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Armenia's Economic Court Starts Considering Claim Against Armentel,

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  • Armenia's Economic Court Starts Considering Claim Against Armentel,

    ARMENIA'S ECONOMIC COURT STARTS CONSIDERING CLAIM AGAINST ARMENTEL, VYMPELCOM

    ARKA
    Nov 7, 2007

    YEREVAN, November 7. /ARKA/. The RA Economic Court has started
    considering a claim lodged by the Bi Line IT-Company against the
    ArmenTel and Vympelcom telecommunication companies.

    The Armenian company claims that the aforementioned companies are
    using a brand consonant, in Russian and Armenian pronunciation, to
    the brand registered by the RA Agency for Intellectual Property and
    owned by the Armenian company.

    The Bi Line Company launched its activities in Armenia in 1996 and
    has been cooperating with such well-known companies as Microsoft,
    Hewlett Packard, and the use of a brand consonant to the Bi Line
    brand by other companies affects the company's reputation, said Hayk
    Harutyunyan, the representative of the company.

    According to him, in 1996 the company got its brand registered, with
    the brand written in Armenian letters. After the Russian Vympelcom
    Company entered Armenia's market and purchased ArmenTel, it wished
    to get its brand, Bee Line, registered, with the brand written in
    Russian letter.

    "This name is actually consonant to the brand of the Armenian company.

    The negotiations did not produce any positive results," Harutyunyan
    said.

    The Armenian company claims that the Vympelcom Company, represented
    by its daughter company, is violating the Bi Line Company's right
    to intellectual property by using the Bee Line brand (consonant to
    Bi Line in the Russia and Armenian languages) in Internet domains,
    ad booklets, TV and radio advertising and even in voice messages
    during the connection to the client service center.

    On his part, the representative of the Russian company, lawyer
    Armen Ter-Tachatyan claims that the Appeal Council of the Agency
    for Intellectual Property permitted the use of the Bee Line brand in
    Armenia in provided the entire range of services except for Internet
    services.

    The lawyer added that the Council's decision is not in effect because
    the Armenian Bi Line Company lodged a claim. To make a final decision
    the Council intends to hold a meeting on November 30.

    This is the first problem of this kind facing Russian mobile operators
    in the Commonwealth of Independent States. Russian lawyers believe
    that Vympelcom stands a small chance to get its brand registered in
    Armenia by law.

    The managing partner of Stas Marketing Partners (Russia) Andrey Stas
    believes that the owners of the Armenian brand Bi Line can demand 5%
    to 10% of Vympelcom's proceeds from the use of the consonant brand
    in Armenia.

    Iks-Consulting (Russia) estimates ArmenTel's proceeds from mobile
    communication services in 2006 at $90mln.Thus, the use of a consonant
    brand by Vympelcom will cost $4.5-$9mln.

    Vympelcom (Bee Line brand) is a transnational company working in
    Russia, Kazakhstan, Tajikistan, Uzbekistan, Ukraine and Georgia. It
    has a total of 54mln subscribers. The company's principal stockholders
    are Alfa Group (Russia), and Telenor (Norway). The company's shares
    have been listed on the New York Stock Exchange for ten years. In
    November 2006, Vympelcom purchased the ArmenTel Company. -0--
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