Coca-Cola and McDonald's left Russia. Their brands stayed behind
Western companies with iconic brands like Coca-Cola that exit Russia face years of battling knockoffs and unauthorized imports clamoring to fill the void they leave behind, a risky bid as courts show little sympathy for firms that depart.
Companies pulled back from Russia this spring after Moscow sent thousands of troops into Ukraine, in response to investor and public pressure. Some, like Coca-Cola Co (KO.N), finalized their exit in August after five months, while others such as McDonald's Corp (MCD.N) sold their businesses. Some including Procter & Gamble Co (PG.N) partially remained, selling essentials, Qazet.az reports.
They are defending their trademarks to protect their brands from losing value, and in case they ever return to the country, intellectual property lawyers said.
But they face a sea of opportunists, importers and flip-flopping court rulings.
Coca-Cola, first available in the Soviet Union in 1979, is already ensnared in fights against grey-market goods, which are unauthorized imports, and Russian knockoffs of its fruit-infused Fanta line, according to court documents and interviews with attorneys involved.
Other companies' battles are just beginning as Russian entrepreneurs aim to capitalize on their well-known names as they depart.
Rospatent, the Russian government's intellectual property agency, is receiving an influx of applications for trademarks of Western brands popular in the country, said Robert Reading, head of content strategy in the intellectual property group at analytics firm Clarivate Plc , which tracks the filings.