MOSCOW, June 10The sale by the Swedish manufacturer of personal care products Essity of its business in Russia will not affect the domestic market, the new buyer, as in the case of other brands, will be able to work at the same capacity, Olga Sumishevskaya, founder and partner of the consulting company One Story, shared her opinion.
Earlier on Saturday, Essity announced that it would cease operations in Russia and sell its business in the country. The transaction is expected to close upon receipt of final cash in the second quarter of 2023.
“Nothing will change during the sale, as with other businesses: they will rewrite the names, introduce a new assortment, work at the same factories will remain,” Sumishevskaya said, commenting on the news about the sale of the business to the Swedish company.
She noted that based on previous transactions, there are three main options to whom the business was sold — local management, a representative office of the same company in another country, or a third-party private business. sent a request to the Ministry of Industry and Trade of the Russian Federation.
At the same time, according to Alina Akinshina, General Director of the Online Patent company, the copyright holder of the Essity trademark (TM) and patents is the Swedish company itself, so if an agreement is reached that products under their TM can continue to be produced in Russia, in within the framework of an agreement with the buyer, there may be two options: either the transfer of the right to use Russian patents and trademarks, or the alienation of these patents and TK.
Akinshina also emphasized that Essity received 32 patents in Russia in 2019, 54 in 2020, and 29 in 2021. However, in 2022 they «stopped the activity abruptly», having received only 5 patents, and the last publication was dated April 26 last year. In addition, in December 2022, Essity itself announced that it had localized the production of 70 products in Russia in a year, including napkins, handkerchiefs and toilet paper.
«If Essity decides not to transfer patent rights in the territory of the Russian Federation, then the Russian company, taking into account the complete cessation of the patent activity of the Swedish right holder in Russia, will be able to produce later Essity developments without infringing patent rights — as soon as the deadline for transfer expires to the national phase in the country under such patents of the Swedish company,» the expert concluded.
Essity manufactures personal care products. Sales are conducted in approximately 150 countries under the brands TENA, Tork, JOBST, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa.