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Unfair competition: precedents of 2014–2015

The Federal Law dated 05.10.2015 No. 275-FZ “On Amendments to the Federal Law – On Protection of Competition, and certain legislative acts of the Russian Federation”, better known as the “fourth antimonopoly package”, highlighted the issues of unfair competition in a separate chapter. This chapter contains a more detailed description of the forms of unfair competition, based on previous law enforcement practice of bringing legal entities to accountability for such violations. In this regard, we have analyzed court practice on the question of unfair competition for the years 2014–2015. This review presents the most interesting and principle decisions that can set the direction of future court practice on unfair competition.


New developments in patent cases in pharma

In November 2015 the Arbitration court of Moscow region rejected the originator's patent claim against the local drug manufacturer. Following the decision of the Supreme Arbitration Court in well-known Imatinibum case in 2009 the Arbitration court of Moscow region decided that no patent infringement may occur prior to state registration of a pharmaceutical product. Furthermore, the court gave several potentially important interpretations of IP regulations applied to pharmaceutical products. The relevant conclusions of the court may influence the future development of IP practice in pharmaceutical sector in Russia.


The actual owner of the housing facilities should be responsible for paying for electricity

In Case No. A73-6824/2014, the Supreme Court considered a non-standard situation in which the supplier of last resort filed a claim for the recovery of electrical energy debts directly against the owner of the property, referring to the fact that the transactions involving the transfer of the said property, via a lease to a third party, had been recognized by the courts as invalid.


Law on CFCs

In 2015, the Federal Law dated 24 November 2014 No. 376-FZ “On Amendments to Parts One and Two of the Tax Code of the Russian Federation (regarding taxation of profits of controlled foreign companies and profits of foreign organizations)”, the so-called “Law on CFCs”. The essence of the adopted amendments amount to, in particular, the taxation of retained earnings of foreign companies (structures without legal entity status), owned and managed by Russian taxpayers. In addition, the Law on CFCs brings together other special rules to combat tax evasion (specific anti-avoidance rules – SAAR), such as the concept of the beneficial owner of income, tax residency of legal entities, as well as to counter indirect sales of immovable property.


Bank increased interest on the loan, citing the economic crisis. The chances of a borrower challenging such an increase

- In which cases can a bank increase the interest rate on a loan - What arguments will help a borrower challenge an interest rate increase on a loan - How to prove the punitive nature of the new interest rate imposed by a bank


Reducing the size of the administrative penalty below the lower limit

Charging legal entities and individual entrepreneurs with administrative fines for various offences has acquired a mass character in recent years. A significant number of regulatory authorities (regional departments of the Federal Antimonopoly Service, tax authorities, customs control, Rospotrebnadzor, etc.), as well as the absence of qualified lawyers in organizations, which could prevent possible violations, has led to considerable financial losses for businesses, related to the payment of administrative fines.


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