GUATEMALA: An Introduction to Intellectual Property

GUATEMALA – ECONOMIC AND INTELLECTUAL PROPERTY OVERVIEW

Guatemala is a country of contrasts, best known or described as a multilingual, multiethnic, and multicultural nation. It offers richness in diversity of cultures, with more than 20 different languages coexisting in a small but diverse territory. These characteristics create a variety of opportunities and challenges for its inhabitants and people doing business in Guatemala. However, it is precisely this richness which provides the ideal location for investment opportunities and the development of new ideas and projects. Guatemala has an ideal geographical location for trade and business, as it has direct access to the coastlines of both Pacific and Atlantic Ocean ports, having the largest sea freight operation in Central America. It is a gateway to the largest Hispanic American market due to its closeness and Free Trade Agreements with the United States and Mexico, and it has a customs union with Honduras and El Salvador, greatly benefitting trade in the region. It enjoys very fertile land and an enviable climate. Along with beautiful and interesting tourist destinations, it has three sites declared as World Heritage by UNESCO: the City of Antigua Guatemala, the ancient Mayan City of Tikal, and the Archaeological Park and Ruins of Quiriguá, among other beautiful touristic locations.

CURRENT ECONOMIC OVERVIEW 

Guatemala City ranked first as Major City – Best for Cost Effectiveness in the fDi American Cities of the Future in 2019/2020. This obviously showcases its foreign direct investment capabilities in terms of cost-effective talent. Evaluating the estimated economic participation at a Central American regional level, it is clear that Guatemala is ahead of the rest, with a 38.9%, followed by Costa Rica with a 29.9%. Regarding macroeconomic stability, it can be mentioned that it has been ranked in the Top 10 of Latin America and the Caribbean in the macroeconomic stability pillar of the Global Competitiveness Index. Guatemala is considered the biggest economy in Central America, having a solid financial system, a moderate and stable inflation rate, the largest foreign exchange reserve in Central America, the lowest government debt and the highest household final consumption in the region. Guatemala also ranks 1st in Latin America in entrepreneurial culture and attitudes towards entrepreneurial risk in 2019, and 2nd in Latin America in soundness of banks and domestic competition. It is also one of the five Latin American countries that improved in the 2020 Doing Business Report. Furthermore, Guatemala has multiple trade and investment agreements with countries around the world, like the PSA / Partial Scope Agreement, FTA – Free Trade Agreement, the Association Agreement with the European Union and several Bilateral Investment Treaties. Cutting-edge legislation has recently been implemented to encourage investment in special economic zones by granting income tax exemptions for up to ten years, with 7 free zones that facilitate trade and investment. Considering all the aforesaid and the current worldwide economic scenario, the Guatemalan economy is one of the most resilient during this difficult time of the worldwide COVID-19 pandemic, with a growth and recovery unmatched in the Americas. It is time to look for new markets that bring security to investments in times of uncertainty, such as Guatemala.

INTELLECTUAL PROPERTY 

Historically, Guatemala’s Constitution has recognized and protected the following rights as inherent of the human person: copyrights and inventor’s rights; freedom of industry, commerce and labour; the freedom to participate in the cultural and artistic life of the community and to benefit from scientific and technological progress; the guarantee of free creative expression with the support of national scientists, intellectuals and artists. Directly related to industrial property rights, we can find other constitutional dispositions like the obligation of the Guatemalan government to promote economic development, stimulating the initiative of agricultural, livestock, industrial, touristic and other activities, as well as the defence of consumers and users regarding the preservation of the quality of the products both for domestic consumption and export, and the obligation to create adequate conditions to promote investment of national and foreign capital. Therefore, Guatemala’s interest in the protection of Intellectual Property rights has originated the need to establish a better and more effective protection of these rights. As a consequence, the government has continuously worked to create an adequate internal legislative framework, also becoming a party to several international and regional treaties and conventions, qualified as the most important in this matter, which represent the most basic, minimal and fundamental regulations that any country committed to the respect of such rights should observe. This is even more evident in recent years, in which an important reform to the Industrial Property Law was made and Guatemala has become a member of several international treaties such as the Trademark Law Treaty, which will allow authorities to expedite procedures, accept more documents free of formalities and register multiclass trademark applications in the near future; the Patent Cooperation Treaty, allowing applicants to simultaneously seek protection for their invention in a large number of countries; the International Convention for the Protection of New Varieties of Plants; and the Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purpose of Patent Procedure. Importantly, Guatemala is a member of the Hague Convention, which now allows international applicants to avoid the tedious process of the Consulate’s legalization of the Power of Attorney document required to act in their representation, requiring only for the document to be apostilled. In the same spirit to make Guatemalan administrative processes more efficient and to promote resource saving, a new Law for the Simplification of Administrative Requirements and Procedures will be enacted in September of 2021. This new law will help promote the streamlining, deconcentrating and digitalization of procedures in the public administration, thus promoting the country's development. The current COVID-19 pandemic has forced change in many ways, including the need for teleworking. This law will aid this situation allowing the users of administrative offices, such as the Intellectual Property Registry, to provide access to more services remotely. The Intellectual Property Registry is making a great effort to help this become a reality for its users, offering access through their web page to perform basic availability searches, making publications on its official electronic bulletin, payment of official fees, access to data bases, and filing preliminary applications. Moreover, as early as September of 2021, users will be able to access a new “electronic window” that will make the digitalization of its services a reality. This new service will include the viewing and responding of different types of actions, such as notices, requirements, objections, edicts for publication, oppositions, and more. Another apparent benefit that the COVID-19 pandemic has brought to the defence of Intellectual Property rights has been evident in criminal procedures related to counterfeit goods seized at our borders, for which there has been a new process adopted by authorities for a more cost and time efficient destruction of the counterfeit goods. We are glad to see more collaboration from the authorities in their anti-counterfeit efforts. In conclusion, we have seen progress in legal frameworks and the government’s effort to modernize, expedite, harmonize and offer a more competitive territory to local and foreign investment, while creating a safer and more stable business environment, favouring commercial and industrial development.

Author: Carina Fernández