Romania

Romania is a signatory to international conventions concerning intellectual property rights, TRIPS included, and has enacted legislation protecting patents, trademarks, and copyrights. While the legal framework is generally good, enforcement remains weak. Romania has yet to pass border enforcement provisions required under the WTO, which are being reviewed by the Parliament. As the result of persistent problems in the enforcement of intellectual property rights, the International Intellectual Property Alliance (IIPA) has recommended that the Office of the Special Trade Representative (USTR) place Romania on its Special 301 Watch List for 2000. The IIPA has estimated that Romanian piracy of motion pictures, sound recordings, computer programs/software, and books cost U.S. industry $31 million dollars in 1999.

Patents: Romania is a party to the Paris Convention for the protection of industrial property and has subscribed to all of its amendments. Foreign investors are therefore entitled to the same treatment as Romanian citizens. A modern Patent Law (No. 64/91) broadens and clarifies the basis on which a patent is granted. Several other laws (No. 129/92, on the protection of industrial drawings and designs; No. 16/95, on the protection of integrated circuit designs, etc.) have helped bring Romanian patent legislation up to international standards. Patents are valid for 20 years. The period for contesting a patent application is six months. Legislation providing for transitory ("pipeline") patent protection was enacted in early 1998.

Trademarks: In 1998 Romania passed a new law on trademarks which is generally consistent with international standards. Romania is a signatory to the Madrid Agreement relating to the international registration of trademarks. Trademark registrations are valid for 10 years from the date of application, being renewable for similar periods. The first applicant is entitled to the registration. The period for contesting a trademark is six months.

Copyrights: Romania is a member of the Bern Convention on copyrights. Its 1996 law on protection of copyrights and neighboring rights is among the most modern in this field. It is consistent with EU provisions and incorporates many suggestions made by U.S. experts. In 1998, the Romanian parliament ratified the latest versions of the Bern and Rome conventions. A new Romanian Office for Copyright protection (ORDA), directly subordinated to the Romanian Government, was established in 1997. However, copyright law enforcement is not regarded as a high priority of prosecutors, judges, ORDA inspectors, and police officers. As a result, since 1996, there have been only [number] convictions for IP law violations, although the Romanian market contains 65-90 percent pirated products.

Credit security: The Law no. 99/1999 amended the secured transaction law and substantially improved the security interest system. The provisions refer to all movable, tangible or intangible assets, such as deposit accounts, bills of lending, shares, trademarks, patents, copyrights and other intellectual property rights, either industrial or commercial, lease of movable assets or object of leasing operations. Under the law, a secured claim originating in a foreign country is valid in Romania provided that is duly recorded. It is an improvement to credit security enforcement, since before the law became effective, the only way for a creditor to satisfy its claim was through court proceedings and judgement. The law also states that an easy to access electronic system (Electronic Security Records) is to be created. Unfortunately, as of mid-2000, the system was not yet operational.

Mortgages: The new Law No. 190/1999 on mortgage loans for real estate investments simplified certain mortgage loan requirements, allowing a debtor’s receivables to be used as a guarantee, and specifically addressing the protection of both borrowers and creditors, in an effort to minimize the risk undertaken by the lender.

Semiconductor chip layout design: Law No. 16/1995 protects semiconductor chip layout design. In order to benefit of the provisions of this law, the designs have to be properly registered as per the government decision no. 535/1996.