invalidity are stipulated by the Federal Law;

cancellation of a trademark due to non-use.

The IP Court will exclusively consider the above listed cases regardless whether the parties involved in a dispute are legal entities, individual entrepreneurs or ..6.. persons1.

Exercise 3. Read the following text. Use the words in the box to the right of the text to form one word that fits in the gap. Finally, in pairs say what you have learned about the reformed Russian Supreme Court.

Russian Law No. 2-FKZ of 5 February 2014 “On the Russian High Court and the Russian Public Prosecution O ce”

(the “Law”) provides for the ..1.. of the Russian Supreme 1. liquidate Arbitrazh Court (the “SAC”) and vesting its powers under

the auspices of the new Russian High Court (the “HC”).

1 http://www.ip-watch.org/2013/03/01/russia-establishes-specialised-court-for- intellectual-property-rights.

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The Russian SAC was fully liquidated at both the

2.

economy

constitutional and legislative levels as the supreme judicial

authority for ..2.. disputes. A new unified supreme judicial

 

 

authority was created as represented by the HC, which

 

 

will perform judicial supervision over all Russian courts

 

 

(general jurisdiction courts, arbitrazh* courts and military

 

 

courts) considering all types of disputes (civil, economic,

 

 

criminal, administrative and other cases that are under

 

 

the jurisdiction of the mentioned courts). Henceforward,

 

 

the HC will act as the supreme judicial authority, inter

 

 

alia, in considering economic disputes. The HC Law sets

 

 

the powers of the new HC and the competencies of the

 

 

HC Plenum and Presidium, as well as the powers of the

 

 

HC Chairman and his/her deputies. In particular, from

 

 

now on, the HC Plenum will unify court practice for all

3.

validate

types of disputes (including economic cases), while the

HC Presidium will consider cases under the supervisory

 

 

procedure. In that regard, the previous Chapter 36 of

 

 

the Russian Arbitration Procedural Code has been ..3..

 

 

and replaced by the new Chapter 36.1 that regulates the

 

 

procedure for consideration of economic cases by the HC

 

 

Presidium under the supervisory procedure.

 

 

At the same time, the Russian Constitutional Court

 

 

retained its powers as the supreme ..4.. judicial authority

4.

depend

to exercise constitutional control. Therefore, the supreme

 

 

judicial authority in Russia is represented by the two

 

 

following courts: The Russian Constitutional Court,

 

 

acting as the supreme judicial authority responsible for

 

 

constitutional proceedings, and The Russian High Court,

 

 

acting as the supreme judicial authority for considering

 

 

economic disputes, criminal, administrative and other

 

 

cases (including labour, housing, land, ecological and

 

 

other disputes) that are under the jurisdiction of general

 

 

jurisdiction courts, arbitrazh courts and military courts.

 

 

The reform does not imply any abolishment or changes

5. existence

to the ..5.. system of arbitrazh courts. However, due to its

 

 

liquidation, the Russian SAC was excluded from the list

 

 

of federal courts (pursuant to the Court System Law) and

 

 

from the structure of arbitrazh courts.

 

 

Moreover, district federal arbitrazh courts have been ..6..

6.

name

as district arbitrazh courts.

 

 

(Doing Business in Russia)

 

 

 

 

 

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*It should be noted that the name “arbitrazhniy court” is misleading as it does not relate to arbitration tribunals but is inherited from the Soviet Law. In the USSR any di erences between state enterprises could be settled by the State Arbitrazh, which was a quasijudicial governmental body. Today the term “arbitrazhniy court” relates to a State court that is competent to hear disputes between commercial entities.

Exercise 4. Read the following text. Choose the best word to fill in each gap. Finally say what you have learned about the mediation procedure in the Russian Federation.

Alternative Dispute Resolution and Mediation

The “Law on Mediation” regulates dispute resolution procedures involving the ..1.. of a mediator on the basis of voluntary consent of the parties. The mediation procedure may be ..2.. to civil (including disputes arising out of economic relations), labor (except for collective employment disputes) and family law disputes. However mediation is not possible in the above-named disputes if they ..3.. public interests or the rights and legitimate interests of third parties that are not participating in the mediation procedure.

(Doing Business in Russia )

1.

A assistance

B help

C boost

2.

A practiced

B used

C applied

3.

A influence

B a ect

C e ect

Key terms and Use of English

Exercise 5. Match the expressions (1–4) with the definitions (a-d).

(1) commercial

(a) the highest court which supervises inferior courts of

court

general jurisdiction and sits as a court of first instance

 

in cases where important interests of the state are

 

at issue, the court of the last resort in Russian

 

administrative, civil and criminal law cases

(2) district court

(b) a court within the judiciary of Russia held by a justice

 

of peace

(3) The

(c) a court which operates independently of the other

Constitutional

courts and hears cases dealing with a wide range

Court of

of contractual issues, such as rights of ownership,

the Russian

performance of obligations, loans, bank accounts,

Federation

contract changes

(4) The Supreme

(d) a high court which is empowered to rule on whether

Court of

or not certain laws or presidential decrees are in fact

the Russian

contrary to the Constitution of Russia

Federation

 

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Exercise 6. Suggest English equivalents of the following word partnerships.

мировой судья; субъект РФ; надзорная инстанция; предпринимательская деятельность; недействительность патента; арбитражный суд; Федеральное Собрание; принимать закон; споры по экономическим вопросам; назначать судей; конституционность нормативных актов; давать разъяснения; имущественные споры; защита прав интеллектуальной собственности; добровольное согласие сторон; трудовые споры

Exercise 7. Complete the sentences with prepositions. Translate them.

1.Most claims subject ..1.. courts of general jurisdiction are heard ..2.. first instance ..3.. a district court.

2.The court of appeal reviews a judgment ..4.. the grounds stated in the appeal.

3.New evidence is accepted only when the party succeeds ..5.. proving it was unable to present such evidence to the trial court for reasons ..6.. its control.

4.The rulings of the court of appeal become e ective immediately ..7.. issuance.

5.The cassation court may set ..8.. or modify court resolutions only when it finds material violations of substantive or procedural law rules that have a ected the outcome of the case.

6...9.. contrast ..10.. courts of general jurisdiction, arbitrazh courts tend

..11.. rely primarily ..12.. documentary evidence rather than ..13.. witness statements.

7.Judgments of the Russian courts of general jurisdiction and of Russian arbitrazh courts are enforced ..14.. the state baili service.

Exercise 8. Render the sentences into English.

1.Суд общей юрисдикции — это суд, осуществляющий правосудие по гражданским, уголовным делам и делам, возникающим из административных правонарушений, а также иным делам, подсудным судам общей юрисдикции.

2.5 февраля 2014 года Президент РФ подписал закон, упраздняющий Высший Арбитражный Суд РФ.

3.В юридическом сообществе мнения по поводу реформирования судебной системы разделились. Одни считают, что это шаг к упразднению арбитражных судов в целом. Другие поддерживают изменения, надеясь, что объединение высших судебных органов наконец-то внесет единообразие в решение спорных вопросов судебной практики.

4.В обосновании необходимости принятия этой поправки к Конституции РФ указано, что реорганизация судебной системы позволит обеспечить единство подходов при отправлении правосудия как в отношении граждан, так и в отношении юридических лиц; исключить возможность отказа в судебной защите в случае спора о подведомствен-

24

ности дела; установить общие правила организации судопроизводства; добиться единообразия в судебной практике.

5.Несмотря на то что суды общей юрисдикции и арбитражные суды часто руководствуются одними и теми же нормами материального права, случается, что подход к решению определенных вопросов у них различен.

6.Вновь образованный суд осуществляет судебный надзор за деятельностью судов, рассматривая подведомственные ему дела в качестве суда надзорной инстанции, а также в пределах своей компетенции в качестве суда апелляционной и кассационной инстанции.

7.В целях обеспечения единообразного применения законодательства Верховный Суд РФ дает судам разъяснения по вопросам судебной практики на основе ее изучения и обобщения и осуществляет иные полномочия, предусмотренные ч. 7 ст. 2 Закона № 3-ФКЗ «О Верховном Суде РФ».

Speaking

Exercise 9. Choose a topic related to the Judicial System of the Russian Federation and in pairs talk about it at length with follow-up questions. Practise using linkers to build a topic (See Annex 1).

Namely; for example (instance); as well as; moreover; besides; in brief; in a nutshell; in short; firstly; lastly; because; since; as; due to the fact that; even though; as a result; in practice, etc.

1.Merger of Russia’s high courts: the pros and cons.

2.Commercial courts: a twenty-first century necessity or ine cacy.

Exercise 10. Answer the competency-based questions.

1.Will the merger of the Supreme Court of the Russian Federation and the Supreme Commercial Court of the Russian Federation help to promote the quality of administering justice?

2.Why do foreign investors prefer resolving cases in the commercial courts of the Russian Federation to settling their disputes in the courts of general jurisdiction?

Exercise 11. Make a full mindmap of the Judicial system of the Russian Federation 2016 and prepare a presentation on an aspect of the Background of the IPR Court of the Russian Federation.

Summarizing

Exercise 12. Read the article about class actions in Russia and summarize it reducing to 25%.

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When America’s meat is Russia’s poison

Amendments to the Code of Arbitration Procedure that came into e ect introduce class actions, the legal technique controversial even in the United States, the country of its origin.

The changes were supposed to give a sword to the small and weak. Instead, they handed a shield to the strong and powerful. Yet, the peculiarities of the law — so paradoxical to be anything but a typing error — may trigger massive abuses and turn the resolution of corporate disputes into a mess.

In an ordinary suit each litigant is a party in his own right. In a class action, one person, a representative plainti , starts a legal battle on behalf of other persons, those who have — or might have — a claim for the same or similar wrong. In the eyes of law only the representative plainti is a party. The others are the members of a ‘class’: they are bound by the outcome of the litigation even though they do not, strictly speaking, participate in the proceedings.

The peculiarities of the law are too paradoxical to be anything but a typing error.

By allowing one person to sue for an entire group, sometimes thousands of people, the law — it is often argued — opens the door to the actions that otherwise would have been too small and uneconomical to pursue by individual claimants. Thus, one of the most contentious legal techniques is favoured for lowering barriers to justice, and for the simple and efficient mechanism of dealing with a large number of similar claims. For the government, on the other hand, the class action laws are a way to dump the load of regulation from its shoulders onto the maze of private litigations. Yet, on the Russian soil the perceived benefits are being paid for by stretching the conventional view of a fair trial. The law appears to substitute the murky waters of defining who and how may decide other people’s rights for the rules of procedure.

Do it the Russian way

What a representative plainti does a ects the members of a class. An important question, then, is how a claimant can get into the class, or stay out and proceed with their personal battle.

International practice revolves around two basic choices, ‘opt in’ or ‘opt out’: should potential class members be automatically included in the class but given an opportunity to leave the proceeding, or should they be required to take a positive step in order to be included in the litigation?

The choices vary from country to country. The ‘opt out’ solution, for instance, can be selected for it reduces social barriers to justice for vulnerable class members: they are automatically included but can leave and bring in their own actions. The ‘opt in’ approach can be justified if the intention is that only those are to be bound who want to be and to this e ect have shown some minimal interest.

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Whatever choice is adopted by the national legislation, the fundamental right of an individual claimant to stay out and pursue his or her own action is recognised and respected.

It appears that Russian law follows the ‘opt in’ way. A closer look, however, suggests that an individual plainti does not have a choice: once a class action started an individual claimant is not allowed to file a separate claim relating to the same defendant but has to join the class action and throw himself on mercy of a representative plainti .

Moreover, article 225.16 of the Сode of Arbitration Procedure, as in force from October 21, does not allow an individual claimant ‘who did not use his or her right to join the class’ to pursue a legal action if a similar claim to the same defendant had been resolved as a class action. This is so incredible, so against the Constitution and the common sense, that it cannot be true. But it is.

Blind trade

In the heart of a class action lies the delegation of rights by multiple claimants to a representative plainti ; class members typically play a small role in the litigation. This ‘clientless’ litigation may lead to open or discrete abuses of law.

The representative plainti is self-proposed and, in essence, self-appointed. It falls to the class members, who usually get involved in the proceeding at a later stage when the action has started and the representative has taken his post, to prove that he cannot represent their interests adequately and fairly.

It is not that class members can’t dispose of the representative they don’t like but doing so is not easy. The law is remarkably brusque on the grounds for dismissal. The plainti , it says, can be discharged by court on the application of the majority of class members if it is proven that ‘he or she grossly neglects his or her duties or is not capable to represent the interests of the class’.

Essentially, the law has traded good old rules of court representation for a wishy-washy jabber that might work — complemented by the mass of precedents — in the USA but in Russia it would mean an unbridled discretion of a judge.

So far, the laws that left too much to a judge to decide have not worked. Where judges have a wide discretion, in appointing a receiver or corporate governance disputes for example, the level of corruption is somewhat too high.

It is remarkable that conflict of interest does not appear as a reason for discharge of a representative plainti . Perhaps, it has something to do with a certain weakness of Russian law on a liation.

Why

Class actions in Russia have limited scope: disputes from commercial relations, including those on corporate governance or those that originate from capital market transactions, can be heard under the new regime. The claims of general public, on the other hand, cannot. Social justice, therefore, is hardly the real beneficiary of the law.

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It is not possible to say how many class actions will be considered in Russia. Yet, keeping in mind international statistics and underdevelopment of the national stock market, there won’t be many. The e ect from the judicial economy, therefore, will be minimal and cannot excuse the door the law opens to abuse.

Although the adoption of western legal institutions is usually enriching, sometimes what is good for Americans, is not so for Russians1.

Writing

Exercise 13. Write a mini-composition on the topic Russian Courts in Practice developing the sentences below into a text. Use appropriate linking words to help structure a piece (See Annex I).

particularly (focusing); even more so (contrasting); on the contrary (contrasting); on top of that (adding information); what is more (adding information); more/most importantly (ordering points); to some extent (generalizing); basically (generalizing); by and large (generalizing); mostly (generalizing); in other words (generalizing)

Russian courts in practice

Specific features / Russian court system / be mentioned. Obvious trait / among judges / tendency / contractual provision / literally. Court proceedings / other countries / tendency / like a chess game / in Russia / to send briefs / three days / hearing. Distribution of briefs / not common. Judges / not to take into account / arguments / not easy to explain. Litigation / other regions / Moscow / legal professionalism / level. Tendency / formalistic arguments / non-legal considerations / decisions.

1 http://russianlawonline.com/business.

Unit 3

Establishing a Legal Presence in Russia

Discussion

1. Here is a “word cloud” that comprises the words that will frequently appear in the texts below. What are these words associated with? Generate ideas about each word.

2.What kind of person do you have to be to engage in business?

3.What di culties do you expect to face in running your own business?

4.What are the advantages and disadvantages of working for someone else?

5.Do you think specializing in corporate law may create good career opportunities? Why? Why not?

6.Would you like to be an in-house lawyer? Why? Why not?

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Legal terms

1.

legal form of business organization

организационно-правовая

 

 

форма бизнеса

2.

separate property

обособленное имущество

3.

corporate entities

корпоративные организации

4.

unitary entities

унитарные организации

5.

public joint stock company

публичное акционерное

 

(PJSC)

общество (ПАО)

 

public stock company

 

6.

nonpublic joint stock

непубличное акционерное

 

company(NPJSC), nonpublic

общество (НПАО)

 

stock company (NPSC)

 

7.

limited liability company (LLC)

общество с ограниченной

 

 

ответственностью (ООО)

8.

charter (the Charter)

устав (общества — российского

 

 

юридического лица)

9.

charter capital

уставный капитал

10.

as amended

с изменениями (фраза, кото-

 

 

рая присоединяется к названию

 

 

закона, если он подвергался из-

 

 

менениям)

 

the RF Civil Code (as amended)

ГК РФ (с изменениями)

11.

participatory interest, interest

доля (доли) (в уставном капи-

 

pl.: participatory interests,

тале общества с ограниченной

 

interests

ответственностью)

12.

rouble / ruble

рубль

13.

closed joint stock company

закрытое акционерное обще-

 

(CJSC)

ство (ЗАО)

14.

open joint stock company (OJSC)

открытое акционерное обще-

 

 

ство (ОАО)

15.

liability

ответственность (как прави-

 

 

ло — материального характера)

 

be liable (for the obligations)

отвечать (по обязательствам)

 

bear liability

нести ответственность

16.

contribution

взнос (в устав общества)

 

contribute

вносить (взнос)

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