5. Protection of Property Rights
Poland recognizes and enforces secured interests in property, movable and real. The concept of a mortgage exists in Poland, and there is a recognized system of recording such secured interests. There are two types of publicly available land registers in Poland: the land and mortgage register (ksiegi wieczyste), the purpose of which is to register titles to land and encumbrances thereon; and the land and buildings register (ewidencja gruntow i budynkow), the function of which is more technical as it contains information concerning physical features of the land, class of land and its use. Generally, real estate in Poland is registered and legal title can be identified on the basis of entries in the land and mortgage registers which are maintained by relevant district courts. Each register is accessible to the public and excerpts are available on application, subject to a nominal fee. The registers are available online.
Poland has a non-discriminatory legal system accessible to foreign investors that protects and facilitates acquisition and disposition of all property rights, including land, buildings, and mortgages. However, foreigners (both individuals and entities) must obtain a permit to acquire property (See Section 1 Limits on Foreign Control and Right to Private Ownership and Establishment). Many investors, foreign and domestic, complain the judicial system is slow in adjudicating property rights cases. Under the Polish Civil Code, a contract to buy real property must be made in the form of a notary deed. Foreign companies and individuals may lease real property in Poland without having to obtain a permit.
Widespread nationalization of property during and after World War II has complicated the ability to establish clear title to land in Poland, especially in major municipalities. While the Polish government has an administrative system for reviewing claims for the restitution of communal property, former individual property owners must file and pursue claims in the Polish court system in order to receive restitution. There is no general statute of limitations regarding the filing or litigation of private property restitution claims, but there are exceptions for specific cases. For example, in cases involving the communist-era nationalization of Warsaw under the Bierut Decree, there were claims deadlines that have now passed, and under current law, those who did not meet the deadlines would no longer be able to make a claim for either restitution or compensation. During 2020, Warsaw city authorities continued implementing a 2015 Law dubbed the Small Reprivatization Act. This Law aimed to stop the problem of speculators purchasing Warsaw property claims for low values from the original owners or their heirs and then applying for a perpetual usufruct or compensation as the new legal owner. On September 17, 2020, Parliament adopted further amendments to the 2015 law. The revised legislation established new grounds on which the City of Warsaw must refuse the return of properties, for reasons outside claimants’ control. The president signed the legislation on September 29. NGOs and advocacy groups expressed serious concerns that the 2015 law fell short of providing just compensation to former owners who lost property as a result of the nationalization of properties by the communist-era government, and also properties taken during the Holocaust era. Legal experts expressed concern that the law limited the ability of petitioners to reclaim property unjustly taken from their lawful owners. The World Jewish Restitution Organization asserted that the time limits included in the law were insufficient for potential claimants, particularly Holocaust survivors and their heirs, to meet difficult documentary requirements.
Critics state the law might extinguish potential claims by private individuals of properties seized during World War II or the communist era, if no one comes forward to pursue a restitution claim within the time limit. Any potential claimants who come forward within six months after publication of the affected property by the City of Warsaw will have an additional three months to establish their claim. The city began publishing lists in 2017 and continued to do so during 2021. The city’s website contains further information on these cases and the process to pursue a claim:
It is sometimes difficult to establish clear title to properties. There are no comprehensive estimates of land without clear title in Poland.
The 2016 Agricultural Land Law banned the sale of state-owned farmland under the administration of the National Center for Support of Agriculture (NCSA) for five years. Long-term state-owned farmland leases are available for farmers looking to expand their operations up to 300 hectares. Foreign investors can (and do) lease agricultural land. The 2016 Agricultural Land Law also imposed restrictions on sales of privately-owned farmland, giving the NCSA preemptive right of purchase.
The 2011 amendment to the law of Management of Farmland Administered by NCSA and 2016 Agricultural Land Law adversely affected tenants with long-term state-owned land leases. According to the law, renters who did not return 30 percent of the land under lease to NCSA would not be eligible to have their leases extended beyond the current terms of the contract. Currently, several entities, including U.S. companies, face the prospect of returning some currently leased land to the Polish government over the coming years. Three of these entities appealed to the Ombudsman, who requested the Constitutional Tribunal (CT) to verify the law’s compliance with the constitution, but the cases were dismissed by the CT in the fall of 2020. In June 2019, the Polish Parliament amended the Agricultural Land Law to loosen land sale requirements. The amendment increased the size of private agricultural land, from 0.3 to 1.0 hectare that could be sold without the approval of the NCSA. The new owner is not allowed to sell the land for five years. The 2019 amendment did not change the land lease situation for larger operators, many of whom continue to remain ineligible to have their land leases extended. The Law on Forest Land similarly prevents Polish and foreign investors from purchasing privately-held forests and gives state-owned entities (Lasy Panstwowe) preemptive right to buy privately-held forest land.
On March 9, 2021, the Council of Ministers approved a draft law amending the 2016 Agricultural Land Law. The amendment extends the ban on selling state-owned farmland under the administration of the NCSA for another five years, until May 1, 2026. If the draft amendment of the Agricultural Land Law is approved by Parliament, it will enter into force on May 1, 2021. The 2021 amendment will not change the land lease situation for larger operators, who will remain ineligible to have their land leases extended.
Intellectual Property Rights
Polish intellectual property rights (IPR) law is more strict than European Commission directives require. Poland is a member of the World Intellectual Property Organization (WIPO) and a party to many of its treaties, including the Berne Convention, the Paris Convention, the Patent Cooperation Treaty, the WIPO Copyright Treaty, and the WIPO Performances and Phonograms Treaty. Enforcement is improving across all sectors of Poland’s IPR regime. Physical piracy (e.g., optical discs) is not a significant problem in Poland. However, despite progress in enforcement, online piracy continues to be widespread as site blocking is still not possible in Poland due to lack of implementation of relevant EU legislation. A popular Polish cyberlocker platform is included on the 2020 Notorious Markets List. Poland does not appear in the U.S. Trade Representative’s Special 301 Report.
Polish law requires a rights holder to start the prosecution process. In Poland, authors’ and creators’ organizations and associations track violations and share these with prosecutors. Rights holders express concern that penalties for digital IPR infringement are not high enough to deter violators.
In March 2019, amendments to the Act on Industrial Property Law came into force which are intended to implement EU Trademark Directive 2015/2436. The legislation introduced, inter alia, the abandonment of the graphical representation requirement, a new mechanism for trademark protection renewals, extended licensee’s rights, as well as remedies against counterfeit goods in transit and against infringing preparatory acts. The changes provide new tools to fight against infringement of trademark rights.
In April 2019, the EU adopted two directives on copyright, including: 2019/790 on copyright and related rights in the digital single market and 2019/789 regarding online broadcasting and re-broadcasting. Member states are required to transpose the reforms into national legislation by June 2021. The Ministry of Culture and National Heritage is responsible for drafting and implementing the legislation which has not yet been made available for public consultations.
In February 2020, additional amendments to the Act on Industrial Property entered into force which adapt Polish standards on inventions to those of the EU so as to streamline and speed up proceedings before the Polish Patent Office. The amendments to the Act also extend the exemption from patent and trademark renewal fees to support start-up entrepreneurs. The legislation complies with relevant provisions of the European Patent Convention and the WIPO Patent Cooperation Treaty.
In July 2020, amendments to the Code of Civil Procedure entered into force which, among other things, creates and operationalizes specialized IPR courts. Poland’s new specialized courts will oversee cases related to all types of IPR, including copyright, and trademarks, industrial property rights, and unfair competition. New departments for IPR matters will be created at the District Courts in Gdansk, Katowice, Poznan, and Warsaw, and specialized departments will be established in the Courts of Appeal in Warsaw and Katowice. This will replace the current system in which IPR matters, including those relating to highly specialized issues such as patents, plant varieties, and trademarks, are examined by commercial departments of common courts.
A specialized court that was previously established within the 22nd Department of the District Court in Warsaw for cases involving EU trademarks and community designs will lose the exclusive competence to deal with those cases and will consider IPR claims regarding computer programs, inventions, designs utility, topography of integrated circuits, plant varieties, and trade secrets of a technical nature (i.e., matters of advanced complexity). In order to conduct proceedings in these cases, it will be necessary to have highly trained judges who are familiar with IPR/IT issues. The new rules also require parties in IPR cases to be represented by professional lawyers, legal advisers, and patent attorneys. The changes represent a positive step for the court system, further contributing to the speed and efficiency of proceedings.
Tax incentives for IPR known collectively as “IP Box” or “Innovation Box,” included in the November 2018 tax amendment, have been applicable since January 2019. See Section 4 – Investment Incentives.
Polish customs tracks seizures of counterfeit goods but statistics for the reporting period are currently unavailable.
13. Foreign Direct Investment and Foreign Portfolio Investment Statistics
|Host Country Statistical source*||USG or international statistical source||USG or International Source of Data: BEA; IMF; Eurostat; UNCTAD, Other|
|Host Country Gross Domestic Product (GDP) ($M USD)||2019||$595,7||2019||$595,9||www.worldbank.org/en/country|
|Foreign Direct Investment||Host Country Statistical source*||USG or international statistical source||USG or international Source of data: BEA; IMF; Eurostat; UNCTAD, Other|
|U.S. FDI in partner country ($M USD, stock positions)||2019||$4,720||2019||$10,403||BEA data available at https://apps.bea.gov/international/factsheet/|
|Host country’s FDI in the United States ($M USD, stock positions)||2019||$529.1||2019||$ D/||BEA data available at https://www.bea.gov/international/direct-investment-and-multinational-enterprises-comprehensive-data|
|Total inbound stock of FDI as % host GDP||2019||39.4%||2019||40.3%||UNCTAD data available at|
* Source for Host Country Data: In Poland, the National Bank of Poland (NBP) collects data on FDI. An annual FDI report and data are published at the end of the following year. GDP data are published by the Central Statistical Office. Final annual data are available at the end of May of the following year.
D/ Suppressed to avoid disclosure of data of individual companies.
|Direct Investment from/in Counterpart Economy Data of, 2019|
|From Top Five Sources/To Top Five Destinations (US Dollars, Millions)|
|Inward Direct Investment||Outward Direct Investment|
|Total Inward||235,504||100%||Total Outward||25,422||100%|
Results of table are consistent with the data of the National Bank of Poland (NBP). NBP publishes FDI data in October/November.
A number of foreign countries register businesses in the Netherlands, Luxemburg and Cyprus, hence results for these countries include investments from other countries/economies.
|Portfolio Investment Assets, as of June 2020|
|Top Five Partners (Millions, current US Dollars)|
|Total||Equity Securities||Total Debt Securities|
|All Countries||36,942||100%||All Countries||20,511||100%||All Countries||16,432||100%|
|Int’l Org||4,918||13%||Luxemburg||3.871||19%||Int’l Org||4,918||30%|
* In Poland, the National Bank of Poland (NBP) collects data on FDI. An annual FDI report and data are published at the end of the following year. GDP data are published by the Central Statistical Office. Final annual data are available at the end of May of the following year.