Intellectual Property Protection System in Ukraine

To become an actor of globalization Ukraine should ac­tively participate in the global technology exchange. In order to do so it is required that national technology and science are well-performed and meet requirements of the global economy. National strategy of integration into the global environment is being a priority for Ukraine.

The book illustrates that during the last decade innovations sub­stantially decreased in Ukraine. Number of applications filed for re­gistration of inventions, industrial designs and trademarks in 2000— 2006 proves instability of the national economic development. De­crease in innovations is explained by deterioration of material and technical conditions, labor force outflow and inability of the Ukrain­ian legislation to incentivize innovative activities.

In order to have competitive economy able to comply with the global market demands Ukraine should adopt a strategy for economic growth through innovations and develop the innovation policy of sci­ence and technology support, as well as provide adequate IP protec­tion. Ukraine's innovation policy shall institute programs supporting the inventors and developing their innovative ideas, including finan­cial aid, physical installations, and advisory services of the govern­ment. The well-developed innovation policy shall be able to incenti-vize innovative activities and prevent immigration of scientists and professionals from Ukraine.

If Ukraine intends to participate in the global economy and to be­come its integral part, rather than to become an economy distanced from the global trends, it must adapt an efficient IP protection system meeting requirements of the global innovative economy. Foundation of IP protection system in Ukraine started in 1991. Since then Ukraine developed basic legislation governing IP rights protection, created IP-related institutions and joined a range of international agreements. The book examines the system of IP protection: institutions (state organs and public organizations) and legislative documents (national, re­gional and global).

Adequate IP protection also requires creation of the efficient judi­cial system. While the Ukrainian legislation provides for certain law measures of protection of the infringed IP rights, the judicial system is not ready to adequately enforce these measures. It does not provide reliable recourse against IP rights infringement. IP disputes involving technical and other specific issues require judges, law experts and government officials to have appropriate professional background. IP disputes cannot be adequately resolved by the courts of general juris­diction. Complex nature of IP rights requires a special intellectual property court. In addition, administrative and criminal sanctions for IP infringements in Ukraine cannot prevent illegal use of IP rights. These sanctions must be increased by amending the Administrative and Criminal codes.

The developed system of institutions (including both state organs and public organizations involved in IP-related issues) with high level of coordination must become an integral part of the efficient IP pro­tection system. Another obstacle is public negligence towards IP pro­tection and lack of adequate information and educational systems. In­adequate IP protection results largely from lack of qualified specialists (among government officials, judges, independent experts etc.) with intellectual property background.

Starting 1991, Ukraine appeared under the U.S. pressure for opti­cal media piracy. In an effort to address the piracy problem, in 2000 the United States and Ukraine agreed to the U.S.-Ukraine Joint Action Plan to combat optical media piracy. As a result of Ukraine's failure to enact most of the plan's provisions, the U.S. Trade Representative (USTR) designated Ukraine a Priority Foreign Country in 2001, launched a Section 301 Investigation to Ukraine's IP rights regime, and, following review, revoked Ukraine's benefits under the U.S. Generalized System of Preferences (GSP) program in 2001. In De­cember 2001, USTR announced trade sanctions in the amount of $75 million which went into effect on January 2002, and affected a num­ber of Ukrainian products, including metal products, footwear, and chemicals. In April 2005, Ukraine has adopted amendments to the existing optical media licensing law. Following this, in August 2005, the U.S. revoked trade sanctions, and in 2006 USTR reinstated GSP benefits for Ukraine.

Thus, under sustained pressure from the U.S., Ukraine has im­proved both the content and the enforcement of IP protection laws. The latest 2006 USTR Report, however, states that «there is still a long way to go, if effective protection, and redress for infringements, is to be considered the norm rather than the exception».

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