Changes in Uzbekistan’s Intellectual Property Laws: Compensation for Counterfeit Instead of Damages
On September 10, 2024, the President of Uzbekistan signed Law No. ZRU-959, significantly strengthening intellectual property protection. The key change is the introduction of compensation for intellectual property infringements, including counterfeit products, instead of the traditional damages. This update makes intellectual property protection more effective and holds infringers more accountable in Uzbekistan.
Compensation Instead of Damages: A New Solution for Brand Protection in Uzbekistan
Under the new law, intellectual property holders can claim compensation ranging from 20 to 1,000 base units (up to $30 000), even if no actual damages are proven. This is particularly relevant for combating counterfeit products in Uzbekistan, where infringers often hide their profits. The new approach speeds up compensation claims and reduces the costs of legal proceedings, making it easier to protect brands and patents.
Interestingly, this compensation model has already been applied in cases of copyright infringement in Uzbekistan. Authorities have imposed fixed penalties on counterfeiters violating copyright laws. Now, this mechanism will be extended to all forms of intellectual property, including trademarks, patents, industrial designs, and trade names.
Why It Was Difficult to Claim Damages for Infringements in Uzbekistan
Previously, intellectual property holders faced significant challenges in proving damages from counterfeit products in Uzbekistan. Gathering evidence of illegal sales was difficult, as infringers often concealed their revenue. Legal battles could drag on for years, and the awarded damages rarely matched the actual losses. The new compensation mechanism solves this problem, allowing intellectual property owners in Uzbekistan to fight counterfeit goods more quickly and efficiently.
Moreover, unpredicted approach of Uzbekistan’s judiciary to these cases made it even more difficult. Despite solid evidence, courts often required exhaustive and indisputable proof before awarding damages. This made it hard to win compensation claims, as most infringers withheld crucial data, and courts demanded nearly absolute evidence. As a result, protecting intellectual property in Uzbekistan became a long and complicated process.
Changes in Uzbekistan’s Laws to Combat Counterfeit Products
The new law introduces several important changes to existing legislation:
- Civil Code of Uzbekistan – New provisions on compensation for intellectual property rights violations;
- Law on Inventions and Industrial Designs – Compensation now replaces the complex process of proving damages;
- Law on Trademarks and Service Marks and Appellations of Origin of Goods in Uzbekistan – Trademark owners now have a simple way to fight counterfeits through compensation;
- Law on Company Names – Trade names are now protected through compensation in cases of infringement.
Fixed Compensation in Uzbekistan: An Effective Tool Against Counterfeit
The introduction of fixed compensation in Uzbekistan simplifies the protection of intellectual property rights, reducing the time and resources needed to combat counterfeit products. Infringers will find it harder to avoid liability, as compensation is awarded even without proven damages. This measure promotes legal discipline and reduces the amount of counterfeit goods on the market.
When the New Changes Take Effect
Starting from December 12, 2024, intellectual property holders will be able to use the new compensation mechanism to protect their rights. The introduction of compensation against counterfeit goods in Uzbekistan is a significant step toward improving the business climate and protecting brands and inventions. The increased accountability for intellectual property violations will become a crucial tool in fighting counterfeit products.