Russian IP Court Rules Trademark Takeover by Distributor is Unfair Competition

The Russian Intellectual Property Court has ruled that a distributor’s registration of a Korean company’s trademark under a related entity constitutes an act of ongoing unfair competition.

The distributor, formerly representing KyungDong Navien Co., Ltd. on the Russian market, registered the trademark “ACE” without consent from the original owner and subsequently initiated legal actions, including demands for damages, cancellation of the Korean company’s trademarks, and inclusion of the registered mark in the Customs IP Register—effectively blocking importation of genuine products.

The court found that such conduct violates the principles of fair business practice and amounts to a continued infringement designed to harm the original rights holder and distort market competition.

📎 Full court decision available here (PDF)