ARMENIA’S ECONOMIC COURT STARTS CONSIDERING CLAIM AGAINST ARMENTEL, VYMPELCOM

ARKA
Nov 7, 2007

YEREVAN, November 7. /ARKA/. The RA Economic Court has started
considering a claim lodged by the Bi Line IT-Company against the
ArmenTel and Vympelcom telecommunication companies.

The Armenian company claims that the aforementioned companies are
using a brand consonant, in Russian and Armenian pronunciation, to
the brand registered by the RA Agency for Intellectual Property and
owned by the Armenian company.

The Bi Line Company launched its activities in Armenia in 1996 and
has been cooperating with such well-known companies as Microsoft,
Hewlett Packard, and the use of a brand consonant to the Bi Line
brand by other companies affects the company’s reputation, said Hayk
Harutyunyan, the representative of the company.

According to him, in 1996 the company got its brand registered, with
the brand written in Armenian letters. After the Russian Vympelcom
Company entered Armenia’s market and purchased ArmenTel, it wished
to get its brand, Bee Line, registered, with the brand written in
Russian letter.

"This name is actually consonant to the brand of the Armenian company.

The negotiations did not produce any positive results," Harutyunyan
said.

The Armenian company claims that the Vympelcom Company, represented
by its daughter company, is violating the Bi Line Company’s right
to intellectual property by using the Bee Line brand (consonant to
Bi Line in the Russia and Armenian languages) in Internet domains,
ad booklets, TV and radio advertising and even in voice messages
during the connection to the client service center.

On his part, the representative of the Russian company, lawyer
Armen Ter-Tachatyan claims that the Appeal Council of the Agency
for Intellectual Property permitted the use of the Bee Line brand in
Armenia in provided the entire range of services except for Internet
services.

The lawyer added that the Council’s decision is not in effect because
the Armenian Bi Line Company lodged a claim. To make a final decision
the Council intends to hold a meeting on November 30.

This is the first problem of this kind facing Russian mobile operators
in the Commonwealth of Independent States. Russian lawyers believe
that Vympelcom stands a small chance to get its brand registered in
Armenia by law.

The managing partner of Stas Marketing Partners (Russia) Andrey Stas
believes that the owners of the Armenian brand Bi Line can demand 5%
to 10% of Vympelcom’s proceeds from the use of the consonant brand
in Armenia.

Iks-Consulting (Russia) estimates ArmenTel’s proceeds from mobile
communication services in 2006 at $90mln.Thus, the use of a consonant
brand by Vympelcom will cost $4.5-$9mln.

Vympelcom (Bee Line brand) is a transnational company working in
Russia, Kazakhstan, Tajikistan, Uzbekistan, Ukraine and Georgia. It
has a total of 54mln subscribers. The company’s principal stockholders
are Alfa Group (Russia), and Telenor (Norway). The company’s shares
have been listed on the New York Stock Exchange for ten years. In
November 2006, Vympelcom purchased the ArmenTel Company. -0–