Facebook Twitter Instagram YouTube LinkedIn
    Facebook Twitter Instagram LinkedIn YouTube
    Trending
    • Rajiv Kulkarni Talks about the Malware Analysis Pipeline
    • IDS Alliance Raises Awareness of IAM Fundamentals with the ‘CISO Chronicles’
    • Building Digital Accessibility: AI Requires Human Oversight to Cut Down on Algorithmic Biases
    • BlackBerry Ivy: Enabling a New Age of Electric Secure Autonomous Vehicles
    • Security Automation Cuts Down Expenses and Saves Time for IT Teams
    • IBM Think 2022 – Embracing the Present, Preparing for the Future
    • A Game of Numbers: The Correlation Between Technology and Sports Betting
    • Software-based Enterprise Solutions for Navigating the “Too Much Information” Age
    TechSpective
    • RSS
    • Facebook
    • Twitter
    • Google+
    • LinkedIn
    • Instagram
    • Pinterest
    • Technology
      Featured
      March 1, 20216

      Could Home Study Be Better for Education? Using Technology to Craft a Better Tomorrow

      Recent
      May 20, 2022

      Building Digital Accessibility: AI Requires Human Oversight to Cut Down on Algorithmic Biases

      May 20, 2022

      BlackBerry Ivy: Enabling a New Age of Electric Secure Autonomous Vehicles

      May 15, 2022

      A Look At The Last Generation Of Internal Combustion Engines

    • Reviews
      Featured
      March 4, 20211

      Dell’s UltraSharp 40 – Improving Work and Workplaces with Monitor Innovations

      Recent
      April 7, 2022

      Dell’s Latitude 5430 Rugged – Redefining the Extremes of Mobile Computing

      October 12, 2021

      Innovating Home Video Conferencing: Dell’s New 27 Video Conferencing Monitor – S2722DZ

      September 22, 2021

      Review: Intrusion Shield

    • Podcasts
    • Security
      Featured
      March 7, 20212

      Pandemic Unmasks Vulnerability to Automated Bot Attacks

      Recent
      May 25, 2022

      Rajiv Kulkarni Talks about the Malware Analysis Pipeline

      May 23, 2022

      IDS Alliance Raises Awareness of IAM Fundamentals with the ‘CISO Chronicles’

      May 14, 2022

      Ransomware is Indiscriminatory – Prepare for Everything to Fail

    • Microsoft
      Featured
      September 12, 20201

      The Microsoft Surface Duo: The Communications Device for Those That Think Different

      Recent
      April 8, 2022

      AI and Why Windows 12 Could Be a Far Bigger Advance than Windows 95 Was

      October 11, 2021

      The Surface Laptop Studio: Building a Windows 11 Targeted Laptop

      August 28, 2021

      Why Microsoft’s Hardware Baseline for Windows 11 Is Important

    • News & Analysis
      Featured
      March 6, 20212

      Fixing The World One Person At A Time: Cisco Networking Academy

      Recent
      May 25, 2022

      Rajiv Kulkarni Talks about the Malware Analysis Pipeline

      May 20, 2022

      BlackBerry Ivy: Enabling a New Age of Electric Secure Autonomous Vehicles

      May 20, 2022

      IBM Think 2022 – Embracing the Present, Preparing for the Future

    • Business
      Featured
      March 6, 20212

      Fixing The World One Person At A Time: Cisco Networking Academy

      Recent
      May 20, 2022

      Building Digital Accessibility: AI Requires Human Oversight to Cut Down on Algorithmic Biases

      May 20, 2022

      Security Automation Cuts Down Expenses and Saves Time for IT Teams

      May 18, 2022

      Software-based Enterprise Solutions for Navigating the “Too Much Information” Age

    TechSpective
    You are at:Home»News & Analysis»Politics»Russia’s Patent Theft Effort Will Backfire Badly
    Russia patents Ukraine economy

    Russia’s Patent Theft Effort Will Backfire Badly

    2
    By Rob Enderle on March 11, 2022 Politics

    This week, Russia announced that any patents belonging to firms who have pulled out of Russia can be stolen by Russian businesses. I expect this will effectively expand to any business not doing business in Russia and may even eventually include businesses who haven’t yet exited. Over the short term, this will allow Russian suppliers to attempt to make up for the loss of U.S., UK, and EU goods ranging from food to microprocessors. But long term, this is going to create a hard barrier for both companies foreign to Russia moving back into the country and for goods in Russia to move out. And in response, countries impacted by this law may move to invalidate patents held by Russian companies as well.

    Let me explain.

    Russia’s resource problem

    Russian is in deep financial trouble. After the fall of the USSR as a political entity, businesses from outside of Russia moved aggressively into the country and dependencies were created between businesses native to the country. Patents assure revenues flow to the firms and individuals who create intellectual property, and they would prevent Russia from recreating offerings protected by those patents if they continued to be enforced. Practically speaking, while Russia is at war, enforcing patents by any company not headquartered in Russia would have been problematic anyway, but with this announcement, Russia has effectively invalidated patents that belong to foreign firms.

    Russia’s new patent problem

    Invalidating patents means that Russian companies can use technology from anyone outside of Russia without penalty and, while the war is going on, this will have some benefit. However, the benefit will be limited because when licensing a patent, you also get access to support technology and the technical help needed to implement the technology properly. Clearly, that will not be happening in this case.

    In addition, while Russia can invalidate patents in its own country, it has no such power outside its boundaries. This means that when the war ends, and Russia invites foreign companies back into its fold, those companies will decline because they won’t risk having their patents compromised again. In addition, any goods coming out of Russia that made even indirect use of any of the patents that were compromised during the war will be blocked or seized as infringing. Companies will be unwilling to use those products even if they do ship for fear that they, too, will be penalized for patent infringement.

    Given how blatant this move is, and how disliked Russia currently is, I do not expect courts outside of Russia to be lenient. To a patent judge, this will look like institutional theft and they and regulatory agencies are likely to make the related penalties very severe to prevent other governments from making similar illegal decisions.

    This could also impact Russia’s allies, like China, who also sell to the rest of the world because parts made in Russia may cause goods that use those parts to be seized, even if they don’t come out of Russia. If partners want to sell internationally, they will be reticent to use technology from Russia in their offerings for fear of having their products seized, as well.

    As a result, this decision by Russia could significantly lengthen the economic impact of the war with Ukraine because it will both prevent companies with intellectual property returning to Russia and prevent an increasing number of goods from Russia from being legally exported.

    Wrapping up: Tactical vs. strategic thinking

    Russia has a huge economic problem because of its unprovoked war with Ukraine. This has caused it to make the tactical decision to effectively void patents owned by foreign companies. But Russia does not rule the world, so other countries may not only retaliate, but they are also likely to ban goods that come from Russia or that use Russian parts as infringing patents held by companies in their countries, or companies held by countries that cooperate with patent protection. This will create problems for Russian companies and those that use Russian parts that could go on indefinitely blocking those parts from ever coming to the world market.

    In short, Russia has traded a short-term and admittedly painful tactical problem for what may be a massive strategic problem that will haunt the country for decades. Rather than helping to force companies to stay in Russia, this is more likely to lock those companies out of world markets, along with many, if not most, Russian products.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleSurefire Ways to Boost PC Cybersecurity
    Next Article Reframe Your Strategy to Keep Your Marketing Momentum Going All Year Long
    Rob Enderle
    • Website

    As President and Principal Analyst of the Enderle Group, Rob provides regional and global companies with guidance in how to create credible dialogue with the market, target customer needs, create new business opportunities, anticipate technology changes, select vendors and products, and practice zero dollar marketing. For over 20 years Rob has worked for and with companies like Microsoft, HP, IBM, Dell, Toshiba, Gateway, Sony, USAA, Texas Instruments, AMD, Intel, Credit Suisse First Boston, ROLM, and Siemens.

    Related Posts

    Salesforce Reacts to Texas Law Change – Why you Should Follow Their Lead

    FTC vs. Qualcomm: Did Apple Illegally Influence The FTC?

    The Science of Market Research: Why US Election Polls Continue to Fail

    2 Comments

    1. Bob Snyder on March 13, 2022 11:19 am

      Right on the money, Rob. Literally.

      Reply
    2. Pingback: Por qué Rusia no puede confiar en el robo de propiedad intelectual para compensar las sanciones occidentales – LA POLÉMICA

    Leave A Reply Cancel Reply

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Site Sponsors
    Intel
    DevOps.com
    Adobe
    PopSpective
    • Technology
    • Popular
    • Top Reviews
    May 20, 2022

    Building Digital Accessibility: AI Requires Human Oversight to Cut Down on Algorithmic Biases

    May 20, 2022

    BlackBerry Ivy: Enabling a New Age of Electric Secure Autonomous Vehicles

    May 15, 2022

    A Look At The Last Generation Of Internal Combustion Engines

    9.0
    July 14, 2016

    Review: Lenovo Yoga 900S

    9.5
    March 2, 2015

    Review: Asus Zenbook UX305 ultrabook

    8.0
    February 9, 2015

    Review: Burg 12 smartwatch

    9.7
    November 16, 2018

    Review: BlackVue DR900S-2CH Vehicle Dash Cam

    9.5
    September 2, 2015

    Review: Microsoft Band

    May 27, 2014

    Protect your family photos with ScanMyPhotos

    Coffee and Politics
    Popular Posts
    9.0
    July 14, 2016

    Review: Lenovo Yoga 900S

    9.5
    March 2, 2015

    Review: Asus Zenbook UX305 ultrabook

    8.0
    February 9, 2015

    Review: Burg 12 smartwatch

    Adobe
    PopSpective
    Adobe
    Coffee and Politics
    • RSS
    • Facebook
    • Twitter
    • Google+
    • LinkedIn
    • Instagram
    • Pinterest
    About

    TechSpective covers technology trends and breaking news in a meaningful way that brings value to the story, and provides you with information that is relevant to you. We offer in-depth reporting and long-form feature stories, as well as breaking news coverage, product reviews, and community content in plain English terms, and with a unique perspective on technology.

    Coffee and Politics

    © 2020 Xpective, Inc.

    • About
    • Privacy
    • Advertise
    • Subscribe
    • Contact
    © 2021 Xpective, Inc.
    • About
    • Privacy
    • Advertise
    • Subscribe
    • Contact

    Type above and press Enter to search. Press Esc to cancel.