Mandatory Payments in Rubles for Intellectual Property

30 May 2022

Decree of the Russian President No. 322 "On the Temporary Procedure of Performance of Obligations to Certain Rights Holders" entered into force on 27 May 2022.

The document applies to the following rightsholders of intellectual property and means of individualization:

  • related to foreign states committing unfriendly acts against the Russian Federation, Russian legal entities, and individuals1

N.B.: Foreign partys are not considered to be related to foreign states committing unfriendly acts against Russia, Russian legal entities, and individuals should they simultaneously meet the following requirements:

  • are under control of Russian legal entities or individuals, including through foreign legal entities related to foreign states committing unfriendly acts against Russia, Russian legal entities, and individuals

  • information on their control is disclosed by Russian entities or individuals to the Russian tax authorities

  • publicly supporting or calling for the implementation of sanctions against Russia
  • prohibited the use of intellectual property and means of individualization on the territory Russia, either for all or for some individuals or entities after 23 February 2022, if such actions are related to the imposition of sanctions against Russia having no economic viability

  • that have ceased, suspended, or significantly restricted their activities after 23 February 2022 in Russia due to the imposition of sanctions or for other reasons having no economic viability

  • committed acts aimed at discrediting the use of the Russian armed forces and/or the exercise by Russian State bodies of their powers outside Russia, or spread misleading information about the use of the Russian armed forces and/or the exercise by Russian State bodies of their powers outside Russia

  • spread information on the Internet expressed in an indecent manner, which offends human dignity or public morals, and which is clearly disrespectful to society, the State, the official Russian State symbols or the Russian public authorities2

One of these grounds is sufficient to apply the Decree.

Debtors of such right holders must fulfil their financial obligations under contracts related to the intellectual property or means of individualization, including the payment of penalties (fines, interests), to a special ruble O-type account opened by the debtor in the name of the rightsholder in a bank authorized by the Russian Government3.

It should be noted that an authorized bank may itself open a special O-type account in the name of the rightsholder4 if it has reliable information to communicate with the latter. In such a case, the rightsholder is obliged to notify their debtors of the details of such an account.

Should the rightsholder grants the right to use the intellectual property or means of individualization on the open licence basis, it is obliged to publish on the Internet information about the details of such an account and ensure the technical possibility for debtors to pay into such an account5.

The Decree does not apply to:

  • rightsholders related to foreign states committing unfriendly acts against the Russian Federation, Russian legal entities, and individuals who have granted the right to use the intellectual property and means of individualization for the purposes of

  • import in Russia and/or production of medicines, medical devices, industrial and agricultural products, food products

  • rendering communication services, including Internet services, and for traffic passing services

  • creation and use of computer programs, databases, information systems and data centres in the Russian Federatio

  • payments not exceeding 100,000 rubles (in foreign currency equivalent to 100,000 rubles) made by an individual in favour of the rightsholder for the purpose of satisfying personal needs and not for profit

  • rightsholders related to foreign states committing unfriendly acts against the Russian Federation, Russian legal entities, and individuals who are fulfilling their obligations to debtors in good faith6


1These countries are: Albania, Andorra, Australia, Canada, EU member states, Iceland, Japan, Lichtenstein, Micronesia, Monaco, Montenegro, New Zealand, North Macedonia, Norway, San Marino, Singapore, South Korea, Switzerland, Taiwan (China), Ukraine, United Kingdom, United States of America
2For example, allowed public calls for the use of violence against Russian citizens within their public information systems
3The bank has not been named yet
4Para. 7 of the Decree
5Para. 8 of the Decree
6Do not call for the imposition and implementation of sanctions, do not engage in actions to discredit and spread misleading information about the use of the Russian armed forces, the exercise by Russian state bodies of their powers, do not spread misleading information about actions, have not stopped and restricted their activities in Russia, etc.