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Russian State Duma passes law on regional tax relief for intellectual property

Such a subsidy will only cover Russian organizations owning those intellectual property items

MOSCOW, April 19. /TASS/. Russia’s State Duma (lower house of parliament) has passed the law extending the possibilities of Russian constituent entities to define subsidies on tax on the profit of organizations due to the right to reduce the regional part of the tax in the range from 0% to 17% for results of intellectual property in the second and third readings. The document has been initiated by the Russian government.

It is suggested that among the results of intellectual activities subject to the subsidy will be inventions, useful models, industrial prototypes ascertained by patents, international organizations (provided they operate on Russian territory) or foreign national (regional) patent authorities, selection inventions ascertained by patents of the Russian Agriculture Ministry, programs for electronic computing machines registered by the Russian Federal Service for Intellectual Property, data bases, integrated circuit topographies. Such a subsidy will only cover Russian organizations owning those intellectual property items.

The subsidy will cover intellectual property items, on which patents have been granted by international organizations (provided they operate on Russian territory) or foreign national (regional) patent authorities due to the fact that exclusive rights have a territorial principle and require legal protection separately on the territory of each of possible countries (jurisdictions) where the right holder requires legal protection.

"For the right holder to provide license on his/her technology in the foreign jurisdiction he/she should patent it first in Russia (considering the provisions of Article 1,395 of Russian Civil Code) and later in each country, in which the goods containing the technology are planned to be sold, or in which license payments for using the technology are planned to be received," according to an explanatory note.

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