LAW OF MONGOLIA

23 January, 2020 Ulaanbaatar city

ON INTELLECTUAL PROPERTY

CHAPTER ONE

GENERAL PROVISIONS

Article 1.Purpose of the Law

1.1.The purpose of this law is to regulate matters relating to creations and works to be protected by intellectual property rights, the principles of intellectual property protection and establishment of the systems and functions of intellectual property organizations, and promotion of economic circulation of intellectual properties.

Article 2.Intellectual property legislations

2.1.Intellectual property legislation shall consist of the Constitution of Mongolia, Civil Code, this Law and other legislative acts adopted in compliance with them.

2.2.If an international treaty, to which Mongolia is a party, provides otherwise, the provisions of the international treaty shall prevail.

Article 3.Definition of Terms

3.1.Terms contained in the Law shall have the following meaning:

3.1.1."Intellectual property" refers to copyrightable creations of the mind, objects and industrial property.

3.1.2.“consolidated database of intellectual property” means a set of data in paper or electronic forms on intellectual property, compiled, developed and stored in accordance with the requirements of unified classification, index, standard, documentation and legal requirements;

3.1.3.“collective management organization” refers to a non-profit legal entity, through which authors, copyright owners and related rights holders exercise and protect their exclusive rights to use a copyrighted work.

3.1.4."official periodical" means a regular publication on the registration of inventions, innovations, industrial designs and trademarks, issued by the state administrative body in charge of intellectual property matters in accordance with the Paris Convention for the Protection of Industrial Property.

Article 4.Principles of Protection of Intellectual Property Rights

4.1.The following principles shall be adhered to in the protection of intellectual property rights:

4.1.1.upholding the rule of law;

4.1.2.serving the public interest and ethics;

4.1.3.maintaining the balance between the interests of intellectual property rights holders and the public;

4.1.4.ensuring the accessibility of intellectual property information to the public;

4.1.5.ensuring that intellectual property relations are based on partnership between public and private sector, non-governmental organizations, cooperation of citizens;

4.1.6.prioritizing applications for industrial property rights;

4.1.7.haing a unified system and methodology.

Article 5.Intellectual property rights

5.1.The following intellectual property rights shall be protected:

5.1.1.copyright and related rights;

5.1.2.industrial property rights.

Article 6.Copyright and related rights

6.1.Copyright and related rights exist from the moment the work is created and fixed in a tangible form.

6.2.Registration is not required for the application and exercise of copyright or related rights.

6.3.The author may, on voluntary basis, register the information of his / her work in the consolidated database of copyright and related rights of the state administrative body in charge of intellectual property matters.

6.4.The author is obliged to prove that he/she is the author of original works.

Article 7.Industrial property rights

7.1.Industrial property rights include:

7.1.1.invention;

7.1.2.innovation;

7.1.3.industrial design;

7.1.4.trademark;

7.1.5.geographical indication.

7.2.Industrial property rights emerge at the time of registration in the state registry by the state administrative body in charge of intellectual property matters for the protection of the rights.

7.3.The state administrative body in charge of intellectual property matters shall register the items specified in Articles 7.1.1, 7.1.2 and 7.1.3 of this Law and issue a patent, items specified in Articles 7.1.4 and 7.1.5 and issue a certificate in accordance with relevant procedures.

Article 8.Protection of intellectual property rights

8.1.Specific relations related to the protection of intellectual property rights specified in Articles 6 and 7 of this Law shall be regulated by applicable laws.

CHAPTER TWO

SYSTEM, MANAGEMENT AND FUNCTIONS OF INTELLECTUAL PROPERTY ORGANIZATION

Article 9.Functions of the Cabinet member in charge of intellectual property matters

9.1.The Cabinet member in charge of intellectual property matters shall perform the following functions related to the enforcement of copyright and related rights, industrial property rights and inspections specified in Articles 6 and 7 of this Law:

9.1.1.develop and approve the state policy on intellectual property;

9.1.2.approve the composition of and operating procedures for the Industrial Property Rights Dispute Settlement Council;

9.1.3.approve the composition of and operating procedures for the Copyright and Related Rights Council;

9.1.4.approve operating procedures for the collective management organization;

9.1.5.approve the procedure for selecting the best works of intellectual property;

9.1.6.approve procedures for registration of license agreements and other agreements related to the use of intellectual property;

9.1.7.other functions specified in the legislation.

Article 10.Functions of the National Council for Intellectual Property

10.1.The National Council for Intellectual Property shall function under the Prime Minister of Mongolia.

10.2.The National Council for Intellectual Property shall be chaired by the Prime Minister of Mongolia, and the Deputy Chairman shall be the Cabinet member in charge of intellectual property matters.

10.3.The composition of and operating procedures for the National Intellectual Property Council shall be approved by the Government.

10.4.The National Council for Intellectual Property shall perform the following functions:

10.4.1.ensure implementation of the state policy on intellectual property and inter-sectoral coordination;

10.4.2.develop a policy to support the economic circulation of intellectual property and ensure inter-sectoral coordination;

10.4.3.develop proposals for improving the legislations on copyright and related rights and industrial property rights, and bringing them into line with international treaties to which Mongolia is a party.

Article 11.Intellectual Property Organization

11.1.The state administrative body in charge of intellectual property matters (hereinafter referred to as the “intellectual property organization”) shall be an implementing agency of the Government and may establish divisions and departments at the local levels or employ a state inspector of intellectual property.

11.2.The intellectual property organization may finance a certain part of its activities with income from its operations, and other operating and investment expenses shall be financed from the state budget.

11.3.The Intellectual Property Organization shall have an Industrial Property Dispute Settlement Council (hereinafter referred to as the “Dispute Settlement Council”) authorized to review and resolve claims and complaints on the matters related to the protection of industrial property rights.

11.4.The Intellectual Property Organization shall have a Copyright and Related Rights Council, which is responsible for advising the Intellectual Property Organization and reviewing tariffs in order to ensure the implementation of copyright laws.

11.5.Local self-governing bodies and Governors at the respective levels shall provide support to local divisions, departments of the intellectual property organizations and state inspectors of the intellectual property to enable them conduct their operations under normal conditions.

Article 12.Functions of the Intellectual Property Organization

12.1.The Intellectual Property Organization shall perform the following general functions:

12.1.1.ensure enforcement of intellectual property legislation and international treaties, to which Mongolia is a party;

12.1.2.develop opinions for improving the intellectual property legislation and bringing them into line with international treaties to which Mongolia is a party.

12.1.3.select, accredit, suspend and revoke individuals or a legal bodies to act as an authorized representative of intellectual property;

12.1.4.issue licenses to collective management organizations, conclude cooperation agreements, provide professional and technical guidance, monitor its activities, evaluate the results and inform the public;

12.1.5.organize the selection of the best works of intellectual property annually in accordance with the procedures set forth in Article 9.1.5 of this Law;

12.1.6.cooperate with similar organizations of a foreign country and international organizations in accordance with relevant legislation of Mongolia and international treaties, to which Mongolia is a party;

12.1.7.establish a consolidated database of intellectual property registration and inform the public;

12.1.8.conduct research on patent protected inventions, industrial designs and innovations that provide high economic efficiency and provide information to the National Intellectual Property Council;

12.1.9.develop and submit to the Government opinions on the economic circulation of intellectual property;

12.1.10.register transfer of rights agreements, license agreements, franchise and merchandise agreements;

12.1.11.provide unified guidelines and methodologies for intellectual property training and research;

12.1.12.provide necessary referral for resolving intellectual property disputes;

12.1.13.register, conclude agreements, suspend or revoke the registration of an indiviual or legal body engaged in intellectual property brokering;

12.1.14.approve operating procedures for the authorized representatives of intellectual properties;

12.1.15.approve the procedure for entering the intellectual property registration data into an electronic database, creating and using the database, ensuring continuous operation of the database, its maintenance, security and encryption;

12.1.16.other functions specified in the legislation.

12.2.The Intellectual Property Organization shall perform the following functions with respect to copyright and related rights:

12.2.1.register, issue or revoke copyright and related rights certificate at the request of the author, copyright or related rights owner, and set up a database of works/creations;

12.2.2.cooperate with citizens and legal entities in the field of protection of the interests of copyright and related rights owners, support of their creative activities and protection of folk art works.

12.3.The Intellectual Property Organization shall perform the following functions with respect to the industrial property rights:

12.3.1.receive, review, conduct search and quality verifications of, register applications for works falling into the category of industrial property rights;

12.3.2.maintain a register of inventions related to industrial property rights, issue and revoke patents and certificates, and set up an integrated database;

12.3.3.publish an official periodical for the purpose of informing the public about the registration of works related to industrial property rights.

Article 13.Powers of the Head of the Intellectual Property Organization

13.1.The Head of the Intellectual Property Organization shall exercise the following powers in addition to those specified in Article 8.3 of the Law on the Legal Status of Government Agencies:

13.1.1.manage operations of the intellectual property organization;

13.1.2.oversee the activities of the state inspector of intellectual properties and change, suspend or annul any decisions that are not in line with the law;

13.1.3.approve the structure and staffing of local divisions and departments of the intellectual property organization;

13.1.4.appoint and dismiss employees and state inspectors of local divisions and departments of the Intellectual Property Organization;

13.1.5.other powers specified in the legislation.

Article 14.State Inspector of Intellectual Property

14.1.The Intellectual Property Organization shall employ the State Inspector General, State Senior Inspector and State Inspector of intellectual property.

14.2.If a division or department in charge of intellectual property is to be established at the local level, a state inspector of intellectual property may be employed.

14.3.The Head of the Intellectual Property Organization shall be the State Inspector General of intellectual property.

14.4.The State Inspector General of intellectual property shall be authorised by the Government, State Senior Inspectors and State Inspectors shall be authorised by the State Inspector General of intellectual property.

14.5.The State Inspector of Intellectual Property shall be guided by the intellectual property legislation, the Law on State Supervision and Inspection, the Law on Offense and other relevant legislation.

14.6.The State Senior Inspector and the State Inspector shall report to the State Inspector General.

14.7.The State Senior Inspectors and the State Inspectors shall use an ID card, a stamp with a personal number and printed letterhead forms for acts, conclusions and binding requirements, approved by the State Inspector General.

Article 15.Expert

15.1.An expert shall have a higher education degree in natural and technical sciences, have worked in the field of intellectual property for at least two years, and be an employee of an intellectual property organization.

15.2.An expert shall have specialisation in industrial property rights, specified in Article 7.1 of this Law.

CHAPTER THREE

PARTICIPATION OF CITIZENS AND LEGAL ENTITIES IN PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

Article 16.Authorized representative of intellectual property

16.1.An authorized representative of intellectual property shall have the right to represent the representee at the intellectual property organization and at the competent authority within the scope of the rights granted by the representee.

16.2.An authorized representative of intellectual property shall be a citizen or legal entity, holding a license specified in the Law on Licensing.

16.3.The license of an authorized representative of intellectual property shall be issued by the Intellectual Property Organization.

16.4.An authorized representative of intellectual property shall be a citizen and permanent resident of Mongolia, holding a higher education degree, with no less than three years of work experience in the intellectual property sector, having no criminal record, must be at least 25 years old.

16.5.Authorized representatives of intellectual property may unite and establish a for-profit legal entity of intellectual property.

16.6.An authorized representative of intellectual property shall follow the operational procedure for authorized representatives of intellectual property in his/her activities.

16.7.An authorized representative of intellectual property shall not disclose any information related to the proposed invention, innovation or industrial design that has not been made available to the public.

16.8.An authorized representative of intellectual property shall be a member of a professional association.

Article 17.Collective management organization

17.1.A collective management organization shall be established at the initiative of authors, copyright and related rights owners.

17.2.A collective management organization shall be established exclusively for the type of object of the copyright and related rights.

17.3.A collective management organization shall obtain permission from the Intellectual Property Organization and enter into a cooperation agreement prior to engaging in activities for implementation and protection of copyright and related rights. The agreement template shall be approved by the Cabinet Member in charge of intellectual property matters.

17.4.A collective management organization shall adhere to the principles of good governance, accountability, measurable results and transparency.

17.5.Operational reports and financial statements of the collective management organization shall be transparent and available to the public.

17.6.Requirements, functions, oversight and other relations concerning the collective management organization shall be regulated by the Law on Copyright and Related Rights.

Article 18.Engaging in intellectual property brokering

18.1.A legal entity registered with the Intellectual Property Organization shall engage in intellectual property brokering.

18.2.The Cabinet Member in charge of intellectual property matters shall approve the requirements for intellectual property brokers and the procedure for registration with the Intellectual Property Organization.

18.3.An Intellectual Property Organization shall enter into an agreement with a legal entity specified in Article 18.1 of this Law. The agreement template shall be approved by the Cabinet member in charge of intellectual property matters.

CHAPTER FOUR

ECONOMIC CIRCULATION OF AND STATE SUPPORT ON INTELLECTUAL PROPERTY RIGHTS

Article 19.Forms of economic circulation of intellectual property rights

19.1.Intellectual property rights may be put into economic circulation through licenses, franchise, merchandise and other agreements, that allow full or partial use of the intellectual property by others, transfer of ownership, investments made in legal entities in the form of intellectual property, as a pledge or in other forms.

19.2.Contracts and agreements for putting intellectual property rights into economic circulation in the forms specified in Article 19.1 of this Law shall be regulated by relevant laws.

Article 20.Valuation of intellectual property

20.1.Valuation of intellectual property shall be guided by the Law on the Valuation of Assets, International Valuation Standards, National Standards and Methodology for Valuation of Intellectual Property and Intangible Assets.

20.2.Unless otherwise provided by law, the parties may mutually agree on the value of intellectual property when putting intellectual property into economic circulation.

Article 21.License for valuation of intellectual property

21.1.A property appraiser/assessor holding a license in accordance with the Law on the Valuation of Assets shall attend intellectual property valuation training and get a certificate before conducting valuation of intellectual property.

21.2.The intellectual property organization and the professional property valuation organization shall jointly develop the training program and organize the training, specified in Article 21.1 of this Law.

21.3.The intellectual property organization shall issue a certificate to the appraiser/assessor who has attended the intellectual property valuation training and passed the exam and register the appraiser/assessor in the list of persons authorized to conduct intellectual property valuation and create a database.

Article 22.State support for the economic circulation of intellectual property rights

22.1.The State may provide the following support for the economic circulation of intellectual property:

22.1.1.tax credits and exemptions;

22.1.2.purchase of goods and services related to intellectual property rights with state and local budget in accordance with the terms and procedures specified in applicable laws;

22.1.3.establishment of a fund for putting intellectual property rights into economic circulation;

22.1.4.support for the registration, protection and application for international protection of intellectual property rights.

CHAPTER FIVE

MISCELLANEOUS

Article 23.Consolidated database of intellectual property

23.1.Mongolia shall have a consoliated database of intellectual property.

23.2.Integrated data on intellectual property shall be consolidated and developed in an electronic form.

23.3.Consolidated database of intellectual property shall use electronic technology and be fully protected from any loss or destruction.

23.4.Consolidated database of intellectual property shall consist of the archive of original documents for the registration of the works specified in Articles 6 and 7 of this Law and the relevant electronic database.

23.5.A person, who uses the Consolidated database of intellectual property in his/her official capacity, shall be obliged to maintain confidentiality of information.

23.6.The Intellectual Property Organization shall back up and store the Consolidated electronic database of intellectual property in accordance with the technology.

Article 24.Service fee of the Intellectual Property Organization

24.1.Stamp duty and service fee shall be paid for applying for protection of intellectual property rights and obtaining inquiries in accordance with the procedures specified in the legislation.

24.2.The Government shall determine the fees and charges for the following services, provided by the Intellectual Property Organization:

24.2.1.services, specified in the Law on Copyright and Related Rights;

24.2.2.services, specified in the Patent Law;

24.2.3.services, specified in the Law on Trademarks and Geographical Indications;

24.2.4.services, offered by the Dispute Settlement Council

24.2.5.services, offered by the Copyright and Related Rights Council;

24.2.6.services for selection and licensing of the authorized representatives of intellectual property;

24.2.7.services for registration of intellectual property appraisers and brokers;

24.2.8.services, offered by the Intellectual Property Information Center.

Article 25.Settlement of Disputes on Industrial property rights

25.1.The following disputes regarding industrial property rights shall be reviewed and settled by the Dispute Settlement Council:

25.1.1.claims, made in relation to the activities specified in the Patent Law;

25.1.2.appeal of a third party in relation to the patent application on the grounds specified in applicable legislation

25.1.3.claims, made in relation to the activities specified in the Law on Trademarks and Geographical Indications;

25.1.4.appeal of a third party in relation to an application for a trademark, made available to the public on the grounds specified by law;

25.1.5.request for revocation of the registration of the work related to industrial property rights on the grounds specified by law;

25.1.6.request for recognition of well-known trademarks;

25.1.7.others specified in the law.

25.2.In case of disagreement with the decision of the Dispute Settlement Council, a claim can be filed to the court within 30 days of receipt of the decision.

25.3.The Dispute Settlement Council shall convene with vast majority attendance and issues shall be resolved by a simple majority vote of those, present at the meeting.

25.4.The Dispute Settlement Council shall review the validity of the claim, specified in Article 25.1 of this Law and resolve to uphold or annul the decision, which caused the dispute, and the decision shall be in the form of a resolution.

25.5.The Dispute Settlement Council is entitled to make recommendations in order to eliminate the causes and conditions of the dispute and prevent violations of intellectual property legislation.

25.6.The Dispute Settlement Council shall make a decision with regard to a claim within 90 days after the initiation of the dispute and, if necessary, may extend the decision-making period by 30 days with the consent of the claimant.

Article 26.Liabilities

26.1.A person or legal entity that violates this Law shall be subject to liability specified in the Criminal Code or the Law on Offense.

26.2.If the actions of an official, who has violated this Law, are not of a criminal nature, he/she shall be subject to liability under the Civil Service Law.

Article 27.Entry into force

27.1.This law shall enter into effect on 1 December 2020.

SPEAKER OF THE PARLIAMENT OF MONGOLIA G.ZANDANSHATAR