Translated by
2019/11/07 17:14:07

Russian software Domestic software

The domestic (Russian) poizvoditel of the software (S) who are engaged in production of own (proprietary) software or "open source" (OS), or providing services in development, testing and support of software in orders of third parties the Russian legal entities in which not less than 51% of shares in authorized capital or actions, derivative instruments and other instruments of corporate control belong directly or indirectly to the Russian citizens or the state educations and also individuals who are citizens and tax residents of the Russian Federation can be recognized.

Content

Some large subjects connected with the Russian software are taken out in separate articles:

2019

The bill of preset of the Russian software on smartphones and computers is adopted in the first reading

On November 5, 2019 it became known that State Duma adopted in the first reading the bill of obligatory preset Russian software on smartphones and other technically difficult goods, held for sale century Russia. The association trade of the companies and producers household and computer equipment RATEK which opposes the bill, reported that before acceptance it was not approved with business. In case of acceptance the law will become effective since July, 2020.

It is supposed that adoption of the bill will well affect business of the Russian software developers. In particular, such perspective is mentioned in a response which the Government of the Russian Federation gave on the bill. The truth in July, 2019 the representative of RATEK stated a concern that in case of adoption of law the Russian developers instead of fight for improvement of product quality and attention of the consumer will begin to fight only for the place in the list of the Russian software approved to obligatory installation. The Government should make this list.

The packet of bills which will oblige producers to install on smartphones, computers and TVs with function of Smart-TV, held for sale in Russia, Russian software was introduced to the State Duma in July, 2019. It was entered by group of deputies headed by the Chairman of the Committee on economic policy Sergey Zhigarev, the representative of LDPR. Before Zhigarev already introduced to the State Duma bills on obligatory preset of the Russian software on smartphones, but these documents were withdrawn by it.

Unlike the Government, the legal department of the State Duma subjected the bill to severe criticism. Among other management specifies that if the requirement of obligatory preset of the Russian software of devices is introduced, then foreign vendors should buy the rights to it of software from the Russian companies. If any producers refuse to do it, the choice of smartphones and other equipment in Russia will become less that will not be equitable to consumer interests.

Besides, the legal department of the State Duma noted that the bill conflicts to other regulatory legal acts and some international obligations of Russia. In the conclusion of management it is specified that the document provides obligatory installation of the Russian software, but under the law "About Technical Regulation" those requirements to products which are included in technical regulations have a binding character only.

With consumer protection the bill has problems. For example, it does not consider that smartphones and other equipment in Russia are bought not only by citizens for domestic needs, but also legal entities and individual entrepreneurs. At the same time the law about "On consumer protection" to which it is offered to make amendments protects only the natural persons purchasing goods or services, and to legal persons and SP it does not extend.

At last, Zhigarev's bill contradicts the international obligations of Russia — his requirements will not be approved with provisions of the Agreement on the Eurasian Economic Union (EEU) signed in Astana in May, 2014. The agreement prohibits member states of EEU to demand from the companies from the countries of EEU[1] to buy or use goods or services of the specific country[2].

"The national base of medical knowledge" advances the bill of registration of medical software

On July 12, 2019 it became known what Ministry of Health refuses to support the federal law draft "About introduction of amendments to the Federal law "About Bases of Protection of Public Health" suggesting to enter, in particular, medical software a concept (MPO), a special order of its state registration and also an opportunity not to subject it some types of the software entering into MPO and that software which it is not. In more detail here.

Entry into force of the updated rules of check of the Russian software

On February 4, 2019 it became known of entry into force of the order of Ministry of Telecom and Mass Communications No. 722 on the statement of an order and a technique of confirmation of conformity of the computer programs and databases, data on which are included in the register of the Russian software, to the additional requirements approved by the order of the Government of the Russian Federation of March 23, 2017 No. 325. Read more here.

2018: The Russian antiviruses will oblige to set importers of the computer equipment

On August 20, 2018 it became known of the offer of the Ministry of Telecom and Mass Communications to enter obligatory preset of domestic anti-virus software on the computers imported to Russia. Market participants see danger to the market in this initiative.

According to Kommersant with reference to the passport of the national project "Digital Economy" entered the government, the Ministry of Telecom and Mass Communications suggests to provide legislatively import to Russia of computers only with the loaded antiviruses of the Russian development.

Suggested to install to the Ministry of Telecom and Mass Communications the Russian antiviruses on the imported computers compulsorily
Suggested to install to the Ministry of Telecom and Mass Communications the Russian antiviruses on the imported computers compulsorily

Not to contradict the principles of the World Trade Organization (WTO), regulation should be proved by the purpose of ensuring national security, believe in the Ministry of Economic Development

According to the expert in cyber security Kirill Kertsenbaum, forced installation of the Russian products will hardly be able to help with ensuring national security, and the lack of the competition will affect quality of antiviruses.

«
The idea in itself to compulsorily preset antiviruses — good. However the choice of the specific solution contradicts rather the main ideas of free market, the WTO and those initiatives which the state professes in other segments, for example, prohibiting mobile device manufacturers to pre-install specific applications or to prohibit to delete them — he said.
»

The head of the producer of antiviruses of ESET in Russia and the CIS Denis Mateev called "not really healthy" a situation when to the person do not allow to select a product for satisfaction of the requirements. According to him, the requirement to install the Russian antiviruses on the imported computers can lead to decline in quality of antiviruses and the security level of users.

The president of InfoWatch Natalya Kasperskaya supported the initiative of the Ministry of Telecom and Mass Communications.

«
The antivirus can collect information and then somewhere analyze it. How will it look in terms of security of the country if we deliver Symantec everywhere? Symantec will see at us everything — she said.[3]
»

2016

Selection of 5 billion rubles on software development financing

On March 1, 2016 reported to the Ministry of Telecom and Mass Communications of the Russian Federation that the Government of the Russian Federation approved the action for support of development and promotion of the Russian software (S) offered by the ministry for 2016 of 5 billion rubles. The corresponding point is included in "The action plan of the Government of the Russian Federation approved today by the Russian Prime Minister Dmitry Medvedev, aimed at providing stable social and economic development of the Russian Federation in 2016". The plan contains the structural measures directed to diversification of economy.

"It is an excellent example of target structural reform which positively influences development of the technological sector — the Minister of Telecom and Mass Communications of the Russian Federation Nikolai Nikiforov told. — Earlier the ministry offered different initiatives in this area, part of them are already implemented, and now we received the approved source financing of key projects in the field of development of the crucial software. Since January 1, (2016) the register of the Russian software works, he is actively filled, and is sure that thanks to this solution state customers in the long term will be able to save the considerable amount of funds for the purchases account of the Russian software created at state support as it will cost cheaper foreign".

The action provides selection and implementation not less than eight priority projects on development or modification of competitive software, its localization and promotion in the markets of foreign countries. The drafts of acts of the Government of the Russian Federation defining an order of selection of projects and a condition of their financing should be developed in March, 2016.

The action will be financed for an acquisition account based on the auctions held in February, 2016 on obtaining licenses for communication services provision in volume to 5 billion rubles in 2016. At the same time the volume of joint financing of projects in 2016-2017 should be not less than 6 billion more rubles.

Increase in sales amounts of software, according to the selected priority projects, and related services in the markets of foreign countries a minimum of 30 million US dollars in 2017 and 40 million US dollars in 2018, economy on purchases of software from means of the federal budget of not less than 2 billion rubles in 2017 and 3 billion rubles in 2018 and also means of the companies with the state participation in volume not less than 2 billion rubles in 2017 and 3 billion rubles in 2018 should become result of an action.

The register of domestic software is approved

Main article: Register of the domestic software

Since January 1, 2016 work of the Register of the domestic software which should be used by state agencies and state corporations of Russia when choosing the software capable to replace foreign solutions was approved.

2015

Rules of formation of the register of domestic software are approved

The government decree of November 16, 2015 No. 1236 approves rules of formation of the register of domestic software.

The Ministry of Finance refuses to the Ministry of Telecom and Mass Communications creation of the organization for financing of software

In the summer of 2015 of the Ministry of Telecom and Mass Communications suggested to create special autonomous nonprofit organization for financing of developers of software. The financial and economic block acted again against.

Vladimir Putin signs the law on the register of domestic software

Creation of the register of the Russian software is fixed by the federal law signed by the president Vladimir Putin in June, 2015.

2014

Mnkomsvyaz looks for money for financing of development of domestic software

In September, 2014 the Ministry of Telecom and Mass Communications suggested to help developers money due to 10% target collecting from sales of software with Russia. The Minister of Communications Nikolai Nikiforov was going to invest 120 billion rubles within 10 years in domestic IT developments. The President of Russia Vladimir Putin agreed with this idea. But the financial and economic block of the government did not support it. According to officials, this money it is heavy to raise and administer.

The idea of canceling of the preferential VAT for license software became the following possible funding mechanism for the industry. But also it was necessary to refuse it in December, 2014 when in the message to Federal Assembly the president suggested to record tax conditions for the next four years.

July 30, 2014: Discussions of determination of Domestic software in the Duma

As reported CNews on the eve of the final meeting of the Duma commission her responsible secretary Andrey Chernogorov, after long reflections the commission was ready to mitigate requirements for an admissible share of foreign participation in the IT companies. But here the commission resolutely refused to agree that the remained Russian share of the company also in the theory will be able to have a certain western accessory. Chernogorov expressed sincere bewilderment on the fact that the association at which name there is a word "domestic" upon tries to play into the hands of the foreign companies. In these conditions he predicted extremely ambiguous result of final commission session, however its pessimistic forecasts did not come true.

Final determinations which will be included into the document intended for deputies of the State Duma should be formulated by August 1. However already on July 30 it is clear that concerning the domestic developer it is about not exceeding of foreign participation in the company of level of 49%. At the same time all "offshore" clauses on a possibility of determination of a share of the Russian ownership via derivative tools and so forth are swept aside.

Also participants of a meeting managed to come to a consensus that in determination of the Russian IT product it is necessary to limit to some extent an allowed interest of the components which are contained in it which require runtime royalty fees to the foreign companies or their subsidiaries registered in the territory of the Russian Federation. However, Andrey Chernogorov right after the meeting was not ready to give exact number — this aspect continues to be discussed[4].

The Duma commission recognizes that for July 30, 2014 the uniform regulation where all these determinations could be entered, does not exist, but it is obvious that they will be required if legislatively to try to support the domestic companies and to create for them preferences at state procurements. Therefore in the context of the import substitution policy declared in the state all this work is represented very relevant.

July 23, 2014: Determination of Minpromtorg

On July 23, 2014 in Presidential Administration the meeting at which the criteria of determination of the domestic software (S) developed by Minpromtorg were discussed took place. Told about it to Vedomosti several people participating in a meeting or close to the Russian developers. The draft of the offer of the ministry with determination of "the software of the Russian origin" almost completely matching the recommendations of several associations of the Russian software companies — Associations of software developers, Russofta, the Russian association of the open source and Association of producers of the electronic equipment and devices was at disposal of Vedomosti.

At the beginning of June, 2014 the Presidential Administration recommended to Minpromtorg and the Ministry of Telecom and Mass Communications to develop determination of domestic software. Departments had time till July 10 to perform this order: first, to prepare determinations of domestic software and its producer, and secondly, to draft the amendments in the legislation stimulating public authorities and state corporations to purchase first of all software of the Russian origin.

The Ministry of Industry and Trade suggests to consider domestic that software product, the rights to which belong to the Russian legal person whose not less than 51% of authorized capital belongs to the Russian residents — individuals or the companies, state companies and state corporations, the unitary enterprises or territorial subjects of the federation. It is about final beneficiaries, but not about formal owners, follows from the offers developed by Minpromtorg.

The state support of domestic developers of software will help development of the industry and will promote strengthening of positions of the Russian companies in the internal and international markets, said in the document studied by Vedomosti. However, his authors warn, imposing to state buyers of domestic software is fraught with decrease in the competition: the domestic developer will be sure obviously of state support, and at him the motivation will not be developed by the software product. Participants of a yesterday's meeting agreed in opinion that, discussing import substitution, it is necessary to separate economic aspect (support of the Russian IT industry) from technology (IT security), the director of Internet Initiatives Development Fund Kirill Varlamov who was present at it says.

The main instrument of regulation of the industry experts of Minpromtorg see creation and maintaining the register of domestic software. Department suggests to give the Russian status to software products according to the same scheme which works for telecommunication equipment (the status of Russian is given to the equipment depending on what share of its cost value is the share of Russia).

About what an essence of offers of the ministry such is, is known by several people close to participants of the meeting. And on July 21, 2014 there took place the meeting of the time commission at the Federation Council concerning import substitution of software, and the representatives of Minpromtorg and Ministry of Telecom and Mass Communications who were present there agreed with determination of the Russian software as product, the rights to which belong to the person, not less than for 51% under control of the Russian residents, the member of the upper house Ruslan Gattarov says.

This position matches offers of the Russian associations of software developers, but differs from the offer stated on July 3, 2014 by members of the commission at the State Duma Committee on Science and High Technology. Those suggested to consider the Russian IT company, worthy priority access to the state order, such enterprise in which the share of the foreign capital does not exceed 25% minus 1 action, at which more than 75% of revenue are generated in Russia who is the Russian tax and legal resident, and the share of foreigners among his employees does not exceed 25%. This idea of National association of innovations and information technology development (NAIRIT) led by Olga Uskova, the president of the Russian developer Cognitive Technologies and the member of the commission at State Duma Committee belonged. Yesterday the representative of NAIRIT told Vedomosti that this association already approved a position with other IT associations. And the responsible secretary of the commission at committee of the Duma Andrey Chernogorov recognized that its former position was tough — it will be mitigated, he knows.

The option connecting the Russian origin of software with a contribution of Russia to revenue of his developer left no chance to become "domestic manufacturer" neither to Kaspersky Lab, nor, for example, Parallels: at both the most part of income is generated out of Russia. New criteria which were supported by Minpromtorg "are approved with market participants and are much more weighed and suitable for determination of domestic software", the managing director of Kaspersky Lab in Russia, the countries of Transcaucasia and Central Asia Sergey Zemkov says. The criterion of accessory of intellectual property makes to the Russian legal person sense, but it is important that also development was in Russia, the vice president for virtualization of Parallels personal computers Nikolay Dobrovolsky warns. Otherwise the foreign company will be able to assign the rights to a foreign product to the Russian legal person who does not have relations to its development, but affiliated with it whereas quickly it is impossible to transfer to the necessary country also development, he reasons[5].

The employee of the press service of Presidential Administration was limited to the fact that confirmed the fact of a yesterday's meeting. And the representative of the Ministry of Telecom and Mass Communications told only that department, performing order of the president, takes "comprehensive measures on development of the Russian software": in particular, the meeting with representatives of the largest Russian IT companies where "the expediency and practical benefits of introduction and determination of criteria of domestic software" and specific measures of support was in details discussed took place on July 18.

July 15, 2014: Determination of Domestic software from industry associations

On July 15, 2014 the ARPP "Domestic Software" profile IT associations, Russoft, RASPO, APEAP approved uniform determination of the domestic software. A pacing factor – the exclusive rights to software products belong to Russia. The Russian legal entity in which control is exercised by citizens of Russia or the state can be the owner. Criteria are published on [6]Associations of Software developers "Domestic Software".

The adoption of determination of the domestic software is the first step of support of the Russian software products. It is also offered to create the register of the domestic software and to set for software products of the register a priority at public procurements. At the same time in case of lack of the necessary Russian solution the state customers should have opportunity to buy foreign analogs.

"We worked on a formulation of criteria long enough. The Russian software developers, lawyers, independent experts took part in this work. The rights to the software product define its accountability of Russia and also create at us in the country profit center. Thus, this criterion is important both for ensuring technology independence, and for economic development of the country", - Evgenia Vasilenko, the chief executive of Association ARPP "Domestic Software" says.

According to her, it is very important to create in the country favorable conditions for development of the Russian software now. First of all, it is connected with stimulation of demand for national products that is widespread world practice.

"Acceptance of determination of domestic software was the answer to sanctions against Russia which unexpectedly sharply increased risks of application of foreign software. The measures of support of domestic manufacturers connected with it are limited to the purposes of purchases of software by state bodies and the enterprises with state. participation, also do not extend to public market. We continue to consider that the main measures state. supports of the Russian producers should be investments into education and Research and Development, decrease in administrative barriers and also export support" - the president of NP ROUSSOFT Valentin Makarov commented.

In the comment of TAdviser Alexander Pozdnyakov, the CEO of First Line Software, also notes importance of creation of comfortable conditions for developers of software for an opportunity to raise domestic software.

"The state already moves in the direction of creation of more convenient environment for the software companies. There is a reduced rate of social taxes. It is very correct. As for import substitution and questions of promoting of the Russian solutions - if in the country the good software is created - it will be bought without special promotional efforts from the state", - he considers.
"The initiative of the State Duma regarding legislative ensuring import substitution is extremely timely. We tried to give the most complete definition of criteria of the Russian software. Let's note that this determination allows to use to the Russian developers as a part of the software products the free software and the Open source software, at the same time the final solution will be, according to criteria, Russian" - Alexander Zhmurko, the president of NP RASPO says.

Criteria of determination of domestic software and domestic manufacturer of software are described in [7] of NP RUSSOFT sent to the State Duma of the Russian Federation. In the letter it is also specified that RUSSOFT supports measures of the state for information security support and technology independence. In addition to import substitution policy it is offered to make investments in research and development in the field of software engineering, to develop profile formation and the system of retraining of the IT personnel, creation of the program of support of highly technology export.

As necessary measures creation of the Commission on normative legal support of the specified tasks, including legislative fixing of a concept "domestic is specified to software". And so on. At the same time it is offered to limit a circle of software solutions for which use of import substitution, the types of solutions which are critical for information security, technology independence and global competitiveness of the country, such as is obligatory: operating systems (OS), database management system (DMS) and managements of data warehouses, CAD, EDMS, information security systems, cryptography and cyber security, ERP, data transmission system, etc.

See Also

Software developers in Russia

The free software in Russia

Export of software from Russia

Notes