This information is derived from the State Department's Office of Investment Affairs' Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov

Real Property

The Mongolian Constitution provides that “the State shall recognize any forms of public and private properties.” The Constitution limits real estate ownership to adult citizens of Mongolia, though that limitation does not apply to “subsoil,” a term that is not expressly defined in the Constitution. Mongolian civil law allows private Mongolian citizens or government agencies to assume property ownership or use rights if the current owner or holder of use rights does not use the property or the rights. In the case of use rights, revocation and assumption is almost always written into the formal agreements covering the rights. Squatters may also under certain circumstances claim effective property ownership of unused structures.

Although foreigners and non-resident investors may own structures and obtain use rights to land, only Mongolian citizens may own real estate. Ownership of a structure vests the owner with control over the use rights of the land upon which the structure sits. Use rights are granted from periods of three to sixty years depending on the particular use right. Although Mongolia has a well-established register for immovable property – structures and real estate – it lacks a central register for use rights; consequently, investors, particularly those seeking to invest in rural Mongolia, have no easy way to learn who might have conflicting rights. Complicating matters, Mongolia’s civil law system has yet to develop a formal process for apportioning multiple use rights on adjacent lands or adjudicating disputes arising from conflicting use rights.

Mongolian law does allow creditors to recover debts by seizing and disposing of property offered as collateral. Mongolian law mandates that mortgages and other debt instruments backed by real estate, fixed structures, and other immovable collateral be registered with the Immovable Property Office of the General Authority for Intellectual Property and State Registration (GAIPSR). Beginning in March 2017, Mongolian law allows movable property (cars, equipment, livestock, receivables, and other items of value) to be registered with GAIPSR as collateral. Investors report that the Immovable Property registration system is generally reliable, but the Movable Property system is new and just beginning its implementation. At this point, the GOM has no accurate figure for land with clear titles.

Intellectual Property Rights

Mongolia supports intellectual property rights (IPR) in general, and as member of the World Intellectual Property Organization (WIPO) has signed and ratified most relevant treaties and conventions, including the World Trade Organization Agreement on Trade Related Aspects of Intellectual Property Rights (WTO TRIPS). Mongolia’s Parliament has yet to ratify the WIPO internet treaties. Nevertheless, the Mongolian government and its intellectual property rights enforcer, GAIPSR, make a good faith effort to comply with these agreements. For additional information on IPR protection, see website.

Under TRIPS and Mongolian law, the Mongolian Customs Authority (MCA) and the Economic Crimes Unit of the National Police (ECU) also have an obligation to protect IPR. MCA can seize shipments at the border. The ECU has the exclusive power to conduct criminal investigations and bring criminal charges against IPR violators. GAIPSR has the administrative authority to investigate and seize pirated goods. Of these agencies, GAIPSR makes the most consistent efforts to fulfill Mongolia’s treaty commitments. It generally has an excellent record of protecting U.S. trademarks and copyrights; however, tight resources limit the GAIPSR’s ability to act. In most cases, when a rights holder files a complaint, GAIPSR investigates. If it judges that an abuse has occurred, it has in every case so far seized the pirated products under its administrative powers granted under Mongolian law. Mongolia does not publicize figures of seizures of IPR violating contraband.

The U.S. Embassy is aware of two particular areas in which enforcement lags. First, legitimate software products remain rare in Mongolia, with GAIPSR estimating in early 2017 that at least 85 percent of the domestic market uses pirated software. GAIPSR enforces the law where it can but the scale of the problem dwarfs its capacity to deal with it. Second, pirated optical media are also readily available and subject to spotty anti-piracy enforcement. The growth of online downloads of pirated digital media by individuals, local Mongolian TV stations using pirated videos, radio broadcasters playing pirated music, and cellular service providers offering pirated ringtones has eclipsed local production and imports of fake CDs, videos, and DVDs. GAIPSR acknowledges that most local public and privately held TV stations, some 184 at latest count, regularly broadcast pirated materials; however, GAIPSR hesitates to move on these broadcasters, most of which are connected to major government or political figures. GAIPSR rarely initiates action on its own without prompts from rights holders.

Resources for Rights Holders

Contact at the U.S. Embassy in Ulaanbaatar Economic and Commercial Section; +976-7007-6001 or Ulaanbaatar-Econ-Comm@state.gov.

For additional resources on protecting IPR in Mongolia, please see the American Chamber of Commerce in Mongolia website. The U.S. Embassy also provides a list of attorneys available here.

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles.

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