ECUADOR / PATENTS
PRELIMINARY
NOTE:
In
order to stress differences between former Decision 344 and now enacted Decision
486, phrases and words in "script" refer to
modifications or new matters included in the new Decision 486 of the Cartagena
Agreement.
Law
Intellectual Property Law,
effective May 19, 1998; Regulations to Intellectual Property Law, enacted in
February 1990 R.O. # 120. Decision 486 of the Cartagena Agreement, enacted on December 1st, 2000,
Decision 345 of the Cartagena Agreement;
Regulations for the protection of vegetal varieties, effective July 20, 1994;
Decision 291 of the Cartagena Agreement, dealing with foreign investments and
licensing, Decree No. 415-93: Rules for applying norms to foreign investments,
effective January 13, 1993. Law No. 46-97 for the promotion and guaranty of
investments, effective December 19, 1997. Matters not covered by Decisions 486
and 345 continue to be regulated by the domestic laws of Ecuador.
Intellectual Property
Law, enacted on May 19, 1998;
Transitional Provisions
Pending
applications at the Patent Office shall be handled according to the new
Intellectual Property Law. Any industrial property right validly granted should
be ruled according to the legislation in force at the granting date, except the
validity of registrations, which has to be modified in accordance with Decision
486. Regarding “patents” and “trademarks” no modification in the
validity term was stated.
The Supreme Court shall organize
the district courts for intellectual property cases. Meanwhile, intellectual property district courts are
established, the Contentious and Administrative Courts are in charge of
Intellectual Property cases, except the injunction actions, which remain under
competence of civil judges.
Conventions
Cartagena Agreement. Trade Related Intellectual Property Rights (TRIP’s).
Paris Convention for the Protection of Industrial Property.
Patent Cooperation Treaty (PCT).
Who May Apply
An application may be
filed by the inventor or his assignee, whether a natural or artificial person.
When several people created the invention jointly, they hold the patent
right in common. Inventions created by employees under contract belong to the
employer. In Ecuador, the patent right belongs to the first applicant.
What is patentable
Patent shall be granted
for any invention, being of products or procedures, in all fields of technology,
proving that it is novel, possesses an inventive level and has some industrial
application.
What is not patentable
-
The following items shall not
be considered as inventions:
-
Discoveries,
scientific theories, mathematical methods;
-
Materials already
existing in nature, including
any living form genome;
-
Literary and artistic
works or any other aesthetic creation;
-
Plans, rules and
methods for the exercise of intellectual activities, for games or economical and
commercial activities, as well as computer programs or logical supports not
being susceptible of industrial application;
-
Ways to show
information.
-
Expressly excluded from patentability are:
-
The inventions whose
commercial exploitation must be necessarily prevented to protect public order or
morality, including the protection of life or health of people, or animals, or
to preserve vegetables or to avoid serious damage to the environment or
ecosystem;
-
Diagnosis, therapeutic and
surgical methods for people or animals; and,
-
The plant and animal breeds,
as well as essentially biologic procedures to obtain plants or animals.
New uses of patented products or processes are not
patentable.( Decision 486,
Art. 21)
Novelty
An
application has to be filed before the invention is known by the public anywhere
through oral or written description, use or any other means, prior to the filing
date.
The
first application for a patent of an invention validly submitted in a member
country of the World Trade Organization (WTO), the Andean Community, Paris
Convention for the Protection of Industrial Property grants one-year-priority
right in Ecuador.
Documents
- Power of Attorney in Spanish granted by the applicant, notarized and duly
legalized up to the Ecuadorian Consulate (*)
- Specification and
claims in triplicate, any suitable size on plain paper. (*)
- Drawings to metric
scale in triplicate, any suitable size on plain paper. (*)
- Deed
of Assignment, executed by both assignor and assignee before a Public Notary
and duly legalized up to the Ecuadorian Consulate. This document may be incorporated into the power of attorney.
- If
the applicant is a corporation, a document duly legalized up to the
Ecuadorian Consulate, certifying the legal entity of the corporation, is
required. A Public Notary could certify it in the backside of our Power
form.
- Certified
copy of the first foreign application. Convention priority shall be claimed
at filing, but the priority document can be submitted within thirty working
days. No Consular legalization is required for this document.
- Deposit
of the biological material (UPOV)
- Access contract regarding patents obtained or developed from genetic
resources or their derivative products. (Decision 486,
article 26)
- License or authorization to use a traditional knowledge from indigenous
communities.
(Decision 486, article 26)
(*) Basic information
to get a filing date. Remaining
documents, when applicable, can be filed within the next 2 months (term
extendable once).
Formal Examination
Within
thirty days following the application date, the applicant shall be notified with
the results of the formal examination. The
applicant has two
months, extendible once, to reply to the examiner’s remarks.
Afterwards, a publication for opposition takes place. (See Publication and
Opposition.)
Publication
Once
the formal requirements are accomplished, an abstract of the specification is
published in the Official Gazette within
eighteen months from the application or priority date (or earlier under
applicant’s request). After
publication, there is a sixty-day
period, in which any third parties may oppose. (see Opposition.).
Provisional
Protection
A Protection Certificate is granted for the term of one year
to who has under development a project of invention and requires experimenting
or building any mechanism that obligates him to make public his idea. The
titleholder of the protection certificate shall enjoy the right of priority to
submit his patent application within the year following the date of concession
of the certificate. Once proved that the application complies with the
requirements, the Patent Office grants the protection certificate.
Opposition
Within
the term of sixty working days following the date of publication, it can be
filed opposition. The opposition deadline may be extended once, upon request.
The Patent Office gives the applicant sixty
working days (extendable once) starting at the notification date, for
submitting his arguments, documents or rewriting the claims or description of
the invention.
Examination
Within the term of six months as from the publication date, the applicant
has to request a technical examination of his patent application;
otherwise, this application will be declared abandoned (Decision 486, article
44). After requesting the examination, the Patent Office shall proceed to
examine patentability. It may request the opinion of experts. It
may also require the results of examinations done in other countries.
Applicant may request
to stop the examination procedure until the examination in such a
country is finished.
If upon examination
the patent is acceptable, the patent certificate will be issued. When the
determination is only partially favorable, or unfavorable, the applicant will be
notified. The Patent Office gives the applicant sixty working days (extendable
once) starting at the notification date, for submitting additional
pleadings, including his arguments, documents or rewriting the claims or
description of the invention.
General
Deadlines for Responding to Official Actions
The
applicant has sixty working days to
reply to communications or requests of the Patent Office. Such term should be
extendable only once for a like period, without losing its priority.
Duration
Patents are in force
for twenty years as from the filing date.
Rights of Patentee
A
patent grants to its owner the right to prevent third parties from working the
invention without his consent. However, there are several limitations on this
right. The patentee cannot prevent
third parties from working the invention: (1)
when the patented product has been placed into commerce either with the consent
of the patentee or by other lawful means; (2) when the patented invention is
being used privately and non-commercially; or (3) when the invention is being
used for experimental, academic, or scientific non-profit purposes.
Furthermore,
third parties that before the priority or filing date of the application were
using the invention privately in good faith or had made substantial arrangements
to make use of the invention may continue using it.
Additionally, such third parties have the right to start or continue
exploitation in any Andean Group country; however, this right is transferable
only with the company or business in which the use of the patented invention is
made.
International exhaustion of the
patent rights is stated.
A
patent right cannot be enforced against an auto-reproducing biological material,
when it is used as basis for a new material. (Decision
486, Art. 53)
Appeal
Reconsideration
may be asked to the Industrial Property Director regarding an adverse official
action within fifteen days after the decision.
Appeals
may be filed until the Intellectual Property Committee within thirty days as
from the date of an adverse official action taken by the Industrial Property
Director.
Revision
may be filed until the Intellectual Property Committee within three years as
from the date of an adverse official action.
Starting
an administrative resource suspends the original procedure until the final
resolution of such a resource.(Intellectual Property Law, Art.
357)
Every administrative
resolution may be appealed before the Contentious Administrative Court within
ninety days, even if an administrative resource is started.
Nullity
Within
three years after the granting date, the Intellectual Property Committee may
declare, ex-officio or by request, that a patent is void if it was illegally
granted. Partial annulment is
available. At a judicial stage (through a Civil Judge) nullity may be declared
at any time.
An action against
avoidable patents may be brought within five years before Court.
Claiming
Actions (Decision
486, Article 237)
When a person
without the corresponding right or damaging another entitled person applies for
a patent, the damaged person shall claim his right before the National Authority
and may ask for an assignment regarding the pending application or registration,
or may ask to be recognized as a co-applicant or co-owner of the right.
Annuities
- The
new provisions regarding annuities are (Decision 486, article 80):
-
Annuities
must be paid regarding both, granted patents and applications.*
-
Annuities
must be paid in advance.
-
Payments
for two or more annuities can be made at once.
-
Deadline
to pay annuities is the last day of the month in which the patent was
originally deposited.
- After the due date, a
grace period of six months is granted prior to declare the case abandoned.
*
Notwithstanding that new provisions provides that pending applications must pay
annuities, the Patents Office actually don’t charge such annuities since
domestic law does not contemplate such a payment.
Working
It
is mandatory to work a patent, in any Andean Pact country, directly or through a
registered licensee.
To
avoid compulsory licenses, the patent owner is required to work the invention
within three years as from the granting date or four years as from the
application date, whichever is later. Compulsory licenses can be granted by the
Patent Office by request of a third party that has not been able to obtain a
licensing agreement in reasonable conditions.
Compulsory licenses can also be granted when there are practices against
free competence or abuse of a dominant position.
(Decision 486, article 66)
Working means the
industrial manufacture of the product, subject matter of the patent, or the
integral use of the patented process along with distribution and marketing of
the final product, or the importation together with distribution and marketing
of the patented product or the product obtained by the integral use of the
patented process. Nominal working,
such as the general offer of a license, does not replace working.
Assignment
Assignments
should be recorded to be effective against third parties.
It is required a deed of assignment executed by both assignor and
assignee, including a Power of Attorney duly notarized and legalized up to the
Ecuadorian Consulate.
License
The patent holder may
grant licenses. Licensing agreements duly legalized up to the Ecuadorian
Consulate must be recorded; otherwise, they will not be binding on third
parties. Licensing agreements between holdings and sister companies must be
submitted for approval until the Ministry of Foreign Trade, prior its
registration in the Patent Office.
Amendments
An
applicant may modify the application or amend
any material error at any time before granting, but the modification may
not involve an extension of the invention or, of the disclosure contained in the
application whose priority is being claimed.
In
addition, the applicant may request the application to be changed to another
intellectual property modality. Furthermore,
if there is no extension of the invention, an application may be divided into
two or more applications. Each
divided application retains the filing date of the original application. The
Patent Office may request such a division at any time during the procedure of
patenting.
After
granting, the patent owner may request to the Patent Office to record any change
of name or address and modify or limit the claims Material errors may also be
amended
after granting.
Infringement
Civil, administrative and criminal actions
can be taken in case of violation of intellectual property rights. A demand may request for:
Ceasing of violation acts; seizure of goods or other objects involved in the
transgression, withdrawal from commercial channels of merchandise, as well as
its destruction; seizure of tools and means used for the transgression; the
compensation for court costs and damages and torts; the repairing in any other
form of the effects generated by the violation.
The right to demand against an infringement lapses 2 years as from the
date in which the owner learned about the infringement, or 5 years as from the
last date of the infringement. (Decision
486, Arts. 238-244)
Preliminary
measures, The judges
are empowered to order: preliminary injunction measures which would be needed
for the urgent protection of intellectual property rights and especially the
immediate ceasing of illegal activities, the suspension of the illegal activity,
including the use, exploitation, sale, offering for sale, imports or exports;
and any other measure to stop the violation.
A formal demand must follow the preliminary measure within the next 10
days, otherwise such preliminary measure will be cancelled. (Decision
486, Arts. 245-249)
In
cases alleging infringement of a process, the burden of proof rests upon the
defendant.
Border
Measures
Upon request of a trademark owner suspecting that an import or export
infringes his prior rights, the competent national authority may stop such
imports or exports in Customs. A previous inspection will be ordered. A formal
demand must follow such suspension order within the next 10 days; otherwise this
suspension will be cancelled. (Decision
486, Art. 250)
UNFAIR COMPETITION
This
matter is introduced into the Andean Community legislation, for the first time
through Decision 486, but it has been already incorporated into the Ecuadorian
Intellectual Property legislation in 1999.
Decision 486 of the Cartagena
Agreement includes a chapter for unfair competitions and trade secrets.
Unfair
competition: Acts linked to industrial property,
performed in an entrepreneurial scope, which are contrary to fair uses and
practices. (Decision 486, Art. 258)
This concept is very wide and does not
limit which conduct can be considered as unfair competition. However Decision
486 stated among others, the following acts of unfair competition:
·
Any act capable to cause confusion, by any
means regarding the establishment, goods or industrial or commercial activity of
a competitor;
·
False statements in the commerce, capable to
tarnish the establishment, goods or industrial or commercial activity of a
competitor; and
·
Misleading statements regarding the nature,
manufacture, characteristics, aptitude in use and quantity of the goods.
(Decision 486, Art. 259)
Trade
Secrets: Non-disclosed information that may be
used in any productive, industrial or commercial activity and that is
susceptible of being transferred to a third party. In any case, such information
must be a secret of a commercial value arising from its secrecy character. Must
have been object of reasonable measures by its legitimate possessor to keep
secrecy. (Decision 486, Art. 260).
When as a condition to obtain
authorization for commercialisation of a pharmaceutical or agrochemical good
that uses such new chemical entity, any Andean Community Member Country requires
the disclosure of some data or other non-disclosed information, that involves a
considerable effort, this information has to be protected against unfair
commercial use. (Decision 486, Art. 266).
Such information must be protected
against disclosure, excluding those cases in which the disclosure is necessary
to protect the public.
Unfair
competition actions
Whoever has legitimate interest may
request the national competent authority to decide on the legality of any
commercial act or practice. Decision
486 provides that unfair competition actions can be started ex-officio.
Limitation of action occurs two years
after the last act of unfair competition takes place, unless the member
countries state a different rule.