Press Release

Of FKP “Sojuzplodoimport”

Moscow                                                                                                                    07/06/2007

Stolichnaya belongs to the Russian Federation

The Russian Federation achieved an overwhelming victory in the European Court of Human Rights (Strasburg)

European Court of human rights held that the Russian Federation did not violate the rights of OAO “Plodovaya Kompaniya” from SPI Group established by the European Convention for the Protection of Human Rights and Fundamental Freedoms.

At the session on May 15, 2007 the Court sitting as a Chamber composed of seven judges entered the following decisions:

1.      there has been no violation of Article 1 of Protocol No. 1 to the Convention (Protection of Property); the decision was held unanimously.

2.      there has been no violation of Article 6 of the Convention (Right to a fair trial); the decision was held by six votes to one.

3.      no separate issues arise under Articles 13 and 14 of the Convention; the decision was held unanimously.

We would like to remind that in 2000 Prosecutor’s General Office of the Russian Federation initiated court case in which it showed that a provision of the memorandum of association of “Plodovaya Kompaniya” was not valid. That provision stated the legal succession of joint stock company “Plodovaya Kompaniya” from a soviet organization for foreign trade. Final judgement in that case was entered by the Supreme Commercial Court of the Russian Federation. The resolution of the Supreme Commercial Court which did not acknowledge the fact of legal succession served the basis for a number of legal actions and court decisions aimed at the perfection of rights to 17 “soviet” trademarks in the name of the Russian Federation. Besides, “Plodovaya Kompaniya” lost other (similar) trademarks which were cancelled by Rospatent (Russian Patent and Trademark Office).

Application of “Plodovaya Kompaniya” pertaining to SPI Group was submitted before the ECHR in December 2001.  Plodovaya Kompaniya allegedly in the order of legal succession became the owner of trademarks Stolichnaya, Moskovskaya and others in the early 90s which marks belonged earlier to All-union foreign trade association “Sojuzplodoimport”.

The Russian Federation in the person of FKP “Sojuzplodoimport” has repeatedly shown in foreign courts that its claims for the trademarks are quite rightful. During the period of its activity FKP “Sojuzplodoimport” participated in more than 100 court cases in different countries of the world, more than 20 cases are still pending. The Russian Federation in the person of FKP “Sojuzplodoimport” has not lost any court case. The court cases were won in the Netherlands, Belgium, Luxemburg, Brazil, Romania, Bulgaria, Azerbaijan and other countries.

Now the European Court of Human Rights also has got into the details the case of OAO “Plodovaya Kompaniya” and recognized that the position of the plaintiff is baseless.

“FKP “Sojuzplodoimport” which manages the rights to the state trademarks on behalf of the Russian Federation is satisfied by the just decision of the European Court of Human Rights, –  said general director of FKP “Sojuzplodoimport” Vladimir Loginov. – This judgment will speed up other cases in relation to SPI Group in other foreign courts, also it will help to clarify the issue of the rights of the Russian Federation to the trademarks much easier and quickly. We are convinced, as we always were, that the rights of the Russian Federation to the trademarks will be recovered.”

It is highly important and indicative in the decision entered in relation to Article 6 of the Convention that the Court held that OAO “Plodovaya Kompaniya” did not have a “civil right” recognisable under domestic law which fact gives grounds to treat the actions of the applying company as made in bad faith. Besides the Court notes that “applicant company laid claim to the alleged corporate succession, which presupposes the existence of a bilateral deed between two companies or a unilateral deed from a reorganised company by which assets are reassigned. However, the applicant company has not presented any proof of the intention of the State Foreign Trade Agency “Soyuzplodoimport” to convert itself into another company or to reorganise itself so as to separate from its assets in favour of the applicant company. On the contrary, the Court considers it established that the State Foreign Trade Agency “Soyuzplodoimport” continued to exist in its original corporate form until 2001, when it was re-registered as a Federal State Unitary Enterprise “Soyuzplodoimport”.”

Moreover, the Court considers important that the applicant company has never succeeded in having its title to the legal succession established in domestic judicial proceedings and no court judgment has determined this point in the applicant company's favour.

The full text of the judgement of the European Court of Human Rights (Strasburg) in the case OAO Plodovaya Kompaniya v. Russia is available at:

http://cmiskp.echr.coe.int////tkp197/viewhbkm.asp?action=open&table=F69A27FD8FB86142BF01C1166DEA398649&key=62741&sessionId=10468855&skin=hudoc-en&attachment=true

Detailed information concerning the activities of the Court is available at the Court’s web-site:

http://www.echr.coe.int/echr. The text of the Convention and brief information concerning the activity of the European Court of Human Rights is available in Russian at http://www.echr.ru/.

Brief information concerning FKP “Sojuzplodoimport”:

FKP “Sojuzplodoimport” was established by order of the Government of the Russian Federation from December 29, 2001. The main purpose of the enterprise is protection and recovery of the rights of the Russian Federation to the industrial property objects in Agricultural Complex.

The enterprise is specialized in organization of production and distribution of food stuff, alcoholic and non-alcoholic drinks bearing trademarks belonging to the Russian Federation both in Russia and in international markets. The main brands are: «Stolichnaya», «Moskovskaya», «Русская», «Sibirskaya», «Kubanskaya», «Советское», «Московский», «Юбилейный» and others.