Voluntary civil liability insurance of the right holder of an intellectual property object (trademark).

Civil liability insurance of the right holder of an intellectual property object

The protection of intellectual property rights by customs authorities is very important, as it prevents goods that infringe exclusive rights from being released into civil circulation; their subsequent seizure involves significant costs for both the state and the right holder.
 
TRIPO is the abbreviation for the customs register of intellectual property objects, which includes objects of copyright, objects of related rights, trademarks, service marks and appellations of origin of goods.
 
To include goods containing intellectual property objects in the Customs Register of Kazakhstan, the following is required in addition to an application for the protection of intellectual property rights:
- information on the intellectual property objects (with notarised documents attached confirming the intellectual property right or the right to use the intellectual property objects (for example, a licence agreement));
- a description of the goods (enabling the customs authorities to identify goods that infringe intellectual property rights);
- the applicant's undertaking to compensate the declarant and other persons, as well as the customs authorities, for any damage that may arise in connection with the suspension of the release of goods presumed to infringe intellectual property rights;
- a civil liability insurance contract of the applicant covering damage caused to other persons, with a sum insured of not less than 1,000 times the monthly calculation index;
- samples of the original goods (provided where possible).
 
Note that goods are entered in the Customs Register of Kazakhstan for a period not exceeding two years, but not exceeding the term of protection of the intellectual property object or the term of the civil liability insurance contract. In Kazakhstan, insurance companies that provide liability insurance for intellectual property right holders conclude insurance contracts for one year only; consequently, goods are included in the Customs Register of Kazakhstan for one year only, with subsequent unlimited extension (subject only to the term of protection of the intellectual property object).
 
The release of goods suspected of infringing intellectual property rights, if they are not entered in the Customs Register, is suspended as follows. Having suspended the goods, the customs authorities attempt to locate the right holder within 24 hours. If the customs authorities cannot find the right holder within this period, the decision to suspend the goods is to be cancelled. After receiving the notification, the right holder of the intellectual property objects must, within three working days of the suspension of the goods, submit a written response on the measures it is taking against the declarant, as well as a written application to extend the period of suspension of the release of the goods to up to 10 working days. Within these 10 working days, the right holder must provide the customs authorities with the following documents:
- a judge's ruling initiating civil proceedings on a claim for infringement of intellectual property rights;
- an undertaking to compensate the declarant and other persons for damage, as well as the costs of the customs authorities, that may arise in connection with the suspension of the release of goods containing intellectual property objects
- in cases where a court decision determines that the goods do not infringe intellectual property rights;
- written evidence confirming that the right holder has applied to the customs authorities for the inclusion of the said goods containing intellectual property objects in the Customs Register.
 
If these documents are provided, the customs authorities suspend the release of the goods until the court decision enters into legal force. Otherwise, the customs authority cancels the decision to suspend the release of the goods and carries out the customs declaration of the goods. In this case, the costs associated with suspending the release of goods for up to ten working days are borne by the right holder of the intellectual property objects.