Category: Estonia

  • Ellex Raidla Represents Ekspress Grupp in Dispute Over Approval of Annual Reports

    Ellex Raidla Represents Ekspress Grupp in Dispute Over Approval of Annual Reports

    Ellex Raidla has represented media group AS Ekspress Grupp in a dispute with Grupivara OU involving the approval of AS Ekspress Grupp’s annual reports.

    According to Ellex Raidla, “the action brought by OU Grupivara [alleged] that the goodwill of AS Ekprerss Grupp’s on-line news portals Delfi Eesti and Delfi Latvia should have been written down in the annual report, in which case no distributable profit would be arisen.”

    The firm reports that, on August 30, 2017, “the Supreme Court did not accept the appeal in cassation of OU Grupivara with regard to the decision of a general AS Ekspress Grupp shareholders’ meeting to approve the annual report 2013 as well as the profit sharing plan.” The November 14, 2016 decision of the Harju County Court of thus became final.

    The firm’s team consisted of Partner Arne Ots and Senior Associate Martin Raude.

  • TGS Baltic Assists IUVO Group on Application for Credit Intermediary Authorization

    TGS Baltic Assists IUVO Group on Application for Credit Intermediary Authorization

    TGS Baltic has advised Bulgarian crowdfunding platform IUVO on its obtaining of credit intermediary authorization from the Estonian Financial Supervision Authority.

    According to TGS Baltic, “pursuant to the act passed by the Parliament (Riigikogu) on February 18, 2015, creditors and credit intermediaries are subject to supervision by the Estonian FSA.” The firm reports that “IUVO is the first online credit market in Estonia to offer products from the Balkan countries, more precisely from Bulgaria. The services of IUVO are used by over thousand investors from 35 different countries all over the world and the total amount of loans listed is currently over 18 million euros.”

    The firm’s team was led by Partner Marko Kairjak, working with Associates Nikita Divissenko, Elina Varendi, and Sille Rastas.

  • Cobalt Advises AS DNB Pank on Application for Additional Authorization

    Cobalt Advises AS DNB Pank on Application for Additional Authorization

    Cobalt Estonia advised Aktsiaselts DNB Pank, a subsidiary of Norway’s DNB Bank ASA, in applying for an additional credit institution authorization from the European Central Bank and the Estonian Financial Supervision Authority.

    This additional authorization allows Aktsiaselts DNB Pank to broaden its product and service portfolio, and provide investment and ancillary services to its clients.

    Cobalt advised Aktsiaselts DNB Pank on all matters related to applying for a new credit institution authorization, including preparing for the application process, drafting the application and other documents required in relation to the process, and communicating with the supervisors carrying out the application proceedings. The firm’s team included Partner Kristel Raidla-Talur, Associate Mattias Tammeaid, and Senior Associate Heleri Tammiste.

  • Cobalt Advises on ICO of Robot Interviewing Company

    Cobalt Advises on ICO of Robot Interviewing Company

    Cobalt is advising on the initial coin offering of Robot Vera.

    According to Cobalt, “Robot Vera specializes in mass hiring, and does all the work ten or more times faster than a human recruiter. Robot Vera is able to recognize the candidate’s emotions in video interviews and also conduct conversations in virtual reality. It is also learning to lead a ‘live conversation’ and answer the counter-questions of applicants about the vacancy and the employer. Over the last 1.5 years, the company developing Robot Vera has raised investments amounting to more than USD 1.1 million from the Internet Initiatives Development Fund (IIDF), one of the most active venture capital funds in Europe. The company is mainly active in Russia and decided to organize an ICO to raise up to USD 10 million for global expansion.”

    Cobalt reports that “ICO (initial coin offering, also referred to as token sale) has become increasingly popular type of crowdfunding, the estimated total amount raised during 2017 already being well in excess of USD 1 billion. ICO is arranged through a blockchain platform using smart contract functionality, [and] cryptographic tokens can be acquired for crypto or fiat currency and later sold on various crypto exchanges.”

    The Cobalt team was led by Partner Kristel Raidla-Talur and included Associates Christine Magi and Mattias Tammeaid.

  • Rask Advises the Narva Vaba Lava Cultural Center in Narva

    Rask Advises the Narva Vaba Lava Cultural Center in Narva

    Rask Attorneys-at-Law has advised on the establishment of the Narva Vaba Lava cultural center in Narva, Estonia.

    According to Rask, “Vaba Lava is a modern and open center for the performing arts, aimed at providing and helping small theaters and groups with renting-out rooms, as well as offering other supporting services. In addition to Vaba Lava, the new cultural center in Narva will also accommodate creative start-up companies.”

    Rask reports that it is supporting the cultural center “mainly in everyday corporate matters, drafting and reviewing contracts, and other legal issues.”

    Allan Kaldoja, the leader of Narva Vaba Lava, is impressed with the firm’s work. “I am very pleased with the cooperation with Rask Attornerys-at-Law. The attorney’s job is to offer, in addition to professionally maintained legal affairs, peace of mind – which I totally get as I trust the attorneys that work with me. I highly appreciate Rask’s eagerness to assist in socially important endeavors, if necessary, also pro bono.“

  • Primus Advises LHV Pension Funds and Lumi Capital Joint Venture on Investment in Talinn Apartment Buildings

    Primus Advises LHV Pension Funds and Lumi Capital Joint Venture on Investment in Talinn Apartment Buildings

    Primus has advised a joint venture of Lumi Capital and LHV pension funds on their July 2017 entrance into a transaction with a joint venture of Hepsor Kinnisvara and Tolaram Group to develop and acquire two apartment buildings in the new Sitsi Ounaaed development in the Pelgulinn district of Tallinn.

    Sitsi Ounaaed, which is located on the area of a former textile industry at the corner of Sole and Sitsi streets in Tallinn, consists of four apartment buildings and one parking structure. LHV and Lumi Capital will acquire two of the apartment buildings, which include 127 apartments and some of the parking spaces. The sole investor for the strategy are pension funds managed by LHV Varahaldus, while Lumi Capital will manage the investments and is engaged in finding more suitable projects.

    According to Mihkel Oja, Chairman of the Management Board of LHV Varahaldus, “the aim is to have long-term tenancy and management of rental apartments for the purpose of rental income.”

    Primus advised the joint venture of LHV pension funds and Lumi Capital in the transaction on preparing and negotiating all transaction documents. The Primus team consisted of Partner Ermo Kosk and Senior Associate Rutt Vark.

  • Cobalt Advises Ekspress Grupp on Founding of New Affiliate

    Cobalt Advises Ekspress Grupp on Founding of New Affiliate

    Cobalt has advised AS Ekspress Grupp on its foundation of a new affiliated company, OU Kinnisvarakeskkond, which will develop a new real estate portal.

    AS Ekspress Grupp — which Cobalt describes as “a leading media group in the Baltic countries” — owns 49% of the shares of OU Kinnisvarakeskkond.

    Cobalt’s team was led by Partner Peeter Kutman and Associate Liina Saaremets.

  • Hedman Partners Advised Fusion Varahalduse on Merger with United Finance

    Hedman Partners Advised Fusion Varahalduse on Merger with United Finance

    Hedman Partners has advised a majority shareholder of Fusion Varahalduse AS on its merger with United Finance, a financial institution in the Finnish capital.

    According to Hedman Partners, “Fusion Varahaldus provides full-service leasing on best terms for different types of assets such as IT, medical, and industrial equipment and office furniture, but also agricultural, construction, forest, and other special equipment. As a result of the merger, United Finance shall be the first in the Baltic States to offer client management services with integrated financial solutions that shall significantly improve the availability of capital for companies of different sizes and brings services closer to the end users.”

    The Hedman Partners team was led by Partners Merlin Salvik and Dmitri Tsimpoaka.

  • Hedman Partners Acting as Collateral Agent in Estonia

    Hedman Partners Acting as Collateral Agent in Estonia

    Hedman Partners is acting as a collateral agent in a EUR 6.5 million bond issue financed entirely through the capital markets, with more than 50 Baltic investors taking part.

    According to Hedman partners, “the issuer of the bonds was Vega Residents OU, which is a project company for development of a 12-story building in Lasnamae with nearly 300 apartments.”

  • Persons Entitled to File a Claim to Terminate the Exclusive Right of a Trademark Holder for Non-Use in Estonia

    Some time ago the Supreme Court of Estonia issued Decision No 3-2-1-167-14 in a cancellation action involving the substantial question of determination of an interested party. This decision expanded the rights of the trademark owners. However, even though the decision provides some insight on which interested parties may file a cancellation action based on non-use of a trademark, the term “an interested party” still remains vague in Estonia.

    In Estonia, an interested person may file an action against the proprietor of a trademark to have the proprietor’s exclusive right to the trademark be declared extinguished if the registered trademark has not been used for five consecutive years after its registration without good reason. The main procedural problem related to this ability is the specification of the person entitled to file the claim. The aim of this article is to chart which persons qualify as “interested parties” for the purposes of such claims.

    A review of court practice in Estonia reveals that those filing claims to terminate the exclusive right on the grounds of non-use of a trademark can be divided into two groups: (1) applicants seeking to register a trademark; and (2) users of a trademark identical or similar to that of the claimant. Thus, it is possible to map the following groups of persons who may qualify as “interested” for procedural purposes:

    1. A claimant who has filed an application for an identical or similar trademark to designate identical or similar goods or services prior to filing a claim to terminate the exclusive right

    2. A claimant who has filed an application for an identical or similar trademark to designate different kinds of goods or services prior to filing a claim to terminate the exclusive right

    3. A claimant who uses an unregistered identical or similar trademark to designate identical or similar goods or services prior to filing a claim to terminate the exclusive right

    4. A claimant who uses a registered identical or similar trademark to designate identical or similar goods or services prior to filing a claim to terminate the exclusive right

    5. A claimant who is either the user or the holder of a well-known identical or similar trademark

    Before the Supreme Court’s decision, Estonian courts had drawn the circle of interested persons narrowly. This approach was not appropriate and was not in accordance with EU law and the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights Agreements. Indeed, it is important to avoid drawing the circle too conservatively, because often filing a cancellation action may be the only way for an interested person to exercise and protect his/her rights and avoid initial conflict.

    Although under current IP law only interested persons can file a cancellation claim, the planned IP Code would allow any person to file a claim, whether interested or not. This provision, if codified, would conflict with other elements of Estonian legislation, including, most notably, § 3 (1) of the Code of Civil Procedure (CCP), which provides courts with jurisdiction over any claims made pursuant to procedures provided by law for the protection of the claimant’s alleged right or interest protected by law. Another conflict exists with § 3 (3) of the CCP, which states that a claim may be filed by a person whose rights or interests would have remained unprotected save for filing the court claim. Thus, court proceedings involving a claim to terminate the exclusive right require that the nature of the claimant’s interest and the way in which the contested trademark infringes his/her rights or freedoms be established.

    By Anneli Kapp, Partner, Patendiburoo KAOSAAR

    This Article was originally published in Issue 4.5 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.