Why are Western brands struggling to protect trademarks in Russia?

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Western brands are struggling to protect trademarks in Russia because courts and the legal environment have become more favourable to parallel imports and trademark filings by local entrepreneurs after Western firms exited.

Western companies that left Russia are facing years of disputes over knockoffs and unauthorised imports, while Russian businesses file for trademarks of familiar Western names through Rospatent, the state intellectual property agency. At the same time, Russia adopted a decree this spring that allows businesses to use patents from “unfriendly” countries such as the United States and United Kingdom without paying the patent owner, and it also permits “parallel imports” or grey-market goods for a wide range of products.
Russia allows parallel imports and courts often view them favourably
Parallel imports are treated as grey-market items brought into Russia without authorisation, and they have expanded across categories. In Coca-Cola’s disputes, a lawyer for importer Pivoindustria said a judge understands parallel imports as competition, offering cheaper prices for consumers and supporting Russian businesses. Coca-Cola has also largely failed to get a judge to take its side in cases involving grey-market sodas imported from the United States and competitors with similar names such as “Fantola.”
Trademark and brand challenges intensify after Western exits
The wave of litigation is tied to the timing of exits triggered after Moscow sent thousands of troops into Ukraine, with companies pulling back in 2022 and some finalising exit in August after five months. Coca-Cola, which was first available in the Soviet Union in 1979, is already involved in fights over unauthorised Fanta products and Coca-Cola Cherry, with shipments reaching Russia as recently as April. Importer Pivoindustria is reported to be selling thousands of cans of Fanta peach and pineapple and Coca-Cola Cherry bought from US Costco and Walmart, even though sodas were not added to the list of goods eligible for parallel imports.
Russian trademark filings for Western brands are increasing
Rospatent is receiving an influx of trademark applications for Western brands, tracked through filings by Clarivate Plc. Entrepreneurs including Alexander Gershtein and Vadim Ryabchenko have applied for around 20 trademarks covering brands such as Coca-Cola, Adidas, Mercedes Benz and P&G’s Pampers, saying they may produce or license goods if approvals are granted. In normal times, governments typically reject trademarks that are identical or very similar to existing brands, but the current environment has made Western brand protection harder.
Legal disputes can be harder to monitor and win
Coca-Cola has appealed court decisions, arguing it protects its goodwill and reputation where third parties trade off its worldwide brand. One Coca-Cola hearing against Pivoindustria was closed to the public after the company sought to block access, and Coca-Cola’s lawyer said the information considered was “not publicly available” and that she could not freely make arguments. Coca-Cola also appealed a decision approving Chernogolovka’s “Fantola” brand prior to the conflict in Ukraine, highlighting how trademark outcomes can hinge on whether a brand is considered abandoned, in addition to the broader parallel-import landscape.

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Why are Western brands struggling to protect trademarks in Russia?

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