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Regulations of the Coercive Procedure of the IP Office

With a Resolution in the Official Registry of September 13, 2018 were issued the Regulations of the Coercive Procedure of the National Intellectual Rights’ Services – NIRS (SENADI in Spanish), under the following considerations:

 The Regulations establishes a framework for the exercise of the coercive capacity for the collection and recovery of amounts contained in economic obligations resulting in its favor, usually for unpaid fees or fines.

 It is applicable for those who develop activities related with intellectual property that may have pending economic obligations in favor of the NIRS.

 The coercive proceeding is started base don a collection order issued by the competent authority, which has the implicit faculty to proceed to the coercive exercise.

 From the notification of the collection order, the coercive proceeding may only be suspended if the obligation had been paid, if payment facilities had been granted or by court order.

 Interests and surcharges in the obligations will calculated based on the highest annual interest rate allowed by the Central Bank as of the date of liquidation of the obligation. The interest will be effective from the following day from the issuance of the collection order. The filing of administrative action shall not suspend the generation of interests of the obligation.

 The authority issuing the collection order will be able to grant payment facilities, upon the request of the debtor.

o The request of payment facilities shall contain the offer to immediately pay at least 20% of the total obligation, the way that the balance will be paid and indicate the guaranty for the outstanding balance

o Payment facilities may be agreed to only before the auction stage of the assets seized.

• The notice with the collection order will be personally served to the debtor. When it should not be possible to personally notify, it will be made with two written notices delivered at the latest domicile address indicated by the debtor.

• The notices of the proceeding will be informed to the coerced debtor by e-mail, to the domicile and/or digital legal POBox indicated in the administrative proceeding that generated the obligation..

• The executive body shall issue the immediate payment order including precautionary measures and shall order to each of the obligors to pay or deliver goods within a three (3) days’ term from the following day of the notification.

• Within the precautionary measures, the executive body will be able to order to withhold funds or deposits that the obligor has in the financial system or the seizure of its assets.

• Coercive proceedings with payment orders issued before the entering into effect of the Regulations shall be processed pursuant to the stipulations therein, provided that are the most favorable for the obligor and shall facilitate the collection of dues.

• In proceedings with payment orders issued before the entering into effect of the Regulations the due date for the voluntary payment shall be verified.