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KAZAKHSTAN

N/A

Pillar Telecom infrastructure & competition  |  Sub-pillar Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in the telecom sector
Kazakhtelecom is a majority state-owned company (45.9% of shares are owned by the government) that provides most of Kazakhstan’s communications services, including broadband internet, mobile and television. It is reported that the company dominated the market and it also fully or partially owns a number of other backbone and downstream ISPs. According to the website of the Register of State Preporty of Kazakhstan, the government will start the privatization of the Kazakhtelecom in 2024. It is reported that the so-called Billing Center of Telecommunication Traffic, established by the government in 1999, helps monitoring the activity of private companies and strengthen the monopolist position of KazakhTelecom in the IT sphere.
Coverage Telecommunications sector

KAZAKHSTAN

N/A

Pillar Telecom infrastructure & competition  |  Sub-pillar Functional/accounting separation for operators with significant market power
Lack of mandatory accounting separation for dominant network operators
It is reported that Kazakhstan does not mandate accounting separation for operators with significant market power (SMP) in the telecom market. However, there is an obligation of functional separation since 2013.
Coverage Telecommunications sector

KAZAKHSTAN

N/A

Pillar Telecom infrastructure & competition  |  Sub-pillar Passive infrastructure sharing obligation
Lack of obligation to share passive infrastructure
It is reported that Kazakhstan has no obligation for passive infrastructure sharing in the country to deliver telecom services to end users, and it is not practiced in the mobile sector and in the fixed sector based on commercial agreements.
Coverage Telecommunications sector

KAZAKHSTAN

Since December 1994, entry into force in March 1995, last amended in January 2016
Since October 2015, entry into force in January 2016

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Effective protection covering trade secrets
Civil Code of the Republic of Kazakhstan

Enterprise Code of the Republic of Kazakhstan
The Civil Code of the Republic of Kazakhstan and the Enterprise Code of the Republic of Kazakhstan provide a framework for effective protection of trade secrets. According to Art. 126.1 and 1017.1 of the Civil Code of the Republic of Kazakhstan, a trade secret comprises valuable information including secrets of production (know-how), production technology, management model, as well as ways and methods of increasing profits. In addition, according to Art. 28 of the Enterprise Code of the Republic of Kazakhstan, among other provisions, the protection of trade secrets consists in prohibiting the unlawful receipt, distribution or use of information constituting a trade secret in accordance with this Code and the legislation of the Republic of Kazakhstan. This regulatory framework includes remedies and penalties for the disclosure of trade secrets.
Coverage Horizontal

KAZAKHSTAN

Since February 1997, entry into force in November 2004

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Adoption of the World Intellectual Property Organization (WIPO) Copyright Treaty
WIPO Copyright Treaty
Kazakhstan has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

KAZAKHSTAN

Since February 1997, entry into force in November 2004

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Signature of the WIPO Performances and Phonogram Treaty
WIPO Performances and Phonograms Treaty
Kazakhstan has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal

KAZAKHSTAN

Since June 1996, last amended in June 2018

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Copyright law with clear exceptions
Law of the Republic of Kazakhstan No. 6-I of June 10, 1996, on Copyright and Related Rights
Kazakhstan has a copyright regime under Law of the Republic of Kazakhstan No. 6-I of June 10, 1996, on Copyright and Related Rights. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Arts. 18-27 list the exceptions, which include the quotation, in the original language or in translation, for scientific or for research, polemic, critical or informational purposes and to the extent justified by the intended purpose; the reproduction, broadcasting or communication to the public by cable of architectural works, photographic works or works of fine art permanently located in a public; among others.
Coverage Horizontal

KAZAKHSTAN

Reported in 2018, last reported in 2022

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Enforcement of copyright online
Lack of adequate enforcement of copyright online
Copyright is not adequately enforced online in Kazakhstan. It is reported that foreign companies complain of inadequate IPR protection. Judges, customs officials, and police officers lack IPR expertise, which exacerbates weak IPR enforcement. In addition, it is reported that the rate of unlicensed software installation in the country was 74% in 2017 (above the 57% rate of the Central and Eastern European countries), for an estimated commercial value of USD 62 million. In addition, it is reported that online piracy is still a concern, particularly through piracy devices and applications, illegal recording and unlicensed use of software.
Coverage Horizontal

KAZAKHSTAN

Since December 1991

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Participation in the Patent Cooperation Treaty
Patent Cooperation Treaty
Kazakhstan is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal

KAZAKHSTAN

Since April 2004, last amended in December 2022
Since March 2015, as amended in July 2019, last amended September 2022
Since January 2015, last amended in October 2022

Pillar Foreign Direct Investment in sectors relevant to digital trade  |  Sub-pillar Commercial presence requirement for digital services providers
Law On the regulation of trading activities No. 544

Order On approval of the rules of domestic trade No. 264

Order On approval of the notification templates and the rules for submission of notifications by state authorities No. 4
In accordance with subparagraph 4-1 of Art. 7 of Law No. 544, the Minister of National Economy of Kazakhstan ordered the approval of the Rules of Domestic Trade (Order No. 264). Arts. 105-1 and 106-1 of the Rules mandate e-commerce sellers to indicate their BIN (business identification number), address of business operations on the territory of Kazakhstan and mobile telephone number registered in Kazakhstan in order to operate in the country. Additional information on this requirement is found in Annex 3-10 of Order No. 4.
Coverage E-commerce sellers

KAZAKHSTAN

Since July 1999

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Practical or legal restrictions related to the application process for patents
Patent law of the Republic of Kazakhstan
According to Art. 38 of the Patent law of the Republic of Kazakhstan, foreign individuals, foreign legal entities and stateless persons residing in the Republic of Kazakhstan enjoy the same rights as the Kazakhstani citizens. However, under Article 36.5 of the Patent Law of the Republic of Kazakhstan, natural persons residing outside the Republic of Kazakhstan or foreign legal entities shall exercise their rights as patent applicants and patentees, as well as the rights of interested person in the authorized body and its organizations, through local patent attorneys. Pursuant to Art. 1 of the Law, patent agents are citizens of the Republic of Kazakhstan who, in accordance with the legislation of the Republic of Kazakhstan, have the right to represent natural and legal persons before the authorized body and expert agency.
Coverage Horizontal

KAZAKHSTAN

Since January 2012

Pillar Foreign Direct Investment in sectors relevant to digital trade  |  Sub-pillar Screening of investment and acquisitions
Law No. 527-IV On national security of the Republic of Kazakhstan
According to Art. 23.6.7 of the Law on National Security, it shall be prohibited that foreigners, stateless persons, and foreign legal entities to directly and (or) indirectly own, use, dispose of and (or) manage cumulatively in excess of 49% of the voting shares, as well as stakes, units of a legal entity engaged in telecommunications as a long-distance and (or) international telecommunications operator, possessing land (cable, including fiber optic, radio relay) communication lines with no positive decision of the Government of Kazakhstan based on the opinion of the authorised body regulating the field of communications, agreed with the national security agencies. It is reported that, in practice, foreign investors must obtain a government waiver for the acquisition of more than 49% of shares in a company providing telecommunication services.
Coverage Telecommunications sector

KAZAKHSTAN

N/A

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Kazakhstan is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2016.
Coverage Horizontal

KAZAKHSTAN

Since January 2016
Since July 1999

Pillar Foreign Direct Investment in sectors relevant to digital trade  |  Sub-pillar Maximum foreign equity share
Government Resolution No.13 on Certain Matters Pertaining to the Implementation of State Support of Investments

Law No. 451-I on Mass Media
According to Government Resolution No. 13 dated January 2016 on Certain Matters Pertaining to the Implementation of State Support of Investments, production of digital goods such as computers, electronic and optical products is identified as a priority area for implementation of foreign investment projects, among others and are therefore subject to investment preferences. However, certain restrictions still exist in sectors related to digital economy. For instance, in accordance with Art. 5 of the Law on Mass Media, foreigners and foreign legal entities as well as stateless persons cannot directly and (or) indirectly own, use, dispose and (or) manage more than 20% of the shares of a legal entity which is the owner of a mass media organization in Kazakhstan or carries out activities in this area, including online mass media. This requirement does not apply to internet resources intended for electronic commerce.
Coverage Online mass media

KAZAKHSTAN

Since January 2016

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Law No. 434-V on Public Procurement
According to Art. 14 of the Law on Public Procurement, with regard to the goods originating in foreign countries and works, services, respectively performed by foreign potential suppliers, the national treatment is applied only in cases and upon conditions stipulated by international treaties ratified by Kazakhstan. The Law prescribes that the Government of Kazakhstan shall have the right to establish exemptions from the national treatment for a period not exceeding two years in order to protect the foundations of the constitutional system, ensure the country's defense and national security, protect the domestic market, develop the national economy and support domestic producers.
Coverage Horizontal

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