PERU: An Introduction to Intellectual Property

An Introduction to the Peruvian Legal Framework of Intellectual Property

Peru has one of the fastest growing economies in Latin America. Despite the challenges that arose from the pandemic across 2020 and 2021, business in Peru rebounded strongly, amid a time of political uncertainty.

According to World Bank Data, Peru has achieved remarkable or significant economic growth. Gross Domestic Product (GDP) growth in 2023 will increase by an estimated 2.4%, led by primary sectors and services, and is expected to increase slightly over the next few years to approximately 2.8%, assuming a gradual improvement in business confidence and renewed investment in large-scale mining projects continues.

The Peruvian constitutional and legal framework, which is exercised in the context of a social market economy, opened the economy to private investment and made it more resilient. Peruvian regulations make an ideal setting for investment and business development.

Intellectual property plays a significant role in Peru's economy, contributing to innovation, economic growth, and the protection of creativity. The protection of intellectual property is crucial in strengthening the innovative technology in Peru, as is evidenced in the Global Innovation Index (GII), provided by the World Intellectual Property Organization (WIPO), where the most recent global innovation trends show that Peru rose five positions higher than the recorded results of the previous year, ranking now in 65th position out of a total of 132 countries and performing better than expected for their level of economic development.

Specifically in the IP arena, the current regulations protect all legal aspects. The National Institute for the Defense of Competition and the Protection of Intellectual Property (INDECOPI) have a fundamental and exclusive role as the governmental agencies responsible for the registration, protection, promotion and enforcement of intellectual property rights in Peru, among many others relevant aspects.

Intellectual property in Peru is protected through several legal mechanisms. Also, Peru is a member of various international agreements and organisations related to intellectual property, including the World Intellectual Property Organization (WIPO) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) under the World Trade Organization (WTO). In addition, in 2022 Peru adhered to the following five international trades:

1. The Locarno Agreement, which establishes an International Classification for Industrial Drawings and Models (Industrial Designs), whose numbers - corresponding to classes and sub-classes - must appear in the registration documents or in the publications made for the purpose.

2. The Strasbourg Agreement, concerning the International Patent Classification, which divides technology into approximately 80,000 subdivisions. Classification is essential to retrieve patent documents during technical search.

3. The Nice Agreement, which establishes a classification of goods and services for the registration of trade marks and service marks. Peru formally adhered to this agreement in May 2022.

4. The Vienna Agreement, establishing a Classification for Marks Consisting of or Containing Figurative Elements. Peru also formally adhered to this legal arrangement in May 2022.

5. The Geneva Act of the Lisbon Agreement, which incorporates Peru into the select group of countries that protect and value the development of their productive communities based on appellations of origin and geographical indications.

Being part of these agreements signifies Peru's commitment to adhering to international standards of IP rights protection and enforcement. These Agreements have great importance, as they are key points for standardising practices relating to intellectual property at the international level.

Also, as we know, Peru, as a member of the Andean Community, adheres to the rules and provisions of several Andean Decisions like Decision 486, Decision 351, and Decision 345, which establishes a unified legal framework for industrial property, including patents, trade marks, industrial designs, and trade secrets; copyright and related rights; and plant varieties, among others. Along these lines, there have been some relative regulatory changes which have had positive effects on IP protection. Some of those changes in the Peruvian IP regulation are:

- Renewal of registrations: An administrative procedure which allows the extension of the Registers of Distinctive Signs for ten years. Processing period: 60 business days. The previous term was 180 business days.

- Waiver of rights over a registration: An administrative procedure by which the owner of a registration decides to renounce, in whole or in part, the rights which they have over the Registration of a Distinctive Sign. Processing period: 90 business days. The previous term was 180 business days.

- Modifications to registries: An administrative procedure which allows the modification of information regarding the ownership or situation of the distinctive signs after the registration in the corresponding registries, to publicise rights and generate protection against third parties. Processing period: 90 business days. The previous term was 180 business days.

- Inspection visit: An administrative procedure by which the holder of a distinctive sign requests the verification of the allegedly infringing facts in the place where they would have been committed and/or the execution of a precautionary measure. Processing period: ten business days. The previous term was 180 business days.

- Request for precautionary measure: An administrative procedure by which the holder of a Distinctive Sign requests to evaluate the issuance of a preventive measure that can ensure compliance with a favourable final resolution. Processing period: 15 business days. The previous term was 180 business days.

Along with those positive changes in some legal procedures, it is worthwhile mentioning that Indecopi announced in March 2023 the launch of the Andean Opposition Protocol to promote a fast resolution and consolidate the harmonisation and integration of the opposition process between the industrial property offices of Colombia, Ecuador, and Peru. Also, in August 2023 The Manual for the Examination of Trademarks was published in the Andean countries, a joint effort of the Andean Community (CAN) and the World Intellectual Property Organization (WIPO), which had the valuable participation of the trade mark national offices of Ecuador, Colombia, Bolivia and Peru in its preparation. Both instruments aim to consolidate harmonisation at the community level.

It is also important to bear in mind that Indecopi is already working intensively on the implementation of the National Intellectual Property Policy, promoted with technical support from the World Intellectual Property Organization (WIPO), which is expected to come out soon.

Finally, it is worth noting that Peru published Law N° 31814, Law Promoting the Use of Artificial Intelligence (AI) in July 2023, to face the latest changes on this matter, promoting the use and development of AI in the Peruvian landscape. This law was promoted by The Secretariat of Government and Digital Transformation of the Presidency of the Council of Ministers, but also Indecopi will play a principal role in its execution, due to the fact that this authority applies enforcement mechanisms and legal remedies to face the IP challenges generated by the artificial intelligence in Peru.

Consequently, there are many reasons to explore opportunities to invest in Peru and to employ the protection and promotion of intellectual property in all its areas, with many positive outcomes for stakeholders.