AZERBAIJAN Law and Practice Contributed by: Ismail Askerov and Amil Jafarguliyev, MGB Law Offices
basis without first assessing their professional quali - fications and ability to continue performing their job duties. Where an employment contract is terminated, employees are entitled to the statutory notice period or, alternatively, to monetary compensation in lieu of notice. The length of notice varies according to the employee’s tenure. The Labour Code does not contain specific rules governing the automatic transfer of employment. Employees may resign if they do not wish to continue their employment relationship following a change of ownership. There are no works councils, consultation or collec - tive bargaining requirements that must be satisfied to complete an acquisition or other investment transac - tion in Azerbaijan. 11. Intellectual Property and Data Protection 11.1 Intellectual Property Considerations for Approval of FDI Azerbaijani legislation does not establish a dedicated authority or regulatory framework for screening for - eign direct investment from an intellectual property (IP) perspective. Therefore, there is no FDI-specific IP review process. Nevertheless, IP rights may play a significant role in transactional structures involving foreign investment, particularly in sectors where franchising, licensing, know-how transfers and technology agreements are common. In addition, in the broader context of border and cus - toms controls, IP right-holders may request the rel - evant state authority to suspend the release of pirated or counterfeit goods, which can be relevant where for - eign investment involves the importation or distribu - tion of branded products. 11.2 Intellectual Property Protections Azerbaijan provides IP protection under its domestic legal framework and through participation in a number of international conventions and treaties, including the
Berne Convention, Madrid Protocol, Nice Agreement and Patent Cooperation Treaty. IP rights generally cover copyright, trade marks, patents, utility models and industrial designs. Copyright protection arises automatically and does not require registration, though right-holders may voluntarily register their works with the Intellectual Property Agency of the Republic of Azerbaijan (the “Agency”). Certain categories, such as official docu - ments, state symbols and daily news, are excluded from copyright protection. Trade marks require registration with the Agency and are protected for ten years from the date of appli - cation. Trade marks not registered in Azerbaijan may still receive protection if covered by applicable inter - national treaties. Signs that lack distinctiveness, are misleading, or contradict public order are ineligible for protection. Patents similarly require registration and confirm exclusive rights over inventions for the statutory pro - tection period. Subject matter such as discoveries, scientific theories and architectural works cannot be patented. Azerbaijani law does not require secondary politi - cal authorisation for obtaining IP rights, the granting process follows statutory timelines and AI-generated works are not explicitly protected under current leg - islation. IP right-holders may assign their rights to third par - ties and may seek damages, criminal sanctions, and confiscation of infringing goods in cases of violation. 11.3 Data Protection and Privacy Considerations Data protection is governed principally by the Law on Personal Data of 11 May 2010, which regulates the collection, processing, storage, transfer and cross- border transmission of personal data. Although the Law on Personal Data does not expressly provide for extraterritorial application, it is generally understood to apply to activities conducted within Azerbaijan.
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