CHAPTER 77 RIGHT OF USE OF THE RESULTS OF INTELLECTUAL PROPERTY IN THE SYSTEM OF SINGLE TECHNOLOGY

Russian Civil Code 4 part

CHAPTER 77. RIGHT OF USE OF THE RESULTS OF INTELLECTUAL PROPERTY IN THE SYSTEM OF SINGLE TECHNOLOGY

Article 1542. Right to Technology

1. Single technology in the meaning of the present Chapter shall be a result of technical and scientific activity expressed in objective form that includes in one or another combination the inventions, utility models, industrial designs, computer programs or other results of intellectual activity subject to legal protection in accordance with the provisions of the present Section and may serve as the technological basis for a specific practical activity in the civil or military field (single technology).

A system of single technology may also include results of intellectual activity not subject to protection on the ground of the provisions of the present Section, including technical data, and other information.

2. The exclusive rights to the results of intellectual activity that are a part of the single technology shall be considered to be and shall be subject to enforcement in accordance with the provisions of the present Code.

3. The right to use the results of intellectual activity in a system of single technology as in the system of complex object (Article 1240) shall belong to the person that organized the development of the single technology (the right to technology) based on the contracts with the holders of the exclusive rights to the results of intellectual activity included in the system of single technology. A single technology may also include protectable results of intellectual activity created by the person who has organized its creation.

Article 1543. Scope of the Application of the Provisions on the Right to Technology

The provisions of the present Chapter shall be applied to relations connected with right to technology of civil, military, special, or dual purpose, created at the expense or with the involvement of funds of the federal budget or the budgets of the subjects of the Russian Federation assigned for payment for works under state contracts, under other contracts, for financing on budgets of receipts and expenditures, and also as subsidies.

The indicated provisions shall not be applied to relations that have arisen in the development of a single technology at the expense of or with the use of funds of the federal budget or the budgets of the subjects of the Russian Federation in the form of onerous budget credit.

Article 1544. Right of a Person, who has Organized the Development of Single Technology, to the Use of the Results of Intellectual Activity Included thereto 

1. A person who has developed a single technology at the expense of or with the involvement of funds of the federal budget or of the budget of a subject of the Russian Federation (the performer) shall enjoy the right to the developed technology with the exception of the cases when this right, in accordance with Paragraph 1 of Article 1546 of the present Code, belongs to the Russian Federation or to a subject of the Russian Federation.

2. A person, enjoying in accordance with Paragraph 1 of the present Article the right to technology, shall be obliged promptly to take the measures provided for by the legislation of the Russian Federation for recognition and receipt of his rights to the results of intellectual activity included in the system of single technology (to file applications for the grant of patents, for official registration of the results of intellectual activities, implementation with respect to the corresponding information of a secrecy regime, to conclude contracts on the alienation of the exclusive rights and license contracts with the holders of the exclusive rights to the respective results of intellectual activity included in the system of single technology, and to take other measures), if such measures have not been taken before or in the process of development of the technology.

3. In cases when the present Code shall allow different methods of legal protection of rights to results of intellectual activity included in the system of single technology, a person enjoying the right to the technology shall chose the means of protection that to the highest degree corresponds to his interests and ensures the most effective application of the single technology in practice.

Article 1545. Obligation to Use Single Technology in Practice

1. A person enjoying in accordance with Article 1544 of the present Code the right to technology shall be obliged to use it in practice (implementation).

Any person to whom this right is transferred or who acquires it in accordance with the provisions of the present Code shall have the same obligation.

2. The content of the obligations for implementation of technology, the time limits, other terms and the procedure for performance of this obligation, the consequences of its non-performance and the terms of termination shall be determined by the Government of the Russian Federation.

Article 1546. Rights to Technology of the Russian Federation and Subjects of the Russian Federation

1. The right to technology developed at the expense or with the involvement of funds of the federal budget shall belong to the Russian Federation in cases when:

1) a single technology is directly connected with ensuring the defense and security of the Russian Federation;

2) the Russian Federation before the single technology has been developed or thereafter undertook the financing of work to bring the single technology to the stage of practical application;

3) a performer fails to ensure, before the expiration of six months after finishing work for the development of the single technology, to complete all actions necessary for recognition or obtaining his exclusive rights to the results of intellectual activity that are included in the system of the technology.

2. The right to technology developed at the expense or with the involvement of funds of the budget of a subject of the Russian Federation shall belong to the subject of the Russian Federation in cases when:

1) the subject of the Russian Federation before the single technology has been developed or thereafter undertook the financing of work to bring the single technology to the stage of practical application;

2) the performer fails to ensure, before the expiration of six months after finishing works for the development of the single technology, to complete all actions necessary for recognition or obtaining his exclusive rights to the results of intellectual activity that are included in the system of the technology.

3. In cases when, in accordance with Paragraphs 1 and 2 of the present Article, the right to technology belongs to the Russian Federation or to a subject of the Russian Federation, the performer shall be obliged in accordance with Paragraph 2 of Article 1544 of the present Code to take measures for recognition and obtaining his right to the corresponding results of intellectual activity for further transfer of these rights to the Russian Federation or the subject of the Russian Federation, respectively.

4. The administration of the right to technology belonging to the Russian Federation shall be exercised in the manner determined by the Government of the Russian Federation.

The management of the right to technology belonging to a subject of the Russian Federation shall be exercised in the manner determined by the executive authorities of the corresponding subject of the Russian Federation.

5. Disposition of the right to technology belonging to the Russian Federation or a subject of the Russian Federation shall be exercised following the provisions of the present Section.

Aspects of disposition of the right to technology belonging to the Russian Federation shall be determined by the law on the transfer of the federal technologies.

Article 1547. Alienation of the Right to Technology Belonging to the Russian Federation or to a Subject of the Russian Federation

1. In the cases provided for by subparagraphs 2 and 3 of Paragraph 1 and by Paragraph 2 of Article 1546 of the present Code, not later than by the expiration of six months from the date of receipt by the Russian Federation or by a subject of the Russian Federation of the rights to the results of intellectual activity necessary for use of these results in the system of single technology in practice, the right to technology shall be alienated to a person interested in the implementation of the technology and possessing actual possibilities for its implementation.

In the case provided for by subparagraph 1 of Paragraph 1 of Article 1546 of the present Code, the right to technology shall be alienated to a person interested in the implementation of the technology and possessing actual possibilities for its implementation immediately after the Russian Federation loses the necessity of keeping this right for itself.

2. Alienation by the Russian Federation or by a subject of the Russian Federation of the right to technology to third parties shall be exercised onerously following a general rule upon the results of the tender.

In case if the alienation of the right belonging to the Russian Federation or a subject of the Russian Federation on the grounds of a tender, such a right shall be transferred according to the results of an auction.

The procedure for conducting a tender or auction for the alienation by the Russian Federation or a subject of the Russian Federation of the right to technology and also possible cases and procedure of transfer by the Russian Federation or a subject of the Russian Federation without conducting a tender or an auction shall be determined by the law on transfer of technology.

3. A performer who has developed the results of intellectual activity included in a system of single technology shall enjoy on the other equal conditions the priority right to the conclusion with the Russian Federation or a subject of the Russian Federation of a contract for obtaining the right to the technology.

Article 1548. Remuneration for the Right to Technology

1. The right to technology shall be granted without remuneration in the cases provided for by Article 1544 and Paragraph 3 of Article 1546 of the present Code.

2. In cases when the right to technology is alienated under the contract, including on the results of a tender or auction, the amount, terms, and procedure of payment for this right shall be determined by the agreement of the parties.

3. In cases when the implementation of technology has an social and economic significance or an significance for the defense or security of the Russian Federation and the amount of expenditures for its implementation makes an onerous acquisition of the right to technology economically ineffective, the transfer of rights to such technology by the Russian Federation or other rightholder who have received the respective right gratis also may be exercised gratis. Cases in which the transfer of rights to technology can be exercised gratis shall be determined by the Government of the Russian Federation.

Article 1549. Right to Technology Belonging Jointly to Several Persons

1. The right to technology developed with the involvement of budget funds and funds of other investors may belong at the same time to the Russian Federation, a subject of the Russian Federation, other investors in the project, the performer and other rightholders as the result of implementation of which the technology has been developed.

2. If the right to technology belongs to several persons, they shall exercise this right jointly.

Disposition of a right to technology belonging jointly to several persons shall be exercised by them by common consent.

3. A transaction for disposition of the right to technology made by one of the persons who jointly enjoy the right to technology shall be deemed invalid on demand of the other rightholders provided that a person who has made the transaction was not duly empowered in the case if there is a proof that the other party was aware or should have been aware of the absence of these powers.

4. The income from the use of technology, the right to which several rightholders enjoy jointly, and also from the disposition of this right shall be divided among the rightholders by the agreement among them.

5. If a part of the technology, the right to which belongs to several persons, may have original significance, an agreement among the rightholders shall determine the rights to which part of the technology belong to each of the rightholders. Part of the technology may have original significance if it shall be used independently of the other parts of this technology.

Each of the rightholders has the right as his discretion to use the respective part of the technology having original significance except as otherwise provided by agreement among them. In such case the right to the technology as a whole and also the disposition of the right to it shall be exercised jointly by all the rightholders.

Income from the use of part of the technology shall go to the person possessing the rights to the part of the technology concerned.

Article 1550. General Conditions of Transfer of Rights to Technology

Except as otherwise provided by the present Code or other law, a person having the right to technology may at his discretion dispose of this right by its transfer fully or in part to other persons under contract or other transaction including contract on alienation of this right, license contract, or any other contract containing the elements of a contract for the alienation of right or a license contract.

The right to technology shall be transferred with respect to all the results of intellectual activity included in a system of single technology as a single whole. Transfer of rights to separate results of the number of indicated results (to a part of the technology) shall be allowed only in cases when a part of single technology shall have original significance in connection with Paragraph 5 of Article 1549 of the present Code.

Article 1551. Conditions for Export of a Single Technology

1. Single technology shall have practical application (implementation) primarily within the territory of the Russian Federation.

The right to technology may be transferred for the use of a single technology within the territories of foreign states with the consent of the state customer or the manager of budgetary assets in accordance with the legislation on external economic activity.

2. Transactions providing the use of a single technology outside the territory of the Russian Federation shall be subject to the official registration in the federal executive authority for intellectual property.

Nonobservance of the requirements for the official registration of the transaction shall entail its invalidity.