[Guest post] Uzbekistan: Legislative update on remedies for IPR infringements

Kat in Uzbekistan

In a previous post (here), we discussed the amendments made to Uzbekistan’s legislation as part of its accession to the World Trade Organization (WTO). In line with this broader reform, several significant changes have recently been introduced into the country’s IP legislation, signalling a progressive shift in Uzbekistan’s approach to the enforcement of IPRs. These changes are designed to ensure better protection for rightholders and align with international requirements and practices.

The amendments, which came into effect in late 2024, introduce a new mechanism for damages in IP infringement cases. This new process allows rightholders to claim statutory damages, in addition to the existing option of recovering actual damages caused by the infringement. This change represents a shift towards creating a more flexible, efficient, and equitable enforcement system.

Although legislation provides the possibility of recovering actual damages caused by infringements, in practice, this mechanism has not always functioned effectively, often leaving rightholders unable to recover the full extent of their losses. According to the law, the rightholder must prove the actual damage caused by the infringement, demonstrate that this damage directly resulted from the infringer’s actions, and justify the amount of the damages suffered. However, due to the increasing prevalence of infringements carried out through new technologies or on various social media platforms, proving the exact amount of damages has become significantly more challenging.

In such situations, the introduction of compensation as a statutory damage for infringements strengthens the protection of the rights and interests of rightholders.

To illustrate the new method for recovering damages, consider a hypothetical case involving Uztex Fashions, a textile brand in Uzbekistan known for its high-quality handmade fabrics. The brand’s unique logo and designs are unlawfully replicated by an online marketplace without permission, causing customer confusion and damaging Uztex’s reputation.

Under the previous IP regime, Uztex would have faced significant challenges in proving the exact financial loss caused by the infringement, as many sales would have been diverted online and be hard to trace. Despite investing time and resources, the company might have struggled to recover meaningful compensation.

With the introduction of statutory damages, Uztex may successfully file a case against the infringer without needing to present exhaustive evidence of actual losses. Under the current legislation, trade mark owners whose rights have been infringed may requires either actual damages or statutory compensation. The amount of compensation ranges from twenty to one thousand base calculation values (BCV 1 BCV is approximately equivalent to USD 30).

One of the key features of the compensation is that it is based on the nature of the infringement and the degree of ‘blame’ of the infringer, with due consideration given to business practices and customs.

The introduction of compensation as a statutory damage increases the financial risk for infringers. Previously, the penalties for infringement were often limited to damages that did not always outweigh the benefits gained from the infringement. This imbalance might have failed to deter infringements.

Furthermore, the reform aligns with legal frameworks and remedies in place in jurisdictions such as the European Union, the United States, and China.