Intellectual property (IP) is a key driver of innovation, investment, and economic development in any country. In Ecuador, the entity responsible for managing and protecting these rights is the National Intellectual Rights Service (SENADI). In recent times, SENADI has implemented various improvements to modernize its processes and bring its services closer to all types of users, including entrepreneurs and small and medium-sized enterprises. However, it is still essential to move forward with greater strength and urgency to ensure efficient, modern management capable of responding to the demands of a globalized world. We are far from having an intellectual property office that meets the country’s needs—especially when compared to the most efficient offices in Latin America. This situation is largely due to a lack of human talent and an unfair imbalance in the management of resources that the institution itself generates.
Current challenges: lack of personnel and resources
Starting with the fact that Ecuador has a very deficient intellectual property law—which is already a challenge for SENADI—one of the agency’s main limitations is the shortage of highly qualified staff, as well as the absence of technological and quality systems that allow for agile, transparent, and secure management. This directly impacts the effective protection of intellectual property rights and generates an atmosphere of uncertainty for those who invest, innovate, or wish to start businesses in Ecuador.
An unfair imbalance in resource management. Illegality in the use of fees.
In 2024, SENADI collected more than 11 million U.S. dollars, mostly from official fees paid by users to register and protect their trademarks, patents, copyrights, plant varieties, and other intangible assets. However, it only receives around 30% of this revenue to operate, while the remaining 70% is absorbed by the central government. This scheme is neither fair, nor legal, nor logical for a country that aims to open its economy to the world and strengthen its position in international markets.
The central government’s allocation of the fees paid to SENADI is illegal, since fees are “taxes whose obligation arises from the provision of a divisible and individualized public service, or from an administrative activity that generates a direct benefit to the taxpayer, provided that the principles of legality and proportionality established in Article 300 of the Constitution are met.” These fees are paid to SENADI for a service provided by this State institution; therefore, these payments must be used solely and exclusively by SENADI for the efficient provision of such services.
Intellectual property as a pillar of foreign trade
The protection of intellectual property is a crucial issue in trade relations with major partners such as the United States and the European Union. For the United States, the lack of strong guarantees in this field is concerning and one of the reasons for applying restrictive tariff measures. In fact, this has been one of the reasons why the country has imposed the dreaded tariffs on Ecuador.
For the European Union, these issues are extremely important and are carefully considered when negotiating with their trade partners. It is concerning that they have already publicly stated that the absence of effective protection for plant varieties in Ecuador constitutes a significant trade barrier.
These observations are not mere formalities, but clear signs that Ecuador must take firm steps to strengthen its intellectual property system—not only to fulfill its international commitments (international treaties, trade agreements, among others), but also to foster an environment conducive to investment, innovation, and job creation.
An urgent call for modernization and resource allocation
The new Ecuador demands robust and efficient institutions. SENADI must have access to the resources it generates in order to strengthen its human team, update its technological systems, and improve the quality of its services.
Moreover, it is essential to promote deep legal changes to replace the Organic Code of the Social Economy of Knowledge, Creativity, and Innovation (wrongly called the “Ingenios Code”). This law, enacted in December 2016, is a harmful legacy of the Correa administration, designed to provide the least possible protection to intellectual property. The repeal of the 1998 Intellectual Property Law and the approval of the Ingenios Code substantially reduced the protection of intellectual property rights, and it is urgent to reform the legislation to ensure adequate protection of such rights. Although small changes and slight improvements have been made, it is still far from effectively protecting IP rightsholders and contains many provisions that are contrary to international agreements to which Ecuador is a party and which it must respect.
The new Ecuador requires a modern intellectual property law, aligned with the best international practices and serving as an example in the region.
Properly protecting intellectual property means protecting the value of our ideas, enterprises, and cultural heritage. It is a sine qua non condition for opening doors in the global market, attracting quality investments, creating jobs, and ensuring sustainable development.
It is time for Ecuador to decisively commit to a strong, efficient intellectual property system in line with its vision of being an open, innovative, and competitive country.
© TobarZVS
This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.
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