CorralRosales’ International Legal Alliance TAGLaw Named “Elite” by Chambers & Partners

logo de la alianza legal internacional de CorralRosales, TAGLaw, y logo del reconocimiento de Chambers & Partners

CorralRosales’ international legal alliance, TAGLaw®, has again been recognized by Chambers & Partners as “Elite” for 2022—the highest ranking awarded to legal networks and alliances. This is the ninth time TAGLaw has received the distinguished “Elite” designation since Chambers & Partners began ranking legal networks and alliances in 2013.

TAGLaw was also invited provide the introduction to this year’s rankings guide: “GLOBAL LAW FIRM NETWORKS: An Introduction to Global Market Leaders”. In the introduction, TAGLaw discusses the challenges faced by law firms in 2021 and what the future holds for firms, alliances, and networks. 

“We are honored to be named an “Elite” international legal network/alliance for the ninth year and to contribute our thoughts to the annual introduction for the third time.” said Richard Attisha, President & CEO of TAGLaw and TAG Alliances. “Over the years, Chambers & Partners has continually acknowledged both the reputation of our global alliance and our individual member firms and their lawyers. This prestigious recognition is truly a testament to the quality of our member firms, illustrated by their prominence in their local markets and by their ability to deliver outstanding client service.”

In selecting networks and alliances for their “Elite” status, Chambers & Partners pays particular attention to the quality of the member firms, their global reach, and the value that the alliance provides to its member firms. TAGLaw, with a global footprint in over 90 countries, has over 160 leading firms providing legal services to companies ranging from the Fortune 5000 and leading SMEs to high-net-worth individuals. More than 100 of TAGLaw’s member firms have received individual rankings and award recognitions from Chambers & Partners. With expertise in dozens of practice areas and countless industry sectors, TAGLaw offers a substantial capability to its members’ clients. This capability is expanded by TAGLaw’s unique relationship with its sister alliances of accounting firms (TIAG®) and strategic partners (TAG-SP®), which together provide exceptional multidisciplinary service and a competitive advantage to businesses that cross geographical borders. 

About TAG Alliances®

TAG Alliances is comprised of three divisions: TAGLaw®, TIAG® (The International Accounting Group), and TAG-SP®. TAGLaw is an international alliance of more than 160 independent law firms. TIAG is an international alliance of more than 115 independent accounting firms. TAG-SP is a complementary association of strategic business partners. Collectively, TAG Alliances members provide legal, accounting, financial and business support services on a worldwide scale. With approximately 17,000 professionals in over 290 member firms, and more than 750 offices in over 105 countries, members of the TAG Alliances serve tens of thousands of clients from all industry and commercial sectors. TAG Alliances is consistently recognized as one of the Top 10 alliances of accounting & legal alliances in the world.

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Ecuador: The National Intellectual Rights Service recognizes as a possible act of unfair competition the attempt to register a trademark identical to another that is already on the market

Ecuador: El Servicio Nacional de Derechos Intelectuales reconoce como un posible acto de competencia desleal pretender el registro de una marca idéntica a otra que ya está en el mercado.

The National Intellectual Rights Service (hereinafter, “SENADI”), when deciding an opposition against the application for the mark DASH in class 11, considered that the applied-for mark was unregistrable since there was a risk of confusion for consumers due to the prior existence of the opposing party’s trademark DASH in Class 09.

SENADI also considered that attempting to register a mark identical to another that is already on the market could be considered an act of unfair competition. This argument is usually rejected in most cases, so its acceptance in in this case is a rare event and undoubtedly will serve as a reference for future cases.


On November 19, 2019, a natural person applied for the mark “DASH” intended to protect goods in international class No. 11, specifically: “Apparatus for lighting, heating, steam generating, cooking, refrigerating, drying, ventilating, water supply and sanitary purposes [1].

PA-CO COMERCIAL E INDUSTRIAL S.A. filed an opposition based on trademark “DASH”, to protect the following goods in Class 09: “scientific, nautical, surveying, photographic, cinematographic, optical, weighing, measuring, signalling, control (inspection), life-saving and teaching apparatus and instruments; Apparatus for conducting, distributing, transforming, accumulating, regulating or controlling electricity; apparatus for recording, transmission, reproduction of sound or images; magnetic record carriers, recording discs; automatic vending machines and mechanisms for prepaid apparatus; cash registers, calculating machines, data processing equipment and computers; fire extinguishers.” The opposing party also argued the applicant’s unfair competition.

On July 10, 2020, the applicant answered the opposition, which was added to the file on January 31, 2022. 

Case resolution:

Through Resolution No. 2000009, issued on February 15, 2022, SENADI accepted the opposition filed, rejecting the registration of the applied-for mark. In the aforementioned resolution, SENADI considered that that the conflicting marks were identical as well as acknowledged the relationship between the conflicting classes. Therefore, it concluded that there was a risk of confusion or association for consumers, who could assume that the goods are related or have the same business origin.

Regarding the registrability of trademarks, Decision 486 of the Andean Community establishes that:

“Those signs whose use in commerce unduly affects a third party’s right may not be registered as trademarks, in particular when:

a) are identical or similar to a trademark previously applied for registration or registered by a third party, for the same products or services, or for products or services in respect of which the use of the trademark may cause a risk of confusion or association[2]; (…)”

When deciding the opposition, SENADI ruled on the argument of unfair competition -an uncommon fact – in the following terms:

Given the above, it could be considered as an act of unfair competition, the fact that it is intended to register a mark that is identical to a trademark that is in the market, generating confusion among consumers, which is precisely what intellectual property should avoid.”

In this regard, Decision 486 of the Andean Community rules that:

“When the competent national office has reasonable indications that allow it to infer that a registration had been filed to perpetrate, facilitate, or consolidate an act of unfair competition, it may deny said registration.[3]; (…)”

With this decision, SENADI has taken a very positive step in the analysis of intellectual property matters, leaving aside purely formal aspects, by analyzing complex situations, protecting not only trademarks owners but also consumers.

[1] Proceeding No. SENADI-2019-82640.

[2] Article 136 of the Decision 486 of the Andean Community.

[3] Article 137 of the Decision 486 of the Andean Community.

Katherine González
Associate at CorralRosales

Advantages of Having an In-house Secondment Lawyer


Why can having a secondment lawyer be advantageous for a company? The needs in the field of business have changed over time; having quality legal advice at the right time has become essential. Not all companies have an in-house legal team and, if they do, it is usually a small team that is very busy with the core business of their company; therefore, they usually look for one or more external firms to provide the necessary support when needed.

Sometimes unexpected needs arise, such as large projects or new lines of business that require specialized attention and special advice. It is then when a lawyer in secondment can be an excellent solution for the company.

This service consists of assigning the company a lawyer from a trusted firm to temporarily form part of the in-house legal team allowing said in-house team to focus on the core business and its internal client. Thus the qualified reinforcement, who also has all the usual support of the firm, can take on any special project; it could be M&A, a new line of business, any complex labor or intellectual property issues, among other options.

The decision to have an external lawyer within the team can result in great benefits for all types of companies, from start-ups, through medium-sized companies, or large multinationals that need quality legal solutions. In addition to having a full-time external lawyer dedicated to their matters, they will continue to have the support and experience of their own legal team.

In this way, the company receives a personalized, continuous service adapted to the specific situation and industry. The immediacy and development of the relationship with the lawyer from the trusted firm will redound to benefits for both parties.

What are the benefits of choosing an in-house service?

  • Integration: In every way: understanding the client’s needs first-hand and adapting to absolutely all aspects, such as, for example, reporting.
  • Immediacy: The fact that the lawyer works directly in the client company will speed up the advice and maintain a much more direct communication, which will also translate into very significant cost savings.
  • Experience: The client company will have a lawyer highly specialized in their sector, who will also benefit from an even more intensive knowledge of the company and its policies. In addition to this, our lawyer has the continuous support of the rest of the CorralRosales team.
  • Effectiveness: Starting from the very first day of the legal secondment, thanks to continuous collaboration and prior knowledge about the client and their industry.
  • Collaboration: The relationship between the law firm and the client company will be deepened allowing them to become true ‘partners’ focused on business.
  • Flexibility: There is a total adaptation to the specific needs that the company requires and all in real time.

In addition to being advantageous for the client company, this will provide greater tools to the lawyer who will become part of the in-house team temporarily. In this way, he will be at the center of the client’s business, deepening into the knowledge of the client’s day-to-day life and learning about their policies and ways of doing business. Once this period is over, the lawyer will get to know his client in depth and will bring this experience back to his usual team, generating benefits for all the parties involved.

Rafael Rosales
Partner at CorralRosales

Notarial Acts and Contracts Through Electronic Means


By legal provision, previously, acts and contracts had to be performed and granted before a Notary Public as a single act. Thus, all the deeds and some proceedings conclude with the famous phrase “before me, in my presence as a single act, to which I attest.-”

Ecuador had to wait for a pandemic that paralyzed a large part of the sectors to realize that technological-telematic means are useful and allied tools in all areas, which energize productive activities, including those who provide legal services.

Now, it is possible to hold mediation hearings by any technological means through the centers authorized by the Judiciary Council and to sign the corresponding minutes with electronic signatures. It is also allowed to hold judicial, arbitration and constitutional hearings by these means. However, certain regulations already did establish the appearance at proceedings and hearings through telematic means before confinement. Since the entry into force of the Organic Law of Humanitarian Support to Combat the Health Crisis Derived from Covid-19 on June 22, 2020, it is possible that certain acts, contracts and notarial proceedings be carried out by telematic, electronic or remote means . For this purpose, the Judiciary Council had to issue the corresponding regulations in which it determines the acts, contracts and proceedings that, because they require the physical intervention or the verification of the intervening parties, cannot be carried out with the appearance of the grantors or participants through the use of telematic, electronic or remote means.

Resolution 075-2020 of the Plenary of the Judiciary Council, issued on July 7, 2020, contains the Regulation for the Progressive Implementation of Acts, Contracts and Notarial Proceedings through the Use of Electronic Means and Reduction of Fees (hereinafter the “ Regulation ”). It established two phases. In the first one, article 3 of the aforementioned Regulation provides the following acts, contracts and proceedings that may be   carried out electronically:

  1. Protocolization of public or private instruments by court order or at the request of an interested party.
  2. Electronic certification of a dematerialized document.
  3. Electronic certification of original electronic document.
  4. Certification of the document materialized from the website or from any electronic support.
  5. Registration of lease contracts with the request electronically signed by the applicant.
  6. Electronic petitions to establish reasons and notes on the margin.
  7. Subscription of minutes of requirements for the constitution in arrears to the debtor party.
  8. Subscription of minutes for the fulfillment of the contract promise, as well as for the delivery of what is owed and the execution of obligations.
  9. Incorporation of companies, provided that the grantors have expressed their express will to grant the deed electronically and they have electronic signatures; and,
  10. Constitution of associations or consortia in matters of public procurement, provided that the grantors have expressed their express will to grant the deed electronically and they have electronic signatures.

All requests for voluntary jurisdiction that are presented before a notary public by grantors who have an electronic signature may be sent electronically. Likewise, notaries may receive the corresponding minutes submitted by the attorneys who require the service, provided they have an electronic signature.

In the second phase, it was established that the Council of the Judiciary will decide on the inclusion of new acts, contracts and notarial proceedings, once the corresponding budgetary allocations are in place. It should be noted that the Judiciary Council, aware of the technological difficulties, did not provide that these acts, contracts and proceedings be compulsorily executed by these means, which implies that it will be optional for users of the notarial system.

Resolution 083-2020 of the Plenary of the Judiciary Council dated July 28, 2020, approved the Operational Instructions for the Progressive Implementation of Acts, Contracts and Notarial Proceedings through the Use of Electronic Means. which made the operational scope of the acts, contracts and proceedings feasible by electronic means, as referred to above. However, so far phase two foreseen in the Regulation has not initiated.

In conclusion, the use of electronic means for notarizations is not a novelty, but the inclusion of other acts and contracts has been a significant advance in favor of the speed of business and in judicial and arbitration activity that have been seriously affected by the pandemic. However, the legislators and the Judiciary Council remain in debt. The former because it gave the Council the power to limit the acts, contracts and proceedings that could be entered by electronic means; and, the latter, because it limited them too much. Let us hope that the Judiciary Council includes other acts, contracts and necessary procedures in the execution of the planned phase two.

Ramón Paz y Miño
Senior Associate at CorralRosales

World Trademark Review – The fact that two marks cover different classes is not a determining criterion when examining the risk of confusion



DATE: 30-09-2020


-Katherine González

Our associate Katherine González publishes an article in the specialized media World Trademark Review in which she comments on SENADI’s decision to reject Discovery’s opposition against the registration of the trademark DOKI MAS LOGOTIPO, based on its previous trademark DOKI. On appeal, the Intellectual Property Office ruled that the fact that two trademarks belong to different classes does not necessarily imply that there is no confusion between them and that there was a direct relationship between their goods and services.

In the text, González explains that, initially, SENADI granted the registration of the DOKI MAS LOGOTIPO brand for class 44 services; SENADI considered that there was no risk of confusion with the DOKI registered trademark, since the latter belonged to a different class. In the appeal to this registration, the Intellectual Property Office accepted the opponent’s arguments and established that the fact that two trademarks that belong to different classes is not a determining criterion to assess the risk of confusion between them.

“In the first instance, SENADI rejected the opposition and granted the registration because there was no risk of confusion or association for consumers. Despite the fact that the trademarks shared an identical word element, they covered products / services of different classes. Discovery appealed this decision presenting a clear and detailed list of the products and services in question and arguing that, despite the difference in classes, the trademarks were intended to protect the products and services that were directly related and complementary “, details our associate.

“The decision confirms the importance of carrying out a detailed and specific analysis in each case, in the event of possible trademark litigation,” adds González, who believes that this decision is very important due to the large number of products offered for sale online.

If you want to see the article (under registration), click here.

Teleamazonas – Veto to Health Code Does Not Affect the Cannabis Industry



DATE: 30-09-2020


-Felipe Samaniego

MEDIA: Teleamazonas

The project of the Organic Health Code (COS) has been vetoed by the Executive affecting several sectors of Ecuador. One of those that has not been affected has been the cannabis sector; the news channel Teleamazonas interviewed our Partner and President of the Ecuadorian Association of Cannabis Industries Felipe Samaniego to provide his expert legal vision on this situation.

“This entire industry that is developing around cannabis and hemp definitely does not stop,” Samaniego said in this interview.

The Legal Secretary of Carondele Johana Pesántez argued the veto saying that the COS “contains an extensive development of technical issues in health matters that suffers from inaccuracies, erroneous definitions and an unclear health system structure in terms of competencies and responsibilities; it lacks a true update in terms of focus and content according to the requirements of society and the world “.

Last year, the National Assembly approved reforms to the COIP that allowed the production and distribution of products made from cannabis. This reform decriminalized the use of this plant for medicinal purposes, but the legal framework that allows its commercialization is still lacking.

With reference to this, Felipe Samaniego assures that there are two “authorities that must intervene. One for cultivation and the other for what is already the finished product. What the Ministry of Agriculture is doing is regulating what contains less than 1 % THC and the Ministry of Health must regulate what has 1% or more “, explains our Partner.

After the interview with Samaniego, the news published by Teleamazonas gathers the opinion of other experts who see in this veto an opportunity for the cannabis industry to continue growing. They also hope that this industry can advance with the production and generation of resources for Ecuador with the issuance of regulations with the respective legal framework.

If you want to see the video, click here

Tax regime for small businesses


Resolution NAC-DGERCGC20-00000060 issued on September 29, 2020 and published in the Special Edition of the Official Registry 1100 on September 30, 2020, the Director of the Internal Revenue Service established the rules for applying the tax regime for small businesses.

1. Definitions

  1. Small business: It is a productive unit that has up to 9 workers and an annual revenue equal to or less than US$300,000.00. For classifying an enterprise as a small business, the amount of income will prevail over the number of workers.
  2. Main economic activity: The economic activity registered in the Tax Registry (RUC) which generates the higher amount of income during a fiscal year in comparison with the other activities.
  3. Commissioner: Individual, corporation or permanent establishment that habitually engages in the sale of goods, rights, or the provision of services in exchange for a commission.
  4. Capital gains: Profits derived from the placement of capital, shares, credits, and investments of any nature, as long as they do not involve productive processes, the provision of services or other work. For example, the lease of real estate.
  5. Self-employed individuals: Individuals who regularly performs an economic activity on his own account without a labor relationship and receives an income different from a salary or wage. Economic activities of liberal occupation are excluded.
  6. Professional services: Services provided by individuals who have a professional title and are directly related to that title. Including activities related to education, teaching and training related to the professional title.

2. Inclusion/exclusion from the microenterprise regime

The Internal Revenue Service will be able to include or exclude ex officio in the register of small businesses those taxpayers who fulfill or no longer fulfill the conditions to be considered as such. This registry will be published on the IRS website until September 30 of each year.

Taxpayers will be subject to this regime from the first day of the fiscal year following their inclusion of the registry.

The ex officio exclusion will be executed without the need for prior notice and will take effect from the first day of the fiscal year following that exclusion.

Taxpayers who have been subject to the regime for 5 years will cease to be part of it from the first day of the year following the date on which the maximum time was reached.

When taxpayers consider that their inclusion or exclusion from the regime is not appropriate, they are able to file a petition to have that decision reviewed in a term of 20 days counted from the publication of the registry.

3. Registration of new taxpayers

When obtaining the tax registry (RUC), the taxpayer must inform the Tax Authority all its economic activities, the income that might be derived from such activities and the number of workers.

If the taxpayer fulfills the conditions to be considered as a small business, it will be able to start its activity under the small business regime. Otherwise, he will begin its activity subject to the general regime and the authority is able to include the taxpayer in the regime ex officio.

4. Limitations to the regime for microenterprises

Taxpayers who exclusively develop one or more of the following activities will not be subject to the small business regime:

  1. Those taxpayers who are subject to the Simplified Tax Regime for Ecuador (RISE) and Simplified Tax Regime for the Organizations of the Popular and Solidarity Economy.
  2. International organizations, multilateral organizations, specialized international agencies, non-governmental organizations, government institutions and public enterprises.
  3. The financial institutions subject to the control of the Superintendence of Banks, and the organizations of the popular and solidary financial sector, subject to the control of the Superintendence of Popular and Solidary Economy.
  4. Those taxpayers who exclusively develop construction and urbanization activities.
  5. Those taxpayers who exclusively develop activities of liberal occupation, as well as individuals whose economic activity is the provision of professional services, notaries, and registrars.
  6. Those taxpayers who provide public transport services to passengers, as well as the services of commercial transport.
  7. Those taxpayers who exclusively obtain income from a labor relationship.
  8. Those taxpayers who exclusively obtain income subject to single income tax.
  9. Those taxpayers that exclusively obtain capital gains, including holding companies.
  10. Those taxpayers that carry out exploration, exploitation and/or transportation activities of non-renewable natural resources.
  11. Those taxpayers that receive income from international transport of passengers, cargo, express airlines, or couriers incorporated under foreign laws and that operate in the country through branches, permanent establishments, agents, or representatives.
  12. Distributors of hydrocarbon derivatives, liquefied petroleum gas, natural gas, and biofuels.

5. Taxpayer’s obligations

Taxpayers subject to the small business regime must comply with the formal and material obligations set forth in the law, including the following:

  1. Entities are required to keep accounting books in accordance with the regulations established by the controlling authorities. In the case of individuals, if they are required to keep accounting books, they must follow the International Financial Reporting Standards for SMEs.
  2. Taxpayers are required to issue invoices and withholding receipts and complementary documents in applicable cases. The documents must contain the caption “Small Business Taxpayer”.
  3. Taxpayers are required to file value added tax (VAT), excise tax (ICE) and income tax returns on a semester basis, in the months of July (first semester) and January (second semester).
    However, taxpayers may file the VAT and ICE tax return on a monthly basis, during the entire fiscal year.
  4. Taxpayers must file an annual income tax return, in addition to the semi-annual income tax returns in the following cases:
    • Entities and permanent establishments in all cases.
    • Individuals who receive income from sources different form the activities subject to the small business regime.
    • Individuals who request the reimbursement of income tax.
  5. Taxpayers who are required to file the Simplified Transaction Annex (ATS) must file it every six months. If they choose to file the VAT return on a monthly basis, the ATS must also be filed on a monthly basis.
  6.  Taxpayers who are required to file the excise tax annex must file it every six months. If they choose to file the excise tax return on a monthly basis, the annex must also be filed on a monthly basis.

6. Withholding taxes

Taxpayers subject to the small business regime are not required to withhold income tax or VAT, except if they are qualified by the IRS as special taxpayers or withholding agents and in other cases established by law.

<p style="text-align: justify;">However, taxpayers under the regime will be subject to income tax and VAT withholding. In the case of income tax, the withholding tax percentage will be 1.75% over the income derived from the business activities subject to the regime. If the taxpayer obtains revenue from sources other than the business activity subject to the regime, such revenue will be subject to the withholding percentages provided in the current tax regulations.

If taxpayers subject to the regime have made withholdings, they must declare and pay them as follows:

  1. Value added tax withholdings on a monthly or semi-annual basis, depending on the periodicity of the VAT return.
  2. Income tax withholdings on a semi-annual basis, in the months of July -first semester- and January -second semester-.
  3. If the taxpayer did not make any withholdings, the return must not be filed.

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DISCLAIMER: The preceding text has been prepared for general information purposes only. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any given situation requires the specific opinion and view of the firm in Quito / Guayaquil, Ecuador.


Withholding agents – Income tax and VAT


Regulation NAC-DGERCGC20-00000057 issued on September 14, 2020 by the General Director of the Internal Revenue Service and published in the Special Edition of the Official Registry 1024 on September 16, 2020 establishes the rules for the classifying, filing returns and paying taxes for withholding agents and special taxpayers.

1. Designation and Removal:

The amendments to the Internal Tax Regime Law introduced on December 31, 2019 established that only special taxpayers (“contribuyentes especiales”) and those designated as withholding agents by the Internal Revenue Service are required to withhold income tax and VAT.

  • Special Taxpayers: are designated by an administrative act and will be effective from the first day of the month following the date of the notice to the taxpayer.
  • Withholding agents: are designated by: (i) a general resolution that will be effective from the date established in such resolution; and, (ii) an administrative act that will be effective on the first day of the month following the date of the notice to the taxpayer.

In the following link you can verify the taxpayers that have been designated as special taxpayers or withholding agents:

The tax authority is able to revoke the designation of withholding agents and special taxpayers, this will be effective from the date established in the general resolution or from the first day of the month following the date the taxpayer was noticed with the administrative act.

2. Filing returns and payment of obligations:

Taxpayers designated as withholding agents will continue to file and pay their tax obligations on a regular basis.

Special taxpayers must:

  • File their tax returns and make the payment of income tax, withholding income tax, value added tax (VAT), excise tax (ICE), foreign exchange tax (ISD) and the international currency movement annex (MID), until the 9th day of the month in which each obligation is due.

Special taxpayers with residence in Galapagos will be able to file the return and pay their tax obligations until the 28th day of each month.

When these dates overlap with mandatory rest days or national or local holidays, the return must be filed on the last working day prior to the date the filing is due.

  • Pay their tax obligations through debit from their bank accounts or by using credit notes.

3. Other taxpayers:

Those taxpayers who have not been designated as withholding agents or special taxpayers must withhold income tax and value added tax until September 30, 2020.

Starting October 1st, 2020 such taxpayers must withhold taxes only in the following cases:

  • Income tax:
    1. Distribution of dividends and anticipated payment of dividends.
    2. Transfer of shares.
    3. Payments and refunds made abroad.
    4. Salaries and other payments made to their workers.
    5. Taxpayers whose activity is the related to public events.
    6. Credit or debit card entities.
    7. Organizers of lotteries, raffles, bets and similar.
    8. Those who make monetary donations.
    9. Taxpayers that pay interest or other financial gains.
    10. Taxpayers who commercialize mineral substances.
    11. Taxpayers who transfers hydrocarbon licenses.
    12. Taxpayers who issue liquidations of purchases of goods and provision of services, regarding such transactions.
    13. Taxpayers who make purchases of bananas and other musaceous plants from local producers.
  • Value added tax:
    1. Import of services.
    2. Taxpayers who issue liquidations of purchases of goods and provision of services, regarding such transactions.
    3. Taxpayers who withhold of presumptive VAT in the transfer of fuel.
    4. Entities of the financial system, for payments or credits made under collection or debit agreements.

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DISCLAIMER: The preceding text has been prepared for general information purposes only. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any given situation requires the specific opinion and view of the firm in Quito / Guayaquil, Ecuador.


The exhaustion of Instances by the State: A Problem in Intellectual Property

The administrative authority and one or more private parties intervene in the vast majority of administrative procedures regarding Intellectual Property. Once this stage has been exhausted, resolutions issued by the National Intellectual Rights Service (SENADI) can be judicially challenged before the competent Administrative Contentious Court. The processes culminate with the sentence that agrees with one of the parties. With its execution, the mission of imparting justice is considered accomplished. However, the experience in intellectual property matters is different.

Once the client obtains a favorable ruling from the Contentious Administrative Court, SENADI usually files a cassation extraordinary appeal to prevent the execution of the Court’s ruling. This attitude is not justified because it is a dispute between private parties, in which the resources of the State are not compromised.

The competence of the aforementioned institution to appeal adverse decisions is not questioned, since we understand that it wants its criteria to prevail, however, it is necessary to consider that the filing of these appeals by SENADI is not always motivated to protect public interests.

In terms of intellectual property, there is no justification for SENADI in all cases to try to nullify the sentence so that its legal criteria prevail. With this attitude, state resources are wasted because the Supreme Court must allocate time to address these challenges. Worse still, in cases in which SENADI files an extraordinary protection action before the Constitutional Court.

It is very difficult for Intellectual Property clients to accept this behavior from the administrative authority, which seems to be destined to hinder the timely exercise of the corresponding rights. This reality is even worse in the case of patents, whose validity is 20 years from the filing of the application, since the administrative and judicial procedures can consume half of that time and in some cases the full term.

The justice system is saturated in Ecuador; responsibility, effective judicial protection and legal security do not go hand in hand with the principle of opportunity. The exhaustion of resources and actions by SENADI should not become the rule, since this causes the processes to be delayed, the execution of the sentences postponed and greater public and private resources spent.

Ruth Holguín
Associate at CorralRosales

New provisions of the Ministry of Labor

On September 9th, the Ministry of Labor (“MdT”) issued the following provisions on labor matters:

1. Agreement MDT-2020-171: Exemptions on the application of Chapter III of Humanitarian Organic Law to support and combat the health crisis arising from Covid-19

  • Employers may not reduce the salary of the disabled or their substitutes by the implementation of agreements to preserve labor sources or working-day emergent reduction.
  • Disabled or substitutes employees must inform to the employer their condition within 7 days from the dated they were notified with the application of such measures. If the employee does not comply to inform, then he/she will not benefit from these exceptions.
  • Agreements to preserve labor sources or working-day emergent reduction applied to disabled or substitutes employees before September 9th, are no longer enforceable.
  • From the next salary payment, disabled or substitutes employees shall receive their full salary. This provision has no retroactive effect.

2. Agreement MDT-2020-174: Reform to Ministerial Agreement No.MDT-2020-077

  • In the event of force majeure or unforeseen circumstances, the employer may apply the emergent reduction, modification or suspension of the working-day provided within the Ministerial Agreement No.MDT-2020-077.
  • Emergent reduction, modification or suspension of the working-day ends by:
    • Mutual agreement between the parties.
    • Completion of the emergent working-day reduction term provided for in the Labor Code, article 47.1 (up to 12 months);
    • Completion of the emergent working-day modification term; or;
    • Ceasing of the cause that justified the emergent working-day suspension (Labor Code, article 60).


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DISCLAIMER: The preceding text has been prepared for general information purposes only. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any given situation requires the specific opinion and view of the firm in Quito / Guayaquil, Ecuador.


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