Mishustin requests measures to expand use of loans secured by intellectual property rights, asks for other proposals to support new innovations

MOSCOW. March 16 (Interfax) - Russian Prime Minister Mikhail Mishustin requested at a strategic session dedicated to developing the intellectual property sphere by 2036 that additional measures be launched to support new innovations and ensure their commercial viability, the Russian government said on its website.

"In Russia, there are plans to launch additional measures to support new developments and ensure their commercial viability, as well as to perfect the mechanism for protecting intellectual property rights. This, as well as other matters, is the focus of the instructions given by Prime Minister Mikhail Mishustin at the strategic session on the development of intellectual property to 2036 on January 27," the statement reads.

In order to expand the use of bank loans secured by intellectual property, the Economic Development Ministry, Federal Service for Intellectual Property (Rospatent) and the Finance Ministry, assisted by the Central Bank of Russia, have been given until December 15 to prepare proposals to develop the intellectual property rights market.

By the same date, Mishustin asked that the Economic Development Ministry, Rospatent and the Finance Ministry, assisted by the Central Bank and state-owned corporation VEB.RF, prepare proposals on how to create an integrated system for funding projects with a large intellectual property component at various stages of companies' life cycles, taking into account the specific roles of various financial and development institutions - seed funds, angel investors, venture capital funds, crowdfunding, credit organizations, online marketplaces and exchange platforms.

By August 19, proposals on improving administration for the application of income tax deductions for organizations with research and development (R&D) expenditure should be submitted to government by the Economic Development Ministry, Finance Ministry, the Ministry of Science and Higher Education, the Industry and Trade Ministry, the Federal Tax Service (FTS) and Rospatent, assisted by the Russian Academy of Sciences and the Technological Leadership commission of the State Council.

"This refers to the possibility of granting the right to deduct R&D expenses during the period when they are incurred and subsequently allowing for a multiplying factor to be applied to them, as well as the amendment of the process for using reserves for upcoming R&D expenses and increasing the time period and volume of these reserves," the government wrote.

By the same deadline, the authorities must prepare proposals for a new taxation mechanism which incentivizes companies to spend money on projects which help achieve technological independence and allows these expenses to be used in organizations' income tax calculations with a multiplying factor.

The government said that several of Mishustin's instructions were aimed at perfecting the mechanism for protecting intellectual property. The Industry and Trade Ministry, Economic Development Ministry, Agriculture Ministry, Health Ministry, Energy Ministry, Transport Ministry, the Ministry of Science and Higher Education, Rospatent, Roscosmos and Rosatom have been tasked with analyzing the products of organizations involved in implementing national projects to identify potential problems and risks in terms of the registration, usage, transferal and management of intellectual property rights.

They must report back to the government on the results of this by September 30.

The Ministry of Science and Higher Education, the Ministry of Education, the Economic Development Ministry and Rospatent have also been instructed to ensure industry-specific intellectual property modules are integrated into curriculums at colleges and universities. They must report to the government on the results of this project by October 2, 2028.

Mishustin said in his speech at the strategic session that the development of intellectual property was of particular importance for strengthening the economy. He said that reliable protection for cutting-edge ideas, inventions and research encouraged innovation, raised the competitiveness of enterprises on the domestic market and influenced foreign markets.

"It allows business to move forward, expand production and master new forms of activity in order to produce quality goods and services, primarily in priority industries such as energy, metallurgy, transport, heavy machinery and aviation, helping to achieve the national goal of technological leadership set by the president," Mishustin said.