Illegal Use of Trademarks in Russia: Legal Consequences
25.10.2025
In the context of the dynamic development of the intellectual property market in Russia, the illegal use of trademark presents one of the most relevant issues in judicial practice. Trademarks, as means of distinguishing goods and services, play a key role in protecting the interests of rights holders and securing their competitive advantages.
However, violations in this area, particularly against the backdrop of geopolitical changes after 2022, when many foreign brands temporarily suspended operations in the Russian market have led to significant economic losses and legal disputes. An analysis of recent case law demonstrates the evolution of judicial approaches to assessing such violations, with emphasis on balancing the interests of parties and principles of fair competition.
Legal Framework of Regulation
The legal regulation of trademarks in Russia is governed by Part IV of the Civil Code of the Russian Federation (CC RF), where Article 1477 defines a trademark as a designation used to distinguish goods. The exclusive right to a trademark arises upon its state registration with the Federal Service for Intellectual Property (Rospatent), as evidenced by a certificate (Article 1481 CC RF).
The illegal use of a trademark is classified as an infringement of exclusive rights under Article 1484 CC RF, which sets out an exhaustive list of permissible forms of use, such as placement on goods, labels, packaging, in advertisements, in offers for sale, and on the Internet. An important aspect is the exhaustion of rights doctrine (Article 1487 CC RF), according to which, after the introduction of a product to the market with the consent of the rights holder, further sale is not considered an infringement.
However, in light of parallel import, legalized by the Russian Government Resolution No. 506 of 29 March 2022, this doctrine acquires new nuances. Parallel import is permitted for certain products by the Ministry of Industry and Trade but does not eliminate liability for illegal use of trademarks if importation involves counterfeiting or unauthorized uses. In addition, Article 10-bis of the Paris Convention for the Protection of Industrial Property prohibits unfair competition, including the misappropriation of third-party designations. International regulation is reinforced by the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), incorporated into Russian law.
Following 2022, Presidential Decree No. 322 of 27 May 2022 introduced special rules for discharging obligations to rights holders from unfriendly states, including special fund deposits for compensation payments. These changes do not revoke rights protection but complicate enforcement.
Forms of Illegal Use of a Trademark
The illegal use of trademarks manifests in various forms, each carrying legal consequences. Under Article 1484 CC RF, such unauthorized uses include placing a designation on goods or packaging without consent, using it in advertising, on signage, documentation, or on the Internet, including domain names and page URLs. Courts emphasize that an infringement arises when the designations are similar to a degree likely to cause confusion among consumers regarding the producer (paragraph 3, Article 1484 CC RF). One widespread form of illegal use is counterfeit products sold under another’s brand.
Another is “parasitic use,” where a trademark is used in marketing to attract attention without direct connection to goods. In the digital environment, unauthorized use of another party’s trademark in meta-tags, search keywords, or page addresses can generate traffic by leveraging brand recognition, and has become increasingly litigated, especially in e-commerce contexts.
Additionally, unfair registration where an individual, knowing of another’s designation, registers it to resell or block competitors is treated as an act of unfair competition under the Federal Law No. 135-FZ of 26 July 2006 “On Protection of Competition.” In the context of foreign brand exits, attempts to claim unused marks have expanded the scope of illegal use of trademarks, sometimes leading to early termination of rights under Article 1486 CC RF.
Liability for Illegal Use of Trademarks
Liability for illegal use of a trademark is provided under civil, administrative, and criminal law.
Under civil law (Article 1515 CC RF), a rights holder may recover damages or seek compensation for illegal trademark use, which can be chosen as:
- A monetary award ranging from 10,000 to 5,000,000 RUB;
- Twice the value of the goods on which the trademark was illegally used;
- Or twice the value of the right to use the trademark.
A pre-trial claim notice procedure under Article 1252 CC RF must be observed for compensation claims; failure to issue a notice may lead to procedural dismissal. Courts consider factors such as the nature of the infringement, intent, reputational harm, and proportionality. In the digital realm, Article 1253.1 CC RF regulates intermediary liability: if an online platform fails to take down infringing content after notification, it may be held civilly liable alongside the direct infringer. As a preventative measure, rights holders may include their trademarks in the Customs Register of Intellectual Property, helping to block counterfeit imports at the border.
Administrative liability under Article 14.10 of the Code of Administrative Offenses may include fines up to 200,000 RUB for legal entities, with confiscation of counterfeit goods and production equipment.
Criminal liability may attach where significant harm (over 250,000 RUB) or large unlawful gains (over 1,000,000 RUB) occur, or where the act is committed by a group (Article 180 of the Criminal Code), with penalties including fines, forced labor, or imprisonment up to six years. Recent case law shows that courts may reduce compensation for illegal trademark use if the infringement is minor, damages are minimal, and the defendant voluntarily remedied the violation.
Recent Case Law on Illegal Use of Trademarks After 2022
Judicial practice after 2022 indicates a rise in disputes involving illegal use of trademarks in digital contexts and parallel import.
In Case No. A45-25305/2023 (Supreme Court Definition No. 304-ЭС25-1782, 3 July 2024), an individual sought compensation for illegal trademark use of “TOPFENCE” in website URLs. Although lower courts awarded 3.4 million RUB, the Supreme Court annulled the decisions, emphasizing the lack of analysis of purpose and likelihood of confusion—demonstrating that illegal use is not automatic when mention is informational.
In Case No. A53-47769/2023 (Resolution of the Intellectual Property Court, 29 May 2025, No. С01-562/2025), compensation for unlawful trademark use in product descriptions on Wildberries was reduced from 5 million to 10,000 RUB due to voluntary cancellation and personal circumstances, underscoring proportionality in liability for illegal use of a trademark.
Illegal use of trademarks remains a serious market challenge
The illegal use of trademarks remains a serious market challenge, involving significant compensation risks and reputational harm. Post-2022 judicial practice continues to evolve, highlighting the need for evidence of intent and proportional sanctions. For foreign brands, diligent market monitoring is essential to prevent appropriation and protect exclusive rights.