Ukraine desperately needs an up-to-date system of copyright protection, – Dmytro Shymkiv

Now Ukrainians are registering patents abroad, the chairman of Dartnisa Group board of directors says. 

Ukraine desperately needs an up-to-date copyright protection system to preserve and develop its own scientific and technological potential. Dmytro Shymkiv, the chairman of Darnitsa Group board of directors, stated that in the program “Double standards” at NV radio when he was answering the question why Ukraine is in 56th place of the world innovation rating and continues to lag behind. He emphasized that today Ukrainian scientists and developers prefer either to work under a contract for foreign companies, or to register their patents in countries that ensure protection of intellectual rights at the global level.

“There are numerous interesting patents registered in the countries offering a serious legal protection of copyrights. This is absolutely crucial” – the chairman of the Darnitsa Group board of directors noted.

“I’ve been connected to inventions all my life and I know that the Soviet scientists, who had created unique things, never became millionaires. If we look at the experience of the USA, Japan, China, we’d see that people who have created innovative products usually receive a patent, and companies that use this patent pay them royalties. Scientists live off that money and continue their scientific activities” – he added.

At the same time, Ukraine has a powerful social capital of scientists, IT specialists and other talented professionals capable of inventing advanced technologies. And in order to rise in the rating of innovative countries, it is necessary to create conditions that would let these people benefit from their inventions without going abroad. This means, first of all, that their intellectual property rights must be protected at the legislative level.

According to Shymkiv, the coronavirus pandemic and quarantine restrictions in certain segments have reduced the revenues of Ukrainian businesses by up to 80%. “Only adaptive companies will survive. Business must adapt, find other forms of cooperation with customers, use innovations, and digital technologies,” Shymkiv said. He recalled that the covid crisis this year accelerated the implementation of solutions that had been merely discussed before. According to the forecast, digital platforms, instant messengers and chats, and delivery services will continue to grow in 2022. At the same time, the continuation of the quarantine will be a difficult test for builders, developers and office owners.

“Intellectual property rights appeared in the US Constitution in the first place, being of the utmost importance. This is a fundamental value. For example, our programmers receive patents, but, as a rule, they register them in countries that guarantee protection at the global market,” Dmytro Shymkiv explains.

According to the Special Report 301 of the US Trade Representative’s Office, released in April 2021 (the annual review of the state of intellectual property rights protection), Ukraine is on the Priority Watch List (this is a list of countries that lack sufficiently effective intellectual property protection measures) alongside Argentina, Chile, China, India, Indonesia and others.

However, Dmytro Shymkiv also noted some positive aspects, namely, that Ukraine is taking steps to improve the system of collective management of property rights.

Thus, this summer, the Cabinet of Ministers of Ukraine introduced a number of amendments to the Code of Administrative Offenses that increase liability for copyright infringement in the country. In particular, for illegal use of a copyrighted object or plagiarism, a fine from 50 to 300 non-taxable minimums with confiscation of products can be imposed. It also introduces liability for deliberate financing of violations of copyright and related rights.

In general, the document is aimed at adapting the legislation of Ukraine in the field of copyright and related rights to the standards of the European Union.