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First time the Russian court has seized intellectual property

The Russian district court has seized the object of intellectual property almost first time in Russian legal history within the frames of criminal case. The investigators from Russian Federal Security service have filed motion to size property, including software developed by the indicted person. The investigators believe if the seizure of property can be applied in the case, the software is to be also arrested.

To support the motion the investigators have provided the court with copies of civil claims. The indicted person is the defendant in these civil claims. The defense of indicted person contests the seizure on the ground that the software (i.e. intellectual property) is not any kind of property under the Russian law. But the court as well as appeal have decided that the software can be arrested as “subject of crime” (instrument of crime). Therefore the arrest is in force.

The investigators believe the indicted person has developed the software, registered copyright therein and implemented it in organization of executive authority and receive and thus have received huge sums of royalties taking into account that the software development is to be paid on account of Russian state budget.

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