The Russian Government has adopted a decree which will allow local companies and individuals to use inventions, utility models and industrial designs held by owners from “unfriendly countries” without their consent and without paying any compensation.
The decree relies on the provisions in the Russian Civil Code which give the government the right, in case of extreme necessity associated with supporting the defense and safety of the state, the protection of citizens’ life and health, to allow the use of inventions, utility models or industrial designs without a patent owner’s consent at short notice and for “proportional” compensation. The decree envisages compensation in the amount of 0% of the revenue of the person using a patent, payable to patent owners connected with foreign countries which perform unfriendly actions in relation to Russian legal entities and individuals, including:
What prevents foreign companies from setting up business in Russia so as to not pay any compensation to patent owners from the West? I am thinking there are a system of laws that punish and discourage companies from setting up a business like a offshoot of a company or some other entities to avoid paying money to foreign companies. However, I am not sure what they are exactly and how strong the incentives are to dissuade companies from profiting off this. I am guessing small companies might do this and the laws aren't strong enough to dissuade anyone but the big multinational companies.