I. Scope

1. This Annex shall be applicable to all types of the joint activities pursuant to the Agreement, except as otherwise specifically agreed by the Parties in written form.

2. This Annex regulates the allocation of rights between the Parties or cooperating organizations. Each Party and/or cooperating organization shall ensure that the other Party and/or cooperating organization can obtain the rights to intellectual property allocated in accordance with this Annex through contracts, or, if necessary, other legal means. This Annex does not otherwise alter or prejudice the allocation of intellectual property rights between a Party and/or cooperating organizations and nationals of its State, which shall be determined by the laws and other statutory Acts of that Party's State.

3. The conduct of the joint activities under this Agreement shall not affect the intellectual property rights of the Parties and/or the cooperating organizations which have been acquired earlier or resulted from independent activities or independent research (hereinafter referred to as background intellectual property).

The Parties shall, in accordance with the laws and other statutory Acts of their States, promote the provision of legal protection of background intellectual property of the Russian Federation and of the Republic of South Africa and/or the cooperating organizations of both Parties, created by means of State budgetary allocations, and shall implement measures aimed at preventing, identifying, investigating and restraining infringements with regard to such intellectual property. The transfer and use of background intellectual property shall be effectuated only after its legal protection in the territory of the State where it shall be used is granted to it in accordance with the laws and other statutory Acts of the States of the Parties.

The use of background intellectual property rights shall be determined by separate agreements between the Parties and/or the cooperating organizations.

4. Disputes concerning intellectual property rights arising from the implementation of the Agreement and separate agreements shall be resolved through discussions between the concerned cooperating organizations, or, if necessary, the Parties or their designees. Upon mutual agreement of the Parties and/or the cooperating organizations, disputes shall be submitted to arbitration for a binding decision in accordance with the generally recognized principles and applicable norms of international law. Unless the Parties or their designees agree otherwise in written form, the arbitration rules of UNCITRAL shall govern.

5. Termination or expiration of the Agreement shall not affect rights or obligations under this Annex.