Idealex – Teleworking and Information Security



DATE: 24-11-2020


-Rafael Serrano

MEDIA: Idealex

Our associate Rafael Serrano has written an article in the Idealex about ‘Teleworking and Information Security’ due to the large increase in people changing their way of work because of the pandemic. In his article, Serrano analyzes “the risks of telework related to one of the main assets of companies -information- and to provide efficient technical and legal tools to mitigate these risks”.

As detailed in the article, it is more difficult for an employer to know how the company’s information is handled by staff teleworking since he is not in the same place as his employees. Thus, he must pay greater attention to the protection of the information and labor tools provided. To do this, the employer must take appropriate security measures for this new situation.

“In this sense, information security must comply with three essential parameters: integrity, confidentiality and availability. Integrity implies that the information is correct, and has not been deleted or modified without the authorization of the owner. Confidentiality refers to the fact that the information can only be accessed by people who are authorized to access it. Lastly, availability means that information can be accessed when needed. ”Says Serrano.

Employers must take legal and technical measures to protect the information from any danger that may arise based on the three parameters described above.

The technical measures include the use of programs, systems, or devices aimed to preserve the information. The legal measures include the use of “the different instruments to have a complete information protection policy” by employers.

It is important to preserve the value of the company’s information.

If you want to read the full article, click here

Criterios Digital – The registration of a color as a trademark



DATE: 29-10-2020


-Katherine González

Katherine González, one of our associates whose field of specialty is Intellectual Property, has written an article for the medium “Criterios Digital”. In her article, she analyzes the possibility of registering a color as a trademark in the Andean Community.

Her article begins by offering a brief description of what a brand is to guide the reader on what to read next: “A brand is any sign capable of graphic representation, which can distinguish a product or service in the market.

“It also informs that “the Andean community norm provides for the possibility of registering as a trademark a color delimited by a shape, or a combination of colors. Thus, it is possible to register a trademark made up of only one color as long as it is included in some line, shape, or silhouette. Though the trademark shouldn’t fall in any of the grounds of irregularity provided for in the Law.”

As reported by the Andean Community Court of Justice, the use of color must be arbitrary so that, in this way, the business origin can be identified through it.

In the article, González clarifies that if the color is not delimited in any way, it can not be registered since a single person cannot be allowed to own a color as such; this would give a person “an inordinate competitive advantage” and “would significantly affect the access of third parties to the market.”

Later in her article, our associate points out that when examining the registration of a trademark made up of a color, the Intellectual Property Office must take the following things into account: the applicable legal elements, the real context of the market in which the trademark, once registered, will begin to work, and “the principle of primacy of reality”.

If you want to see the full article, click here.

Lexology Getting The Deal Through – Tax Controversy 2021



DATE: 17-11-2020


-Andrea Moya

-Francisco Rosales

Lexology Getting The Deal Through (GTDT) published the eighth edition of Tax Controversy and Andrea Moya and Francisco Rosales, partners of CorralRosales, prepared the Ecuadorian chapter.

In the chapter, they answer essential questions related to tax law in Ecuador, especially the different mechanisms taxpayers have to challenge administrative acts issued by the Tax Authorities such as tax assessments or tax settlements. Additionally, they respond to questions about the legislation, the way it is organized and how to ensure compliance with tax laws and regulations, among other aspects.

Andrea with more than 10 years of experience, and Francisco with 40 years of trajectory, offer a precise point of view on the status of tax-related issues in Ecuador.

“There are two typical procedures that the tax authority applies to review a tax return: a difference notice and a tax assessment procedure.

The difference notice is a fast-track assessment procedure by which the tax authority notifies the taxpayer of any differences found in the tax return compared with information available to the tax authority and gathered from third parties […].

The tax assessment procedure is initiated with a formal notice issued by the tax authority by which it requires information from the taxpayer and from third parties and issues a draft of the tax assessment. Likewise, the taxpayer may either pay the amount established by the authority or provide sufficient evidence to challenge the differences noted by the tax authority within 20 working days. If the tax is not paid or if the tax authority considers that the differences have not been duly justified it will issue a formal tax assessment.” indicated our partners for the publication of GTDT.

If you want to see the full chapter, click here.

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

Bloomberg – Ecuador: Should You Register as a Nonresident Digital Service Provider?



DATE: 28-08-2020


-Andrea Moya

MEDIA: Bloomberg

Our partner specialized in Tax, Andrea Moya, published an article in Bloomberg where she explains that starting September 16, 2020, digital services will be subject to 12% VAT due to an amendment made to the Internal Tax Regime Law. Additionally, she analyses some of the matters to be considered by the nonresident digital service providers.

Our partner explains “If the entity registers in Ecuador as a nonresident digital service provider, the entity will be required to collect the VAT from the consumer and pay the VAT to the tax authority. If the entity does not register in Ecuador as a nonresident digital service provider, and the payment is made through an intermediary, for example through a credit or debit card, the credit card issuer will be required to withhold the VAT from the consumer and pay the VAT to the tax authority. If the payment is not made through an intermediary, the consumer will be required to liquidate and pay the VAT to the tax authority.”

Moya point out that, in the case of sharing economy business models, the VAT taxable base is equal to the commission charged by the platform, however, in general, the VAT taxable base is equal to the price of the service.

Our partner explains “The process for registering as a nonresident digital service provider and to file the VAT returns must be regulated by the tax authority. Therefore, one of the challenges of the authority when issuing the regulations will be to establish a simplified process that enables the nonresident provider to comply with its obligations, whether directly or through third-party service providers”.

If you want to read the complete article, click here

El Universo – How to protect from data thieves?



DATE: 26-08-2020


-Rafael Serrano

MEDIA: El Universo

The Ecuadorian newspaper “El Universo”  has published  in its magazine an article by Rafael Serrano Barona who is an associate of CorralRosales. He participates as an interviewee on how to protect from data theft, which is becoming increasingly common on the internet. It is not difficult to find someone -or even yourself- who has suffered a virtual attack called phishing, a term used to refer to one of the most used methods in the digital age to scam internet users to obtain confidential information, such as a password or something even more serious like bank information.

The Ecuadorian newspaper “El Universo”  has published  in its magazine an article by Rafael Serrano Barona who is an associate of CorralRosales. He participates as an interviewee on how to protect from data theft, which is becoming increasingly common on the internet. It is not difficult to find someone -or even yourself- who has suffered a virtual attack called phishing, a term used to refer to one of the most used methods in the digital age to scam internet users to obtain confidential information, such as a password or something even more serious like bank information.

Another issue to monitor is the domain to which the web page we are going to access belongs. If it is made up of numbers, it has a greater chance of being a hoax and we should not access it under any circumstances. The same happens with links that do not contain words related to the information that is going to be found in it.

Special care must also be taken with the attached files. Mostly directly executable file formats such as “ .exe ” , ” .bat ” or ” .cmd ” are especially dangerous. You should also be careful with Office format files (.docx, .xlsx or .pptx), which may contain macros.

Our associate Rafael Serrano, who is also the Vice President of the Ecuadorian Association for Data Protection, explains in this article what happens with data protection in Ecuador, since in this country there is no Data Protection Law that regulates these activities; this makes things easier for data thieves to act.

“Currently a bill is being discussed in the National Assembly that is being analyzed by the Commission for Sovereignty, Integration, International Relations and Integral Security. The Bill was presented by the President of the Republic Lenín Moreno. The Bill is quite complete. It follows the guidelines of the European General Data Protection Regulation, which in turn is the most important regulation on the matter ”, Rafael adds.

When asking Serrano about the need for a law of these characteristics, he details the importance of having such legislation since recent cases of data leaks by Ecuadorians have demonstrated the lack of control and regulation in this matter. Additionally, the Constitution approved in 2008 recognizes the autonomous right to data protection (art. 66 # 19). To date, we do not have a regulation that adequately regulates and develops the exercise of said right.

For now, we just have to wait.

If you want to read the full article, click here 

LexLatin – It is now possible to cancel commercial names due to lack of use in Ecuador


DATE: 20-08-2020


-Katherine González

MEDIA: Lex Latin

The LexLatin communication medium publishes an article by our associate Katherine González detailing the modification regarding the possibility of canceling commercial names due to lack of use in Ecuador. Previously, the National Service for Intellectual Rights (also known as SENADI) did not process this type of cancellation request since “the authority considered that the rights were acquired with their use.”

After having studied the possibility of carrying it out, the Court of Justice of the Andean Community has determined that trade names may be canceled if they have ceased to be used at a certain time and provided that a series of requirements are met.

Before this new ruling was published, if you applied for a trademark similar to a registered trade name but in disuse, the owner of said trademark had to oppose this fact. Likewise, having filed an opposition or not, the refusal of the trademark was considered due to the similarity to one already registered and, therefore, there was no option to register this new trademark.

As our associate explains, before taking any action it is necessary to bear in mind “that trade names are independent of the business name or determination of the companies and may be the same or different”.

“One of the solutions provided by the users to counteract this type of inconvenience was the presentation of cancellation actions for lack of use against registered trade names. For these matters, SENADI had no maintained a uniform criterion, in most cases these actions were inadmissible because it considered that the registration of a commercial name loses its validity and effectiveness as soon as use ceases, therefore, the cancellation was not legally appropriate, ”González points out.

Now, the criteria have changed and trade names may be canceled due to lack of use in Ecuador.

Ahora, los criterios han cambiado y se podrán cancelar nombres comerciales por falta de uso en Ecuador.

If you want to read the full article, click here

TAG Alliances – Ecuador: Guidelines for the Application of the Law on Humanitarian Support



DATE: 21-07-2020

MEDIA: TAG Alliances

“The alliance of professional services firms TAG Alliances, of which CorralRosales is a member, has echoed our labor bulletin on the guidelines to apply the new labor regulations contemplated in the “Organic Law of humanitarian support to combat the health crisis arising from COVID-19”, issued last July 15 through ministerial agreements.

According to the agreement to preserve labor sources, the employer must update in the SUT – Humanitarian Law module – the employee’s data in accordance with the agreement signed, including its term. The agreements may be registered as of July 31, 2020. Employers who have signed agreements with their employees prior to the issuance of Agreement 132, will have 15 business days to register the information.

Another agreement reached is in the emerging special employment agreement. The employer must register in the SUT the information about the employee and the agreement, within 15 days from the beginning of the labor relationship. As in the previous case, they shall be able to register as of July 31 and will have 15 working days to register the information if the employers signed agreements with their employees prior to the issuance of Agreement 132.

Regarding the working-day reduction, it may be implemented when faced with situations of unforeseen circumstances or force majeure in the terms provided for within the Civil Code. The conditions and characteristics regulated to be able to take advantage of this reduction include the time of reduction, the term, the remuneration, the contributions to the IESS, the labor benefits, the compensations, the exceptions, the registration in the SUT and the notification. To read the news about our bulletin, click hereSi quiere leer la noticia sobre nuestro boletín, pulse aquí

In CorralRosales we publish a portal in which we inform you about all the legislative updates approved due to the health crisis caused by the Covid-19, such as the Law of Humanitarian Support. Click here to view it.

Teleamazonas – The Ministry of Labor issued the agreements on labor related matters



DATE: 16-07-2020


-Edmundo Ramos

MEDIA: Teleamazonas

Television network Teleamazonas conducted an interview with our partner Edmundo Ramos as an expert on labor practices to find out his opinion on the labor changes that began to take place since last March, following the arrival of the health crisis caused by Covid-19. These changes shall be implemented, after the Ministry of Labor issued the agreements with the guidelines for the application of the registration of the types of work and the emerging working-day reduction.

“These agreements specify the procedure to be followed and the deadlines in those cases where employers have already implemented these alternatives,” explained our Partner.

Regarding compensations, within the interview it was clarified that in the event of layoff during the emerging working-day reduction, these compensations, payments and other legal benefits will be calculated based on the salary received by the employee before the reduction.

These guidelines are based on what is stated in the Humanitarian Support Law approved by the National Assembly. In an example given in the interview, it is explained that the emerging contract duly signed shall be registered by the employer in the “Single Work System” (SUT) within fifteen days from the date of execution.

“In the case of emerging working-day reduction, it is established that this reduction shall not be applied if another of the reduction formulas contemplated by law is in force at the time,” adds Ramos.

If you want to see the complete interview, click here

Click here if you want to see the guidelines for the application of the Humanitarian Support Law.

Click here for our information document on the Humanitarian Support Law.