Gorodissky IP Security specialists conducted a study of the online retail market and identified

more than 600,000 offers for the retail and wholesale sale of protective masks at inflated prices

of RUB 500 to RUB 900 per item. Before the crisis, a pack of five masks cost no more than

RUB 40

At the same time, the platform’s analysts recorded a surge in fraudulent activity. Deceptive

websites offering protective masks began to appear on the market. After an order was placed, an

online store representative contacted the buyer, agreed on a delivery time and provided payment

details. Once the advance payment had been received, the seller disappeared.

The risk of counterfeit goods entering the market was also increasing. On 17 March 2020,

Russian President Vladimir Putin signed the Decree on the Retail Sale of Medicinal Products for

Human Use. The Decree permitted the online sale of over-the-counter medicines. Previously,

medicines could be reserved online but had to be collected from a pharmacy.

The Decree was one of the measures intended to prevent the spread of COVID-19, as it reduced

the need to visit public places to purchase medicines.

Evgeny B. Alexandrov, Partner, commented:

"This development is likely to result in a surge in counterfeit sales. To ensure that medicines can

be purchased safely online, manufacturers of medical equipment and pharmaceutical products

will need to focus on identifying such violations. Their presence may cause serious financial and

reputational damage to companies and, most importantly, harm public health.

Our Gorodissky IP Security platform can promptly identify dangerous clone websites online. It

has already helped us stop a number of infringers.

For example, more than 100 offers for counterfeit products bearing the brand of a major

international clothing and accessories company were identified on VKontakte. The firm’s

specialists, working together with the police, established the seller’s identity. The infringer was

detained, while the counterfeit goods were seized and destroyed. As a result of the measures

taken, sales of the rights holder’s genuine products in Russia increased."

About the Gorodissky IP Security Platform

Gorodissky IP Security is a unique technology solution developed by Gorodissky & Partners for

online monitoring and the pre-litigation removal of infringements.

The platform automatically assesses the level of risk posed by each identified resource. It

estimates the quantity of goods sold, the seller’s possible remaining stock and the potential

damage caused to the rights holder by the unlawful use of its intellectual property.

The platform conducts continuous monitoring based on keywords, brands and trade marks. A

team of analysts then reviews the findings and works together with the firm’s leading lawyers to

stop the identified infringements.

7 April 2020