Ukraine: Reform of State System for IP Protection in Progress

On 11 May 2017, the Cabinet of Ministers of Ukraine adopted its Resolution on the transfer of all functions of the State Intellectual Property Service (the “SIPS”) to the Ministry of Economic Development and Trade of Ukraine (the “Ministry of Economy”). Such functions include, inter alia, implementing IP state policy, trademark, patent and copyright protection, administering the relevant IP registries, etc.

Adoption of this Resolution is another step toward implementing the intellectual property system reform.

As a next scheduled step, the respective functions shall be subsequently transferred from the Ministry of Economy to the National Authority for Intellectual Property (the “NAIP”) once it is finally established (expected to happen in 2017). Eventually the inefficient and complex three-level system for the protection of intellectual property in Ukraine is expected to be replaced with an efficient and more transparent two-level system, which would consist of the Ministry of Economy on the upper level and the NAIP, which will be subordinated to the Ministry of Economy.

Although the government strives to achieve smooth transition of powers in the state system for the protection of intellectual property in Ukraine, this gradual transition is nevertheless expected to cause considerable disruption to the functioning of the concerned authorities; and therefore business should be prepared for possible complications and/or delays while dealing with the Ministry of Economy on the IP related issues.

In addition to this unprecedented institutional reform, a range of other legislative acts will be passed within the greater framework of IP system reform in Ukraine aiming to bring the Ukrainian IP legislation closer to the respective EU laws and regulations.

Legislation: Resolution of the Cabinet of Ministers of Ukraine No. 320 dated 11 May 2017 “The Matters of the Ministry of Economic Development and Trade of Ukraine”; Resolution of the Cabinet of Ministers of Ukraine No. 402-р dated 01 June 2016 “On Approval of the Concept for Reforming the State System for the Protection of Intellectual Property in Ukraine”; Resolution of the Cabinet of Ministers of Ukraine No. 632-р dated 23 August 2016 “On Adoption of the Action Plan on the Implementation of the Concept for Reforming the State System for the Protection of Intellectual Property in Ukraine”