The procedures for addressing trademark infringement in Mongolia are regulated by the Law on Infringement Procedure and by the Criminal Code of Mongolia. Detailed information on the legal measures to be taken in cases of infringement, their related dates and the practical challenges will be further addressed in the next article.
As mentioned in our previous blog, the penalty for infringement of a trademark is set out in the Law of Infringement or Criminal Code of Mongolia depending on the amount of the damage and loss actually caused. It is critical in any trademark infringement action to take steps to prove that the damage caused by the trademark violation exceeds 300,000 MNT (~$115), in order to initiate a criminal investigation by the police.
With today’s article, we will briefly introduce the Law on Infringement Procedure of Mongolia (the Law). The Law sets out rules and procedures for potential infringement investigation and penalty, starting from the initial inquiry of a potential infringement case. The Law also sets rules for the prosecutor’s supervision of the investigation process and results and procedures for dispute settlement at the court.
Pursuant to the Article 6.14 of the Law, the state officer for intellectual property shall be responsible for matters related to the intellectual property, in particular trademark infringement. The authorized inspector shall carry out the inquiry into the alleged the infringement case upon the receipt of the complaint and information about the trademark infringement. Upon receiving a complaint, the inspector shall decide whether to initiate the infringement case. based on the claims and evidence provided. After the investigation is complete, the authorized official shall make the decision on whether to terminate the case without penalty, or to impose penalties
Prosecutor has an oversight role and may invalidate the decision to terminate the infringement case in instances where it is determined that the infringement case has an element of a crime or it is obvious that infringement has occurred. If the prosecutor decides that the matter has an element of crime, he/she shall prosecute the infringer as defendant.
Where infringement of a trademark is found, the infringer shall execute the imposed penalties within 15 days after the receipt of the decision. Should the infringer disagree with the decision and imposed penalties, there is an opportunity for appeal.
Even though the violation of the intellectual property in Mongolia is a common practice, most violations are investigated as trademark “infringement” under the Law, and not as a crime. As the penalties for such infringement violations are relatively low and the investigation procedure is not reliable, the occurrence of such violations is not effectively deterred. Such persistent infringement causes challenge and burden both to the intellectual property owners and the respective authorities.
We will take a look at criminal investigation procedure next week.