COSTA RICA: An Introduction to Intellectual Property

General Information to Invest in Costa Rica

Costa Rica has enjoyed 120 years of political and economic stability over the course of its democracy. It is located in a privileged geographic position in America, with an ideal and pleasant climate and access to both the Pacific and Atlantic Oceans. It is a country widely known for its great biodiversity in tourist sites such as beaches, rivers, forests and national parks with beautiful landscapes, as well as for its constantly growing cities.

As part of several Free Trade Agreements which provide access to over 57 commercial partners, 87% of its exports are protected by these treaties. Alongside a solid and beneficial set of free trade zone rules, Costa Rica has a young, talented and bilingual workforce, a literacy rate of 97.4% and free mandatory education. Life quality and security rank among top Latin American countries, and the country benefits from an excellent medical care system. Over 90% of energy production comes from renewable sources, and it is one of five countries with the best environmental performance worldwide and strong access to telecommunications. Currently the Government is improving airports and seaports. There are many incentives for investments, with over 200 multinational enterprises having chosen Costa Rica as their company headquarters and close to 95% of employees being domestic. More than 50% of these companies are American, while others are European. Costa Rica is one of the world's largest state-of-the-art technology exporters. According to the World Economic Forum, it is the third country in terms of competitiveness, after Chile and Argentina.

Its economy is mainly based on the goods and services sector, with tourism as its main source of income. It is also the leader in exporting different products such as coffee, pineapples and bananas often considered the best in the world. As Costa Rica’s main trading partner, the United States makes up about 40% of the country’s total imports.

When deciding whether to set up a business in Costa Rica, foreign investors should consider hiring a lawyer and an accountant to help guide investors through the process and to make the best, most cost-effective decisions. Taking these aspects into account, Costa Rica has the right potential to allow profitable investments to be made without major problems.

Costa Rica leads innovation in Latin America 

Costa Rica has become a leading Latin American country in innovation, going from manufacturing microchips to exporting cutting-edge technology and services. This has been possible largely due to a talented, educated and bilingual population, as well as the commercial establishment of multinational companies which are developing new technologies, the trade opening of the country, and its excellent relations with developed countries. Nowadays 100 companies have business operations which produce life sciences products, with application in food technology, agriculture, medicine and the pharmaceutical industry. Medical devices and supplies are a priority in exportation. Public universities and colleges also play a leading role in this technological development. The Government is promoting and fostering more foreign investment, encouraging the creation of technology companies and the exportation of added-value products.

Intellectual Property 

Costa Rica has managed to establish international standards for intellectual property rights protection. As a member of the World Intellectual Property Organization (WIPO) it enforces all the agreements and treaties it has signed. Many international treaties relate to trademarks, patents of invention, industrial designs, copyright and related rights, and new varieties of plants have been ratified. These agreements and treaties include the Lisbon Agreement, the Berne Convention, the Budapest Treaty, the Paris Convention, the Patent Cooperation Treaty, the Rome Convention, the Trademark Law Treaty, the UPOV Convention and many more. It has laws and regulations which ensure the protection of intellectual property rights.

Novelties in intellectual property matters:

- Creation of WIPO online filing, for trademark applications, slogans and brand names using digital signature.

- Trademark and copyright search system through email, without need of in-person search at the Trademark Office.

The National Patent Office, in the role of recipient office, has implemented the possibility of electronic filing of international applications (ePCT-Filing) for patents of invention processed under the Patent Cooperation Treaty. This increases the speed of the registration process, with a focus on the goals of digitalisation and environmental improvement.

The Industrial Property Registry has recently implemented a registration process for the recognition of well-known trademarks. In such process, all necessary evidence shall be presented to prove the claimed renown, as well as the goods and services a trademark distinguishes. Despite the declaration of renown, there is a mandatory requirement for use of the trademark by the right holder within a five-year period from the date of its registration, since an action of cancellation by a third party could be declared admissible.

Another novelty related to trademarks is the possibility to apply for non-traditional trademarks, specifically olfactory trademarks (scents), because sound trademarks have been admitted for years now.

Finally, regarding geographical indications, an amendment has been made to Costa Rica's statutory law to improve the registration process's legal security and to facilitate its use.