Study shows rise in foreign business trademark registration activity
In 2024, the number of applications for registration of foreign trademarks in Russia rose by approximately 13% compared to 2023, and by 18% compared to the “pre-sanction” level of 2020, according to materials from VTB Bank published on 6 May. Citing the results of a joint study by VTB and the company “Online Patent”, the bank reported that after a drop in 2022 (to 7,600), the number of trademark applications by foreign companies and individuals to Rospatent increased to 11,800 in 2024.
According to VTB, companies from China and Belarus are particularly active in the Russian market, as well as new entrants who had not registered trademarks before 2022 (including companies from the UAE).
In the total volume of foreign applications over the past five years, one in ten relates to electronics, 8% to wholesale and retail trade, and around 7% to cosmetic products.
“The development of the Russian market is creating new opportunities for foreign companies, especially from Asia and the CIS,” said Spartak Solonin, Senior Vice President of VTB. According to Alina Akinshina, general director of “Online Patent”, many foreign firms are increasing activity to fill niches left by departed competitors, “and some are preparing the ground for a return – registering trademarks to be able to quickly resume operations in Russia in the future.”
Despite regular reports about trademark registrations by Western companies that have left Russia (such as IKEA, McDonald’s, Intel, and others), this does not necessarily mean they are preparing to return, notes Forbes. Most often, this is a way to maintain a presence within the legal framework, even if “all products have disappeared from the shelves”. Article 1486 of the Civil Code states the “three-year rule”: if a trademark is not used for three years, its legal protection can be revoked. “That’s why we are currently seeing a surge in new applications from foreign companies – for many brands, the three-year period since exiting the Russian market is expiring”, the publication explains.