Following Russia’s 2022 invasion of Ukraine, many Western companies said they would fully withdraw. Nevertheless, some are holding on to their trademarks in the country.
According to a study by Ukraine’s Kyiv School of Economics, more than 460 international companies have ceased operations in Russia since the start of its full-scale invasion of Ukraine in February 2022 by selling or liquidating their assets. According to the study, 59 global brands have left the Russian market.
Twenty-five of these companies are keeping their trademarks registered in Russia, DW learned from the database of Rospatent, the national patent office.
Maintaining the trademark means the names, logos and designs of a brand remain the company’s intellectual property and cannot be used or imitated by others.
If someone mentions McDonald’s, you probably think of the famous golden arches logo. With Mercedes, it would be the iconic three-pointed star. With Ikea, it’s the company name in blue letters within a yellow oval shape.
The companies that are keeping their trademarks registered include Ikea, McDonald’s and Mercedes-Benz, as well as the likes of Jaguar, Volvo and many others.
The other 34 companies of the 59 global brands — which include German consumer goods and adhesives manufacturer Henkel and Finnish energy supplier Fortum — have not applied for their trademarks to be used in Russia after February 2022. Some companies, such as consumer goods manufacturer Unilever and British American Tobacco, have transferred the trademark rights to some of their products to their former Russian subsidiaries. This means formally, they no longer have anything to do with them.
“The return of Western companies,” “Western companies follow Ariston and flock to Russia,” “The State Duma speaks out in favor of the return of Western companies” — the Russian press has been full of headlines like these in recent weeks. Media outlets refer to the Rospatent website which shows that companies like McDonald’s and KFC, which had announced their complete withdrawal from Russia, have applied for new trademarks or the extension of existing trademark rights.
Swedish furniture maker Ikea has come under particular scrutiny. In 2022, Ikea condemned Russia’s full-scale invasion of Ukraine. In 2024, it finally left the Russian Federation and sold off its last warehouse in the Moscow region, where it had once started its Russian operations in 2003. Yet according to the Rospatent database, Ikea has filed at least four applications to extend the registration of its trademarks since February 2022, one of which is still under review.
Who has abandoned their brand?
The other companies listed by the Kyiv School of Economics have either not submitted or have withdrawn trademark applications, as German detergent and adhesive maker Henkel has done. It halted the procedure to extend its trademark rights in 2022, and the current registration expires at the end of this year.
A trademark registration is valid for a total of 10 years and many companies that submitted an application before February 2022 still have some time left.
German hardware store chain Obi already applied for trademark registration in 2021, but this was not approved until the end of 2022. The company’s intellectual property therefore remains protected for years to come, at least in theory.
In practice there may be exceptions. Under Russian law a competitor may legally challenge the right to use an “ownerless” trademark if it has not been used for three years. In March of this year, Russian air conditioning manufacturer Rusklimat succeeded in having the Swedish company Ericsson’s trademark registration declared invalid in court.
Why companies protect their trademarks
Russian economist and journalist Jan Melkumov says extending trademark rights is primarily a formal procedure. An application indicates that a company does not want to part with its brands in Russia. “Companies want to avoid someone else using their brand names. They don’t want to spend money on lawyers and go through a new registration process,” he told DW.
According to Melkumov, if companies agreed on a repurchase right when selling their Russian assets, they can also get their trademarks back. However, if these have already been sold by the buyer, repurchasing could take years.
At the same time, Melkumov emphasizes that, given the turbulent political situation and high risks, only few big companies would be likely to return to Russia. “For them, it’s a question of strategic planning. If the political situation changes in five or 10 years, it will be easier for them to reestablish their presence,” Melkumov told DW.
According to him, a return to the Russian market depends less on the willingness of companies and more on the political situation and regime in Russia. “Even under favorable conditions, a return will not be reminiscent of the 1990s,” Melkumov said. “There will not be as much enthusiasm and trust in Russia as there was then — people will be cautious.”
The Ukrainian organization B4Ukraine, which campaigns for Russia’s isolation, asked numerous companies about their plans for reentering the Russian market. McDonald’s and Coca-Cola, two US companies, issued cautious statements in this regard. They were published by B4Ukraine.
Source: https://www.dw.com/en/why-eu-us-companies-are-keeping-trademark-rights-in-russia/a-72403093
