Grants and State Subsidies: Who Owns the Exclusive Rights to the Results?

The Ministry of Science and Higher Education has prepared a draft law that will affect those who create intellectual property using grants and subsidy-based grants from the state budget. The draft introduces a new Article 1240.2 into the Civil Code, aimed at resolving a long-standing legal gap.

What lies at the core of it all?

Currently, clear rules exist only for intellectual activity results (IAR) created under state contracts (Article 1240.1 of the RF Civil Code). However, the legal regime for rights to IAR developed using subsidies and grants remains undefined and is governed only by the terms of specific agreements. The new draft law aims to create a systematic approach, similar to the one for state procurement.

Why is this important?

The draft law establishes more predictable rules for research institutions, universities, and innovative companies working with state funding.

The basic rule is that rights to the IAR will belong to the performer, but the state can always demand a gratuitous, non-exclusive (simple) license for use.

Read more in the commentary by Anton Shamatonov, Managing Partner of MAGENTA Legal, in the December issue of the "EZh-Yurist" magazine.