Venezuela IP Country Factsheet - latin america ipr sme ...

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Venezuela IP Country Factsheet - latin america ipr sme ...
Venezuela IP Country
www.latinamerica-ipr-helpdesk.eu
                                                                Factsheet

                                               1. THE FACTS: Business in Venezuela for EU SMES

 1 THE FACTS: Business in Venezuela for EU
    SMES
                                                                                                            2.39 B
                                                                                                             1.6 B
 2 IPRs in Venezuela for SMEs: BACKGROUND                                                                   0.79 B
    A.Intellectual Property Rights for SMEs:
    Why is this RELEVANT to you?
    B. How does Venezuela’s IP legal
    framework compare to INTERNATIONAL
    STANDARDS?

 3 IP Rights in Venezuela: THE BASICS
    A. Copyright and Related Rights
    B. Patent
    C. Trademarks
    D. Traditional Knowledge and IPR of          A. SIZE of Market
    Indigenous Peoples
                                                     Venezuela’s Gross Domestic Product in 2014: €39.9 billion (Source: World Bank)
    E. Trade Secrets                                 Venezuela’s annual growth rate (2014) (%): minus 3.9 (Source: World Bank)
                                                     EU export in services to Venezuela in 2016: € 1.2 billion (Source: DG Trade)
 4 IPRs Enforcement in Venezuela                     EU import in services from Venezuela in 2016: € 0.5 billion (Source: DG Trade)
                                                     EU export in goods to Venezuela in 2017: € 0.79 billion (Source: DG Trade)
 5 LINKS and Additional Information                  EU import in goods from Venezuela in 2017: € 1.6 billion (Source: DG Trade)
                                                     EU Total trade in goods in 2016: € 2.39 billion (Source: DG Trade)

                                                 The EU is Venezuela’s fourth largest commercial partner, after the United
                                                 States, China and Mexico

                                                 B. Key INDUSTRY SECTORS

                                                 •   Oil
 Co-funded by:                                   •   Manufacturing
                                                 •   Trade and Repair Services / Real Estate, Business and Rental services

                                                 Venezuela exports mainly fuel and mineral products to the EU (64% of total
 European Union                                  exports in 2017). For its part, the EU exports mainly manufactured goods
                                                 to Venezuela, including machinery and transport equipment (39.5% of total
                                                 exports in 2017), and chemicals (20.8% of total exports in 2017).
Venezuela IP Country Factsheet - latin america ipr sme ...
1            VENEZUELA IP C ountry Factsheet

As regards IP matters, and in particular patent applications,           B. How does Venezuela’s IP legal framework compare to
most of them come from the oil industry, especially focused on          international standards?
extraction and transformation processes, followed by transnational
companies, and finally universities and public R&D centres.             Venezuela provides basic legal protection of Intellectual Property
                                                                        Rights through a combination of international, regional, and
                                                                        national provisions. This protection aims to promote investments,
2. IPRs in Venezuela for SMEs: BACKGROUND                               which are regulated by different national and international
                                                                        regulatory bodies (CONAPRI).
A. Intellectual Property Rights for SMEs: Why is this relevant to
you?                                                                    In Venezuela, IP comes under the responsibility of the Ministry of
                                                                        Popular Power for Trade (MPPC), and specifically the Autonomous
Globalisation has accelerated scientific and technological              Intellectual Property Service (SAPI), the governing body in this field
changes, driven by investment in research and development.              in the country, alongside the Ministry of Popular Power for Science,
Internationalisation, as well as the pursuit of regional cooperation    Technology and Innovation (MPPCTI).
and integration, intensified international trade relations.
                                                                        The State’s commitment to recognise and protect Intellectual
Intellectual Property (IP) refers to all creations of the mind,         Property in Venezuela is provided by the Constitution of the
such as images used in commerce or music. IP is usually divided         Bolivarian Republic of Venezuela of 1999 (CRBV).
into two branches, namely Industrial Property, which relates to
inventions, designs or signs used in commerce; and Copyright (or        Until 2006, Venezuela was a member of the Andean Community of
‘author’s right’, according to some non English definitions), which     Nations (CAN). This organisation is a free-trade area where some
relates to literary and artistic works.                                 agreements and decisions have been made in order to create new
                                                                        Intellectual Property regulations, with a view to expanding and
Intellectual Property Rights (IPRs) are exclusive rights. As such,      adapting national IP laws to the dynamics of international markets
they confer a temporary monopoly over creations on the right            and agreements.
holders, granting them exclusivity on the use and exploitation
of their intellectual creations and also the right to prevent any       Venezuela left the Andean Community of Nations (CAN) and
unauthorized use by third parties.                                      subsequently joined MERCOSUR in 2006. The ratification process
                                                                        of the MERCOSUR was completed on July 31st 2012, thus
Therefore, this protection system allows creators or owners             initiating a four-year process of legislative harmonisation, which
to benefit from their own intellectual work or investments in           created a new legal framework adapted to the current dynamics
creations and innovations, as well as to protect their moral and        of international markets.
economic interests resulting from the authorship of scientific,
literary or artistic productions.                                       In September 2008, the Director of the Autonomous Intellectual
                                                                        Property Service (SAPI) notified that there was no basis for the
The following IP rights are further developed throughout this           implementation of CAN´s Decision 486 establishing the Common
factsheet, focusing on Venezuelan features: Copyright, Patents,         Regime on Industrial Property.
Industrial Designs and Trademarks.
                                                                        One of the main consequences of this situation is that the country
All the aforementioned examples of IP features are considered           returned to its previous Industrial Property Law, published in
“intangible assets”, together with other IP-related terms such          1956. This law does not cover, for instance, appellations of origin
as licenses, trade secrets or know-how. All intangible assets are       or geographical indications concerning trademarks. Furthermore,
defined by a lack of physical substance and the ability to generate     patents only last for 10 years, which is not consistent with some
future economic benefits. They all may be subject to valuation.         international agreements ratified by the country (TRIPS or Paris
                                                                        Convention).
In knowledge economies, intangible assets, particularly intellectual
property rights (IPR), are a key factor in the global competitiveness   Venezuela adopted MERCOSUR legislation upon joining the
of any business. IPR protection is a good strategy for SMEs to          regional bloc, thus having to incorporate it into its national
recoup their investment in innovation. Managing IPR is particularly     legal framework. However, in December 2016, Venezuela was
important for SMEs seeking to internationalise.                         suspended from MERCOSUR and in August 2017, was evicted.
Venezuela IP Country Factsheet - latin america ipr sme ...
VENEZUELA IP Co un try Factsh eet                               2

  !
                                                                       Similarly, Venezuela signed the following international conventions,
      TIPS and WATCH OUTS                                              agreements, and arrangements relating to Trademarks, Patents
                                                                       and Copyrights:
  The current legal IP framework in Venezuela is based on its
  Intellectual Property Law (1956), which set some provisions
  that are not consistent with TRIPS.                                                                     SPECIAL TOPICS. BIODIVERSITY.
                                                                            INTELLECTUAL PROPERTY
                                                                                                            TRADITIONAL KNOWLEDGE
This changing scenario regarding IP regulations really makes            •       WIPO Conventions         •   Convention on Biological
extremely advisable for SMEs to get advice or to be represented by      •       TRIPS                        Diversity
a duly identified IP agent from Venezuela with proven experience,                                        •   ILO Convention N. 169 on
although they may conduct the procedures by themselves.                                                      Indigenous and Tribal Peoples

Another reason for working with a local expert is that applications             INDUSTRIAL PROPERTY
before the Venezuelan Intellectual Property Autonomous Service                     (PATENTS AND                     COPYRIGHT
                                                                                   TRADEMARKS)
(SAPI) must be submitted in person. SAPI Office is located in
Caracas. IPRs registration procedures are carried out at its            •       Paris Convention         •   Berne Convention for the Pro-
premises. Despite there is a website that includes an online                                                 tection of Literary and Artistic
system (Sistema Web de Informacion de Propiedad Intelectual                                                  Works
de Venezuela (Webpi)), it is still necessary to check the printed                                        •   Rome Convention for the
Intellectual Property Bulletin in order to get the right information                                         Protection of Performers,
at the right time, so as to comply with the deadlines and                                                    Producers of Phonograms and
procedures. Publications dates are announced online.                                                         Broadcasting Organizations
                                                                                                         •   Convention for the Protection
Furthermore and concerning SMEs that are suppliers to the bodies                                             of Producers of Phonograms
of the State and/or public organisations, it is remarkable that the                                          Against Unauthorized Dupli-
Labour and Workers’ Law (LOTTT) establishes that intellectual                                                cation of Their Phonograms
productions in the public sector, i.e. publicly-funded and carried
                                                                                                              (Source: WIPO, WTO, ILO, CBD)
out by public workers or public entities, are considered Public
Domain works, and can be freely used at no cost.
                                                                            !     TIPS and WATCH OUTS
Likewise, it is part of the State’s policies to encourage social
ownership of knowledge and collaborative work models. Therefore,            Due to the principle of territoriality with respect to IPRS
the use of Freeware is encouraged.                                          protection, it is advisable that SMEs and/or natural persons
                                                                            protect the intangibles assets associated to their business
National Public Authorities must use mainly open standard                   in Venezuela. This is particularly important in the event that
freeware for their systems, projects and computer services (Decree          they need to initiate legal proceedings against those who
No. 3,390). The first versions of Creative Commons licences                 infringe their IPRs.
adapted to current Venezuelan legislation have already been                 It is also important to point out that the Venezuelan
released.                                                                   Government encourages free knowledge; and thus supports
                                                                            the use of Freeware and Creative Commons Licenses in
Summing up, IP is considered in the Industrial Property Act of 1956         applications and projects.
and the Copyright Law of 1993. The Biodiversity Management Act
of 2008 regulates the protection and management of inventions
based on biological diversity. The protection and management of
knowledge and characteristics of indigenous peoples’ practices
are regulated in the Organic Law on Indigenous Peoples and
Communities of 2005.
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3             VENEZUELA IP Country Factsheet

3. IPRS in Venezuela: THE BASICS
A. Copyright and related rights                                              Copyright in Venezuela: What you need to know

What are Copyright and Related Rights?                                               REGISTRABLE                     NON-REGISTRABLE
                                                                                    SUBJECT-MATTER                   SUBJECT-MATTER
It is a right granted to authors for their creations, whether they are
                                                                              •   Literary Works               •   The text of an Act
literary, musical, theatrical, artistic, scientific or audio-visual works.
However, in specific cases, these rights apply to legal persons who           •   Audiovisual Works            •   Games of any type
would then only benefit from the economic rights of their IP (as              •   Radio and/or TV Works        •   Mathematical Procedures
opposed to moral rights too).                                                 •   Visual Art Works             •   Manuals
                                                                              •   Scenic or Dramatic Works     •   Curriculum of studies Sylla-
It should be noted that copyright only protects the manner in                 •   Musical works                    bus
which the ideas of the author are described, explained, illustrated           •   Computer Programs and        •   Decrees
or embodied in the works. The ideas themselves or the ideological                 Databases. Technical         •   Official Regulations
or technical content are not protected. This right arises when the                documents and user           •   Public Treaties
work is created, not when it is registered.                                       manuals are subject to
                                                                                                               •   Official Judgments and other
                                                                                  protection as well
                                                                                                                   Formal Acts
The related rights protect performers, producers, distributors and            •   Phonographic Productions
broadcasters.                                                                 •   Copyright transfer and
                                                                                  licence agreements that
The Law on Copyright in force establishes that the author's                       comply with legal require-
economic rights shall be automatically and fully transferred to the               ments
natural or legal persons that produce or publish the work for the
entire duration of the right, unless otherwise stipulated.
                                                                             - Collecting Societies:
Similarly, Article 59 of the Law on Copyright stipulates that
the economic rights of the author(s) of works created under                  These are non-profit civil associations requiring the authorisation
employment or commissioned are to be definitively transferred                of the state to operate, which is issued by the National Directorate
to the employer or commissioning party, unless established                   for Copyright of the Autonomous Intellectual Property Service of
otherwise.                                                                   Venezuela (SAPI).

                                                                             SAPI is aimed to manage copyright and related rights. Negotiation
In Venezuela, computer programs and databases are                            of conditions under which works, artistic performances or
    categorised and protected under Copyright.                               industrial contributions are used by broadcasters and other users
                                                                             are delegated to Collecting Societies by the right holders. This
                                                                             negotiation includes remuneration increase and the distribution
                                                                             among the beneficiaries.
Venezuela IP Country Factsheet - latin america ipr sme ...
VENEZUELA IP C ountry Factsheet                          4

It is not mandatory for the author to join any Collecting Society to   with a debit card; or by electronic transfer if they are from the
manage and defend his/her rights.                                      same bank; or by a bank deposit in three of the assigned banks.

Currently, there are 3 legally authorized Collecting Societies in      An application form costs 0.0114 EUR, the application for
Venezuela, namely:                                                     registration is 1 TU and the registration is 5 TU - .

•       Society of Authors and Composers of Venezuela (SACVEN)         Then, the set of forms completed in full, without errors,
                                                                       amendments or corrections, must be handed in to the Single
•       Venezuelan Association of Performers and Phonograms
                                                                       Customer Support Window (TUT Taquilla Única de Trámites), with
        Producers (AVINPRO)
                                                                       the following requirements:
•       AUTORARTE that represents authors of visual works.
                                                                       - Natural Person:
    !     TIPS and WATCH OUTS
                                                                       •    Photocopy of the Author or Authors' identity card.
    As signatories of international treaties in this field, foreign    •    Tax revenue stamps of 0.06 tax units, if additional sheets are
    authors are treated in the same way as national authors,                used, append 0.2 TU per additional sheet.
    provided that the work complies with the condition of being
                                                                       •    Pay the 1 TU application rate, from the second additional 0.2
    original and available to the public.
                                                                            TU sheet.*
    Copyright is born from the creation of the work. Accordingly,
                                                                       •    Documents must be enclosed in a legal size manila folder.
    the registration is merely declaratory and does not have a
    constitutive value, so it is not mandatory but optional.
    However, registration lays down a presumption of ownership             *TU are the initials of Tax Unit, whose value is
    of copyright, which may be effective against third parties,            usually updated in the month of January of each
    unless proven otherwise.                                                        year. In 2018: UT 1= 0.10 €
                                                                       If the work is unpublished, one copy must be submitted. If
HOW LONG does legal protection last?                                   published, two copies must be submitted.

According to Article 25 of the Law on Copyright, it lasts the          The copy may be submitted in paper (bound), or in digital
lifetime (of the author) and shall expire sixty years from the first   format. If the copy is submitted in digital format, it must be in
of January of the year after his/her demise. This is also applicable   the following extensions: Images: png, jpg or bmp; Documents:
for undisclosed works.                                                 odt, ods, odp, doc, xls, ppt, or pdf; Audio: ogg, mp3, wma or wav:
                                                                       Videos: QuickTime (mov), mpeg-1, mpeg-2, mpeg-3, avi, or wmv.
How do I register? Who can register? How much does it COST?
                                                                       Copies must have the author's name, national ID and name of the
A set of application forms [three in total: 1) general aspects of      work.
the work and the author’s data; 2) owner’s data, applicant, copies
submitted, date of application, and the signature of the author:           If the author is deceased, his/her sole beneficiaries
and 3) called ‘form A’, should contain additional or complementary           can carry out the application, duly authorised
data that could not be included in forms 1 and/or 2], as per type              through the Hereditary Solvency issued by
of work for registration, is needed to be purchased. To initiate the                            SENLAT.
process, the applicant must cancel the cost of the forms, followed
by the application fee and the fiscal stamps. Payment can be done
in person, at the Integral Service Ticket Office (SAPI Headquarters)
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5            VENEZUELA IP C ountry Facts heet

Legal Entity                                                             In fact, the National Public Administration must use mainly
                                                                         Freeware developed with Open Standards, in its systems, projects
•     Constitutive Act, Act of the last assembly or publications, copy   and data processing services (Decree N° 3,390). Likewise, the first
      of Tax Information Registry (RIF) of the legal person.             versions of Creative Commons licences are already adapted to the
                                                                         legislation in force in Venezuela.
•     If the applicant makes the request on behalf of the author, he/
      she must consign the power of attorney, duly notarised and a
      copy of the attorney's national ID.                                  TIPS AND WATCH-OUTS

In Venezuela, there are some special requirements in accordance
                                                                           If the work is created by a public employee and/or it is funded
with the genre or nature of the work:
                                                                           by Venezuelan State funds, the work will be considered Public
                                                                           Use Work, according to LOTTT (Venezuela Labour Law). In
•     If it is declared a derivative work, an express authorisation        these cases, the authorship of the work is recognized but the
      from the author of the original work must be submitted (works        author would not have any economic right.
      in the public domain are exempt).
•     For musical works with or without lyrics, a copy of the sheet
      music (or the means of expression used) must be submitted,         More information upon Freeware can be obtained at the CNTI
      and the lyrics (if applicable).                                    website. It is also possible to access the Licence Portal Creative
•     For audiovisual, radio or theatre works, sets of photographs,      Commons Venezuela.
      so as to identify the main scenes or fixation of sounds, or
      hardware that contains the fixation of moving images.              B. Patents
•     For visual works of art, the necessary photographs for their
      identification.                                                    What is a patent? What is an industrial model and design?
•     For works of architecture and engineering, plans that allow
                                                                         A patent is an exclusive right granted by the State to the inventor
      the identification of its essential elements.
                                                                         or discoverer that entitles him/her to produce and/or to use
•     For computer programs, two magnetic media containing               commercially his/her invention or innovation. Once the established
      the instruction sequence, the first two and last two pages of      timeframe has expired the invention enters the public domain.
      source code, and two manuals (duly bound, if submitted in
      paper format).                                                     There are different types of patents provided by the Venezuelan
•     For phonographic productions, a reproduction of the                regulations. Unlike in Europe, Industrial Models and Designs are
      phonogram.                                                         regulated as a specific type of patent under the same provisions.

Following submission of the application for copyright registration       The following are the definitions for the concerned IPRs:
at the Single Customer Support Window (Taquilla Única de
Tramites or TUT), the response time from SAPI is 3 working days.         Patent of Invention: The result of the effort of human invention
The applicant is notified by phone if the work is approved or            and innovation embodied in a new product or process that
returned for the required correction.                                    provides, in practice, a solution to a technical problem.

                                                                         Improvement Patent: Any new form, improvement or modification
What language can I use?
                                                                         introduced in already known products that achieves greater
                                                                         economisation, functionality or perfection in the products. The
The procedures are carried out only in Spanish.
                                                                         improvement Patent is close to what in certain EU members is
                                                                         known as Utility Model.
Freeware and Creative Commons Software

                                                                         Industrial Model: Any visual combination (with or without colours)
    It is State policy, promoted through the MPPCTI,
                                                                         or any industrial, commercial, or domestic object or tool that can
     to support the social appropriation of knowledge                    be used as a model to produce others. It must have a distinct form
    and use of legal instruments that protect knowledge                  and configuration.
    within the Collaborative Work Model framework.
                                                                         Industrial Design: Any arrangement or combination of lines,
In this way, it promotes the use of Freeware and represents              colours, or both, designed to give an industrial object a special
Creative Commons in Venezuela through its affiliated entity, the         appearance.
National Centre for Information Technology (CNTI).
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VENEZUELA IP Country Factsheet                                 6

Patents in Venezuela: what you need to know                                    •    Changes, improvements and modifications introduced in
                                                                                    already known things.
Patentability requirements set out by IP Law in Venezuela are the              •    New industrial models or drawings.
following:                                                                     •    Any other invention or discovery being appropriate for an
                                                                                    industrial application.
•    Novelty: A technical solution that has not been disclosed by              •    Inventions, improvements, or industrial models or drawings
     any means anywhere in the world before, i.e. that is not part                  that have been patented abroad, but still have not been
     of the state of the art. “State of the art” includes all that has              disclosed, patented or used in Venezuela.
     been disclosed by any means prior to the date of application.
     In the case of industrial models and industrial designs, the                         NON-PATENTABLE SUBJECT MATTER:
     previous use of the model and or design by the applicant is not
     obstacle to their registration.                                           •    Beverages or food products (for both human and animals),
                                                                                    medicines of any kind, medicinal and pharmaceutical
•    Inventive Step: The invention must not be considered that it
                                                                                    preparations, and chemical preparations, reactions and
     clearly derives from the state of the art, according to a person
                                                                                    combinations.
     skilled in the art.
                                                                               •    Financial, speculative, commercial or advertising systems,
•    Industrial Applicability: The invention should apply to any kind               combinations or plans; or mere control or capitalisation.
     of industry, in the broadest sense.                                       •    The mere use or exploitation of natural products or forces,
     The description of the invention must be sufficiently clear and                even if they are newly discovered.
     complete so that a person skilled in the art can reproduce the            •    The new use of articles, objects, materials or items.
     process and achieve the same result.                                      •    Work methods or manufacturing secrets.
                                                                               •    Merely theoretical or speculative inventions.
                                                                               •    Inventions contrary to national laws, health and public
      According to the Venezuelan IP Law, a person                                  order, morals or good customs, and State security.
      who has already granted a patent in a different                          •    Elements already patented or in the public domain.
     country has priority to obtain it in Venezuela, as                        •    Inventions that have already been disclosed in the country.
    long as it is applied for within twelve months from
      the priority date i.e. date on which the original                    !       TIPS and WATCH OUTS
                    application was filed.
                                                                           Even though according to the Venezuelan IP Law certain
                                                                           inventions are not patentable -such as pharmaceutical
Inventions                                                                 inventions-, inventors and companies are still applying for
                                                                           them in order not to lose their priority rights with a view to
As established in articles 14 and 15 of Venezuelan IP Law, not             future changes in the law.
every invention can be patented. Only the following ones are               Such changes are necessary in order to adapt Venezuelan
considered patentable subject matter:                                      legal framework to TRIPS, which permits pharmaceutical
                                                                           and chemical patents.
                  PATENTABLE SUBJECT MATTER:

     •   Any new, defined and useful product.                            Designs
     •   Any new machinery, tool, instrument or apparatus subject
         to industrial, medical, technical or scientific application.    Concerning Industrial Designs, IP Law provides protection for the
     •   Parts or elements of machines, mechanisms, apparatus or         external aspect and does not extend it to the product itself or the
         accessories.                                                    utility of the object produced.
     •   New processes for the preparation of industrial or
         commercial materials or items.                                  As the Industrial Designs, Industrial Models must be new and
     •   New processes for the preparation of chemical products          original to be registered.
         and new methods for the preparation, extraction and
         separation of natural products.
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7            VENEZUELA IP Country Factsheet

How LONG does the legal protection last?

The duration of each type of patent is different. The starting point   •   National Revenue Stamp
of the duration of the Patent is the date of granting, not the         •   Revenue Stamp of the Capital District
application date:                                                      •   First annuity receipt. The first annuity is 100 TU.
                                                                       •   Two copies of the invention specification: one via physical
•    Invention Patent: 5- 10 years (upon request)                          means and one via electronic means (CD or DVD) in PDF
•    Improvement Patent: 5 years                                           format (portable Document File).
•    Industrial model/ design: 5-10 years                              •   Technical name of the patent (trademark names are not
                                                                           accepted).
This duration is not consistent with TRIPS agreement (20 years         •   Folder with the name of the modality (Invention, Improvement
from the application date in case of patents and 10 years in case          and Drawings of Industrial Models).
of industrial designs/models). Therefore, the time of protection is    •   A Power of Attorney (if applicable), original and one photocopy.
lower than in the TRIPS member states.                                     If the natural person is domiciled abroad, the PoA is mandatory
                                                                           and must be legalised, translated by a state interpreter, and
 In 2016, the National Assembly introduced a bill for a new IP law         duly apostilled.
to address some of the concerns regarding IP Law, but there has        •   Legalised photocopy of the foreign patent application in case
been no further legislative progress.                                      that there is a previous request in another country.

HOW do I register? WHO can register? How much does it COST?            If the request is submitted on behalf of a legal person, the
                                                                       following should be added to the aforementioned requirements:
Any natural or legal person considered as an inventor or innovator,
may initiate the procedure requesting a prior art search in            •   Original and copy of the memorandum of association, together
national and international databases at the SAPI.                          with a certified copy or a publication in the press.
                                                                       •   Original and copy of the minutes of the last meeting where
Any natural or legal person can apply for an Industrial Design or          legal representation is documented.
Model.                                                                 •   Original and copy of the inventors’ transfer agreement, with
                                                                           the signatures of the assignor and assignee.
National and international patent searches allow the verification      •   Legalised Power of Attorney (if applicable).
of the novelty requirement with respect to the "prior art" and
therefore the feasibility of registering the patent.                   Once these required documents are handed in, the SAPI proceeds
                                                                       with the formalities examination, orders the publication in press,
         Similarly, when initiating research and                       publishes a notice that the patent is requested in its Bulletin, waits
    development activities, conducting a study on the                  for a period of 30+60 calendar days for opposition, and carries out
    state of the art would allow SMEs to make better                   an examination of patentability (substantive examination), which
    decisions, avoiding the investment of resources in                 does not have a specific time to be carried out.
                 already existing solutions.
The results of the study take at least 5 working days and the costs    A patent application may expire (“perimir” in Spanish) due to
involved can be found at SAPI's website.                               applicant’s failure to observe the procedure. In those cases, the
                                                                       applicant has the option of starting the process again.
Required information and documents:
                                                                       Once the application is approved, SAPI issues a Patent Certificate.
After a study on the state of the art, the inventor (a natural         The process can normally take between 5 to 10 years in total.
person) or a duly authorised representative must provide a
photocopy of his/her national ID or passport and the following:        WIPO statistics database (updated 03/2018) only registered
                                                                       some patent applications in 2011 for the country. However, the
•    Patent request  FP-01 form and right of registration, 50.1 TU.    Venezuelan Industrial Bulletin has published a few applications in
     The form is available through the WEBPI Online Care System.       2017. And yet, SAPI has not issued a new patent since 2007.
Venezuela IP Country Factsheet - latin america ipr sme ...
VENEZUELA IP C ountry Facts h eet                             8

  !   TIPS and WATCH OUTS
                                                                      Every trademark must meet the legal requirements for its
  In Venezuela, all Intellectual Property Rights registration         registration. It must be distinctive and not descriptive. It also has
  proceedings are centralised in the capital –Caracas.                to be not misleading for consumers because of the likelihood of
  The procedure can be found at SAPI's website, whose                 confusion with other trademarks.
  notifications and resolutions are regularly published in the
  Industrial Property Bulletins.                                      There are a wide variety of distinctive signs that can be registered
                                                                      under Venezuelan IP law.
  The electronic means used by SAPI are not immediately
  updated. Therefore, it is imperative that the applicant
                                                                         The Trade Name of an establishment running an economic
  monitors his/her request personally and continuously, so as
  to avoid the risk of non-compliance.                                   activity is considered the trademark that distinguishes it in
                                                                         the market. A trade name can be part of a trademark, or
                                                                         even constitute a trademark itself. In the latter case, the
                                                                         law requires it to be registered as a trademark to be legally
Which languages can I use?
                                                                         protected.

Procedures are conducted in Spanish.
                                                                         Likewise, Trade Emblems and Shop Names can be registered
                                                                         under the IP Law.
Patent and Industrial Models and Designs applications can only be
submitted at the premises of SAPI in Caracas (see Section 6 for
                                                                         A Commercial Slogan may be a trademark as well. It consists
further details).
                                                                         of a word, phrase or legend, either visual or sound, used as a
                                                                         complement of a product or service trademark, and/or a trade
                                                                         name, that generally fulfils an advertising function. When
C. Trademarks
                                                                         applying for registration, the complementary trademark must
                                                                         be indicated.
What are Trademarks?
                                                                         By way of exception, any name or distinctive sign in which a
A trademark is a distinctive sign, which identifies certain goods
                                                                         person has an interest, even if that interest is not commercial,
or services as those produced or provided by a specific person or
                                                                         can be register.
enterprise.
                                                                      Both Trade Names and Advertising Slogans cannot be transferred
Once registered, a trademark provides protection to the owner of
                                                                      themselves separately from the business or trademark they are
the mark by ensuring the exclusive right to use it to identify its
                                                                      linked to.
products/services.
                                                                      On the other hand, Venezuela also provides for Collective
A trademark registered in Venezuela gives the holder the exclusive
                                                                      Trademarks. They are defined as signs used to identify or
right to bring legal actions against any third party that uses the
                                                                      distinguish products or services, generated by collective entities
protected trademark to other products without consent, to sell or
                                                                      (socio-productive organizations, social property companies, family
introduce products with the protected trademark in the market and
                                                                      production units, cooperative associations; micro, small and
to demand protection against counterfeiting and piracy.
                                                                      medium sized enterprises, networks or artisan collectives, civic
                                                                      associations, etc.).
Trademarks in Venezuela: What you need to know
                                                                      It is mandatory that each Collective Trademark has its own
In Venezuela the registration is granted by the Industrial Property
                                                                      Regulation of Use, that establishes and uniforms certain aspects
Registry (SAPI).
                                                                      of the trademark use, including the offer of the product or service,
                                                                      uniformity standards and quality controls and sanctions foreseen
  !   TIPS and WATCH OUTS                                             for members.
  Words or combination of words, signs and figures, drawings,
                                                                      Collective Trademarks can be registered under three figures:
  legends, combinations of numbers, combinations of colours
  (but not a colour alone)sounds and shapes of objects may            trademark, trade name or commercial slogan. In any case, their
  be registered as a trademark in Venezuela.                          management and ownership must be collective.
Venezuela IP Country Factsheet - latin america ipr sme ...
9           VENEZUELA IP Country Factsheet

 The national IP Law does not provide for collective
  marks. However, they are regulated in Venezuela                   HOW LONG does legal protection last?
     in accordance with the Paris Convention.
                                                                    Trademark protection lasts fifteen years from the granting date,
                                                                    and it can be renewed indefinitely for the same period of time.
              NON-REGISTRABLE SUBJECT-MATTER                        Requests for renewals must be made six months before expiration.

 •   Words, sentences, figures or signs that suggest immoral
     ideas or are contrary to morality and good customs, as well        !     TIPS and WATCH OUTS
     as those which are associated to illegal commerce or prohi-
     bited products.                                                    The registration of a trademark takes, approximately, from
                                                                        8 months to 1 year, if no incident delays the process. This is
 •   Patriotic symbols. State or municipalities emblems.
                                                                        due the fact that the procedures include certain terms and
 •   Red Cross signs.                                                   timeframes, established by law that should be respected.
 •   Symbols and emblems from other countries.
                                                                        Venezuela has a first-to-file system for trademarks. This
 •   Geographical names, as an indication of origin.                    means that the one who applies for the trademark first shall
 •   Colours per se.                                                    have priority in obtaining the trademark registration.
 •   Geometric figures that show no novelty.                            The only exception occurs in opposition proceedings when a
 •   Caricatures, portraits, drawings or expressions that mock          third party request the registration and is also able to prove
     people or objects worthy of respect and consideration.             the public, pacific and in good faith use of the unregistered
 •   Word and terms that have become of common use.                     trademark for at least six months.
 •   Words commonly used to indicate gender, species, nature,
     origin, quality or shape of products.
                                                                    HOW do I register?
 •   Name and surnames of a natural person, which are not
     presented in a peculiar form or diminutive.
                                                                    The procedure comprises several steps and it starts with a
 •   The trademarks that are graphic and/or phonetically similar    mandatory Trademark Search Report upon request of the holder
     to others already registered.
                                                                    to SAPI. This search generates a report containing the precedent
 •   The trademarks that can be confused with other trademar-       registrations found in relation to the sign or trademark.
     ks that are already registered or can lead to confusion by
     indicating a false origin or characteristic.
                                                                    This search can be both:

The applicable principles to trademarks in Venezuela are:
                                                                    •       Phonetic - that is carried out by name and class. It indicates
                                                                            both the registered trademarks as well as those being proces-
Territoriality: The rights conferred by the Industrial Property
                                                                            sed;
Autonomous Service Directorate (SAPI) in Venezuela are only valid
on Venezuelan territory.                                            •       Graphic - This is a search that is performed with the purpose
                                                                            of finding antecedents of the graphical representation of the
Specialty: The trademarks should be requested and are protected             trademark or logo.
according to the nature of the products or services that they
intend to distinguish.                                              At this stage, the logo or design should be submitted upon request
                                                                    (5 x 5 cm format).
VENEZUELA IP Co untry Facts h eet                          10

        Although Venezuela did not sign the Nice                          Which language can I use?
    Agreement, the International Nice Classification is
                                                                          Proceedings are conducted in Spanish.
                      used by SAPI
Then, the applicant acquires the FM-02 form from the SAPI offices,        How much does it COST?
as well as the folder according to the product trademark and/or
service, trade name or slogan.                                            All the costs of the procedures can be consulted at the SAPI
                                                                          WEBSITE.
Next, the trademark application fee must be paid (it may vary as
SAPI stipulates at the time of the procedure).                            Currently, the application cost for a one-class trademark is 1.05€,
                                                                          whereas the mandatory Trademark Search Report cost is 10 TU.
Finally the applicant delivers the application only in person at the
premises of SAPI (see Section 6 for further details).                     WHO can register?

    !     TIPS and WATCH OUTS
                                                                          There are different requirements for submission according to the
                                                                          type of applicant.
    SAPI internally applies the Nice Classification and the
    National Classifier (Art 106 of the Industrial Property Law).         - Natural Person:
                                                                            • National Fiscal Stamp.
    According to the Law, it is not possible to apply for multi-
                                                                            • Tax receipt for trademark application.
    class trademarks. Thus, if you want to protect more than
    one class of products and services, you should apply for as             • Product Folder and/or service or slogan or trade
    many trademarks as products/services classes you intend to                 designation.
    protect (single-class system).                                          • FM-02 form duly completed with its respective national
                                                                               and international class.

Required Information and documents                                        - Legal Persons:
                                                                            • Certified copy of the Constitutive Act of the trading
The application documentation consists of the following elements:              company or publication in the newspaper (bring the original
                                                                               to verify authenticity).
•       National Fiscal Stamp.                                              • In case the company has been constituted for more than
•       Tax receipt for trademark application.                                 5 years, the applicant should submit: original or certified
•       Product Folder and/or service or slogan or trade designation.          copy and single copy of the minutes of the last assembly.
•       FM-02 form duly completed with its respective national and             In case of changes in partners or legal representatives,
        international class.                                                   the applicant should submit original or certified copies and
•       In case of a graphic or mixed trademark application, you must          single copies of the last minutes of assembly where these
        submit one 4x4 facsimile, together with a brief description of         changes are evident.
        the figurative element on a separate sheet.                         • Copies of the Tax Information Register (RIF) of the
•       A Power of Attorney (if applicable), the original and one (1)          company
        photocopy. If the PoA was signed abroad it should be legalised,     • Photocopies of the national ID or the passport of the
        translated by a legal interpreter and duly notarised.                  Director of the company and the applicant at the counter.
•       Trademark Search Report.                                            • Fiscal Stamp.
                                                                            • Submission Tax.
                                                                            • In case of requesting a collective trademark, applicants
                                                                               should submit the trademark Regulation of Use.
11
                 VENEZUELA IP Co un try Factsh eet

- Civil Associations:                                                   E. Trade Secrets
  • They shall enclose original or certified copy or single copy
       of the Statutes.                                                 In Venezuela, trade secrets are not considered under regulations
                                                                        of IP. However, they are protected privately and contractually,
- State Entities:                                                       through confidentiality clauses or agreements.
  • They should request to the SAPI in writing the exemption of
      the tax costs and services. Subsequently, it is necessary to      Nevertheless, the concept itself of "keeping the secret" exists in
      submit a copy of the Official Gazette of the appointment          criminal legislation and also in civil legislation, as a not-to-do
      and designation of the legal representative alongside a           obligation infringement.
      copy of his/her respective national ID.
                                                                        Thus, making an unauthorised disclosure of a trade secret is
- Co-operatives:                                                        considered a violation and gives the right to compensation for
  • Enclose certified copy or single copy of the Constitutive Act       damages (See Civil Code Art. 1185) and may be penalised with
      with submission of original.                                      imprisonment between five and thirty days pursuant the Criminal
                                                                        Code.
   Co-operatives are exempt from payment of trademark
   registration fees.                                                   Likewise, the disclosure of information regarding inventions,
                                                                        scientific discoveries or industrial applications known as a
                                                                        consequence of a position or employment, profession, trade or
D. Traditional Knowledge and IPRs of Indigenous Peoples                 industry, is punishable upon request of the injured party, with
                                                                        imprisonment from fifteen days to three months.
Venezuela recognizes the rights of collective ownership of
knowledge, technologies, innovations and knowledge of indigenous        If disclosure is made to a non-resident of the country or to one of
peoples and communities, as well as the use given to genetic            its agents, imprisonment shall be fifteen days to six months.
resources.
                                                                        Similarly, Venezuela applies the provisions of the Paris Convention
Specifically in relation to IP, the INDIGENOUS PEOPLES AND              and TRIPS on unfair competition, as well as the provisions
COMMUNITIES ACT includes a chapter referring to “The Knowledge          established in the legal framework of PROCOMPETENCIA
and Collective Intellectual Property Rights of Indigenous Peoples”.     (Superintendence for the Promotion and Protection of Free
                                                                        Competition).
This Act embodies the State commitment to ensure the rights of
indigenous peoples and communities. The aim is to protect them          Even though TRIPS and Paris Convention do not define what
in accordance with their customs, cultural heritage, and artistic,      information is eligible for being classified as a Trade Secret, they
spiritual, technological and scientific knowledge. This protection is   do establish the requirements for its protection as follows:
foreseen concerning animal and vegetable life, designs, traditional
methods, and in general, all ancestral and traditional knowledge        •   Not easily accessible;
associated with genetic resources and biodiversity.
                                                                        •   Has commercial value and;
Although several organisations have work together with native           •   Reasonable measures have been taken.
communities to protect their knowledge, SAPI still does not have a
fully defined process to be applied.
VENEZUELA IP Country Factsheet                          12

4. IPRs Enforcement in Venezuela                                       Likewise, the Venezuelan IP legislation, the international
                                                                       framework in force, and the set of rules listed below, facilitate
IP Enforcement in Venezuela: What do you need to know?                 administrative, civil, and criminal proceedings against those
                                                                       who infringe IP rights. Penalties may include fines and even
Enforcement of IP rights is being gradually taken into account by      imprisonment.
the competent authorities in Venezuela, through the SENIAT and
the private sector, i.e. the right-holders.                            Available resources for IPRs enforcement can be found in the
                                                                       following Laws.
Venezuela is a signatory of TRIPS, Paris Convention, Berne
Convention and other international treaties. This made an              •    Industrial Property Law and Law on Copyright, as well as the
improvement in IPR enforcement regulation in the country.                   relevant international treaties.
                                                                       •    Customs Law.
Nevertheless, the state of piracy is high, as in most Latin-American   •    Law Against Illegal Goods Transfer.
countries. Despite the existing legislation and the efforts made by    •    Law for the Defence of People's Access to Goods and Services.
the State, it is a problem that SMEs should bear in mind.              •    Law to Promote and Protect the Exercise of Free Competition.
                                                                       •    Law against Cybercrime.
Accordingly, from the very beginning of an IPR registration            •    The Criminal Code and the rules applicable to judicial and
procedure, any third party who considers that its rights are being          administrative proceedings.
infringed can take administrative actions, such as opposition          •    Appropriate alternative dispute resolution systems.
procedures, since the applicant is obliged to publish his/her
application in the national press.                                          The sanctions for IP infringement are foreseen in
                                                                                           the Criminal Code
  However, IPR enforcement’s effectiveness depends                           Using arbitration and conciliatory measures is
  enormously on a proactive approach from the IPR                           recommended for SMEs facing infringement in
  holder, not only by monitoring constantly but also                         Venezuela, given that any other measure will
  by collaborating with the responsible authority for                          require more time and entail higher costs.
                  exercising actions.
13            VENEZUELA IP Country Factsheet

In case of litigation the claimant may request inspections and
notifications to the Eighteenth National Prosecutor’s Office of the   Operational Level: constituted by seventeen main customs with
Public Ministry (with jurisdiction over IP).                          their respective subordinate offices. They are responsible for
                                                                      carrying out the perceptive control of goods to be declared, as
It also provides a mechanism for conciliation and mediation for       well as their physical verification and subsequent withdrawal (if
dispute resolution concerning IPRs.                                   needed). They also manage all issues concerning tax payments.

                                                                      Regulatory Level: formed by the National Customs Administration
      SMEs are well advised to consult an IP expert
                                                                      Management Unit and its sub-units: the Tariff Management,
                                                                      Customs Procedure Management, Value Management and
  !     TIPS and WATCH OUTS                                           Customs Control Management.

  Venezuela is on the US IPR enforcement watch-list since             The National Customs Administration: is the executor unit of
  1989 (Special Report 301: Venezuela Venezuela remains               the national customs policy. It seeks the compliance of customs
  on the Priority Watch List in 2017), due to the obstacles to        legislation and the improvement of customs procedures, in order
  effective control of piracy.                                        to respond to issues concerning:
  In 1996, a special body called Anti-Piracy Command
  (COMANPI) led by the Ministry of Popular Power for                  •   tax collection targets
  the Interior and Justice and the Scientific, Criminal and           •   decrease of levels of tax evasion
  Criminology Investigations, as well as other public and             •   protection levels of industries
  private organisations was created. It has competency at a           •   trade barriers
  national level and its objective is, besides raising awareness      •   imbalance in the trade balance and international reserves.
  on the issue, to combine efforts to fight piracy
                                                                      For further information on the overall operation of Customs, the
                                                                      FAQs section on SENIAT’s website can be explored.
IP Enforcement in Venezuela: Using customs to block
counterfeits
                                                                      Regulation on counterfeits:

Who regulates Customs in Venezuela?                                   The Law of Customs (2014), together with the TRIPS Agreement
                                                                      establish the Border Measures in Venezuela.
Venezuelan Customs are regulated by the Integrated National
Service of the Customs and Tax Administration (SENIAT, see            Customs Authorities, at the request of SAPI, can prevent the
section 6 for further details). It operates as an entity under the    departure of goods that allegedly infringe IPR. In cases where
Ministry of Popular Power of Economy and Finance, (MPPEF).            infringement is proven, the goods may be destroyed.

How is the Venezuelan Customs Service organised?                      On the other hand, it is also possible to reach an agreement for
                                                                      the clearance of the goods - at the request of SAPI and prior to
Customs Management (Operational level) and the Central                the presentation of sufficient safeguards to protect the owner of
Administration (Regulatory Level) share functional responsibility     the IP whose rights allegedly are being violated.
on customs administration.
VENEZUELA IP Co un try Factsh eet                          14

Furthermore, the Venezuelan Law on Smuggling (2010) defines           •    Integrated International Service of Customs and Tax
“smuggling” as: acts or omissions where the state intervention             Administration - SENIAT
is avoided or attempted to be avoided in the control of the
                                                                      •    National Centre of Information Technologies
introduction, extraction or merchandise in transit or goods that
constitute crimes, faults or administrative infractions. Smuggling    •    Creative Commons Venezuela
is considered aggravated when the involved goods are under IP
                                                                      •    Authors and Composers Society of Venezuela
protection (Art 24(6)).
                                                                      •    Venezuelan Association of Interpreters and Producers of
Finally, the SENIAT has a specific provision on border measures in         Phonograms
case of a IPRs infringement that regulates the actions to be taken    •    Intellectual Property World Organisation
by the IP right- holders and government employees from Customs
and Tax Administration.                                               •    European Patent Office
                                                                      •    World Trade Organization
Moreover, holders may request preventive retention of goods
allegedly infringing IPRs to the National Customs Administration or   Single Customer Support Window (Taquilla Única de Tramites (TUT))
corresponding customs authorities.                                    is located in:
                                                                           Avenida Universidad, corner El Chorro, Torre Ministerial, ground
There is also a presumption of infringement in cases where the             floor, Libertador Municipality, Distrito Capital.
importer/exporter does not include a copy of a valid authorisation
issued by an IP right holder.                                         The only Headquarters of the Intellectual Property Autonomous
                                                                      Service (SAPI) is situated at:
Border measures tasks are carried out at Customs, Free Ports, Free       Centro Simon Bolivar, Edificio Norte, Piso 4, El Silencio, next to
Zones and Bonded Warehouses. A subsequent Control Activity, that         the Plaza Caracas. Libertador Municipality, Distrito Capital.
is to say, when the goods are already being commercialised, is           Telephone: +58.212-481.64.78/484.29.07
also performed through inspections.                                      Fax: +58.212-483.13.91

                                                                      National Service of Customs and Tax Administration
5. LINKS and Additional Information                                       Avenida Quito, Caracas 1052, Distrito Capital,
                                                                          VenezuelaTelephone: +58 212-7092111Free line: 08000 -
•   Intellectual Property Autonomous Service (SAPI)
                                                                          736428
•   Ministry of Popular Power for Trade                                   Guidance on customs matters:
                                                                          asistenciaaduanas@seniat.gob.ve
•   Ministry of Popular Power for University Education, Science
                                                                          Consultations on declarations and procedures:
    andTechnology
                                                                          asistencia@seniat.gob.ve
•   Ministry of Foreign Trade and Foreign Investment
•   Ministry of Popular Power for Indigenous Peoples
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CHILE                                                                                                           no responsibility is accepted for the
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