Sunday, November 22, 2015

Russian Officials Banned from Using Foreign Software

On November 20, Russian Prime Minister Dmitry Medvedev has signed the Governmental Order №1236 which bans government entities from using foreign software if a Russian alternative exists. The Order comes into force January 1, 2016. This measure is meant to strengthen the Russian tech industry.

Ministry of Telecom and Mass Communications of the Russian Federation will establish a register of software that qualifies as “Russian” under the act. In order to qualify as Russian, the software must be owned by an entity with no less than 50% Russian shares.  Licensing fees paid to foreign foreign right holders cannot exceed 30% of revenue.

According to Nikolay Nikiforov, Minister of Telecom and Mass Communications, “We should purchase national software at the expense of our taxpayers. Tens of billions of rubles will be annually used for development of our country and improvement of life quality of our citizens.”