. On Monday, March 7, Russian Prime Minister, Mikhail Mishustin signed a motion stating that payment to patent holders from these counties will be 0%. This means that, in Russia, it is legal for individuals to make use of or reproduce intellectual property originating from any of their enemy states.

Many countries, including the United States and Canada are refusing to do business with Russia in attempt to discourage their invasion of Ukraine. Russia first responded to these sanctions by declaring that they would pay back their debts to these countries only in rubles, which are currently valued at 0.0072 US dollars. Now, Russia attempts to combat sanctions by promoting intellectual property theft. The protection of intellectual property is important because it provides inventors with a level of control over how their inventions will be used. Russia knows that these rights are important to inventors and thinks by removing them they can pressure these states into lifting sanctions.

Russia’s ongoing attack on Ukraine has caused millions of Ukrainians to leave their homes, in search of refuge. Russia’s president, Vladimir Putin, claims Ukraine is a threat to Russia’s peace and security, and claims that it is a country that promotes bullying, genocide and Nazification. Putin’s claims are unfounded. Ukraine is a democratic state led by a Jewish president. This points to a larger issue of dictatorships and total control being in the hands of one person. Putin sees Ukraine’s democratic nature as a threat to his authoritarian control. Putin has served three terms as president. Under his leadership, Russia has experienced suppression of free speech in the media, corrupt election processes and prison sentencing for contrarian politicians and leaders.

There is no lack of consensus among the general population that these atrocious acts by the Russian government are unethical. However, because all states are sovereign entities, there is no authority that can force Russia to evacuate Ukraine. The United States is a very strong political and financial power. With them and many other states refusing to engage in business with Russia, the consequences for Russia’s economy could be dire. And without money, Russia will not have money to fund their war. The best response to Russia’s invasion of Ukraine would be to follow the actions of these countries that are imposing sanctions against Russia, and bankrupt Russia. No money means no power, and then Russia’s efforts to combat these sanctions will be of no effect because the country will have no power.

The post Russia responds to imposed sanctions by legalizing intellectual property theft against all countries in the European Union, and 23 others appeared first on IPOsgoode.

Ransomware attacks are on the rise, with the Federal Bureau of Investigation reporting a nearly 21% increase in reported ransomware cases and a 225% growth in associated losses from 2019-2020.  On September 21, 2021, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued an  to highlight the sanctions risks associated with ransomware payments to malicious cyber actors and proactive steps that companies can take to mitigate those risks.

OFAC has designated some malicious cyber actors in its cyber-related sanctions program and other sanctions programs to discourage payments of cyber ransom or extortion demands to these parties.

According to the advisory, U.S. persons are generally prohibited from engaging in transactions with those on OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List), other blocked persons, and those covered by country or region embargoes. Furthermore, any transaction that may violate the International Emergency Economic Powers Act (IEEPA), including a transaction by a non-U.S. person that causes a U.S. person to violate an IEEPA-based sanction prohibition, is also banned.

In response to sanctions violations, OFAC may hold such persons civilly liable even if they were unaware that the transaction was prohibited under sanctions laws and OFAC’s regulations at the time. The OFAC’s Economic Sanctions Enforcement Guidelines describe the department’s enforcement policies, as well as mitigating factors that may be considered by OFAC, including:

1. meaningful measures taken to improve cybersecurity practices and reduce the risk of extortion by sanctioned actors; and
2. the reporting of ransomware attacks to government agencies and cooperation with law enforcement.

If those factors are present, OFAC’s resolution could be limited to a “no action” or a “cautionary” letter, rather than a public response. Businesses that fall under OFAC’s regulation should aim to revise their cybersecurity incident response plans to better align with the recommendations in the updated advisory. 

The post The U.S. Department Of The Treasury’s Office Of Foreign Assets Control Releases Updated Advisory On Sanctions Regarding Ransomware Payments appeared first on IPOsgoode.