MOSCOW: Western companies with iconic brands like Coca-Cola that exit Russia face years of battling knockoffs and unauthorised imports clamoring to fill void they leave behind, a risky bid as courts show little sympathy for firms that depart. Companies pulled back from Russia this spring after Moscow sent thousands of troops into Ukraine, in response to investor and public pressure. Some, like Coca-Cola Co (KO.N), finalised their exit in August after five months, while others such as McDonald’s Corp (MCD.N) sold their businesses. Some including Procter and Gamble Co (PG.N) partially remained, selling essentials. 

They are defending their trademarks to protect their brands from losing value and in case they ever return to country, intellectual property lawyers said. But they face a sea of opportunists, importers and flip-flopping court rulings. Coca-Cola, first available in Soviet Union in 1979 is already ensnared in fights against grey-market goods, which are unauthorised imports and Russian knockoffs of its fruit-infused Fanta line, according to court documents and interviews with attorneys involved. Other companies’ battles are just beginning as Russian entrepreneurs aim to capitalise on their well-known names as they depart. Rospatent, Russian government’s intellectual property agency is receiving an influx of applications for trademarks of Western brands popular in country, said Robert Reading, head of content strategy in intellectual property group at analytics firm Clarivate Plc, which tracks filings. United States and United Kingdom, without paying owner of intellectual property putting Western brands on defensive. Russia also now permits “parallel imports,” or grey-market items for products spanning from Carefree feminine products to any brand of footwear.

Published in The Daily National Courier, August, 18 2022

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