Russia could reopen McDonald’s stores by scrapping trademark protections: expert

Russia is reportedly weighing strikes to scrap trademark protections for firms tied to “unfriendly” international locations — measures that would clear the best way to reopen Russia’s McDonald’s shops with out permission.

Russian state-owned media outlet TASS recently published a report noting officers from the Ministry of Economic Development have been contemplating lifting restrictions on mental property, together with some emblems. The report talked about merchandise and items from “Western companies” following a mass exodus from Russia in response to the Ukraine invasion.

McDonald’s, which shuttered its roughly 850 shops in Russia earlier this week, is one such firm. Josh Gerban, a trademark lawyer and founding father of the Gerben Intellectual Property agency, famous {that a} comparable revocation of penalties for trademark infringement might have main implications for the fast-food chain and different firms pausing gross sales in Russia.

“Russia could start letting local operators run the closed McDonald’s stores,” Gerben tweeted. He added that Russia has already “authorized the stealing of patents from anyone in ‘unfriendly countries.’”

Russian officers have but to truly revoke trademark protections. But the federal government issued a decree earlier this week eradicating patent protections for firms linked to international locations deemed hostile to Russia — because the US and different nations enact crippling financial sanctions.

McDonald’s didn’t instantly reply to a request for touch upon the transfer.

The Washington Post was first to report on the topic — noting Russia has primarily legalized patent theft by means of its actions.

McDonald’s choice to shut shops in Russia triggered panic among the many native inhabitants. Long strains shaped at shops and in drive-thrus, whereas on-line resale platforms have been flooded with listings from individuals promoting McDonald’s merchandise at exorbitant costs.

A viral Reddit thread confirmed how one Russian citizen stocked his fridge stuffed with McDonald’s burgers previous to the closures.

McDonald’s expects to lose $50 million per thirty days on the pause of its Russian operations. The firm is continuous to pay its 62,000 staff within the nation.

“As we move forward, McDonald’s will continue to assess the situation and determine if any additional measures are required,” McDonald’s CEO Chris Kempczinski mentioned. “At this juncture, it’s impossible to predict when we might be able to reopen our restaurants in Russia.”