The Landscape of Information Technology in Latvia:

Legal Environment 

 

Overview

The Latvian government's strategy for the formation of an information society is conceptually outlined in the National "Informatics" (Information Technology) Program.  In it are specified both the directions of activity and of tasks.  In the fall of 2001--after a period of some inactivity--they have recently begun another round of reviewing legislation to progress as a part of this program.  While piracy continues to be an issue, the government is increasing its enforcement of their copyright laws.

In addition, the Latvian government has joined the Bern Convention, World Trade Organization and signed the TRIPS Agreement (in 1998), as well as others it has joined or is preparing to join (e.g., the WIPO Treaty, and the Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data and of course, the EU). All these agreements will have a serious impact on the IT&T sector and Latvia will need to establish new relevant and appropriate laws and regulations to comply.

 

The speed at which an information society is established and its quality is dependent on how purposefully state policy promotes the establishment of relevant infrastructure, the preparation of legal standards, and the development of education and science12.  The Latvian government's strategy for the formation of an information society is conceptually outlined in the National "Informatics" (Information Technology) Program.  In it are specified both the directions of activity and of tasks.  Authorities have been set up within the government structure, which are directly or indirectly responsible for the development of an information society in Latvia12.  In addition, the Coordination Board for the National Program "Informatics" includes representatives of all ministries, the biggest telecommunications and data transmission operators, manufacturers of hardware and software and academic institutions. Its main task is to ensure implementation of the Program in accordance with the defined and approved priorities, to assess and audit the basic projects, and to regularly update the Program13.    Tasks outlined by the National "Informatics" Program for the State and Private Sector in the formation of an information society include12:

Government tasks:

Private sector tasks:

 

According to the Latvia Master Report13:

The first legislative initiatives regarding development and operation of state-significant information systems and major intellectual property rights, started soon after regaining of independence in the beginning of 1990s. The initiatives resulted in the government regulations on state-significant information systems in 1994, and laws on author's rights and neighboring rights, patent rights, trademarks and industrial designs in 1993. Latvia also joined the Bern Convention in 1993. The European Agreement between Latvia and the EU, which was signed in 1997, was the next step.

It must be said that work in the area of IT&T legislation in Latvia has largely been uncoordinated, and it has been based mostly on the government’s political desire to react to the European Union’s various directives. Nevertheless some of the common basic principles were kept:

  • Each member of society has the right to be informed. Therefore, information from the state’s institutions of authority and governance must be generally available. The accessibility can be limited only by law.
  • Information about individuals may not be disclosed if the information would cause any type of harm to the respective individual. Regulations for information allowed to be revealed and the order for disclosure is set out in the law.
  • Intellectual work must be facilitated, ensuring people who are active in this area with sufficient and stimulating compensation

In February 1999, Latvia became a member of the 1993 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) upon joining the WTO.  In 1999, they began a “Working Group” on the protection of Intellectual Property, and a new Copyright Law took effect on May 10, 2000.   Latvia has also ratified the following international agreements:

  • "The Paris Convention" (since 7 September 1993);
  • "PCT" (since 7 September 1993);
  • "WIPO" (since 21 January 1993);
  • "The Madrid Agreement Concerning the International Registration of Marks" (since 1 January 1995) and "Madrid Protocol";
  • "The Budapest Treaty on the International Recognition of the Deposit of Micro-organisms for the Purposes of Patent Procedure" (since 29 December 1994);
  • "The Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks" (since 1 January 1995);
  • "The Bern Convention for the Protection of Literary and Artistic Works" (decision made by Cabinet to renew the membership, dated 18 April 1995);
  • "The Trademark Law Treaty" (signed on 27 October 1994);
  • "The Agreement for the Protection of Intellectual Property between the Republic of Latvia and the United States of America" (effective as from 29 January 1995).

In mid 1999, the situation with IT&T legislation was the following:

  • Major intellectual property protection legislation in effect since 1993.
  • The law On Publicity of Information is in effect. The law "On National Secrets", which limits overall accessibility, is already in force.
  • It is expected that law "On Personal Data Protection" will be adopted by 1999.
  • Ministries are also reviewing proposed amendments to the law On Author Rights and Neighbouring Rights. The draft includes various elements, which are required by EU directives. The law applies also to computer programmes.
  • The law On Database Protection is currently elaborated.
  • Working group within the Ministry of Transport is preparing new Telecommunications Law providing for market liberalization. Negotiations with interested parties are underway.
  • The Criminal Code of Latvia contains several articles related to violation of information technology acts. Nevertheless, it is not easy to detect these violations of law and even more difficult it is to prove them. Amendments to the Criminal Code have been drafted envisaging considerable punishment for computer-related criminal acts; The Criminal Code already currently contains rather serious sanctions for infringement of copyright; corresponding additions should still be made to the Administrative Offence Code;

Overview of Latvian Laws in 200017:

  • The Republic of Latvia Patent Law ( the current Patent Law entered into force on April 20, 1995, except Chapter V. of the Law which took effect on May 01, 1995)

  • The Law of the Republic of Latvia on Trademarks and Indications of Geographical Origin (entered into force on July 15, 1999

  • The Republic of Latvia Law on Industrial Design Protection (entered into force on June 10, 1993)

  • Law on the Protection of Topographies of Semiconductor Chips (entered into force on April 30, 1998)

  • Law on the Protection of Plant Varieties ( of 1993; new redaction took effect on January 01, 2000)

  • The Copyright Law (the new Law entered into force on May 10, 2000)

  • The Competition Law (entered into force on January 01, 1998)

  • The Customs Law (entered into force on July 01, 1997; amended of May 28, 1998 and of October 29, 1998)

  • The Order of Customs Control Measures on Intellectual Property Protection (entered into force on July 28, 2001)

  • The Law on the Protection of Internal Market (entered into force on February 24, 1999 with amendments of April 13, 2000)

  • The Law on Antidumping (entered into force on July 01, 2000)

  • The Law on Pharmaceutics (entered into force on May 08, 1997 with amendments of March 10, 1998)

  • The Law on Accessibility of Information (entered into force on November 20, 1998)

  • The Law on Protection of Consumers (entered into force on November 19, 1992 with amendments of January 29, 1998)

Patents24:

General principles

A Latvian "Patent Law" was passed on 19 April 1995. The law contains provisions relating to the patentable subject matter, the subjects of patent rights, the procedure for granting patents international applications under the Patent Co-operation Treaty, the European patent extension to Latvia, the functions of the Latvian Patent office, and the rights derived from patent. It also deals with the infringement of patents, the exploitation and licensing of a patent and the enforcement of patent rights.

 

Patentable subject matter

A patent is granted in accordance with the patent application, which is filed with the Latvian Patent office. A patent may be granted for an invention which is new, industrially applicable and which has inventive step. Non-patentable subject matters are discoveries, scientific theories, mathematical methods, designs, methods for performing mental acts, software and methods of presenting information, if the above-mentioned subject matter as such is claimed. Also, inventions, which are contrary to public order and morality, as well as varieties of plants or animals or essential processes of the biological production of plants or animals (except microbiological processes), are considered as non-patentable subject matter.

Generally, the patentability criteria in Latvia correspond to those set by the European patent convention. The Latvian Patent office does not perform a substantive examination of a patent application; i.e. it does not check the conformity of the invention to the provisions of patentability. After a preliminary examination is performed, the invention is published, and third parties are invited to submit their oppositions to registration, within nine months of the date of publishing.

 

Exclusive rights

The exclusive rights to patents are effective from the date they are granted and expire no later than twenty years from the filing date. The exclusive rights may be ceased prior to the expiration of twenty years from the filing date by a court decision, or as a consequence of the failure to pay the patent maintenance fee.

The ownership of a patent grants the owner the exclusive right to produce and to use the patented product, as well as to offer it for sale, to put it into circulation and to import or stock the patented product for the above-mentioned purposes. It also bestows upon the owner the right to use the patented process and to offer it for sale, to put it into economic circulation and to import or stock the patented product for the above-mentioned purposes, a product that is obtained with a patented process.

 

Fair use

The extent of exclusive rights is determined by the claims of the patent taking into account substance of the invention. The fair-use doctrine is applicable to exclusive patent rights. Exclusive rights are not extended to the use of the patented subject for non-profit purposes, scientific experiments or research as well as the testing of a patented invention and preparation of medicine and in pharmacy in exceptional cases as prescribed by a doctor, the exploitation of patented product after the first sale and to the construction of any foreign means of transport which temporarily enters Latvia.

 

European patent extensions

A European patent, which has been extended to Latvia, has the same effect as a domestic patent, except that the exclusive rights are terminated no later than twenty years from the date on which the Latvian Patent office has received the application of registration of the European patent.

 

Trademarks24:

General principles

The legal status of trademarks in Latvia is determined by the law "On Trademarks and Indication of Geographical Origin" of 16 June 1999. The law has provisions relating to the procedure for trademark registration, for the use of a trademark, the expiration of the trademark, and the applicability of international agreements.

A trademark or a service is used in order to distinguish the goods and services of one enterprise from those of another enterprise. Trademarks may consist of words, letters, numbers, first names and surnames, graphics, three-dimensional shapes, light signals or of any combination of the above-mentioned items.

 

Exclusive rights

Well-known trademarks are protected in Latvia without registration. A registered trademark gives the owner the exclusive right to use the trademark and to transfer the associated rights, as well as to prohibit others from using the mark and similar marks in relation to goods in respect of which the mark is registered and in relation to similar goods, if the use of this mark is likely to confuse consumers or create association. A registered trademark is valid for ten years. After expiration of the term, registration may be renewed continuously.

 

Criteria for registration

Certain signs may not be registered as marks, namely those which reproduce the names of firms and products which are well-known in Latvia, as well as marks which reproduce trademarks belonging to any other person and are well-known in Latvia or similar trademarks if there is a likelihood of confusion or association, even if the trademarks are not registered in Latvia.

The registration of a trademark is done by filing a trademark application with the Latvian Patent Office. After preliminary and substantive examination, the mark is published, and third parties are invited to submit oppositions against the registration of the mark within 3 months of the date of publication.

 

Enforcement

The law sets forth the legal procedure for enforcing the trademark rights. The owner of the trademark is entitled to initiate litigation against any infringing use of the trademark by a third party and to make a claim to terminate the infringing use. The owner may also seek an indemnity for incurred losses, by demanding that the infringing packaging be changed, or he may seek the destruction of the infringing goods or the delivery of the infringed goods to the owner of the trademark, or the delivery of the goods to charity.

Designs24

Pursuant to the law "On Industrial Designs" of 4 May 1993, industrial designs are the external appearance of an article, which has been created as a result of an artistic design.

The owner of a patent has exclusive rights to industrial design. The owner is entitled to use the industrial design, to offer it for sale, to put it into circulation and import, to export or stock the design for the above-mentioned purposes. The designer of the article has moral rights of non-transferable paternity as an author of the design. The patent of design is valid for five years. After the expiration of the term, the patent may be renewed for two additional terms.

A design patent is granted according to a patent application, which has been filed with the Latvian Patent Office. A patent may be granted for an invention, which is new, visually appealing and useful. Computer software layout on the screen may be protected by design patents. Non-patentable subject matters comprise the external appearance of the article only if it is predetermined by the technical functions of the article, if it contradicts morality, if the article is an object of architecture, other than small forms of architecture, or if the article is nondescript and is formed from powder, liquid or gaseous substances or other similar substances.

The Patent Office does not perform substantive examinations of patent applications and regards the conformity of the design to provisions of patentability. After a preliminary examination is performed, the design is published and the third parties are invited to submit their oppositions to the registration of the patent within six months of the publication date.

Copyrights24

The law "On Copyright and Neighbouring Rights" of 11 May 1993 applies to works of science, literature and music, software, as well as to works of visual art, irrespective of the purpose or merit of the work or the mode of its expression. Also, copyrights may be obtained on derivative works, such as translations and adaptations, works which have been redone, annotations, synopses, summaries, reviews, musical arrangements. Copyrights can also be granted to the collections of works, for instance encyclopaedias, anthologies and atlases, as well as databases and other compilations which, by the selection and arrangement of the material, have resulted in the creation of a work. In order to be subject to copyright, the works, ideas and concepts must be made known to the public in any form.

In comparison with previous Copyright Law (of 1993) the current Law corresponds with WIPO Copyright Treaty, European Directive on the legal protection of databases, regulations of TRIPS.  According to the current Law the objects of Copyright protection are the following:

  1. literary works (books, pamphlets, speeches, computer programs, lectures, slogans, reports, sermons and other of the same nature);
  2. dramatic and dramaticomusical works, scenarios, literary projects of audiovision works;
  3. choreographic works and entertainments in dumb shows;
  4. musical compositions with or without words;
  5. audiovision works;
  6. drawing, painting, sculpture and graphical works as well as other artistic works;
  7. business artistic works, decorations and stage designing works;
  8. design works;
  9. photographic works and works expressed by a process analogous to photography;
  10. sketches, drafts, projects of building, architectural works and developments, other architectural works, works of town-planning, projects and developments of parks and gardens, as well as fully or particullary built constructions and implemented objects of town-planning or landscapes;
  11. geographic maps, plans, sketches, plastic works related to geography, topography and other sciences;
  12. other author works.

Rights of author24

The author of a work has personal rights of the work (authorship, recognition of his/hers name etc.) as well as financial rights (to publish, to translate, to retranslate etc.). Copyrights bestow exclusive rights to the author and enable him to use the work and to derive profit from it. Copyrights are not trespassed if the work is used for informative, educational or research purposes, it is reproduced for library, archive and courts needs etc.).

 

Duration

A copyright is in force throughout the author’s life and for 70 years after the author’s death. As there can be appointed executor of the last will, author can appoint a person, who is entitled to protect author’s copyrights until his/her own death. The copyright to an audio-visual work remains in force for a period of 70 years after the death of the last of the following – director, author of the screenplay, author of dialogues, author of music. In case if such a work is created under pseudonym or anonymous, copyrights are protected 70 years after its made available to the public.

 

Neighbouring rights24

The law specifies that the owners of neighboring rights are the performers, the producers of sound recordings, broadcasting organizations, and organizations that communicate to the public by wire or their successors in interest or heirs. Neighboring rights are effective for 50 years after they have been first performed or produced. The rights with respect to producers of sound recordings are effective for 50 years after the first sound recording is released. The rights of broadcasting organizations are effective for 50 years after the first broadcast by that organization. If the organization transmits by wire, the rights are effective for 50 years after the first transmission by wire by that organization.

Apart from international conventions and agreements, provisions on protection of the copyrights and neighbouring rights are set both in the law “On copyrights” and in the regulations of the Cabinet of Ministers “On order of customs control activities for the protection of intellectual property”.  

created as a result of an artistic design.  

Electronic protection, legal protection and security (encryption, electronic commerce)

[A draft went under review in the Fall of 2001].  Latvia also subscribes to the WTO requirements.

Privacy, data protection, consumer protection

  • Draft law On Personal Data Protection has passed the second reading in the Saeima (Parliament).
  • The law On Consumer Protection has been in effect since March 1999.

The Umbrella Agreement gave Lattelekom the exclusive right license to provide public voice telephony and public network infrastructure to the fixed lines for 20 years (until 2013; but this will potentially be shortened to 2003--it is currently being reviewed by an International Court of Arbitration). A state institution can create a specialized state telecommunications networks without any authorization but in co-ordination with the Ministry of Transport. Telecommunications services can be provided on private telecommunications networks without any authorization but only for own needs and without any transmission to Lattelekom network or from any foreign telecommunications network.

The Telecommunications Law, also states that an individual license from the Ministry of Transport is needed for the establishment of a public mobile radio telecommunications network. Two GSM licenses are already accorded, and a third is under consideration.  [It is hoped that the third will be issues quickly in order to open the competitive market more widely]. An individual license is required for satellite communications.

The Telecommunications Law states that Lattelekom is obliged to develop the public network as to guarantee the provision of quality basic telecommunications services, to ensure accessibility of these services to all residents, and also the right for users of telecommunications services to connect to the public network on a non-discriminatory basis.

Freedom of expression and information

Freedom of expression is granted by the Satversme (Constitution of Latvia).

The Law "On Publicity of Information" has been in effect since October 1998. The Law requires information of Government bodies and local governments to be freely accessible unless it is forbidden by some other law, e.g. the law "On National Secrets" that limits  general access to confidential information.

 

Software piracy has been rampant in Eastern Europe since the fall of communism as cash-strapped firms looked to jump into the computer age, and the cost of one program is equivalent to approximately 10% of the average monthly income.  According to the International Federation of the Phonographic Industry (IFPI), about 60 percent of music recordings sold in Latvia are pirated. The legitimate market in Latvia, IFPI representatives told last year's Forte Riga recording industry trade fair, accounted for USD 4 million in sales in 199915.   In a different article16, it was said that "About 90 percent of all software used in (Latvian) businesses is being used without having a legal license, that makes the piracy level in Latvia among the highest in the world," according to Bo Krus, director at Microsoft Baltic.  Therefore, "...Microsoft [started] a campaign to curb piracy by offering a 60 percent discount on their products in Latvia," he added.  Krus also said that the Latvian government loses an estimated 10 million lats annually in lost tax revenues due to piracy.

 

 

Last updated December 13, 2001