Category: Albania

Albania is going all in on harmonizing with European Union standards – especially in the realm of intellectual property, according to Boga & Associates Partner Renata Leka. Despite plenty of ground left to cover, the Boga Partner is optimistic the country will see “significant progress in the coming years.”

“The harmonization of Albania’s legislation with EU standards is a dynamic and ongoing process,” Leka begins. “This involves numerous ministries and agencies working together to reshape our legal landscape, especially in terms of intellectual property. Over the past 30 years, we’ve seen significant changes, however, we still lack specialized courts dedicated to IP matters, which hinders the speed and effectiveness of legal proceedings,” she says.

Leka continues by saying that enforcement has been a particular focus. “Despite the progress made, there are still considerable challenges. For instance, our State Inspectorate of Market Surveillance needs more human resources and better infrastructure to detect and address infringements effectively and customs face logistical issues related to storage space for seized counterfeited products.” According to her, these problems have persisted over the years, but efforts to harmonize legislation with the EU continue.

Leka reports that an Intellectual Property & Innovation conference will be held next week, “where stakeholders – including the newly formed Ministry of Economy, Culture and Innovation – will discuss recent changes and future plans.” Commenting on the newly formed ministry, she explains that “this merger of ministries aims to streamline IP administration and avoid duplication of efforts, given their organic connection to economic and cultural matters.” Specifically, the merger is intended to “facilitate the administration of IP matters and economic issues more efficiently, by reducing redundancy and streamlining processes, ultimately leading to better policy implementation and enforcement,” in addition to other goals. As for the conference itself, Leka says it will serve as a roundtable for discussing the challenges businesses face and the legislative improvements needed. “The focus will be on harmonization and the journey toward EU integration, bringing together various stakeholders to address pressing issues in the IP and innovation landscape.”

Sidestepping into other legislative matters, Leka reports that there are several initiatives underway. “A new draft law dedicated to trademarks is now up for public consultation. It aims to fully align with relevant EU legislation. In this context, both the WIPO and EUIPO have reviewed and commented on the draft and provided their positive views.” Moreover, she reports that there is a “new cybersecurity law partially aligned with EU Directive no. 2022/2555, and there’s a proposal to fully harmonize our competition law with EU standards.” On the data protection front, Leka reports that “a draft law aligned with GDPR is also expected to pass soon.”

Looking ahead, Leka feels that the future is promising, but that there is also much work to be done. “Continued collaboration among stakeholders and sustained efforts to align with EU standards will be crucial. With the right resources and infrastructure, I believe we can achieve significant progress in the coming years,” she concludes.

A&O Shearman has advised the European Bank for Reconstruction and Development, the International Finance Corporation, and Intesa Sanpaolo Bank and its subsidiaries on a EUR 99 million financing to Karavasta Solar for the development, construction, and operation of a 140-megawatt power plant and a 19-kilometre overhead transmission line located in Fier municipality, Albania. Norton Rose Fulbright reportedly advised Karavasta Solar.

Karavasta Solar is a subsidiary of Voltalia, a renewable energy company.

According to A&O Shearman, “the solar project is the biggest photovoltaic system under construction in the Western Balkans, as well as the first utility-scale solar photovoltaic project in Albania resulting from the country’s first competitive auction for solar power following the introduction of the EBRD Renewable Energy Auctions Program in Albania. According to the EBRD, the project will be a model for other facilities in the Western Balkans region.”

The A&O Shearman team included Partners Miklos Kadar and Petr Vybiral, Senior Associate Jana Marsalkova, and Associates Tereza Veverkova and Jakub Roszyk.

On 15 February 2024, the Albanian Parliament adopted law no. 18/2024 “On some amendments and addendums on law no. 155/2015 ‘On gambling in the Republic of Albania’, as amended” (the “Gambling Law”). The amendment overturned a five-year ban on sports betting activities in Albania and entered into force on 27 March 2024.

According to the Gambling Law, sports betting will be now allowed but only in online form, based on the license issued by the Gaming Authority to companies with substantial experience in the field of sports betting. There will be 10 online sports betting licenses in total, issued through a competitive process, the rules of which are expected to be approved soon.

The license fee is the amount offered by the applicant declared as the winner of the license competition, but in any case, not less than 400,000,000 ALL (approximately EUR 3,9 million) payable in equal pro rata instalments throughout the license term.

Eligible applicants for online sports betting can be any legal entity or consortium, domestic or foreign meeting inter alia the following criteria:

• are registered as a joint-stock company in Albania, with a minimum share capital of 40 million ALL (approx. EUR 400,000).
• have gambling experience in at least 3 EU/OECD countries for at least 3 years, either directly or through a shareholder owning at least 30% of the company’s shares.
• have achieved a turnover of at least 2 billion ALL (approx. EUR 19,8 million) from gambling activities in the last financial year.
• have the necessary administrative, organizational, and reliability capacities.
• have in place an agreement with a provider for necessary programs/systems/websites/applications concerning online sports betting.

Operators must also be able to provide a guarantee for winners of games of chance, i.e. 120,000,000 ALL (approx. EUR 1,2 million) as a guarantee for paying winners of the betting games and 50,000,000 ALL (approx. 500,000 EUR) as a guarantee for the fulfilment of periodic obligations to other authorities.

Online sports betting can register with the betting platforms through their own personal data. Payments can be processed exclusively through financial agents (i.e., banks, licensed electronic currency institutions, and payment institutions in Albania), thereby prohibiting any cash transactions.

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.

By Alban Caush and Anisa Rrumbullaku, Partners, and Ermal Mema Associate, Karanovic & Partners

In Albania, renewable energy, start-ups, and gaming all present significant market opportunities according to Partner Anisa Rrumbullaku of CR Partners in cooperation with Karanovic & Partners, with significant changes being implemented that stand to not only revitalize the economy but also create a hotbed for legal expertise.

“The renewable energy sector in Albania is continuing to experience a dynamic and active period,” Rrumbullaku begins. “There’s a consistent increase in interest from various stakeholders including investors, developers, and lenders. Major law firms in Albania are continuously involved in this sector due to the influx of projects, especially in wind and solar energy,” she says. According to her, this shift is poised to “diversify Albania’s energy portfolio, traditionally dependent on hydroelectric power, and underscores the country’s commitment to renewable energy.”

Focusing on specific novelties in the area, Rrumbullaku says “there have been notable developments, particularly for solar and wind. The Ministry of Energy recently launched a 300-megawatt solar PV auction, with the deadline for bids set for May 17, 2024. This initiative has sparked considerable interest from local and foreign investors, highlighting the opportunities available for developing successful projects,” she reports. Together with “the previous two successful solar PV auctions and one wind auction, they have signaled a robust and growing interest in Albania’s renewable capabilities.”

Shifting the focus to the evolving start-up ecosystem, Rrumbullaku says that it is gaining momentum. “This is driven by increased access to technology and a growing entrepreneurial culture among the youth. However, challenges such as market size and brain drain have historically hindered progress. Recently, there have been positive changes including amendments to the Law on Start-ups in May 2023 and the establishment of a governmental start-up agency,” she reports. In addition, a “significant ALL 300 million grant program was just launched, creating a supportive climate for innovation – this presents many new opportunities for legal professionals to assist these emerging businesses, particularly in areas like legal structuring, fundraising, and IPR protection,” she believes.

Furthermore, Rrumbullaku shares that the “gaming industry in Albania is also seeing transformative changes. The gambling law was recently amended and implemented in early April, marking the return of permissible sports betting, but only in an online format. This law reopens the gambling market in Albania, which had been completely banned since 2018,” she shares. As she reports, “the government will award a total of ten licenses with stringent criteria; for example, applying companies or their shareholders must prove operation in at least three EU/OECD countries in the last three years and must have generated at least ALL 2 billion from the gaming industry alone in the last year.” Rrumbullaku stresses that this development seems to have attracted a lot of interest from gaming companies seeking to navigate the licensing process, “indicating a revival and potentially rapid growth in Albania’s gaming sector once the competition process for the online betting license officially kicks off.”

Finally, she highlights “these developments across renewable energy, start-ups, and gaming create numerous opportunities for legal professionals. In the renewable sector, the continuous stream of projects necessitates legal expertise in negotiations, regulatory compliance, and financing transactions,” she explains. And for start-ups, “legal needs span from establishing proper corporate structures to handling intricate granting and investment rounds. Meanwhile, in the gaming industry, impending new regulations and licensing requirements will likely demand thorough legal scrutiny and representation,” Rrumbullaku concludes.

Competition law reform in Albania is underway, marked by several important changes to Law no. 9121, dated 28.07.2003, “On Protection of Competition” (“Competition Law”). Within the context of harmonizing with the EU acquis, last November, the Albanian Competition Authority (“ACA”) launched a public consultation phase for the proposed amendments to the Competition Law (“Draft Law”). However, the final version of the Draft Law has not yet been submitted to Parliament.

In addition to provisions regarding the appointment process of the members of the commission and the financial autonomy of ACA, the current version of the Draft Law published by ACA has introduced some noteworthy amendments, as summarized below.

• Introducing new concepts

Some of the proposed amendments outlined in the Draft Law aim to incorporate essential concepts absent from the existing legislation yet deemed crucial for effectively implementing competition, especially within the public procurement procedures. These include:

Concerted Practice: coordination among undertakings which, without reaching the stage of concluding a formal agreement, knowingly cooperate in practice by preventing, restricting or distorting competition in the market. A concerted practice may be established by direct or indirect communication between undertakings the purpose or effect of which is to influence market behaviour or to reveal intended future behaviour to competitors.

Collusive Bidding Agreement: coordination among undertakings in public procurement procedures wherein such undertakings abstain from competitive bidding and instead, collude covertly to either inflate prices or reduce the quality of goods, services, or works. This collusion can take various forms: 

• Covered bid:
  • competitors collectively agree to submit higher bids than that of the pre-determined winning bidder;
  • a competitor submits a bid which is so high that it cannot be accepted;
  • a competitor submits a bid that contains technical specifications unacceptable to the contracting authority.

• Contained bid: competitors agree either not to submit bids or to withdraw previously submitted bids, ensuring that a predetermined bid, as per their agreement, will be accepted as the winning bid.
• Rotating bid: Competitors collectively agree to submit bids and prearrange that the winner will be selected in a predetermined order.
• Market segmentation: Competitors divide the market and agree not to compete in certain segments or geographical areas.

Invitation to Prohibited Agreement: An undertaking is prohibited from engaging in practices that encourage, obligate, motivate or in any other way invite other undertakings to participate in agreements or decisions by associations of undertakings or concerted practices with the aim of obstructing, restricting, or distorting competition.

Trade secret: encompasses information that:

• is confidential, meaning it is not widely disseminated or easily accessible to those typically involved with similar information;
• holds commercial value, affording the enterprise a competitive edge as long as it remains undisclosed;
• has been submitted to reasonable measures to maintain its confidentiality, as determined by the lawful owner under the given circumstances.

 

• Protection of confidentiality and trade secrets

The Draft Law reinforces the confidentiality obligation of ACA, mandating disclosure only upon the issuance of a final and binding court decision. This obligation encompasses information prepared by the involved parties during proceedings before ACA, information generated by ACA itself throughout its review process, as well as agreements and declarations from which the parties have withdrawn.

• Exclusion from immunity from fines

Immunity from fines (i.e., full leniency) shall not be extended to undertakings that have undertaken actions to compel other entities to participate in a restrictive agreement or to remain parties to it.

• New appeal deadline

The timeframe within which entities can file appeals against decisions made by ACA in court is extended from 30 to 45 days. However, departing from the current practice, entities will no longer have the right to appeal to the court concerning decisions made by ACA to initiate preliminary investigations.

• Killer Acquisitions

The Draft Law incorporates measures to enhance oversight of concentrations, particularly focusing on identifying and addressing ‘killer acquisitions’. As per the proposed amendments, ACA will extend its scrutiny to encompass the mergers of all undertakings meeting the turnover threshold criterion within two years of the transaction’s implementation, even if they did not meet the turnover threshold at the time of concluding the agreement. While aimed at fostering a competitive market, the practical implementation of this provision lacks clarity. It remains uncertain whether the authority will provide clear instructions for its practical implementation.

• Introduction of Statute of Limitations

Under the proposed revisions, a statute of limitations is introduced, a facet not currently addressed in the existing legislation. The Draft Law specifies a three-year time limit for cases involving violations related to information requests or inspections and a five-year limit for all other violations of the competition law. These timeframes aim to provide clear guidelines for the initiation of legal actions, promoting efficiency, clarity, and timely resolution of competition-related matters.

In summary, through the introduction of extensive amendments and innovative provisions, the Draft Law aims to address significant challenges, strengthen oversight mechanisms, and foster a fair and competitive market landscape. However, while the proposed revisions suggest positive advancements, their practical implementation and effectiveness in achieving the desired outcomes necessitate ongoing monitoring and assessment. 

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.

By Adi Brovina, Senior Associate, and Sirius Tartari, Associate, Karanovic & Partners

The Law no. 55/2015 “For strategic investments in the Republic of Albania”, determines the procedures and rules applied by state bodies for the examination, approval, and support by the Albanian government of strategic investments in Albania, both domestic and foreign. The deadline for obtaining ‘Strategic Investment’ status, after being postponed several times, expired on 31 December 2023, however now a new amendment pending approval by the parliament, aims – among other things – to extend the benefits of the law until 31 December 2027.

Draft Law Proposes Unified Investment Thresholds

Based on the sustained interest in this legal package and the current peak in both the inflow and accumulated stock of foreign investments, reaching the highest figures observed in the past decade in Albania, the amendment envisages extending the deadline for submission of applications to obtain ‘Strategic Investment’ status, until December 31, 2027. Until now, 88 investment projects have sought to obtain the ‘Strategic Investment’ status since 2016. Out of these, 40 projects have benefited, 14 have been rejected, and 34 are currently under evaluation, with the primary focus being the tourism sector.

In addition, based on the new draft law, there will no longer be distinct criteria for different investment sectors to obtain the Strategic Investment status; instead, all applications will adhere to unified investment thresholds, contingent upon the specific procedure they apply for.

To obtain the “Strategic Investment – Assisted Procedure” status, the proposed investment must be valued at 50 million euros or more, create a minimum of 300 new jobs, or target priority development areas. Meanwhile, projects that seek to obtain the “Strategic Investment – Special Procedure”, are required to offer an investment equal to or greater than 100 million euros or, the generation of a minimum of 500 jobs.

Investments obtaining “Strategic Investment – Assisted Procedure” status can benefit from priority treatment of preparation of documents, issuance of opinions and following of procedures which are in the scope of activity of state administrative bodies, land consolidation, support through auxiliary infrastructure financed by the government and the making available of state-owned immovable properties based on the applicable law.

Investments that obtain the ‘Strategic Investment – Special Procedure’ status on the other hand, in addition to the above, can benefit from the expropriation of private property to enable the development and implementation of the project and, approval by the Parliament of the relevant contracts of strategic investment to increase the security of the relationship between the investor and the government.

Increased Efficiency of the Review Process

The proposed amendments to the law also aim to streamline the application and review procedures, to make the process more efficient and easier to follow.

Initiating the procedure involves submitting a letter of interest to the Albanian Investment Development Agency (the “Agency“), with a noteworthy improvement being the reduction in the initially required extensive list of documents required for the initial application. The draft law emphasizes an early analysis of the investor profile by the Agency, cadastral identification of the proposed investment site, consultations with relevant authorities and cooperation of the Agency with the potential investor to prepare the application.

Following the submission of complete required documentation by the applicant, the Agency delivers the application to the responsible line ministry for review and approval, in which case the ministry must engage to review the file within 20 days. Following approval of the proposed investment and proposed support measures, the ministry delivers the proposal to the Strategic Investment Commission, which is the body in charge of rendering the final decision on whether the ‘Strategic Investment’ status will be granted or not. The procedure is finalized with the approval of the proposed strategic investment contract and support measures, by the Albanian Council of Ministers.

Overall, considering the more active role of the Agency in the procedures, the proposed changes will potentially reduce the processing time required to obtain the Strategic Investment status.

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.

By Oltion Myftari, Senior Associate, Karanovic & Partners

Albania has officially implemented law no. 29/2023, dated 30.03.2023 “On Income Tax”, effective starting from 1 January 2024; repealing and replacing law no. 8438, dated 28.12.1998 “On Income Tax”, as amended. Despite successive amendments over the years, law no. 8438 is deemed outdated and inadequate in addressing the contemporary principles and methodologies associated with personal income tax and corporate income tax (the “New Income Tax Law”).

The New Income Tax Law is designed to regulate the taxation of individual and corporate income, along with the taxation associated with Inheritance, Gifts, and income originating from Games of Chance. It elaborates the concepts outlined in the preceding law while incorporating novel principles and treatments, encompassing, among other things, the following provisions: 

New Regime on Employment Income Taxation

The New Income Tax Law provides for a new progressive taxation regime of employment income by setting annual thresholds [i.e., ALL 2,040,000 (approx., EUR 20,000)] and tax rates (i.e., 13% for income up to the annual threshold and 23% for the income over the threshold). However, it shall become effective starting from January 1^st, 2025.

Additionally, diverging from the preceding law, income garnered by a self-employed individual is deemed as employment income under specific conditions. This includes instances where at least 80% of the earnings stem directly or indirectly from one client, or if 90% or more of the total revenue originates from fewer than three clients. Nevertheless, an exception is made if the self-employed individual exclusively offers services to non-tax resident individuals or non-resident entities lacking a permanent establishment in Albania.

Personal Income (Business Income and Investment Income) Tax Rates

Business Income Tax

The New Income Tax Law stipulates a 15% tax rate for annual taxable profits up to ALL 14 million (approx., EUR 135,000) and 23% for amounts exceeding this threshold for self-employed and registered entrepreneurs. Nevertheless, self-employed individuals and entrepreneurs with an annual turnover up to ALL 14 million will maintain a 0% tax until 31 December 2029, except for a specific group of self-employed professionals identified by Decision of Council of Ministers no. 753, dated 20.12.2023 “On the applicable provisions of law no. 29/2023 ‘On Income Tax Law’”.

Investment Income Tax

According to the New Income Law, income originating from interest, dividends and royalties, capital gains deriving from the alienation of financial instruments and other securities, capital gains deriving from the investment made in a life insurance plan, return from investment made in a private pension scheme, capital gains deriving from the alienation of immovable property, income from the rental of immovable property, mining of virtual assets and from transactions with virtual assets shall be considered as investment income (to the extent they are not classified as business income). Individuals receiving income from any of the investment categories mentioned above are liable to a 15% personal income tax rate, with the exception of income derived from dividends, which is taxed at a rate of 8%.

Corporate Income Tax

The New Income Law signifies a notable departure from the prior legislation, especially in its methodology for characterizing entities subject to corporate income tax obligations. As per the New Income Law, all entities (i.e., establishments, partnerships, forms of cooperation recognized as a legal entity, assets or equity management entities, trusts, and those established through specific laws in Albania), are deemed taxpayers for corporate income tax purposes, irrespective of their annual turnover. The standard corporate income tax rate stands at 15%, with a specific subset of entities eligible for an alternative rate under the transitory regime outlined in Article 69 of the New Law on Income.

Taxation of Inheritance, Gifts, and Games of Chance Income

The new law regulates the taxation of inheritance, gifts, and gambling income for Albanian residents who receive such income in the country or abroad and for non-residents who receive such income from Albanian sources. The tax rate for inheritances, gifts and gambling income under this article is 15%, without deduction of any costs.

The New Law on Income Tax has sparked significant debate among professionals, prompting contemplation of a potential appeal to the Constitutional Court. The contention centres around allegations of a breach of the freedom of economic activity and disproportionality. Critics argue that the law deviates from the principle of taxing based on income, instead introducing distinctions based on the nature of the economic activity, which is perceived as an infringement on fair taxation principles. 

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.

By Ermal Mema, Associate, Karanovic & Partners

Albania’s Olsi Coku has been appointed a Partner with Kalo & Associates in Tirana, in a promotion round that also included Armando Toslluku’s appointment as a Special Counsel and Frensis Nakuci’s promotion to Senior Associate.

Specializing in banking & finance, projects, energy, licensing, concessions/PPPs, labor issues, and corporate governance, Coku joined Kalo & Associates back in 2020. Before that, he spent seven and a half years with Optima Legal & Financial, departing as a Partner. Earlier, he served as the Head of Legal Department at the National Agency of Tourism for almost three years, between 2010 and 2012. He also spent almost four years advising the OSCE, seven advising Roland Berger, and a year advising Credins Bank. He currently also serves as the Chairman of the Board of the Albanian Financial Supervisory Authority, since 2021.

“We at Kalo & Associates deeply value our people and believe that our growth as a firm should go hand-in-hand with their professional growth,” the firm announced.

Albania breaks new ground in its energy and financial sectors as it moves towards renewable energy and market liberalization, while significant changes are afoot in payment services and tax law, according to Tashko Pustina Partner Alban Shanaj, all of which point squarely toward a coming period of dynamic growth and opportunity.

“We’re witnessing an important milestone in Albania’s energy landscape,” Shanaj begins. “The Albanian Ministry of Infrastructure and Energy has recently awarded capacity to three bidders, totaling 222.48 megawatts for the country’s first onshore wind power plants. In addition, the Albanian Government has launched a new renewable energy auction aiming to construct 300 megawatts of PV power plants. Combined with the previous two PV auctions, these recent developments mark a departure from our traditional reliance on hydropower and align with the country’s 2030 renewable energy targets set out by the Energy Community,” he explains. “Supported by the EBRD, these projects, totaling overall more than 760 megawatts, are reshaping our energy production.”

Shanaj reports that the country is “undergoing a significant liberalization process of the wholesale and retail market, shifting towards a market-based power sector. A pivotal moment was the successful ‘go live’ of the day ahead by the Albanian Power Exchange (ALPEX).” Furthermore, he says that, “from January 2024, over 2104 businesses connected to the 20-kilovolt distribution grid have begun transitioning to the liberalized market. We’re assisting some of them in finding solutions for their electricity needs, both short and long-term,” he adds.

Shifting gears to finance, Shanaj says that the “payment services sector has undergone transformative changes. The Parliament oversaw a law on payment services in 2020, based on the PSD2, aiming to liberalize the payment services market and provide simpler solutions for customers. This law, in force since 2021, has been completed by regulations adopted by the Bank of Albania.” According to him, “a key regulation coming into effect this January focuses on enhancing strong customer authentication and adopting a fully open and secure communication standard which opens up exciting opportunities for both tech companies and traditional banks in open banking and payment services.”

In addition, Shanaj reports that the taxation framework has also undergone an overhaul. “A crucial law has recently entered into force, as of January 2024, tackling income tax, significantly altering how businesses and professions are taxed.” This law impacts both the business income and employment income tax. “One of the notable changes is the different taxable income for individuals based on their income sources: employment income or business,” Shanaj explains. “This law also introduces a qualification as employment income for income generated by self-employed persons if such income derives 80% from one customer or 90% from up to two customers, respectively. In addition, the new law also introduces a special regime for small businesses, with a threshold of around EUR 100,000 in annual income, offering them beneficial tax conditions.”

Finally, looking ahead, Shanaj expects a dynamic period in the immediate future. “There will be new opportunities, especially in energy sales, as we adapt to these market changes. Our role as legal advisors is to navigate these evolving landscapes, ensuring that our clients are well-positioned to capitalize on these opportunities,” he stresses in conclusion.

Albania is currently contemplating the revision of its existing legislation on industrial property currently regulated by one single law i.e., Law no. 9947, dated 7.7.2008 “On Industrial Property”, as amended. The existing law governs all domains of industrial property and business secrets, including patents of invention, utility models, trademarks, industrial designs, and geographical indications.

In December 2023, the Ministry of Economy and Finance officially released two separate draft laws for public consultation i.e., one on “Trademarks” and another one on “Patents of Inventions and Utility Models”. This initiative aims to abrogate the current legislation governing trademarks, patents of invention, and utility models specifically, as part of an effort to enhance and modernize the regulatory framework in these domains and fully align those with EU legislation. The primary objective of the drafts is to address observed legal gaps encountered during administrative procedures within the General Directorate of Industrial Property (GDIP) and civil trials in this domain, in accordance with best international practices.

Draft Law on Trademarks 

The draft law concerning trademarks seeks to improve and regulate various aspects of trademark protection, including absolute and relative grounds for refusal of unregistrable signs, and addressing signs that infringe the rights of proprietors of previously registered trademarks, with the purpose of offering greater protection to the legitimate proprietors. In this context, the proposed legislation expressly forbids authorized agents or representatives of a company to register a trademark in their name that rightfully belongs to another party. This prohibition addresses a prevalent practice in Albania, where agents or representatives have wrongfully engaged in similar registrations so far.

In addition, the draft law pays specific attention to the procedures concerning the registration, utilization, transfer, and licensing of trademarks. It additionally clarifies the classification of the list of goods/services and provides guidance on their proper specification within the application form or in response to subsequent inquiries. Furthermore, it aims to clarify better the institution of the priority right, encompassing priority rights arising from the initial display of goods or services in an international exhibition, followed by precedence established through prior registrations in other nations, in accordance with the relevant international conventions in which Albania maintains membership.

Finally, it regulates the procedures for the registration and protection of international trademarks registered with the World Intellectual Property Office (WIPO) and having effect in Albania.

Draft Law on Patents and Utility Models

The new draft law on patents focuses on defining the elements of invention, novelty, inventive step, and industrial applicability (including agriculture). It also introduces provisions for maintaining specialized registers for patents, utility models, and supplementary protection certificates – areas either unregulated or insufficiently addressed in the existing law.

Furthermore, the draft law improves the processes related to file inspections at the GDIP, reinstating the rights of patent proprietors, and seeks to ensure the presentation of comprehensive coverage in the official Bulletin of GDIP of applications, assignment, rectifications, ongoing processes, annulments, and invalidations of patents. It also addresses voluntary and compulsory licensing matters.

The application, registration, and effects of European patents, their conversion into national patents, and international applications under the Patent Cooperation Treaty are addressed, aligning national practices with international standards.

Although GDIP does not engage in substantive examination of invention patents, the draft law effectively regulates and enhances the procedures for conducting such examinations. The examination procedures align closely with established practices of countries that undertake substantive examinations, including those with which Albania has signed pertinent agreements, such as the European Patent Office. This aspect represents a novelty introduced by the draft law as compared to Law No. 9947.

To ensure alignment with international principles, Albanian authorities have sought input from both WIPO and EUIPO, reflecting their recommendations in the draft laws, in order to harmonize the proposed legislation fully with relevant EU acquis.

While the public consultation closed in December 2023, it is anticipated that the draft laws will be approved in 2024 by the Parliament. 

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.

By Alban Caush and Anisa Rrumbullaku, Partners, and Ermal Mema Associate, Karanovic & Partners