When a company uses another company’s brand, it should normally pay license fees, i.e. royalties, for it.
However, since the start of the war of aggression, Finland’s Stockmann has not received any license income from Revival, which owns Stockmann in Russia. General Counsel Jukka Naulapään according to the reason are sanctions and “many problems”.
Reviva will therefore use Stockmann’s brand practically for free, possibly until the end of 2028. According to Naulapää, Suomen Stockmann cannot legally terminate the contract despite this, citing a violation of the terms of the contract.
So you don’t have to pay license fees, but the license agreement still remains valid?
– That’s roughly how it looks at the moment, Naulapää says.
Stockmann does not open up his situation to any further than this. The matter is shed light on a general level by a lawyer specializing in Russian trademark matters Riikka Palmos.
Payments not being made may partly be due to money circulation problems, as the majority of Russian banks are subject to Western sanctions.
Russia also changed its laws after the war started, in response to Western sanctions. According to current regulations, no breach of contract has occurred, even if the parties are unable to comply with the contract due to sanctions. This also applies to license agreements.
– If the other party is unable to pay royalties due to sanctions, the agreement is still considered valid. According to Russian law, the terms have not been violated, says the trademark office Papula-Nevinpatin Palmos.
According to him, another law reform is pending. It would allow, for example, the showing of films and music or the use of software in Russia without the permission of a Western company that has left the country. Copyright compensation would be frozen and the rights holder could redeem them – when it returns to the Russian market.