The Russian Constitutional Court in its Ruling of 10 January 2023 No. 1-P stated that art. 1248(2) of the Russian Civil Code along with art. 106 of the Russian Commercial Procedure Code are inconsistent with the Russian Constitution insofar they prevent a party in a court case on appealing the Rospatent decision to reimburse legal costs borne by this party in administrative dispute on annulling registration of intellectual property objects or means of individualization previously resolved by Rospatent.
According to a current court practice, legal costs borne by a party within an administrative dispute on annulling registration of IP objects or means of individualization are not reimbursed as part of court costs (rulings of the Presidium of Intellectual Property Court of 26 January 2017 in case SIP-571/2015, of 10 April 2017 in case SIP-351/2016, of 7 July 2020 in case SIP-631/2017).
However, the Russian Constitutional Court noted that annulling registration of IP objects or means of individualization in Rospatent and appealing its decision to Intellectual Property Court are stages of a single predetermined procedure of IPR protection, the legislator should not restrict or unduly hinder access to state protection of rights and freedoms, including distribution of legal costs borne by parties within obligatory administrative procedure.
The Russian Constitutional Court ruled the legislator to amend the regulation of reimbursement of legal costs borne by a party within an administrative dispute on annulling registration of IP objects or means of individualization in Rospatent. Up to that point, if a Rospatent decision is subject to appeal in court, relevant legal costs may be charged to a losing party under the rules of reimbursement of court costs prescribed by the Russian Commercial Procedure Code based on principles of reasonableness and proportionality of distribution of costs considering the results of administrative dispute.