Commission Report 2002 (Romania)

• Progress since the last Regular Report
• Overall assessment
• Conclusion

Chapter 5: Company Law

Progress since the last Regular Report

In the year under review some further progress was made as regards company law, accounting regulation, and the protection of intellectual and industrial property rights.

Regarding company law new legislation was largely confined to implementing legislation in the area of bankruptcy procedures including measures for creditor protection.

As regards accounting, Romania has already transposed much of the content of the 4th, 7th and 8th Accounting Directives. This process continued throughout the year with further transposition of the 4th Accounting Directive. Responsibility for overseeing the implementation of the 8th Accounting Directive on financial audit lies with the Romanian Chamber of Auditors, whose status as a public non-profit professional body was confirmed by Act of Parliament in the course of the reporting period. The number of auditors registered with the Chamber has now risen to 1 400.. The Chamber issued a number of standards for training in the course of the year.

In the field of industrial and intellectual property rights, the process of further alignment and transposition of the acquis has continued during the reporting period.

Romania adopted legislation concerning related rights for film producers. Additional legislation has been adopted to achieve approximation in the area of the protection of biotechnological inventions. Romanian legislation is now fully compatible with the provisions of the European Patent Convention and with the WTO TRIPS agreement.

Romania has a long tradition of legislation on industrial property rights and is a member of all the international conventions relevant to the acquis. Since the last Regular Report, Romania has taken further steps towards completing the process of becoming a member of the European Patent Convention. As regards enforcement, further legislation defining the role of the Romanian Copyright Office (ORDA) and its overall responsibilities for legislation in this area was adopted. However, additional clarification on ORDA`s responsibilities in enforcement activities is still required, as well as further reinforcement in staffing. The number of actions taken and of seizures of counterfeited and pirated goods increased in 2002. While overall levels of piracy remain high, there has been a noticeable reduction as evidenced by statistics provided by the Romanian authorities and by industry sources.

No major developments can be reported as regards the Regulation replacing the Brussels Convention on jurisdiction and enforcement of judgements in civil and commercial matters and the Rome Convention on the law applicable to contractual obligations.

Overall assessment

In the area of accounting law, Romanian legislation is largely in line with the acquis. Romanian legislation now provides the framework for consistent application of the Harmonised Accounting Regulations in relation to Romanian Accounting Standards.

The body responsible for Accounting Standards is the Ministry of Finance through the Department of Accounting Regulations. Romania does not plan to create an independent accounting standards body before 2005, by which time it expects to have completed the implementation of the International Accounting Standards.

In the field of industrial and intellectual property rights, Romanian legislation is generally consistent with the acquis. Further alignment should be pursued in order to transpose the Directive on copyright in the information society and the Directive on the resale rights.

The Romanian Copyright Office and the Office for Inventions and Trademarks are the competent authorities to which right-holders can present applications for intellectual and industrial property protection. As regards administrative capacity, despite considerable progress, further improvements in staffing and budgets remain necessary. Efforts to improve statistical reporting should also be continued.

The import into Romania of pirated and counterfeit goods is a particular concern and results in large quantities of such goods in circulation (estimated by private industry at 70% for music products, 75% for software products and 60% for videos). Further progress remains necessary with implementing border controls and enhancing co-operation between enforcement bodies involved in industrial and intellectual property protection. The creation of an efficient inter-institutional network is vital in making progress in the fight against piracy and counterfeiting. Communication and co-operation between customs, police, border police, the Ministry of Justice and the judiciary need to be improved and the joint training programmes now established should be pursued in the future.

Conclusion

In its Opinion in 1997, the Commission concluded that the legislative effort made with regard to intellectual property attested to Romania`s desire to conform to the acquis. The Commission added that the implementation would have to be watched closely. As regards company law, Romania`s assimilation of the acquis would present no major problems.

Since the Opinion, Romania has continued the process of alignment with the acquis on company law. Improved administrative structures and intensified co-operation between general law enforcement agencies has led to a recent decline in the level of piracy and counterfeiting. Nevertheless, this remains a serious problem and the enforcement of intellectual and industrial property rights is a particular concern.

Negotiations on this chapter have been provisionally closed. Romania has not requested any transitional arrangements in this area and has agreed to a proposal put forward by the EU concerning industrial property rights for pharmaceutical products and Community Trademark. Romania is generally meeting the commitments it made in the accession negotiations in this field.

Romania should focus further efforts on reducing the level of piracy and counterfeiting. Further transposition of the acquis is necessary as concerns Economic Interest Groupings, as well as for provisions on the jurisdiction and enforcement of foreign judgements in civil and commercial matters.

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