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Armenia’s economic court suspends examination of claim of local bi line against Russian Bee line

22.11.2007, 01:09
Judge of the RA Economic Court Artak Barseghian has made a verdict on the suspension of the examination of the Armenian IT Company Bi Line’s claim against the Russian VimpelCom Telecommunications Company and its Armenian subsidiary ArmenTel.
YEREVAN, November 21. /ARKA/. Judge of the RA Economic Court Artak Barseghian has made a verdict on the suspension of the examination of the Armenian IT Company Bi Line’s claim against the Russian VimpelCom Telecommunications Company and its Armenian subsidiary ArmenTel.

Barseghian will examine Bi Line’s claim only after another Judge of the Economic Court makes a final verdict on Armentel’s claim against the Intellectual Property Agency of Armenia. The decision can be appealed in the Economic Court within three days after the parties get the copies of the verdict.

Thus, Judge Basreghian sustained the plea made by VimpelCom’s representative Armen Ter-Tatchatian on November 8 on the suspension of the Armenian Bi Line’s claim against the Economic Court, as on November 6 Judge of the RA Economic Court started the adjudication of ArmenTel’s claim against the Intellectual Property Agency of Armenia, RA Ministry of Trade.

By Article 105 of the Civil-Procedural Code, a trial can be suspended in case of another court’s adjudication of a claim that is connected with legal sentencing, according to Ter-Tatchatian.
Judge Barseghian’s decision will be appealed, as it contravenes the law.

In yesterday’s meeting, the lawyers of the Armenian IT-Company Bi Line rejected their claims against the Russian VimpelCom in order to avoid the consideration of the plea made by VimpelCom’s lawyer on the suspension of the trial, as the company ceases being a party of the process. The lawyers hoped either to suspend the law case against VimpelCom or to start a new process against ArmenTel.

The reason for the Armenian Bi Line IT-Company’s claim against VimpelCom (under the Bee Line brand) is the latter intention to change the ArmenTel brand into Bee Line Armenia. The Armenian company claims that VimpelCom tries to use a brand consonant, in Russian and Armenian pronunciation, to its brand (the only difference is in the spelling).

This is the first problem of this kind facing Russian mobile operators in the Commonwealth of Independent States. Russian lawyers believe that VimpelCom 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 VimpelCom’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 VimpelCom will cost $4.5-$9mln.

VimpelCom (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, VimpelCom purchased the ArmenTel Company.--0—