Code Organic Of The Economy Social Knowledge, Creativity And Innovation

Original Language Title: Código Orgánico de la Economía Social de los Conocimientos, Creatividad e Innovación

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THE full considering: That article 276 of the Constitution provides that the regime's development will have by objectives, among others, improve the quality and life expectancy, and increase the capabilities and potentials of the population within the framework of the principles and rights which the Constitution; build a system fair, democratic, economic, productive, supportive and sustainable partner based on the equal distribution of the benefi ts of the development of the means of production and the generation of decent and stable work; and, ensure the national sovereignty, promoting Latin American integration and promote a strategic insertion in the international context;

That, article 387 of the Constitution foresees that responsibility of the State is the provide and promote the incorporation of the knowledge society to achieve the objectives of the development scheme; promote the generation and production of knowledge, promoting scientific research and technology, and promoting traditional knowledge, and contribute to the realization of the good life; ensure the dissemination and access to the expertise of scientists and technological, the usufruct of their discoveries and findings within the framework of the provisions of the Constitution and the law; guarantee freedom of creation and research in the framework of respect for ethics, nature, the environment, and the rescue of ancestral knowledge and; recognize the status of researcher in accordance with the law;

That, article 283 of the Constitution states that the economic system is social and solidarity; It recognizes the human being as subject and fi n; It tends to a dynamic and balanced relationship between society, State and market, in harmony with nature; and it aims to guarantee the production and reproduction of material and immaterial conditions enabling good living;

That article 284 of the Constitution of the Republic establishes the objectives of economic policy, which include: ensuring an adequate distribution of income and national wealth; encourage domestic production, productivity, and competitiveness systemic accumulation of knowledge scientifi and technological, the strategic insertion in the world economy and productive activities complementary in regional integration; and maintain the highest level of production and employment sustainable over time;

That articles 385 and 386 of the Constitution provide that the national system of science, technology, innovation and ancestral knowledge, in the framework of respect for the environment, nature, life, culture and sovereignty, will have as purpose generate, adapt and disseminate knowledge scientists and technological; recover, strengthen and promote traditional knowledge; develop technologies and innovations that boost domestic production, eleven effi science and productivity, improve the quality of life and contribute to the realization of the good life;

Friday, December 9, 2016 - 3Registro offi cial No. 899 - supplement that article 277 of the Constitution provides that duties are generals of the State for the achievement of good living promoting and encouraging science, technology, arts, traditional knowledge and, in general, the creative initiative community, cooperative, private and associative activities;

That, article 388 of the Constitution provides that the State will allocate resources to research scientific, technological development, innovation, training scientifi, recovery and development of ancient knowledge and the dissemination of knowledge, and that a percentage of these resources will be used to fi nance projects through competitive grants, and that organizations that receive public funds will be subject to accountability and the respective State control;

That article 25 of the Constitution establishes that persons are entitled to enjoy the benefi ts and applications progress scientifi and ancestral knowledge;

That, the d) of paragraph 3 of article 66 of the Constitution, recognizes and guarantees people the right to personal integrity, which includes the prohibition of the use of genetic material and experimentation scientifi that violate human rights;

That, article 322 of the Constitution recognizes the intellectual property in accordance with condition, which designates the law similarly prohibits any form of appropriation of collective knowledge in the field of Sciences, technologies and traditional knowledge and appropriation of genetic resources that contain biodiversity and agro-biodiversity;

That, the article 402 of the Constitution prohibits the granting of rights, including those of intellectual property, derived or synthesized products obtained from the collective knowledge associated with national biodiversity;

That paragraph 12 of article 57 of the Constitution recognizes and guarantees to the communes, communities, peoples and indigenous nationalities the collective right to maintain, protect and develop the collective knowledge; their sciences, technologies and additional skills; genetic resources that contain biodiversity and agro-biodiversity; medicine and practices of traditional medicine, including the right to recover, promote and protect the ritual and sacred places, as well as plants, animals, minerals and ecosystems within their territories; and knowledge give them resources and properties of fauna and fl ora;

Whereas it is essential to create a system of protection of traditional knowledge in benefit of the communities in its condition of persons lawfully;

That article 22 of the Constitution provides for the right of people to benefi ciar protection rights moral and patrimonial that correspond them by the scientifi c productions cas, literary or artistic authorship;

That, the law of intellectual property, enacted in 1998 is not harmonized with the rights and guarantees established in the Constitution of the Republic of Ecuador, and provides for a legal regime that has private rights as focal point and an essentially mercantilist approach to intellectual property rights;

That, we need to make a strategic use of the intellectual property rights to promote the transfer of technology, the generation of science, technology, innovation and change of the productive matrix in the country;


That article 133 of the Constitution provides that the organic laws regulate the Organization and functioning of the institutions created by the Constitution and the exercise of rights and constitutional guarantees such as those set out in the preceding recitals;

That, article 298 of the Constitution foresees to establish budgetary pre-asignaciones for among others the education sector and higher education; research, science, technology and innovation in the terms provided for in the Act;

That, the Minister of finance in accordance with article 74 paragraph 15 of the organic code of planning planning and public finances, by offi cio No. MINFIN-DM - 0314, 02 June 2015, issues favourable opinion of the draft organic code of Social economy of knowledge, creativity and innovation;

That article 28 of the Constitution provides: "the education will respond to the public interest and will not be at the service of individual and corporate interests";

That, article 133, establishes that "the laws will be organic and ordinary. They are organic laws (...) 2 which regulate the exercise of rights and constitutional guarantees";

Article 297 determines that: "institutions and entities that receive or transfer were goods or public resources shall be subject to the rules governing them and the principles and procedures of transparency, accountability and public control";

That, article 350 of the Constitution included this: "higher education system has as purpose the academic and professional training with scientifi c ca and humanist vision; the scientific research and technology; innovation, promotion, development and dissemination of knowledge and cultures; the construction of solutions to the problems of the country, in relation to the objectives of the scheme of development";

Instructing, Article 351 of the Constitution: "the system of higher education will be articulated to the national education system and the National Development Plan; the law shall establish mechanisms of coordination of the system of higher education with the Executive function. "This system will be governed by the 4 - Friday, December 9, 2016 supplement - registration offi cial No. 899 principles of responsible autonomy, cogobierno, equality of opportunities, quality, relevance, integrity, self-determination for the production of thought and knowledge, within the framework of the dialogue of knowledges, universal thought and scientifi technology global production";

In exercise of its constitutional and legal powers, issued the following: "organic code of the SOCIAL economy of knowledge, creativity and innovation" title preliminary of the provisions common to the economy SOCIAL of the knowledge, creativity and innovation article 1-object-the present Code aims to regulate the national system of science, technology, innovation and ancestral knowledge laid down in the Constitution of the Republic of Ecuador and its articulation mainly with the national education system the higher education system and the national system of culture, with the purpose of establishing a legal framework in which the social economy of knowledge, creativity and innovation is structured.

Article 2-Scope-are governed by this code all natural persons, legal and other associative forms that develop activities related to the social economy of knowledge, creativity and innovation.

The activities related to the social economy of knowledge, creativity and innovation are those focused on value creation based on the intensive use of the generation, transmission, management and utilization of the property of interest public knowledge, including traditional knowledge; in all the social and productive sectors to promote collaboration and empowerment of the individual and social capacities, democratization, equitable distribution, and use effi cient resources in harmony with nature, aimed at obtaining good live.

Article 3-Purposes-this code has, as main, the following purposes: 1. generate instruments for promoting an economic model that democratize the production, transmission and appropriation of knowledge as a public good, thus ensuring the accumulation and redistribution of the wealth of fair, sustainable way and in harmony with nature;

2. promote the development of science, technology, innovation and creativity to meet needs and make the exercise of rights of persons, peoples and nature;

3 encourage the production of knowledge in a collaborative and supportive democratic way;

4 encourage the circulation and transfer national and regional knowledge and technologies available, through the formation of networks of social innovation, research, academic, and in general, to increase them from the practice of complementarity and solidarity;

5 generate a pluralistic and inclusive vision in the use of knowledge, giving it supremacy to use on the change value value;

6 develop forms of ownership of knowledge compatible with the good to live, these being: public, private, community, State, associative and mixed;

7 encourage the disaggregation and technology transfer through mechanisms that allow the generation of research, development of technology and innovation with a high degree of national component;

8. promote the fair and equitable sharing of benefits derived from the activities related to the generation, transmission, management, use and exploitation of the knowledge, technology, innovation and traditional knowledge, as well as the use of effi cient social factors of production to increase the wealth of knowledge and innovation;

9. establish sources of funding and incentives for the development of activities in the social economy of knowledge, creativity and innovation;

10. promote the development of the society of knowledge and information as a fundamental principle for increased productivity in the factors of production and labour-intensive knowledge activities; and,


11. promote the protection of biodiversity as a heritage of the State, through rules that guarantee its sovereign and sustainable use, protect and safeguard the rights of communities, peoples and nationalities on its traditional knowledge and ancestral knowledge related to biodiversity; and to avoid misappropriation of biodiversity and traditional knowledge associated with it.

Article 4.-Principles for the application of the provisions contained in the present Code, will be observed the following principles: 1. knowledge is a public good, access will be free and will not be more restrictive than those laid down in this code, the Constitution, the international treaties and the law and its distribution process will be fair, equitable and democratic;

Friday, December 9, 2016 - 5Registro offi cial No. 899 - Supplement 2. The intellectual rights are a tool for adequate management of knowledge. The acquisition and exercise of intellectual property rights will ensure a balance between owners and users. In addition to the limitations and exceptions provided for in this code, the State may take the necessary measures to ensure the health, nutrition, education, culture, the development of scientifi and technological innovation and the transfer and technological diffusion as sectors of vital importance for the socio-economic and technological development of the country. Nothing provided in this code shall be interpreted in a manner contrary to the principles, rights and obligations established in the international treaties to which Ecuador is a party, as an integral part of our legal system;

3. the formation of human talent is the primary factor of a social economy based on knowledge, creativity and innovation, reason for which should be excellent and distributed democratically;

4. the knowledge will be developed so collaborative and steward;

5. the generation, transmission, management, use and use of the knowledge, creativity, technology, innovation and traditional knowledge will guide towards the realization of the good live, seeking the satisfaction of needs of the population, the effective exercise of the rights and the biophysical sustainable exploitation of the resources of the country, within the framework of the guarantee of the reproduction of life;

6. the sovereignty over knowledge is objective strategic of the State to guarantee persons the generation, transmission, management, use and exploitation of the knowledge, technology and innovation and thus realize the good life;

7. the academic training and scientific research must contribute to the attainment of the objectives of the National Development Plan;

8. the generation, transmission, management, use and exploitation of the knowledge, technology, innovation and traditional knowledge should primarily promote cohesion and social inclusion of all citizens;

9. the activities related to the social economy of knowledge, creativity and innovation, will be developed within a framework of equality of opportunities, coordination, transparency, quality, evaluation of results and accountability;

10. the functioning of the social economy of knowledge, creativity and innovation, establish mechanisms of decentralization and deconcentration relevant, allowing an effi cient management and close to the territory;

11. ethics in science, technology and innovation must be oriented to the satisfaction of needs and the preservation of human dignity and their applications must be rational, pluralist and fair;

12 generators and investigative processes of technology and innovation, must safeguard and protect the rights, dignity and physical and psychological integrity of persons involved in them. Any risk or impacting on the rights of the people or nature, must be legitimate, proportional and necessary. Where appropriate, there must be with the free, prior and informed consent of the possible affected;

13. it is guaranteed freedom of research and technological development in the framework of regulation and restrictions that for reasons of safety, health, ethics or any other public interest, determined by law;

14. the creativity is inherent to the people and represents a crucial element for the social economy of knowledge, creativity and innovation. The State shall recognize, protect and encourage creativity as the fundamental mechanism of solution of problems, meeting needs of society and the individual accomplishment in interrelation with responsible research, social innovation and traditional knowledge;

15. the State will lead to the enabling environment for the expansion and strengthening of artistic and cultural activities, stimulating, mainly, the free creation; research in art and culture, with focus on gender equality and non-discrimination; as well as, the interaction of these with other activities in the social economy based on knowledge, creativity and innovation;

16. the biodiversity and genetic heritage are unattachable, imprescriptible and inalienable property of the State; they can not be privatized and their access, use and exploitation will strategically ensuring the generation of endogenous knowledge and national technological development;

17. the public space should contribute to the generation and dissemination of knowledge, in particular in the case of cultural and artistic creations. The State shall grant facilities to make the public space to be used in benefit of creators and users;

18. it is recognized the knowledge dialogue as the process of generation, transmission and exchange of knowledge scientists and traditional knowledge, for the realization of the multinational and Intercultural State; and 19. By their magnitude and economic, social and political impact, the State will promote on a priority basis activities of research and technological development in sectors referred to as basic industries.

6 - Friday, December 9, 2016 supplement - registration offi cial No. 899 book I of the national system of science, technology, innovation and knowledge ANCESTRAL title I provisions General


Article 5-National system of science, technology, innovation and ancestral knowledge-understands the whole coordinated and correlated of standards, policies, tools, processes, institutions, entities and individuals involved in social knowledge economy, creativity and innovation, to create science, technology and innovation, as well as rescue and promote traditional knowledge as key elements to generate value and wealth for the society.

The Executive function will coordinate between the different systems involved in the social economy of knowledge, creativity and innovation for the joint in the issuance of public policy by the Ministry of higher education, science, technology and innovation.

Article 6.-formation-the system national science, technology, innovation and ancestral knowledge will be integrated by the following institutions, agencies, and entities: 1. defi nition, control and evaluation of policies and governing bodies: to) the governing entity of the national system of science, technology, innovation and ancestral knowledge; and, b) the autonomous decentralized Governments, within the scope of their competencies.

2. competent national authority in the field of intellectual rights.

3 advisory bodies for the planning of public policy: to) Committee National Advisory of the economy Social knowledge, creativity, innovation and ancestral knowledge; and, b) regional advisory committees of planning planning of higher education, science, technology, innovation and ancestral knowledge.

4 actors generators and managers of knowledge: to) autonomous governments decentralized, in the scope of its powers;

(b) higher education institutions;

(c) scientific research institutions;

(d) academies of science;

(e) natural, legal persons and other associations related to activities of social economy of knowledge, creativity and innovation, in all sectors of the economy, including the socio-productive sector and the sector of the popular and solidary economy;

(f) the communities, peoples, and indigenous nationalities, through their contributions in the field of knowledge; and, g) public institutions, public companies and other related entities responsible for research, the strengthening of human talent, knowledge management, science, technology, social innovation, traditional knowledge and creativity, at central as decentralized level.

5 agencies insurers of the scientifi c research ethics ca: to) National Commission on ethics in the scientifi c research ca; and, b) ethics institutions.

Title II organs and institutions of the national system of science, technology, innovation and knowledge ANCESTRAL chapter I of the entity governing of the national system of science, technology, innovation and knowledge ANCESTRAL article 7.-entity guiding system national science, technology, innovation and ancestral knowledge.-the Secretary of higher education, science, technology and innovation, is part of the Executive function, it is responsible for the stewardship of the public national policy in the matters regulated by this code as well as coordination between public sector, private sector, popular and solidary, institutions of higher education system and other systems, agencies and entities that make up the social economy of knowledge, creativity and innovation.

In everything related to traditional knowledge and ancestral knowledge the guiding entity will coordinate with communities peoples and nationalities.

The guiding entity holds regulatory, punitive power and coercive jurisdiction, in accordance with this code and applicable legislation.

It is in charge of the Secretary or Secretary of higher education, science, technology and innovation.

Friday, December 9, 2016 - 7Registro offi cial No. 899 - supplement article 8.-duties and responsibilities of the governing body of the national system of science, technology, innovation and ancestral knowledge-the governing entity of the national system of science, technology, innovation and ancestral knowledge, has the following powers and duties: 1. Defi nir, implement and evaluate national public policy of the national system of science Technology, innovation and ancestral knowledge for the social economy of knowledge, creativity and innovation, especially in relation to research, innovation and transfer, monitoring, dissemination of knowledge, technological development, intellectual property and traditional knowledge;

2 ensuring the fulfilment of the objectives of the public policy of the national system of science, technology, innovation and ancestral knowledge;

3 dictate the rules, manuals, instructions, guidelines and other instruments of regulation that will be mandatory for all actors in the system;

4 dictate the rules for registration, accreditation and categorization, as appropriate, of the actors involved in responsible research and social innovation according to the following standards and criteria, among others: quality, safety, production scientifi c ca, open technology, infrastructure, management of human talent and social transfer of the results of the processes that are running;

5 issue regulations for the accreditation and monitoring in terms of incentives for the promotion of the activities related to the social economy of knowledge, creativity and innovation;

6 Defi ne priorities and criteria for the allocation and distribution of resources that make up the pre allocation for research, science, technology and innovation, according to the provisions of this code;

7 coordinate with regulators of financial and monetary system, as well as securities and insurance schemes the instruments of funding earmarked for activities related to the social economy of knowledge, creativity and innovation;

8 coordinate with all organizations, institutions and agencies of the national system of science, technology, innovation and ancestral knowledge application and implementation of public policy in the field of this code;

9 encourage the strengthening of human talent in order to meet the fi nes of this code;

10 to enact regulations for the creation, accreditation, operation and control of the spaces of knowledge;


11. coordinate with the decentralized autonomous governments decentralised exercise of competences linked to the national system of science, technology, innovation and ancestral knowledge based on the objectives in the National Plan of the Social economy of knowledge, creativity, innovation and ancestral knowledge;

12. propose guidelines and strategies for the participation of the State in international bodies and regional organs of integration in the field of science, technology, innovation, intellectual property and traditional knowledge;

13 participate and advise on regulatory national and treated international projects, which have incidence in the national system of science, technology, innovation and ancestral knowledge at the national level;

14 designing, implementing, managing, and coordinating the national system of information in science, technology, innovation, traditional knowledge of the Ecuador articulated to the national system of information of the higher education of Ecuador;

15. promote the fl ow of information and transfer of technology between the actors of the national system of science, technology, innovation and ancestral knowledge;

16 grant, modify and revoke the authorization for the operation of the spaces for the development of knowledge, innovation in accordance with this code, its regulations and other rules applicable;

17 encourage and foster programs or projects focused on the production, transfer and management of science, technology and innovation, training of human talent or Qualifi cations professional among others, in certain economic sectors as basic industries;

18 issue binding opinion upon the Constitution of special economic and technological development zones;

19 coordinated in collaboration with research institutes, higher education institutions, and other entities that are part of the social economy of knowledge, creativity and innovation and have capacity for these effects, demand processes and monitoring technology;

20 coordinate and evaluate management of intellectual rights;

21 develop a mapping system international, mainly on academic scientists co - publications and requests for registration or deposit of intellectual property rights which may violate collective rights of legitimate owners that live in the national territory; among others;

8 - Friday, December 9, 2016 supplement - registration offi cial No. 899 22. Advise and support ex ante and ex post legitimate owners in negotiations with third parties interested in obtaining their free, prior and informed consent to access, use and exploitation of their traditional knowledge;

23 advise and support ex ante and ex post legitimate owners in negotiations with third parties interested in the subscription contracts for access, use and exploitation of their traditional knowledge;

24 refer to technical advisers accompanying permanent representation to the international organizations that have links with the national system of science, technology, innovation and ancestral knowledge;

25 issue guidelines for the generation, management and dissemination of knowledge of activities relating to research, technological development and innovation of national interest, as well as, defi ne the conditions of access, use and exploitation of the knowledge resulting from biodiversity, in coordination with the environmental authority in the sphere of its competence, and traditional knowledge;

26 prepared and submitted to the competent authorities the draft reforms to the rules on matters which regulates this code. Should such projects be refi were to knowledge management, it must do so in coordination with the competent national authority in matters intellectual rights;

27 granted permission for research related to biodiversity in coordination with the national environmental authority;

28 issue regulations and public policy required for the signing of contracts of access, use and exploitation of genetic resources associated with biodiversity and traditional knowledge, in coordination with the national environmental authority;

29 appointed to the highest authority of the competent entity in the field of intellectual rights; and, 30. Others established in this code.

Article 9.-National Plan of the Social economy of knowledge, creativity, innovation, and ancestral knowledge-is a set of guidelines of public character, whose actions lead to ensure an economic model that generates value, democratize knowledge and is environmentally sustainable. Scope of national scope with territorial and intercultural approach will have, will be aimed at the formation of academic, cultural networks, research and social innovation and transfer and free, social and solidarity-based reproduction of knowledge. For its design and evaluation it should be observed as provided for in the National Development Plan and in addition must feed off of the information provided by the actors of the system.

The National Plan of the Social economy of knowledge, creativity, innovation and ancestral knowledge shall be prepared by the National Planning Committee cation of the Social economy of knowledge, creativity, innovation and ancestral knowledge in coordination with the Ministry of higher education, science, technology and innovation, itself that it will be reported for approval by the National Council of planning planning.

Chapter II body responsible of the protection of the rights intellectuals article 10.-competent national authority rights intellectuals-is the technical body attached to the Ministry of higher education, science, technology and innovation, with its own legal personality, endowed with autonomy, administrative, operational and fi nancial, which holds the powers of regulation, management and control of intellectual rights and accordingly is in charge mainly of acquisition and exercise of the rights of property services intellectual, as well as the protection of traditional knowledge. Besides functions inherent to their powers, will be the main responsible for implementing public policies issued by the governing body in the field of management, monitoring, transfer and diffusion of knowledge.


The competent national authority on intellectual rights have competition on copyright and related rights; industrial property; new varieties of plants; traditional knowledge; and knowledge management to encourage technological development, scientifi and cultural national. Competencies that must be considered when regulating their creation, powers, organization and institutionalization.

In addition there will be coactive jurisdiction for the collection of titles as well as any type of obligations on their behalf, in accordance with the applicable legal system.

The competent national authority on intellectual rights is fi nanciara through its self-management, through the collection of fees; If not enough of the General budget of the State the resources necessary to ensure its normal operation and fi nancing should set.

Be referred to the competent national authority on intellectual rights holder, will require: 1. title of fourth level, legally recognized in the country, in areas afi nes with intellectual rights management;

2 have at least five years experience in management or university education in areas afi nes with intellectual rights management; and, Friday, December 9, 2016 - 9Registro offi cial No. 899 - Supplement 3. Have at least three years experience in the performance of duties in the toplevel in the public sector or their equivalents in the private sector.

Article 11.-Powers of the body responsible for the management of intellectual property and the protection of traditional knowledge.-will be functions of the entity responsible for the regulation, control and management of intellectual property and the protection of the TK as follows: 1. protect and defend the intellectual rights, recognized in this code and in binding international instruments; organizing and managing information on the records of all kinds of joint intellectual property rights to the national system of information in science, technology, innovation and ancestral knowledge of Ecuador;

2 substantiate the procedures and resolve on the granting or refusal of industrial property of patents rights records; utility models; industrial designs; brands; commercial slogans; trade names, distinctive appearances; cas geographical indications; layout-designs of semiconductor circuits, topographies and other forms established in the relevant legislation, as well as register works and traditional knowledge;

3 substantiate the procedures for granting and registration of the rights on new plant varieties and manage the deposit of living specimens. Technical management, with respect to administration of the tank of live samples, may be entrusted to an institution of higher education or public Institute research that present technical capabilities and infrastructure necessary for this purpose;

4 process and resolve objections to on records of intellectual property rights proceedings;

5 process and resolve requests, claims, and administrative resources subject to their knowledge and in accordance with the competences set out in the code on intellectual property and traditional knowledge;

6 arrange all processes of observance of the rights of intellectual property of traditional knowledge in the administrative field;

7 monitor permanently the collective rights of the legitimate holders of traditional knowledge and if that be presumed a direct or indirect violation of these collective rights, notify car immediately to the legitimate holders of traditional knowledge and offi cio initiate appropriate action that may be necessary;

8. fix rates and rates for the services provided by the entity responsible for the management of rights of intellectual property of traditional knowledge;

9 run public policy issued by the Ministry of higher education, science, technology and innovation;

10 exercise coercive jurisdiction for the recovery of claims and any type of obligations on their behalf, this shall be exercised by the legal representative of the entity; and, 11. The others identified in this code.

Chapter III bodies Advisory for the planning of the policy public article 12-Committee National Advisory of the economy Social knowledge, creativity, innovation and ancestral knowledge.-the Committee is an organ of consultation of the national system of science, technology, innovation and ancestral knowledge, for articulation with the decentralized work of the regional advisory committees of planning planning of higher education Science, technology, innovation, and ancestral knowledge with the actors in the social economy of knowledge, creativity and innovation and in coordination with the Executive function. Academy, the socio-productive sector, the State, the cultural arts sector, peoples and nationalities and civil society will participate on this Committee.

Its purpose is to become a tool of horizontal consultation of the national system of science, technology, innovation and ancestral knowledge, at the national level that will ensure the planning of the Social economy of knowledge, creativity.

Its conformation and powers shall be laid down in the regulation that, for effect, issued by the Ministry of higher education, science, technology and innovation.

Article 13.-Regional advisory groups of planning planning of higher education, science, technology, innovation and ancestral knowledge.-regional committees Advisory planning planning of higher education, science, technology, innovation and ancestral knowledge, without prejudice to the functions laid down in the organic law of higher education, will have the following: 1. propose planning of science, technology and innovation policies , traditional knowledge at regional level;

2 propose procedures for coordination between the institutions of the national system of science, technology, innovation and ancestral knowledge, and the Executive function;

10 Friday 9 December 2016 supplement - registration offi cial No. 899


3 propose procedures for coordination between the institutions of the national system of science, technology, innovation and ancestral knowledge and the social, productive and economic sectors through different forms of organization of type public, private, national, regional, mixed, popular and solidarity at the regional level, communities, communities, peoples and indigenous nationalities, the afro-ecuatoriano village and the montubio people; and, 4. Formulated at the regional level, the guidelines for the preparation of the National Plan of the Social economy of knowledge, creativity, innovation and ancestral knowledge which will be brought to the knowledge of the National Planning Committee planning of the Social economy of knowledge, creativity, innovation and ancestral knowledge.

Chapter IV of the actors generators and managers of knowledge article 14.-entities of research scientists ca.-are those public bodies, legal entities, associations, private or mixed, including institutions of higher education, accredited according to the regulations issued by the governing entity of the system who has dedicated its activities to scientific, technological development, research or providing related services.

The Ministry of higher education, science, technology and innovation, in accordance with the Strategic Plan of each institution of scientific research and through the respective regulation, shall determine those services that are related to scientific research or technological development.

Article 15.-academies of science are legal entities private non profit purposes, aimed at promoting science; as well as to facilitate the linking of public policy with the needs of the scientifi c community ca and academic.

Within the scope of their functions may be instances of advice to public and private organizations that require their discretion.

General rules and regulations issued by the Ministry of higher education, science, technology and innovation, will regulate their formation, recognition, performance and incentives.

Chapter V organisms INSURERS of the ethics in the research scientific article 16.-assurance in the scientifi c research ethics ca.-to ensure ethics in research at national level an instance whose powers will be conform: 1. establish the principles and values of ethics in science, technology, innovation and traditional knowledge as well as their applications. In the case of health research, this body will coordinate with the National Commission of bioethics in health of the Ministry of public health;

2 issue the national ethical code;

3 resolve in last and defi nitive instance the confl ICTs, public or private, that are generated in relation to ethics in science, technology, innovation, traditional knowledge and its applications;

4 customer and register the institutional organs of ethics; with the exception of human research ethics committees, whose approval of conformation and follow-up is competence of the Ministry of public health; and, 5. The other laying down the law.

Its conformation and performance shall be governed by the general rules and regulations that dictate the Secretary of higher education, science, technology and innovation for the effect.

Failure to observe the code of ethics and ethical protocols can be punished depending on the severity with reprimand, the obligation to take corrective action, partial or total loss of the benefits set out in this code, suspension or revocation of accreditation; and others that are established in the regulation.

Article 17.-Institutional policy of ethics in research-the directory or maximum organ of each public or private institution that develops activities related to science, technology or applications, will issue a policy of ethics in research; It is responsible for approving ethical protocols to be the instance of liaison and coordination between the institutions and the National Commission of ethics in research.

In case of confl ICT ethical generated within the framework of an investigation, the entity will form a Commission, according to its internal rules, responsible for resolving confl ICT.

In the case of research involving human subjects you will be as provided in the rules of matter.

Title III of the spaces for development of the national system of science, technology, innovation and knowledge ANCESTRAL article 18.-the spaces for the development of knowledge and innovation-are ecosystems spaces defi nests territorially where concentrate Friday, December 9, 2016 - 11Registro offi cial No. 899 - supplement public and private services needed to democratize the generation transmission, management and exploitation of knowledge, in which interact and cooperate actors of the system, facilitating social innovation-oriented.

In these spaces, of national, regional or local impact, stimulate and manage the fl ows collaborative knowledge and technology among all stakeholders in the social of the knowledge economy, the creativity and innovation that boost pairing and technology transfer, the generation of social creation capabilities and the growth of innovative ventures of technology between its members and other stakeholders.

These spaces for the development of knowledge and innovation ecosystems, are: 1. special technological economic development areas;

2. the territories aimed at research and knowledge;

3. the cos-technological science parks;

4. the tecno-industriales parks;

5. the centers of technology transfer; and, 6. Create other spaces that were necessary for the full implementation and achievement of the fi nes of the system.

The regulation will establish the regime and conditions applicable to each of the areas described in the preceding paragraph.

Without limiting the foregoing, other spaces for the development of knowledge and innovation ecosystems may arise spontaneously, which in order to access funding from State funds, must be duly accredited under the standards of this code.


Article 19.-Special economic development zones technological-may be special areas of economic development technology-ZEDES-, in the framework of the organic code of production, trade and investment, to implement activities scientifi c cas, transfer, development and technology manufacturing and innovation. These spaces will guide the impetus, the creation and enterprise development, technology transfer and innovation and will be controlled by the governing entity of the system in coordination with the governing authority of the production policy.

Article 20.-the territories oriented towards research and the knowledge-referred to as proprietary and strategic sector of the State to the territories aimed at research, technological development and knowledge, created by law, once it has met the requirements laid down in the regulation issued for this purpose by the Ministry of higher education, science, technology and innovation.

Those territories constitute spaces delimited, sustainable auto, dedicated to research, experimental development, transfer and technological manufacturing activities aimed at the promotion, strengthening and development of basic education and superior, science, technology, innovation and creativity a complex academic scientifi, residential and productive partner.

Article 21.-scientists - technological-parks are spaces defi nests and planning Cates, ensuring the presence of human talent, infrastructure support and technological heritage, public and private services, necessary financial tools to implement activities of research, development, technology transfer, and innovation. These parks are oriented to develop technology-based ventures, whose results strengthen the social economy of knowledge, creativity and innovation and the development of science.

Article 22. - industrial-technological parks are spaces defi nests and planning Cates that have an infrastructure of support, public and private services and tools fi nancial necessary to Run industrial manufacturing activities, related to the production of goods or knowledge-intensive services.

Article 23.-Technology-transfer centers are strategic spaces of public, private or mixed law created by research centres, public enterprises or institutions of higher education, among others, that maintain research activities, aimed at the reception and use practical knowledge scientifi, unbundling and the transfer of technology in any of its forms, mainly for the preparation or development of a good or service new or similar preliminary phase or fi nal prototype.

Article 24.-Public research institutes-public research institutes are entities with administrative autonomy and fi nancial which aims in planning car, promote, coordinate, implement and promote research processes scientifi, generation, innovation, validation, dissemination and transfer of technologies.

The permanent operation of public research institutes related is guaranteed a: public health, biodiversity, agricultural research, fisheries, geology, mining and metallurgy, effi ciency, energy and renewable energy, oceanography, study space, Antarctic polar study, Park co and geography, meteorology and hydrology, statistics and censuses, cultural heritage, and others deemed necessary by the President of the Republic.

All public research institutes must have a structure and regulation that will allow its proper functioning related to research, technological development and technology transfer.

Public research institutes, will have the following powers: 12 - Friday, December 9, 2016 supplement - registration offi cial No. 899 1. Planning car, schedule and execute projects of research in the field of its competence;

2. establish relationships with universities and research centres public and private national and foreign for the development of programmes and research projects of the relevant subject;

3 contribute to the sustained increase in production and productivity of the sector to which they belong;

4 generate processes of innovation, development and transfer of technology;

5 provide laboratory services and specialized research according to priorities set by the governing entity of the sector. These services may be onerous; and, 6. Others established in this code, in the general regulations issued for the effect and current legislation.

Article 25.-Highest authority of the public institutes of research-each public Research Institute will be led by an Executive Director, who shall be appointed for terms of five years and may be re-elected. You must have a PhD degree; be accredited by the Ministry of higher education, science, technology and innovation; have experience in participation in processes of research and development; have run and managed research projects; and, having publications indexed or patents. The regulation general defi nira peculiarities of these requirements considering the nature of each institution.

Title IV of the national system of information science, technology, innovation, and knowledge traditional article 26.-national system of information science, technology, innovation, traditional knowledge-the national system of information in science, technology, innovation and traditional knowledge will collect, purge and organize the information relating to the actors and activities in the economy of knowledge, creativity and innovation , to fi n produce technical instruments allowing the formulation, the monitoring and evaluation of public policy, as well as the dissemination of the results of the procedures of responsible research and social innovation and the transfer and learning of procedures generated from the incentives for the social economy of knowledge, creativity and innovation. This system will be articulated with the national information system.

The national system of information in science, technology, innovation and TK, FL to comply with their fi nes and objectives defined


in this code, it will coordinate the actions that may be necessary with the governing entity of statistics and censuses in the scope of their powers.

The Ministry of higher education, science, technology and innovation, through the corresponding regulation will determine the mechanisms and conditions of this information system.

Article 27.-Delivery of information to the governing entity of the system-the actors credited in the national system of science, technology and innovation and ancestral knowledge, are required to supply the information that is required to the Ministry of higher education, science, technology and innovation.

The actors who do not comply with this obligation is not eligible to receive the incentives and benefits provided for in this code.

Title V elements cross of the economy SOCIAL of the knowledge, the creativity and the innovation chapter I of the strengthening of the talent human and his bonding with LAS activities of the economy SOCIAL of the knowledge, the creativity and the innovation article 28.-the strengthening of the human talent to achieve the fi nes of the social economy of knowledge , the creativity and the innovation-Secretary of higher education, science, technology and innovation, in coordination with the competent agencies, formulate the public policy aimed at consolidating the human talent as a primary factor in the social economy based on knowledge, creativity and innovation through its continued strengthening.

Section I mechanisms of formation and training of the talent human article 29.-priority of the education and training of human talent-will be a priority for the State to encourage, develop, monitor and execute programs, projects and actions aimed to educate and train continuously to citizens in order to achieve the production of knowledge in a collaborative and supportive democratic way. For this fi n will be scholarships, financial aid, and educational credits.

Article 30.-Scholarship-is the total or partial subsidy granted by the institutions of higher education, the Ministry of higher education, science and technology Friday, December 9, 2016 - 13Registro offi cial No. 899 - supplement and innovation, the entity operates scholarships and financial aid, foreign bodies or entities created or authorized for that purpose, to natural persons to make higher education studies , academic activities in institutions of higher education, academic mobility, training, training included the dual, improvement, training or qualifi cation professional, research, dissemination, and other than defi na Secretary of higher education, science, technology and innovation.

The Ministry of higher education, science, technology and innovation, through the corresponding regulation, shall establish mechanisms, requirements and other conditions for the formulation and implementation of programmes or projects of scholarship. These guidelines will be enforced when using public resources in its fi nancing.

Without prejudice to the provisions of the law, the institutions of higher education, on the basis of his responsible autonomy, may establish their own mechanisms, requirements and other conditions for the formulation and implementation of their programmes or projects of scholarship.

The public administration is not obliged to request guarantees the or the grantees. If deemed necessary to ensure the use of public resources chosen warranties may not be a barrier for the the or the benefi ciary access scholarship.

Those students that are benefi ciaries of the quota policy issued by the Ministry of higher education, science, technology and innovation will join an institution of higher education through the national system of leveling and admission. Institutions of higher education, both public and private, may not require other requirement than those established by the national system of leveling and admission.

Article 31.-Educational credit-is considered educational credit to refundable economic resources that empowered to effect financial institutions, granted to natural persons, for the fi nance costs total or partial way that demands the development of their academic activities, academic mobility, training, training, training, training, qualifi cation professional, research, dissemination, and others to define the Ministry of higher education Science, technology and innovation.

Educational credit conditions will be preferred, both the rate and term and grace period.

Article 32.-Economic-aid is a grant of exceptional nature non refundable, granted by the Ministry of higher education, science, technology and innovation, higher education institutions, the operator of scholarships and financial aid, international bodies or entities created or authorized for that purpose, to natural persons who are in situations of vulnerability, to cover products specifi c inherent in higher education , academic mobility, development of programmes, projects and activities of research, training, development, professional training and other than defi na Secretary of higher education, science, technology and innovation.

The Ministry of higher education, science, technology and innovation will establish, through the corresponding regulation, mechanisms, requirements and other conditions for the formulation and implementation of programmes or projects of economic aid. These guidelines will be enforced when using public resources in its fi nancing.

In any case chosen warranties may not be a barrier for the the or the benefi ciary access to economic aid.

Section II the participation of sector productive partner in the formation of human talent article 33.-participation of sector productive partner in the formation of human talent.-involves the introduction of the students in real work processes where to complement their theoretical training with practical application. The parties involved in these participatory processes of the formation of human talent, will be:


1. receivers: may be any natural or legal, private and public, person of mixed economy or belonging to the socio-productive sector popular and solidary economy and services, which must be duly certified by the competent national authority or the Ministry of higher education, science, technology and innovation. These entities if applicable must be linked to that institution accredited tutors who possess the knowledge and experience enough on one or several processes or services to fi n transmit their practical knowledge to the students during their practical training in that entity; and, 2. Human talent: are students of all levels of higher education training, aimed at the development of the skills and abilities of the know-how. The linkage of these students to the receiving entities, shall be regarded as mainly the curriculum issued by these.

While the student is in the process of these learning processes in all levels of training, there is no employment relationship between the student and the receiving entity. However, the student may be compensated by the receiving entity that meets their practical training activities. The compensation will be fair, equitable and proportional. The social security system will be differentiated, according to the resolution which for this purpose issue the Council of Directors of the Ecuadorian Institute of Social Security.

14 Friday 9 December 2016 supplement - registration offi cial No. 899 article 34.-system national Qualifi cations professionals.-is the articulated set of plans, programmes, instruments, institutions and actors whose purpose is planning car, design, implement and evaluate the qualifi cation and certifi cation professional processes.

The competent national authority determined by the Executive function, through the corresponding regulations, shall regulate, institutions, mechanisms and conditions of this system.

Article 35.-National Training Plan-will contain guidelines and guidelines for the training of Qualifi cations professional, articulating to the effect with the planning planning and national development, productive, talented human, social and regional policies; It will be carried out by the competent authority.

Article 36.-National catalogue of Qualifi cations professionals.-is the technical instrument which you will find families and profi les professional identifi ed within the framework of qualifi cation professional, depending on the skills necessary for the exercise of a profession, art or offi cio.

The national catalogue of Qualifi cations professionals will be referential to the offer of training and vocational training, will be designed based on the methodology of functional analysis, and will be organized by levels of qualifi cation and competition standards.

Article 37.-Certifi cation of Qualifi cations professional-certifi cation of Qualifi cations Professional is the public recognition of knowledge, skills and abilities acquired by people in a formal way or not formal, after the process of evaluation.

The certifi cation of Qualifi cations professional obligation will be established by the governing authority of the workplace and academic effects will be defined in coordination with the governing bodies of each level of training.

They will be empowered to grant this certifi cation all entities who are duly accredited in accordance with the rules laid down in this code and the rules governing the Ecuadorian system of quality.

The competent national authority must take a public register of the certifi cation of Qualifi cations professional issued by bodies accredited for this purpose. These entities must notify car to the competent national authority of the certifi cation issued payroll as determined by the corresponding regulation.

The governing body of higher education shall issue the relevant regulations to fi n achieve mechanisms of certification of skills and acquired formations to work that will allow the transition to formal levels of higher education.

Article 38.-of the monitoring, Control and evaluation of the national system of Qualifi ed professionals.-the governing body of the national system of Qualifi cations cations professionals will implement mechanisms for the monitoring, control and evaluation of results and impact of actions developed from the national catalogue of Qualifi cations professionals, which must articulate with the knowledge and socio-productive sectors.

Chapter II access and sovereignty of knowledge in environments digital and computer article 39.-access universal, free, and secure knowledge environments digital-access to free and secure knowledge in computer and digital environments, using the technologies of the information and communications developed on supported platforms as well as the deployment in telecommunications infrastructure, the development of content and digital applications and the appropriation of technologies, constitute a cross-cutting element of the social economy of knowledge, creativity and innovation and it is essential to satisfy needs and the effective enjoyment of rights. The universal, free, and safe access to knowledge in digital environments is a right of citizens.

The State will create the conditions necessary to progressively ensure the universalization of access to information and communication technologies, giving priority to the use of free technologies, under the principles of: technological sovereignty, neutrality of the net, free and unrestricted access to information and preserving privacy. These conditions will be respected without prejudice to the service provider. The competent supervisory bodies will monitor that they meet these conditions.

The State shall direct and execute corresponding actions for ensuring collaborative and participatory nature of the information and communication technologies, as well as to encourage the development of community networks; and, enhance the plurality and diversity of their users.

Article 40.-Access to Internet-the State will guarantee universal access to the public internet service in the terms provided for in the Constitution of the Republic. Competent bodies monitor the price of this service is fair, and will establish appropriate control and regulation mechanisms.


Universities and polytechnics shall be available free and free wireless internet access in the whole area of its campuses and extensions.

The autonomous governments shall be available free of citizenship, access to wireless internet in the public spaces of massive concurrency for leisure and entertainment, according to the conditions to establish the corresponding regulation.

Friday, December 9, 2016 - 15Registro offi cial No. 899 - supplement book II of LA research responsible and LA innovation SOCIAL title I of LA warranty of freedom of research and of the exercise of LA research responsible for chapter I of LA warranty of the freedom of research article 41.-freedom of research-is guaranteed the freedom of research in the framework of respect for ethics nature, the environment and rescue, use and enhancement of traditional knowledge.

Public policy, programmes, projects and actions to take the State in the context of this code shall not affect the freedom of research, without prejudice to regulation or limitations governing provisions of the law for reasons of safety, health or ethics.

In the exercise of responsible research, the actors of the national system of science, technology, innovation and ancestral knowledge, remain jointly responsible and collaborative relationships. Its activities are governed by the principles of solidarity, equity, social responsibility, transparency, accuracy, objectivity and quality.

Chapter II of the exercise of the research responsible for article 42.-Research Manager-includes investigative processes aimed at results oriented to the increase in productivity, the diversifi cation of productive, needs or to the effective exercise of the rights of persons, communities, peoples, nationalities and nature.

Article 43.-Exercise of responsible research-research responsible for carrying on the actors of the national system of science, technology, innovation and ancestral knowledge must agree to the following parameters: 1. research, in all its stages, must respect the rights of persons, communities, peoples, nationalities and nature;

2. in any investigative process ensure the integrity and dignity of persons, mainly when they are part of some kind of experimentation;

3. all actors involved in an investigation that is reached to determine the violation of any right will be jointly responsible for such involvement in the degree of their participation; and, 4. Investigations shall be subject to the regulations laid down in this code.

Article 44.-Registration of actors related to the research.-all natural, legal person or associative, public, private or mixed, otherwise carrying out research and technological development, or the two activities together, can register with the Ministry of higher education, science, technology and innovation, in accordance with the regulations issued for the purpose.

The Ministry of higher education, science, technology and innovation will administer this record according to the principles and rules set out in the title of the national system of information in science, technology, innovation, and traditional knowledge provided in this code. The Act of registration will only generate benefits referred to in this code.

Article 45.-Permissions to perform scientific research activities.-without prejudice to the rules of each sector, to obtain the necessary permissions to fi n develop research activities scientifi defi ned within the priority areas by the Ministry of higher education, science, technology and innovation, will be required that the actor or actors who go to these activities are registered with the Ministry of higher education Science, technology and innovation.

The Ministry of higher education, science, technology and innovation defi nira priority areas in which the accreditation of the actors who will run scientific research activities is mandatory to obtain the appropriate permissions.

Article 46.-Accreditation of scientific research institutions-institutions and scientific research laboratories must prove before the Ministry of higher education, science, technology and innovation, to access the benefi ts and incentives provided for in this code, according to the regulations issued by this institution to the effect.

This accreditation may include or articular processes of accreditation on scientific research laboratories that are the competence of Ecuadorian accreditation (SAE) or the actors of international accreditation service.

Article 47.-Safety research scientifi.-the Secretary of higher education, science, technology and innovation will be responsible for establishing, through the relevant legal and technical instruments, principles and standards aimed to ensure security in the processes of research scientifi, with the purpose of protecting human life and nature.

16 Friday 9 December 2016 supplement - registration offi cial No. 899 chapter III of the recognition and regulation of the talent human dedicated to the research scientific article 48.-accreditation of the researchers scientists.-accreditation is a process of validation performed by the Ministry of higher education, science, technology and innovation for certifi car quality of researcher scientifi national or foreign, to run its activities in Ecuador, on the basis of the compliance requirements and a rigorous assessment of international quality criteria and standards. Certifi cation will have a duration of five years and shall be renewable for equal periods, prior the completion of the corresponding formalities.

Secretary of higher education, science, technology and innovation, will also establish accreditation procedures for different schemes related to the investigation.


Accreditation is required for admission to the career of researcher in public institutions that are not part of the system of higher education, as well as to access the benefi ts and incentives provided for in this code.

Article 49.-Parameters for the accreditation of the researchers scientists-for the accreditation of the research scientists, the Ministry of higher education, science, technology and innovation should be considered the following parameters: 1. academic: at least one degree from master's degree or its equivalent in accordance with the organic law of higher education. for medical professionals will be valid the title of medical specialty, in all cases recognized or registered in the Ministry of higher education, science, technology and innovation;

2. publications: Be author or coauthor of works of an indexed article or significance, having made an invention protected under the industrial property regime; and, 3. Experience: Participation in scientific research processes.

The Ministry of higher education, science, technology and innovation will determine the corresponding regulation procedures for accreditation on the basis of these parameters, being able to effect to determine a higher level of academic training, greater number of publications and years of experience, as well as features on the relevance of the works and the indexed articles.

The parameters and requirements for other schemes related to the investigation, such as arts, medicine, alternative medicine, among others, will be regulated by the Ministry of higher education, science, technology and innovation in the respective regulations, whereas their own levels and forms of transmission of knowledge, ensuring in all cases that the researcher has a high degree of knowledge in your area.

Article 50.-Suspension and loss of accreditation of the researchers scientists cos.-determining the grounds for suspension and loss of accreditation, as well as the applicable sanctioning procedure will be established in the regulation issued by the Ministry of higher education, science, technology and innovation, without prejudice to the application of the law of public service its rules, regulations issued by the Council of higher education, codes of ethics and more regulations applied in each case.

Article 51.-Categorization of the researcher scientifi.-the Secretary of higher education, science, technology and innovation, categorized the researchers scientists accredited through the evaluation of their academic training, scientific production and merits.

For this purpose, the Ministry of higher education, science, technology and innovation, will dictate the respective regulation, in coordination with the governing entity of the human resource and compensation in the public sector.

Article 52.-Career of the researcher scientifi-researchers or researchers scientists, as well as auxiliary staff in charge of public entities, whose main responsibilities are related to scientific research activities, are public servants who shall be governed by regulation of career and ranks of the scientifi c researcher co, as it relates to income, promotions, evaluations development and promotions, considering also the different rules applicable to the effect. In research institutions fi nanciadas in its entirety with private resources, the provisions of this code, the labour code and the Civil Code, as the case will be watched.

It is excluded from the race and hierarchy of the scientifi c researcher co administrative and professional auxiliary personnel of public institutions whose main responsibilities are related to research scientifi, which shall be governed by the regulations because the sector in which they play.

The academic system of higher education staff, shall be governed in accordance with the higher education Act and their respective regulations.

Article 53.-Entry to the career of the scientifi c researcher co-researchers and researchers scientists entering the career of the researcher, must meet at least the following requirements: 1. be accredited to the Ministry of higher education, science, technology and innovation as researcher Científi co;

Friday, December 9, 2016 - 17Registro offi cial No. 899 - Supplement 2. Comply with the requirements established in the literal to), b), c), e), f), g), h) e i) of article 5 of the organic law of the public service, and article 3 of the general regulation; What is relevant; and, 3. Other requirements shall be established in the regulation of career and ranks of the scientifi c researcher co, which will be issued by the Ministry of higher education, science, technology and innovation in coordination with the governing entity of the human resource and compensation in the public sector.

Article 54.-Evaluation and promotion in the career of the researcher scientists co-mechanisms, requirements and conditions for the evaluation and promotion of the researchers and researchers scientists who have entered the career of the researcher will be expected in the regulation of career and ranks of the researcher scientifi c co. In this sense, for these purposes, the provisions of the public service act shall not apply.

Article 55.-Disciplinary regime applicable to the researchers and researchers who have entered the race of the scientifi c researcher co-in case of Commission of offenses subject to the regime established in the national ethics code and the codes of ethics of institutions engaged in scientific research, public institutions apply their scientifi accredited researchers the sanctions laid down in the organic law of the public service, its General Regulation, others provided for in this code and the corresponding regulation.


Article 56-Regime of licenses, services and commissions permits-public institutions in which the researchers and researchers scientists provide their services shall apply the system of licenses, commissions services and permissions to be established in the regulation of career and ranks of the scientifi c co. researcher This regime should lead to the necessary conditions which enable the strengthening of research personnel scientifi attending academic demands involving its activities. You must also enable the mobility of researchers between the different national and international research centres.

Article 57.-Linking of research personnel scientifi which is not in the career of the scientifi c researcher co-public institutions related to scientific research activities may link personal researcher scientifi, which is not within the career of researchers under the subscription of occasional services contracts, as provided for in article 58 of the public service act. Exception of the time limit laid down in that article, for the duration and renewal of contracts or occasional services required for scientific research projects.

Article 58.-the remuneration of the scientifi c researcher co-pay researcher scientifi public entities that are not part of the system of higher education, shall be determined by the governing body of the human resources and compensation in the public sector subject to the law governing the public service and in coordination with the Ministry of higher education Science, technology and innovation.

At research institutions that are not part of the system of higher education fi nanciadas exclusively with private resources, the provisions of this code, the code of work or of the Civil Code, as the case may be observed.

Researchers from public research bodies mentioned in the first paragraph of this article, participating in research projects fi nanciados with external institutional budget funds, will allow receiving additional income under the same regime of academics of the higher education system.

Article 59.-the cessation of functions-scientists from the public entities researchers will stop in functions by the grounds set out in articles 47 and 48 of the organic law of the public service and those determined in the regulation of career and ranks of the scientifi c co. researcher For entities in research fi nanciadas in its entirety with private resources, the provisions of this code, the labour code and the Civil Code, as the case may be observed.

Chapter IV of programs of financing of the research article 60.-funds for projects of research-is non-reimbursable funding allocation assigned to actors of the national system of science, technology, innovation and ancestral knowledge, are public, private, community, or mixed, to carry out research activities for the implementation of programmes and projects aimed at the effective exercise of the rights of persons , communities, peoples and nationalities and nature.

A percentage of these resources will be used to fi nance projects through competitive grants. These contests must be guided by the principles of transparency, stewardship, excellence, equality, efi science, escalation, relevance and accountability.

A percentage of these resources will be used to fi nance research projects for peoples and nationalities as afi rmativa action.

When required guarantees for the granting of funding to private actors, they shall not constitute a barrier to access to such funds.

18 Friday 9 December 2016 supplement - registration offi cial No. 899 article 61.-Areas and lines of research scientifi.-the Secretary of higher education, science, technology and innovation defi nira periodically and in a participatory manner areas and lines of research, in line with the objectives of the National Development Plan, National Plan of the Social economy of knowledge Creativity, innovation and ancestral knowledge, purposes of the system of higher education and the social and productive system needs. These lines will be enforced for the programmes and projects of research fi nanciados by the governing body; which also may be considered as reference research by other actors of the national system of science, technology, innovation and ancestral knowledge.

Article 62.-Public interest projects and programs of research fi nanciados through funds public-programs and research projects fi nanciados through public funds, by their nature, are in the public interest and, therefore, are direct benefi t of the collectivity, so once awarded fi nancing, according to relevant principles and procedures , need not be declared competent authority for the allocation and transfer of the rear.

Article 63.-Mechanisms for the assurance of the efi effective recovery of funds when they have been incorrectly used.-without prejudice to the rules governing the activity of the supervisory bodies of the State, the Ministry of higher education, science, technology and innovation, through the corresponding regulation, and bases for delivery bankruptcy funds that rendered to the effect It will establish the causal and sanctions for improper use of funds and the appropriate mechanisms that allow its effi cient retrieval.

The mechanisms referred to in the previous subparagraph must be proportionate. Its implementation will not affect the development of programmes and projects fi nanciados.

The Ministry of higher education, science, technology and innovation will have coercive jurisdiction for the collection of debt issued by any concept of obligations.


Article 64.-Ownership of property acquired through the fi nance to the research-unless provided otherwise established in the respective procedures, materials, furniture and real estate, assets that have been acquired or produced with public funds shall be owned by the actor or actors of the national system of science, technology, innovation and ancestral knowledge which have executed the programme or project fi nanciado.

Goods that are part of the heritage of individuals by the circumstances described in the previous paragraph shall be referred to the regime of control of public goods.

Administrators of these goods will be responsible for the proper use of them until it is exhausted their useful time of life.

Ownership and management of the intangible assets, including software, acquired or generated through the funds provided for in this chapter shall be governed in accordance with the book of knowledge management of this code and of the bases of the contests.

Inputs and equipment scientists which have been purchased with public funds must be inventoried and exposed in the national system of information in science, technology, innovation, and traditional knowledge of the present Code, as the list and categories than for effect make Secretary of higher education, science, technology and innovation.

Article 65.-Optimising the use of infrastructure and equipment for research scientists ca.-the infrastructure and equipment of laboratories for research scientifi of universities, polytechnics and research institutions both public and private duly registered, must be made available to other players properly registered or accredited in the system so that they can make use of these facilities. For the purposes of this standard, such institutions must have appropriate planning.

The Ministry of higher education, science, technology and innovation will ensure compliance with this provision and will regulate the compensation due as well as the conditions of use of the infrastructure and equipment from third parties, to be established in the corresponding regulation.

Article 66.-of the regime of contracting of services, procurement of goods and imports for scientific research manager-public institutions, both universities and polytechnics and research institutes scientifi c ca, prior reasoned ruling issued by the highest authority that proof that the direct relation with activities aimed at responsible for scientific research, teaching research processes, technological development will be authorised to agree to a special regime contracting directly with national or foreign suppliers for the contracting of services and procurement of goods to these fi nes. This regime will also apply for the purchase of laboratory supplies. Such processes will be published for further way in accordance with the organic law of the national system of public contracting. The procedure is established in the regulations of this code.

In engagements that occur up to the amount established for the ma infinite amount payments may be through a corporate credit card, the conditions for obtaining and use of the card shall be established in the regulations of this code.

Friday, December 9, 2016 - 19Registro offi cial No. 899 - supplement for the verifi cation of the existence of domestic suppliers of a good or service shall be subject to the provisions laid down in the regulations under this code.

Public institutions of higher education and public research institutes, shall endeavour to decentralize the procurement of goods and services intended for research to fi n achieve greater effi ciency in the execution of projects.

Additionally, the entity customs together with the Ministry of higher education, science, technology and innovation, establish a special procedure and simplifi ED of permits for the import of goods, supplies or equipment intended for the research scientists responsible for ca and technological development.

Chapter V the ethics in research scientific article 67-ethics in scientific research-the principles necessary for the fulfilment of the ethics in scientific research will be developed in a national ethical code, which must consider at least the following areas: 1. respect for the dignity of life and biodiversity;

2 informed consent from people participating in research;

3 prior, free and informed consent of peoples and Nations;

4. respect and protection of the rights of persons participating in research;

5 Confi dentiality of personal data, as well as those exempted in the national code of ethics, obtained in research processes; and, 6. Respect for animals with fi nes of experimentation.

Chapter VI of the research scientific in biodiversity article 68.-protection of biological and genetic resources in research scientists cas-for the development of research scientists cas on biological resources, genetic resources and their by-products in Ecuadorian territory, natural, legal persons or other associations, both national and foreign, must obtain authorization for access to biological resources genetic resources and their by-products with fi nes of research.

The Ministry of higher education, science, technology and innovation to grant such access, shall welcome technical criteria and protocols of the national environmental authority for the conservation of biodiversity.

He is prohibited collect, capture, hunting, fishing, manipulate or mobilize the biological resource, nationally and internationally, for investigative purposes without appropriate permits. The infringement of this rule will be punished according to the provisions of the comprehensive code of criminal.

Failure to comply with this provision shall be punished in accordance with the relevant laws. This prohibition will not apply where the resource mobilization is carried out as part of the practice of a traditional knowledge, by their legitimate owners.


Article 69.-Access to genetic resources and their by-products with fi nes commercial-persons natural or legal entities, both national and foreign, access to resources genetic of the country or to their products with fi nes business must obtain prior authorization to access the resource.

Public Research Institute scientifi on biodiversity, through the unit responsible for technology transfer, shall have the jurisdiction to carry out the process of negotiation of appropriate monetary and non-monetary benefits, as well as to authorize access to the genetic resources and their derived products.

All product and research not originally contemplated in the negotiation will be subject of a new process.

The Advisory Council established in Article 536 of the code, may be consulted in the process of access to genetic resources which contains the biodiversity and agrobiodiversity in the lands of communities, peoples and nationalities.

The procedure for the application of this article will take place in the respective regulations.

Article 70.-Periodic access to genetic resources evaluation-Secretary of higher education, science, technology and innovation in coordination with the national environmental authority and the national authority on intellectual rights, must periodically assess the State of protection of biodiversity and traditional knowledge, as well as to take actions to prevent exploitation, patenting and commercialization of inventions consisting of endemic or developed from these genetic resources.

Article 71.-National Bank of genetic resources-public scientific Biodiversity Research Institute created the National Bank of genetic resources for the guardianship and custody of the genetic resources of the Ecuador.

20 Friday 9 December 2016 supplement - registration offi cial No. 899 natural or legal persons who gain access to genetic resources, properly authorized and after the signing of the respective contract, must deposit a copy of the sample collected in the National Bank of genetic resources.

Article 72.-Import permits and export for scientific research-the Committee of foreign trade will generate a special system and simplifi ED of obtaining permits for the import or export of living organisms, specimens from collections scientifi c cas that fi t the development of investigative processes, pedagogical research and laboratory supplies.

The Ministry of higher education, science, technology and innovation, in coordination with the customs authority, the national environmental authority and other competent institutions, will be responsible for establishing rules and the processes necessary to ensure the proper handling and carriage of this type of imports or exports, with the aim of not occurring death, damage or loss of living organisms or biological material in question , in such a way that does not put at risk its usefulness for the fi nes of research proposed.

The import and export of described in this article only shall be governed by this code and the regulations issued pursuant to the same provisions.

Article 73.-Benefi ts of the use of biodiversity-as public policy issued by the Ministry of higher education, science, technology and innovation, the State will participate at least in the same proportion as any natural or legal person who has obtained monetary or non-monetary benefits derived from research, use, transfer, development, and commercialization of biological or genetic material , as well as of the information, products or procedures derived from the same.

Perceived benefits will be allocated according to the public policy determined by the Ministry of higher education, science, technology and innovation, which in all cases shall be a majority percentage for activities of science, technology, innovation, ancestral knowledge. Likewise, a part of such benefi ts will be destined to the conservation, restoration and repair of the biodiversity for which will be coordinated with the governing body for the environment.

In cases in which resources have been obtained from the territories of communities, peoples and indigenous nationalities, the afro-Ecuadorian people, the montuvio people and their communes; the majority percentage will be used in those territories before detailed activities.

In the case of access to genetic resources with associated intangible component, participation in benefits by the State will be only with respect to genetic resources according to the provisions in this article. Benefi ts derived from intangible components correspond to their legitimate owners.

Title II of the innovation SOCIAL chapter I definition, components and features article 74.-innovation social-is the creative and collaborative process by which is introduced a new or significantly improved well, service or process with added value, as modifi ca and incorporates new social behaviors for the resolution of problems, the acceleration of individual or collective capabilities , satisfaction of needs of the society and the effective exercise of rights. It is oriented to social, economic, cultural and technological impacts that promote good living.

Social innovation processes will be integrated so dynamic and interdependent, first and foremost, the national system of science, technology, innovation and ancestral knowledge; the system of higher education; the system of culture; and the economic system, with its members in the sectors: public, private, mixed, popular and supportive, cooperative, associative, community including cultural and creative industry, as well as all those other determined in the Constitution.

Social innovation will foster the interaction of different actors, means and instruments of the national system of science, technology, innovation and ancestral knowledge, through social innovation ecosystems, oriented to the effective exploitation of the results of research, creative ideas or technologies, with the aim of creating and developing innovative ventures.


The State, in collaboration with the private and mixed sectors, popular and United, cooperative, associative and community, will promote the processes of social innovation through the strengthening of human talent, the development of scientific research, growth of the technological heritage, the provision of specialized services, endowment of infrastructure support and public spaces, generation means and instruments fi nancial and legal and implementation of other incentives.

Article 75.-Open innovation-means open innovation to the cooperative contribution of one or more persons to find a solution to a problem presented by a third party to an employment relationship is not necessarily maintained.

In cases of open innovation resulting in forms protected by intellectual property rights, the creators must receive reasonable compensation, in accordance with the percentages set out in the present Code, as compensation to their contribution, but also to recognize their ownership on the creation.

Friday, December 9, 2016 - 21Registro offi cial No. 899 - supplement in the case of creations or inventions that cannot be determined the contribution of each of the creators or inventors, shall ensure the management and reinvestment of these resources, to fi n ensure that continue investigating in this area, through the creation of a legal person without fi nes of non-profit.

The Ministry of higher education, science, technology and innovation will facilitate the social access to knowledge, public and openly, so that will facilitate and promote open innovation processes.

Article 76.-Innovative entrepreneurship-is a project aimed at the development of a new or significantly improved well or service whose fundamental factor is the use of the knowledge that is generated from the processes of research, experimental and technological development or creative processes based scientifi, whose fi n last is their introduction on the market.

The Ministry of higher education, science, technology and innovation, in coordination with other actors in this system, will foster social innovation processes needed to promote innovative ventures.

Chapter II of the process of innovation SOCIAL article 77.-process of social innovation-is the management of results from processes of research, experimental and technological development or creative processes based scientifi, carried out by the different actors of the national system of science, technology, innovation and ancestral knowledge, including those other actors who belong to the cultural and creative industry. Mainly comprises the following components: incubation, acceleration, habitat, technology transfer and technological heritage, aimed at the generation of social innovation.

Information concerning the results of the processes of social innovation that have been fi nanciados total or partially with resources public or benefi t ciados of tax incentives will be incorporated into the national system of information in science, technology, innovation, and traditional knowledge, in accordance with the provisions of this code.

Article 78.-Incubation of projects innovators.-the competent bodies of the State, with the participation of the solidarity, popular, mixed, and private sectors or institutions of higher education, will establish mechanisms enabling the provision of specialized services for the development of innovative ventures and its consequent generation of value added.

These specialized services consist of activities related to the pursuit of ideas with potential market, market research, production of prototypes, development of business models, intellectual property management, networking, portfolio investors and fi nancistas, endowment of physical shared spaces, among other defined by the Ministry of higher education, science, technology and innovation.

Article 79-Acceleration of innovative firms-the State, in collaboration with the solidarity, popular, mixed and private sectors or institutions of higher education, will lead to the provision of specialized services for the support of innovative businesses, which have generated taxable income with the income tax over the past two years and that have a high growth potential.

Specialized services will focus on improving the technical and marketing capacities sales growth plans, portfolio investors and fi nancistas.

Article 80.-Habitat of innovative businesses.-the State, in collaboration with the solidarity, popular, mixed and private sectors or institutions of higher education, will lead to the provision of specialized services, which contribute to give support to innovative companies that develop products and services in series and with high added value, as well as seek its inclusion in foreign markets.

Services at this stage will focus, primarily, on specialized market studies, design plans of access to international markets, trade promotion, networking, among other defined by the Ministry of higher education, science, technology and innovation within the scope of their competence.

Article 81.-technology transfer-comprising the activities to transfer knowledge, technical or technological processes that enable the development of products, processes or services. Technology transfer includes contractual agreements such as the proof of concept, technology validation and transfer of intellectual property, licensing of intellectual property rights, contracts of know-how, training, recruitment of domestic labour, among others.

Technology transfer will be incorporated as a requirement in the procurement of goods, construction and services, including consulting, as well as in investment contracts and any other type of contracting that make the State, unless the proper proof cation according to policy which is issued for the purpose. In such processes, parameters and criteria of qualifi cation specifi c for those suppliers who are willing to take on greater commitments of technology transfer according to the methodology as the function define Executive to the effect can be established.


This public policy, giving priority to the strategic and public interest sectors will determine minimum levels and mechanisms of technology transfer that will be required in contracts to carry out the State, in accordance with technical, economic and legal parameters which will be issued and updated in coordination with the different public entities of annual.

22 Friday 9 December 2016 supplement - registration offi cial No. 899 State may establish, according to the policy issued by the governing entity of matter, reserves market in public procurement for products and services with technological intensity of suppliers of Ecuadorian origin.

Article 82.-on the accreditation of entities involved in the process of social innovation-accreditation for public or private entities that carry out activities for the incubation of innovative ventures, acceleration, and habitat of innovative companies, and technology transfer, is carried out validation for certified car quality of such entities, on the basis of the compliance requirements and a rigorous assessment of standards and quality criteria.

Accreditation allows entities to access the incentives set out in this code.

Chapter III of the DISAGGREGATION and monitoring technological article 83.-breakdown technology-includes the breakdown or technical parts of the technological package separation, as well as the technological capacity and knowledge found in these components individually or together with the purpose to incorporate Ecuadorian value-added goods, services and processes.

In the procurement of goods, services, rights and processes of domestic and foreign, as well as contracts for investment and any other type of contracting that make the State, except the proper proof cation according to policy which is issued to the effect must exist processes of technological breakdown. In the processes of public procurement and investment contracts that subscribes the State preference is given to those providers who are willing to take on greater commitments of technological breakdown according to the methodology defi ned by the national authority of public procurement, in coordination with the Ministry of higher education, science, technology and innovation.

Analysis of the technological package, or in knowledge intensive components will be required for the procurement for suppliers of goods, services and processes of domestic and overseas, according to the public policy issued by the governing entity of planning planning and development of the country.

Article 84.-Monitoring technology-is the process permanent search, collection, analysis, use and communication of scientific information and technological potential of available transfer nationally and globally, for the generation of knowledge and making strategic decisions aimed at improving the processes of social innovation. Its results should join the national system of information in science, technology, innovation and traditional knowledge.

Monitoring technology will allow focus on the technological developments that are critical, identify the best technology partners and take advantage of the latest existing developments.

Book III of the management of knowledge title I principles and provisions General Chapter I principles General article 85.-rights intellectuals-protecting the intellectual rights in all its forms, which will be procured in accordance with the Constitution, the international treaties to which Ecuador is a party and the present code. Intellectual rights comprise mainly to intellectual property and traditional knowledge. Its regulation is a tool for the proper management of knowledge, with the objective to promote the scientifi, technological, artistic, and cultural development as well as to encourage innovation. Their acquisition and exercise, as well as their weighting with other rights, ensure the effective enjoyment of fundamental rights and contribute to a proper dissemination of knowledge in benefit of the holders and the society.

To other existing modalities, this code guarantees protection against unfair competition.

Article 86.-Exception to the public domain.-intellectual property rights constitute an exception to the public domain to encourage technological development, scientifi and artistic; and they will respond to the function and social responsibility in accordance with the provisions of the Constitution and the law. The intellectual property may be public, private, community, State, Association, cooperative and mixed.

Article 87-acquisition and exercise of the rights of intellectual property.-means for acquisition to the existence or rights and exercise the scope, maintenance and enforcement of them. Where appropriate, the acquisition will also include transfer made by any act and title.

The acquisition and exercise of intellectual property rights will be balanced with respect to the enjoyment and effective exercise of the right to health and nutrition, education, information, access to culture and to participate in progress scientifi, as well as, develop economic activities, the freedom to work, access to goods and services of quality and the right to other forms of property , in accordance with the provisions of the Constitution.

Friday, December 9, 2016 - 23Registro offi cial No. 899 - supplement both the acquisition and the exercise will be subject to the promotion of social innovation and the transfer and dissemination of knowledge, in benefi t reciprocal of producers and users, so that they promote the social and economic well-being as well as to the balance of rights and obligations.

Article 88-Purposes of intellectual property-intellectual property rights constitute a tool for the development of creative activity and social innovation, contribute to technology transfer, access to knowledge and culture, innovation, and reducing the cognitive unit.

Article 89.-Typology of intellectual property-intellectual property rights mainly comprise rights of copyright and related rights, industrial property and plant varieties.


Article 90.-Typology of goods.-for the purposes of the present code and in terms of intellectual property rights, establishes the following types of goods: 1. goods that guarantee fundamental rights;

2 goods related to strategic sectors;

3 goods related to biodiversity and traditional knowledge; and, 4. Other goods.

Article 91.-Goods that guarantee fundamental rights.-goods that guarantee fundamental rights and that are protected by intellectual property rights, are in the public interest and shall be of a type of protection that allows basic needs of society, and without prejudice to the limitations and exceptions to rights, be permitted other uses without the authorization of the holder in accordance with the provisions in this code and in the international treaties to which Ecuador is a part.

The provisions of the preceding paragraph shall apply to rights that fall on undisclosed information and evidence with respect to pharmaceutical products and chemical - agricultural data.

Article 92.-Goods related to strategic sectors-the modalities of intellectual property related to the strategic sectors are of vital importance to the socio-economic and technological development of the country. These modalities will be a kind of protection enabling the State to access the protected subject matter, for reasons of public interest, social or national compliance with the requirements and conditions established in the agreement on trade-related aspects of intellectual property.

Considering the circumstances of each case and agreement between the parties, the State can access the undisclosed information related to strategic sectors, to the extent that all warranties are granted previously to keep it in reserve.

You can only access the protected subject matter referred to in the preceding paragraphs in the case of rights of intellectual property or undisclosed information in ownership of contractors, benefi ciaries of the concession or service providers.

Holders will receive compensation, either as royalty or as one of the features for the concession or engagement of services in these sectors.

State may access any non-protected information arising from contracts to which it is party, and in these cases establish the obligation to share such information.

Article 93.-Knowledge generated from biodiversity-the State will participate in the ownership of the modalities of intellectual property and other rights which fall on procedures and products derived or synthesized obtained from biodiversity, in accordance with the provisions of the Constitution. In the same way, participate in benefi ts arising from economic exploitation of these procedures and products, without prejudice to their protection by intellectual property rights.

Article 94-Access, use and exploitation of traditional knowledge.-regarding traditional knowledge associated or not to the biodiversity, shall apply the provisions of the preceding article in the benefi t of the legitimate holders, who, at a minimum, participate equitably to the contribution of traditional knowledge in accordance with the provisions of the international treaties to which Ecuador is a party and with the national rules on the subject.

Article 95.-Limitations and exceptions-the rights and benefits resulting from the limitations and exceptions provided for in the present book are inalienable. Any stipulation to the contrary is void.

Article 96-Other limitations to the rights of intellectual property.-the acquisition and exercise of intellectual property rights are limited by the provisions of this code and the provisions of the Constitution of the Republic on access to biological and genetic resources and traditional knowledge, environment, business practices restrictive of free competition and consumer protection and unfair competition , as appropriate.

Chapter II provisions general article 97-national treatment-the rights and obligations conferred by this Act apply equally to domestic and foreign, resident or not in the Ecuador. For the purposes of this code, stateless persons will be considered as citizens of the country where they have established their domicile.

24 Friday 9 December 2016 supplement - registration offi cial No. 899 article 98-holders without domicile in the country.-applicants or holders of the registration of a right of intellectual property or a certifi cate breeder plant that does not have his domicile in Ecuador, should have a representative domiciled in the country with power enough registered with the competent national authority on intellectual rights in particular, to answer petitions, actions and demands. Any change in the aforementioned powers must register before such authority within the period determined by regulation.

The same obligation, for the purpose of compliance holders of copyright and related rights not domiciled, should benefit from the provisions of this article.

Article 99.-Compulsory registration-all transfers, authorization of use or license any rights of intellectual property or request pending, must register with the competent national authority on intellectual rights. Transfers, authorizations of use or licensing of industrial property shall have effect as from its registration with the competent national authority on intellectual rights.

Fi n do effective tax deductions from royalties from intellectual property rights, it must provide proof of the document supporting the materiality of the transaction, however the above document must be previously registered with the competent national authority on intellectual rights.

Title II of the rights of author and the rights related chapter I scope article 100.-recognition and award the rights are recognized, awarded and protect the rights of authors and the rights of other holders about their works, as well as the rights of performers or performers, producers of Phonograms and broadcasting organizations, under the terms of this title.

CHAPTER II GENERAL INFORMATION


Article 101.-Acquisition and exercise of the rights of author-the acquisition and exercise of the rights of copyright and related rights are not subject to registration or deposit, or any formality.

The rights recognized and awarded by this title are independent of the ownership of the material object in which the work or provision is incorporated.

Chapter III of the rights of author section i. provisions general article 102-author-rights of copyright are born and are protected by the mere fact of the creation of the work.

Copyright protection is granted regardless of the genre, merit, purpose, destination or mode of expression of the work.

The form in which the ideas of the author are described, explained, illustrated or incorporated in the works is strictly protected. However, if an idea has only a single form of expression, that form is not subject to protection.

The ideas contained in literary and artistic works, the ideological or technical content of the scientifi c cas works or industrial or commercial use are not object of protection. Nor are object of protection procedures, methods of operation or mathematical concepts themselves.

Article 103-Accumulated protection.-copyright is independent and compatible with: 1. industrial property rights that may exist in the work; and, 2. The other intellectual property rights recognized by this title.

However, industrial property rights that may exist in the work will not affect the uses of the same when it passes into the public domain.

Section II object article 104.-works susceptible of protection-the protection recognized by this title falls on all literary, artistic works and scientifi c cas, which are original and that can be reproduced or disclosed by any form or means known or to be known.

Copyrightable works include, among others, the following: 1. the works expressed in books, brochures, printed, epistolary, articles, novels, stories, poems, chronicles, criticism, essays, letters, scripts for theatre, film, television, conferences, speeches, lessons, sermons, allegations in law, memoirs and other works of similar nature, expressed in any form;

Friday, December 9, 2016 - 25Registro offi cial No. 899 - Supplement 2. Collections of works, such as encyclopedias, anthologies or compilations and databases of all kinds, which, by the selection or arrangement of their contents, constitute original intellectual creations, without prejudice to the rights that subsist on the works, materials, information or data;

3 dramatic works and dramatic music, the choreography, the pantomime and theatrical works;

4. musical compositions with or without lyrics;

5 fi cas and other audiovisual works;

6. the sculptures and works of painting, drawing, engraving, lithography and graphic cartoons cas, comics, comics, as well as his essays or sketches and other plastic works;

7 projects, plans, models and designs of architectural and engineering;

8 illustrations, graphic cos, maps, sketches and designs relating to geography, topography and, in general, to science;

9. cas photographic works and those expressed by processes analogous to photography;

10. works of applied art, in so far as their artistic value may be dissociated from the industrial character of the objects which they are incorporated;

11 remixed works, always, by the combination of its elements, constituting an original intellectual creation; and, 12. Software.

Article 105-Derivative works.-without prejudice to the rights that exist on the original work, are protected as derivative works adaptations, translations, arrangements, revisions, updates and annotations; compendia, summaries and extracts; and other transformations of a work to the extent in which the derivative work is original and has enjoyed with the authorization of the owner of the rights in the original work.

Article 106-creations based on cultural expressions-creations or adaptations based on the traditions and ancestral practices, expressed in groups of individuals that refl ect the expressions of the communes, communities, peoples and indigenous nationalities, afro-ecuatoriano village and montubio people, their identity, their values transmitted orally, by imitation or by other means, either use literary language music, games, mythology, rituals, customs, handicrafts, architecture and other arts, must respect the rights of the communities in accordance with international, community and national rules for the protection of expressions against illicit exploitation, as well as the basic principles of collective rights.

Article 107-Not protectable matter-are not subject to protection legal and regulatory provisions, the draft law, judicial decisions, acts, decrees, agreements, resolutions, deliberations and rulings of public bodies, and other texts offi cials of legislative, administrative or judicial order, as well as their offi cial translations.

Nor are protected political speeches or lectures in legal debates. However, the author shall enjoy the exclusive right of collecting in collection the works mentioned in this subsection subject to the provisions of this chapter.

Section III article 108.-holders of rights rights holders-only the natural person can be copyright. Legal entities may be owners of economic rights in a work, in accordance with this title.

For the determination of ownership it will be what the law of the country of origin of the work, in accordance with the criteria contained in the Berne Convention, Paris Act of 1971.

Article 109-Works by unknown authors.-in the case of works created in communities of peoples and nationalities in which identify cannot be the authorship of the work and that they are not found in any of the categories mentioned in this section, the ownership of the rights will be up to the community, leaving a except for their right to self-determination.

Article 110.-Presumption of authorship or ownership.-for the purposes of the application of the measures, home of procedures and appeals provided for under the present Code, in connection with the observance of copyright and related rights will be taken into account the following:


(a) for the author of literary and artistic works in the absence of evidence to the contrary, be considered as such and therefore have the right to initiate infringement proceedings, it will be enough that his name appears on the work in the usual manner. This presumption applies even when that name is a pseudonym adopted by the author that leaves no doubt about his identity; (and b) the literal to) applies, what is relevant, the holders of rights related with relationship to the subject-matter.

Article 111-Administration rights of copyright-Copyright does not form part of the conjugal partnership or society of goods, as the case may be, and may be freely administered by the author, spouse or live-in partner or his successor in title. However, economic benefits 26 - Friday, December 9, 2016 supplement - registration offi cial No. 899 derived from exploitation of the work are part of the heritage of the conjugal society or society of goods, as the case may be.

Article 112-works in collaboration-it is that work whose unitary result comes from the collaboration of several authors. Disclosure and modifi cation will require the consent of all authors. Once disclosed the work, any co-author may refuse the exploitation of it in the form in which it reported. In the work in divisible collaboration, unless otherwise agreed, each collaborator can separately exploit his contribution, unless it causes harm to the common exploitation. Each contributor also is the owner of rights on the part of which he is author.

In the work in indivisible collaboration, unless otherwise agreed, rights belong in common and proindiviso to the co-authors. Each joint author, unless otherwise agreed, may exploit the work without the consent of the other, provided that it does not prejudice to the normal exploitation of the work and without prejudice to distribute economic benefits obtained from the previous exploitation deduction of costs incurred to pro-rata.

Article 113-collective works.-it is that created by the initiative and under the coordination of a natural or legal person who edits it and reported under its name and is constituted by the meeting of contributions of different authors whose personal contribution is based on a unique and autonomous creation for which have been conceived without its being possible to separately attribute to any of them right on the whole of the performed work.

Unless otherwise agreed, the authors will retain their rights with respect to their contributions that can be exploited independently, provided that they do so in good faith and not be prejudiced injustifi cadamente the normal exploitation of the work collective.

It shall be presumed that it has organized, coordinated and directed the work of the natural or legal person who appears indicated as such in the same.

Article 114-of rights holders of works created in institutions of higher education and schools-in the case of works created in schools, universities, polytechnics and colleges technical, technological, pedagogical, of Arts and the conservatories, and public research institutes as a result of their academic or research such as works of degree research projects or innovation, academic papers, or other similar, without prejudice that may exist a relationship of dependency, the ownership of the economic rights shall correspond to the authors. However, the settlement will have a free, non-transferable and non-exclusive license for non-commercial use of the work with academic purposes.

Without prejudice to the rights recognized in the preceding paragraph, the establishment may make commercial use of the work authorization of the owners and notifi cation to authors where they try to different people. In which case it shall be for the authors a percentage not less to forty per cent of the resulting economic benefits of this exploitation. The same benefi t will apply to authors who have transferred their rights to institutions of higher education or schools.

The right referred to in the preceding paragraph in favor of the authors is inalienable and shall also apply in the case of works created within public research institutes.

Article 115-Works under dependent relationship, and by custom-unless agreed otherwise or special provision in this title, the ownership of works created under an employment relationship or custom-made will correspond to the author.

Where the author transfers its rights, will retain the Faculty of exploit works differently to the contemplated in the contract, always that do so in good faith and does not harm injustifi cadamente normal exploitation that the employer or client.

In any case, the author shall have the unwaivable right to equitable remuneration for the exploitation of his work, in accordance with the provisions of this code. In the case of software this law shall not apply.

This right applies even in cases of transfer or transfer of ownership of the work created under labour dependence, and by custom.

Article 116-Economic rights of the Sector public-the ownership of the rights in works created by public servants in the performance of their duties, shall correspond to agencies, institutions, public sector units respectively.

In the case of works created under a dependent employment relationship when the employer is a legal person of private law with State shareholding or fi nanced with public resources, ownership of the property right shall be responsible for the employer.

With regard to consultancy, goods and services contracted by the State within a procurement procedure regulated by the organic law of the national system of public procurement, ownership of the economic rights will correspond you to the contracting entity, who shall be obliged to do it public and accessible through the national system of information in science, technology, innovation and traditional knowledge , in accordance with the regulations. In the case of other goods and services, unless otherwise agreed, the ownership will be the author.


The information and content of databases product of research fi nanciadas with public resources will be open access. Institutions or entities responsible for such investigations should make available such information through information technologies.

Friday, December 9, 2016 - 27Registro offi cial No. 899 - supplement when for reasons of security, sovereignty and protection in accordance with this code of personal or non-personal data, or existing or future intellectual property rights, are not suitable, the dissemination of the information described in the previous paragraph, institutions or entities in charge of the investigation may determine it. In these cases you will be required to send the information only to the Ministry of higher education, science, technology and innovation.

Article 117-anonymous works-in the anonymous work, the publisher whose name appears on the work shall be considered representative of the author, and shall be entitled to exercise and assert their economic, and moral rights until the author reveals his identity and proof that their quality.

Section IV content of the first paragraph of article 118.-moral rights copyright moral rights-are absolutely essential, inalienable, unattachable and inalienable moral rights of the author: 1. keep the work unpublished or to disclose it;

2 claim the authorship of your work at any time, and require attribution, or will exclude your name or pseudonym whenever it is used when permitted by the normal use of the work;

3 oppose any distortion, mutilation, alteration or modifi cation of the work that violates decorum of the work, or the honour or reputation of the author; and, 4. Access to the sole or a rare copy of the work whose support is in possession that is owned by a third party, to fi n exercise the right of disclosure or any other that apply to you.

This last right will not require the movement of work and access to it will take effect in the place and manner that cause less discomfort to the legitimate possessor or owner, who indemnify, in his case, for the damages that are irrigated him.

Moral rights mentioned in paragraphs 2 and 4 shall have the imprescriptible nature. Once completed the term of protection of works, the rights referred to in paragraphs 1 and 3, shall not be enforceable against third parties.

Article 119.-Rights of the successors in title-the death of the author, the exercise of moral rights shall correspond to their successors in title for the term of the economic rights, according to the provisions applicable in each type of work or service.

Second paragraph of article 120.-rights economic rights exclusive-is recognised in favour of the author or his successor in title the following exclusive rights in a work: 1. the reproduction of the work by any form or procedure;

2. the communication of the work by any means that serve to spread the words, signs, sounds or images;

3. the public distribution of copies or copies of the work by sale, lease or rental;

4. the importation of copies made without the authorization of the holder, of the persons referred to in article 126, or the law;

5. translation, adaptation, arrangement or other transformation of the work; and, 6. The making available to the public of their works, in such a way that members of the public may access these works from a place and at a time that each one of them choose.

Article 121-Right of equitable remuneration.-recognized in favour of the author of the indispensable way, rights of equitable remuneration as compensation of certain applications or forms of exploitation of their work that are laid down specifi cally in this code. They are rights of equitable remuneration right to receive compensation by resale of three-dimensional works. Rights of equitable remuneration shall not be compulsory collective management.

Fundraising for copyright and related rights set out in this code, based on their gender, may be single window mode.

Article 122-Reproduction of a work-means playback the fi XING of the work in a medium that allows their perception, communication, or obtaining copies of all or part of it, by any means or procedure, known or to be known.

Article 123-Public communication-means communication to the public any act by which a group of people, gathered or not in the same place, and at the time that individually decide, can have access to the work without prior distribution of copies to each of them. In particular, the following acts are covered: 1. plays, recitals, dissertations and public performances of dramatic, dramatico-musical, literary and musical works by any means or process;

28 Friday 9 December 2016 supplement - registration offi cial No. 899 2. The projection or public display of the fi LMS cas works and other audiovisual works;

3. the issuance of any works by broadcasting, television or any other means serving for the wireless dissemination of words, signs, sounds or images. In this concept, the production of signals is also understood from a terrestrial station towards a satellite broadcasting or telecommunication;

4. the transmission of works to the public by wire, cable, optical fi bers or other similar procedure, whether or not by subscription;

5. the retransmission, by any of the means referred to in the earlier literal by an issuing entity different from the original, of the broadcast or televised work;

6. the emission or transmission, in a place accessible to the public by means of any suitable instrument, the broadcast or televised work;

7. the public exhibition of works of art or reproductions thereof;

8. the making available to the public of works by wire or wireless; and, 9. In general, public dissemination, by any known or as yet unknown, words, signs, sounds or images.

All communication that exceed the private sector deemed public.

Article 124.-Distribution of work.-means distribution implementation available to the public of the original or copies of the work in a material medium, through sale or other transfer of ownership, lease or rental.


Lease means the making available of the original or copies of a work for use for a limited time in Exchange for the payment of a fee or price. They are excluded from the concept of rental, the fi nes of this article, available with fi nes of exposure and those made for consultation on-site.

It shall not be deemed that there is a lease of a work where this is not the essence of the contract object. Thus, the author of a work of architecture or applied artwork may not oppose the owner rents the building or something that incorporates the work.

Article 125-Exhaustion of the right of distribution.-the right of distribution by sale or other transfer of ownership is exhausted with the first sale or other form of transfer of ownership of the original or copies once they had introduced into the Commerce of any country.

This right is exhausted with respect to successive resales within the country or abroad, but not exhausted, or affects the exclusive right to prevent the lease of the copies sold.

Article 126.-Import of works without authorization-confi ere import duty to the holder of the Faculty prohibit the introduction into Ecuadorian territory of copies of the work made without the authorization of the holder. This right to be exercised both to suspend the entry of such copies at ports and borders, to obtain the withdrawal or suspend the movement of individuals who have already entered.

This right shall not affect copies that part of the luggage of travelers.

Third paragraph of TPMs technology for the management and protection of Rights article 127.-measures-the holders of copyright or related rights, may provide effective technological measures, such as encryption or otherwise, with respect to their works and services protected by copyright and related rights, which restrict acts not authorised by the cardholder or in accordance with legislation.

Article 128-Prohibitions-it is forbidden to perform any act that has as purpose to induce, enable, facilitate or conceal infringement of any of the rights provided for in this title.

It is forbidden in particular, the following: 1. remove or alter without permission any electronic rights management information; and, 2. Distribute, import for distribution, broadcast or communicate to the public, without authority, copies of works knowing that electronic rights management information has been removed or altered without authorization.

Means electronic information that included in the copies of works, or appearing in connection with a communication to the public of a work, to identify AC the work, the author, the owners of any right of copyright or related right, or information about the terms and conditions of use of the work or performance, as well as numbers and codes that represent such information.

Article 129.-Obligations of the holders of the rights-will obligation to holders of the respective rights of works and services protected by copyright and related rights that incorporate technological measures that is this paragraph, provide under appropriate conditions the media, systems, devices, and services needed to neutralize or otherwise rescind such technological measures to users who require to make use of the Friday, December 9, 2016 - 29Registro offi cial No. 899 - supplement works are in the public domain or are subject to a limitation or exception to copyright and neighboring rights in accordance with this title.

Article 130-Circumvention of technological measures-users who require a limitation or exception to copyright and neighboring rights in accordance with this code, exercise may evade, neutralize, or rescind the measures covered by this paragraph, without prejudice to the administrative or judicial actions that any.

Special section V provisions on certain works first paragraph of software and databases first section of closed-source and databases software article 131-software protection-software is protected as a literary work. Such protection is granted regardless of that have been incorporated in a computer and anyone the way that are expressed either as source code; that is, in human readable form; o as object code; i.e., in machine-readable form, either operating systems or applications, including flow diagrams, maps, manual systems use, and in general, those elements that make up the structure, sequence and organization of the program.

It is excluded from this protection standard forms of software development.

Article 132-Adaptations necessary for the use of software.-without prejudice to the moral rights of the author, the holder of the rights in the software, or the owner or other lawful user of a copy of the software, may make the adjustments necessary for the use of the same, according to their needs, provided that it does not use with commercial purposes.

Article 133.-Holders of rights-holder is of the rights to a software producer, that is, the natural or legal person who takes the initiative and responsibility for the making of the work. Shall be presumed owner, unless there is evidence to the contrary, the person whose name will be recorded in the work or its copies in the usual way.

Rightholder is also authorized to exercise in its own name the moral rights in the work, including the right to decide on disclosure.

The producer has the exclusive right to prevent third parties to perform without their consent successive versions of the software and software derived from the same.

The provisions of this article may be modifi ed by means of agreement between the authors and the producer.

Article 134-Activities permitted without authorization-allowed activities relating to lawful circulation software, without requiring permission of the author or owner, or payment of no value, in the following cases: 1. copy, transformation, or adaptation of the software that is required for the use of the software by the owner or other lawful user of a copy of the same;


2. the copy of the software by the owner or other lawful user of a copy of the same thing is with fi nes of security and file, i.e. exclusively destined to replace the copy legitimately obtained, when it no longer can be used for damage or loss;

3. the activities of reverse-engineering a copy of legitimately obtained from software made for the sole purpose of operational compatibility between programs or for purposes of research and education;

4. the activities carried out on a copy of legitimately obtained a software for the sole purpose of test, investigate or correct operation or the safety of the same or other programmes, the network or the computer on which it is applied; and, 5. The use of software with fi nes of demonstration to customers in commercial establishments in that they expose or sell or repair equipment or computer programs, provided that this is done at the own local or section of the establishment for these objects and in conditions that prevent their dissemination abroad.

Article 135-Exception to reproduction-does not constitute reproduction of software, for the purposes provided in this title, the introduction of it in the internal memory of the respective appliance, for the purposes of exclusive personal use.

Article 136-Licit use of the software-unless agreed to the contrary, will be lawful the use of the software for use on multiple workstations by installing networks, workstations or other similar procedures.

Article 137-Exception processing-does not constitute transformation for the purposes provided in this title, the adaptation of software by the owner or other lawful user for the exclusive use of the software.

Article 138.-Prohibition of transfer to the modifi cations made to a software-adaptations or changes permitted in this paragraph 30 - Friday, December 9, 2016 supplement - registration offi cial No. 899 may not be transferred under any title, while mediate prior authorization of the owner of the respective right. In addition, the specimens obtained as indicated may not be transferred under any title, unless they are together with the program that helped them in array and with the authorization of the owner.

Article 139-Other exceptions-in addition to the exceptions to copyright referred to in the present section for the software, may be applicable exceptions or limitations provided for literary works.

Article 140-Protectable matter by databases-compilations of data or other material, in any form, that due to the originality of the selection and arrangement of their contents constitute intellectual character creations, are protected as such. This protection of a database, according to this title, does not extend to the data or information collected, but it will not affect rights that may subsist in works or performances protected by copyright or related rights that comprise it.

The protection recognized databases under this article shall not apply to the software used in the making or operation of databases accessible by electronic means.

Article 141.-Use personal data or not personal protected content or non-intellectual property.-the personal or non-personal data that are part of the protected contents or not by intellectual property available in databases or repositories and other forms of storage of data belonging to natural or legal persons, whether public or private law (, may be used only in the following cases: to) when each how affordable; in the case of information classifi

(b) have the express authorization of the owner of the information;

(c) when expressly authorized by law;

(d) when authorized by court order, or other order of authority with competence to do so. (and e) require it when the institutions of public law for the exercise of their respective powers or the purpose for which have been incorporated.

Not they may provide personal data or non-personal under the pretext of existing rights over the form of arrangement of the elements protected in data bases.

The information contained in the databases, repositories, and other forms of storage of personal or non-personal data are in the public interest; Therefore they must be used with criteria fair, proportional and use and transfer must prevail in the common good, the effective exercise of rights and the satisfaction of social needs.

Paragraph second free technologies and open formats article 142-technologies free-means free technologies to open source software, open standards, free content and free hardware. The first three are considered as free digital technologies.

It means open source software the software whose license holder guarantees the user access to the code source and empowers it to use this software for any purpose. Especially given to users, among others, the following essential freedoms: • the freedom to run the software for any purpose;

• The freedom to study how the software, and change to suit any need. Access to the source code is an essential condition to do so.

• The freedom to redistribute copies; and, • the freedom to distribute copies of his versions modifi ED to third parties.

It means source code, the set of instructions written in a programming language, designed with the aim of being read and transformed by any software tool in machine or executable instructions in machine language.

Open standards are ways of handling and storage of the data in that its structure is known and allows your modifi cation and access not to impose any restrictions for use. Data stored in open standards formats do not require proprietary software to be used. These standard formats may or not be approved by an international entity of certifi cation standards.


Free content is the access to all the information associated with the software, including documentation and other technical elements designed for the delivery of necessary to carry out confi guration, installation and operation of the program, same that they must be submitted in open standards.

It means free hardware designs of goods or materials and other documentation to the confi guration and its respective place in operation, give users the following freedoms granted to users the following freedoms: 1. the freedom of studying these specifi cations, and carlas Modifi ED to suit any need;

Friday, December 9, 2016 - 31Registro offi cial No. 899 - Supplement 2. The freedom to redistribute copies of these specifi cations; and 3. The freedom to distribute copies of his versions modifi ED to third parties.

The State in the acquisition of goods or services including digital technologies consulting, will prefer the acquisition of free digital technologies. The order of precedence laid down in this code will be observed in the case of acquisition of software.

Article 143-hardware free.-the institutions or agencies of higher education, science, technology and innovation as well as national plans of research, innovation and transfer of technology, strengthening of the human talent, scholarships and ancestral knowledge, should support in their research plans the use and implementation of hardware free.

If any free hardware developed in the country, this will have preference to hire by the State.

Article 144.-Use of digital technologies in systems of education.-the institutions of the national system of education and the system of higher education, only for its administrative operation, must use software according to the scheme of priority and criteria laid down in article 148.

However the above, the system of higher education institutions will be forced to use only digital free technologies in the exercise of the freedom of research and Chair, but must guarantee a teaching holistic solutions regardless of their type of licensing.

Article 145-Migration to open source software-the institutions of the public sector should be an assessment of the feasibility of migrating their digital technologies to free digital technologies with the criteria set out in the corresponding regulations. Will evaluate the criticality of software, and must consider the following criteria: 1. sustainability of the solution;

2. opportunity cost;

3. safety standards;

4. technical capacity that provides the necessary support for the use of the software.

Article 146-location data-when the public sector entities contracted software services or others involving the location of data, must do so with suppliers ensuring that data are located in data centers that meet the international standards in safety and protection according to the following rules: to) data related to national security and strategic sectors should be found in computing centres located in Ecuadorian territory;

((b) the data of relevance to the State that are not contained in the literal to) this article should be preferentially in computing centres located in Ecuadorian territory or in countries with standards of data protection equal to or more stringent than those laid down in the Ecuador; and, c) data that are not contained in the literal a and b of this article should find interchangeably in computing centres located in Ecuadorian territory or abroad.

Article 147.-Access to the source code.-contracting entities of the public sector shall be available to the public, through the system of information in science, technology, innovation and ancestral knowledge, the code source of hired or developed open source software.

Can keep in reserve the code source of software employed or developed by public institutions in the following cases: a) for reasons of national security;

(b) for belonging to strategic sectors; and, c) considered by the body of regulation in the field of e-Government the existence of critical components within the code, according to current regulations and as determined by the rules of this code.

In these cases, in order to safeguard the principle of transparency and access, the immediate previous source code will be accessible in a restricted manner according to the conditions as the entity of regulation in the field of e-Government stated to the effect.

Article 148-Priority in the acquisition of software by the public sector-for software-related procurement, the contracting entities of the public sector should follow the following order of priority: 1. Open Source Software including source development services supply, parameterization or implementation with an important component of Ecuadorian value-added;

2 software in any other form that includes a major component of Ecuadorian value-added services;

3. software code open without a majority component of Ecuadorian value-added services;

4. international software through domestic suppliers; and, 32 - Friday 9 of December 2016 supplement - registration offi cial No. 899 5. International software by means of foreign suppliers.

If is not possible by the public or relevant body the acquisition or development of open source software services, with an important component of Ecuadorian value-added, the public body involved in the acquisition must warrant the acquisition of other technologies of other features to the entity of regulation in the field of e-Government that determine the President of the Republic by regulation.

To authorize such proof cation, this instance will assess the criticality of software according to the following criteria: 1. sustainability of the solution;

2 cost and opportunity;

3. safety standards; and, 4. Technical capability that provides the necessary support for the use of the software.


It shall be excluded from the proof cation provided in the preceding paragraphs, the hiring of software updates acquired prior to the entry into force of this code. The body of regulation in the field of e-Government shall be dealt within a period of 30 days.

In any case, after the acquisition of other non-free technologies, the acquiring bank shall submit to the competent authority in electronic government within 180 days of the plan's feasibility of migration to free digital technologies. Migration if feasible, will have the term of up to five years for its implementation. In the case of migration be not feasible, the competent authority in the field of e-Government will carry out periodic assessments, according to provisions of the respective regulations.

Article 149. Derivative works of open source software-derivative works of open-source software, may be closed-source software, provided that what is not prohibited in the license of the original work.

Article 150-privacy software-in the acquisition of software installation of agents or mechanisms that allow you to extract information from the contracting entity without the authorization and knowledge of the institution purchaser in accordance with current regulations is prohibited.

Article 151-Free choice of software-users have the right to free choice of software on devices that support more than one operating system. On devices that do not support factory, more than one operating system, they can offer only with the factory installed system.

In the purchase of personal computers and mobile devices, suppliers are obliged to offer to the user alternative of closed source software or open source software, exist in the market. Shall show separately the price of hardware and the price of the licenses.

Second paragraph of article 152.-co-authors of audiovisual work audiovisual works.-presumed coauthors of an audiovisual work: 1. the principal or Director;

2. the authors of the plot, adaptation and screenplay;

3. the author of music specially composed for the work; and, 4. The cartoonist, in the case of animated designs.

Article 153-Original work.-without prejudice to the rights of author on pre-existing structures that have been able to be adapted or reproduced, the audiovisual work is protected as the original work.

Unless otherwise agreed, the authors of the preexisting works may exploit their contribution in isolated form in any genre, provided that they do so in good faith and not be prejudiced injustifi cadamente with the normal exploitation of the audiovisual work. However, the exploitation of the work in common, as well as of the works specially created for the audiovisual work, shall be exclusively for the holder of the rights in the audiovisual work, pursuant to the following article.

Article 154-Producer of audiovisual works.-it is said to be producer of the audiovisual work, the natural or legal person who takes the initiative and responsibility for the making of the work.

It is presumed producer, unless there is evidence to the contrary, to the natural or legal person whose name appears on the work in the usual way.

By the production of an audiovisual work contract is shall presume transferred exclusively to the producer, with the limitations laid down in this law, the rights of reproduction, distribution and public communication.

The remuneration of the authors of the audiovisual work for the transfer of the rights mentioned in the preceding paragraph and, where appropriate, the corresponding authors of the preexisting works, have been processed or not, they should be determined for each of the modes of exploitation granted.

The author has transferred or assigned to a producer of audiovisual recordings his right of distribution through rent on an original or a copy of an audiovisual recording, shall retain the unrenounceable right to obtain equitable remuneration for the rental of the same. Such remuneration shall be payable who take effect the operations of rental to the public of audiovisual recordings.

Friday, December 9, 2016 - 33Registro offi cial No. 899 - supplement in any case, and regardless of what is agreed in the contract, where the audiovisual work is projected in public places through the payment of an entrance fee, authors will be entitled to receive from those who exhibit publicly the work a percentage of the revenue from such public display.

In the case of export of the audiovisual work, authors may transfer the right mentioned by a lump amount, when in the country of destination will be impossible or severely diffi cultoso the effective exercise of the right.

Public rooms or display local entrepreneurs must periodically make available to producers and the competent national authority on intellectual rights amounts collected in respect of that remuneration.

Article 155-Producers of audiovisual recordings-refers to audiovisual recordings the fi xtures of a plane or sequence of images, with or without sound, whether or not creations likely to be Qualifi ed as audiovisual works within the meaning of article 104 of this law. Audiovisual work shall constitute as an audiovisual recording meets the requirements of a work.

It means producer of an audiovisual recording, the natural or legal person who has the initiative and has the responsibility for the audiovisual recording.

The producer of an audiovisual recording shall have the exclusive reproduction of the original rights and their copies on the first fi XING of the audiovisual recording, public communication, distribution and the rights of exploitation of the photographs that are made in the production process of the audiovisual recording the duration of exploitation rights to the producers of the fi XING of an audiovisual recording shall be fifty years computed from January 1 of the year following the of its realization. However, if, within that period, the recording is lawfully reported, these rights shall expire fifty years from the disclosure, computed from January 1 of the year following the date in which this occurs.

Third paragraph of architectural works


Article 156-Limitation to the right of author-the author of a work of architecture not may oppose to the modifi cations of his work in the process of construction or after it made by the owner of the property or which are ordered by competent authority. However, it may require that not mentioned his name in connection with the work modify each.

The author of a work of architecture shall not oppose the demolition of the building.

Article 157.-Use of other works-the acquisition of a project of architectural work entails the right of the purchaser to run the projected work, but requires the consent of its author, in the terms to the point and in accordance with the legislation governing the exercise of architecture, for use in other works.

Fourth paragraph of works of plastic arts and other works article 158.-right to an interest in resales.-If the original of a work of Visual art or the original manuscript of the writer or composer may be resold: 1. at public auction; or, 2. With direct or indirect intervention of a dealer of such works as a buyer, seller, agent, broker or trade.

Unless otherwise agreed, the seller must pay the author a participation of at least five percent of the resale price, provided that this price is higher than the first sale.

This right is unwaivable, inalienable and transferable by cause of death in favour of the heirs of the author. It may be exercised by the term of the economic rights in the work.

The action to demand the payment of this fee by each resale barred two years after the date of the respective resale.

Article 159.-Responsible for business establishments.-responsible for commercial establishments, the dealer or anyone else who has been involved in the resale will be jointly and severally responsible with the seller for payment of this right and must notify car resale to the competent national authority in matters of intellectual rights and the relevant collecting society or, failing to the author or his heirs, within a period of three months subsequent to the resale, accompanying the relevant documentation for the practice of the liquidation.

Article 160-portrait or bust of a person-the portrait or bust of a person may be failed to trade without their consent and, after his death, his heirs. However, the publication of the portrait is free when it relates solely with fi nes scientifi, educational, historical, or cultural, or facts or events of public interest or that have been developed in public.

Article 161-Photographs portrait.-no one may use a work shooting or a mere photograph that consists essentially in the portrait of a person, if such photography was not done with your express permission, his legal representative, that of their heirs, with the limitations laid down in the law. The authorization must be in writing and refer to the type of use specifi ed in the image.

34 Friday 9 December 2016 supplement - registration offi cial No. 899 person fotografi ada may object when the use is different from the authorized, unless the image give account of facts or events mentioned in the previous article.

Authorization is not required when person fotografi ada is a secondary component of the photograph.

Section VI transmission and transfer of rights the first paragraph of the transmission by cause of death article 162.-transfer of the economic rights-economic rights granted this title are transmitted to the heirs and legatees in accordance with the provisions of the civil law.

Article 163.-Rights of the heirs or devisees.-unless agreed otherwise, each heir or legatee, as appropriate, may exploit prior authorization of the competent national authority on intellectual rights the work without the consent of the other, provided that you do so in good faith and does not prejudice the normal exploitation of the work and without prejudice to distribute economic benefits obtained from the previous exploitation deduction of costs incurred to pro rata cadamente injustifi and a percentage of twenty per cent of these benefi ts to your favor. This percentage shall be without prejudice to participation corresponding to the respective heir or legatee for his fee.

Second paragraph of the transfer of ownership rights and contracts for the exploitation of the works first paragraph of the transfer of the ownership of Rights article 164.-transfer of the economic rights-economic rights granted this title, unless otherwise expressed, are susceptible to transfer any title and, in general, any act or possible contract under civil or commercial law as movable property.

In case of transfer, to any degree, the purchaser shall have and shall exercise the rights arising from the ownership.

The disposition of the material does not imply assignment or authorization with respect to the right of author on the work that incorporates such support.

Second paragraph of contracts in general article 165.-provision of copyright-subject to the rules of this book, recognizes the Faculty of authors and other rights holders have their rights or to authorize uses of their works or other subject, whether free or onerous, according to conditions determined. This ability may be exercised through free and open licenses and other alternative models of licensing or the resignation.

Article 166.-Transfer contracts of use of copyright or exploitation of works by third parties.-contracts on transfer of rights, authorization of use or exploitation of works by third parties shall be granted in writing and it shall presume onerous. Unless otherwise agreed, the author will retain the power to exploit the works differently to the contemplated in the contract, provided that do so in good faith and does not harm injustifi cadamente normal exploitation which the assignee perform. In addition, where appropriate, will last the time prescribed in the same contracts.

In these contracts, the author will ensure the authorship and originality of the work. Likewise, it means, without express provision, the obligation to respect the moral rights of the author.


Article 167.-Forms of exploitation of a work.-the various forms of exploitation of a work are independent from one another and, accordingly, contracts are understood to be circumscribed to the forms of exploitation expressly stipulated and, unless agreed to the contrary, which is understood to be understood according to the nature of the contract or are indispensable to meet its purpose. Thus, the assignment or licensing of the reproduction right will mean that of the right of distribution by sale or other title of the copies whose reproduction has been authorized.

Shall be deemed reserved all rights as well as rights to the forms of exploitation non-existent or unknown at the time of the conclusion of the contract.

Unless stated otherwise, the contracts will have a duration of ten years and shall be limited to the territory of the country where the contract was held.

The assignment of rights is limited to the forms of exploitation expressly provided for and at the time and territorial scope to be determined.

The assignment of exploitation rights on the whole of the works that the author may create in the future will be void.

Provisions by which the author undertakes not to create any work in the future shall be null and void.

The transfer of exploitation rights fails to use modalities or unknown or non-existent media at the time of the transfer.

The assignment of rights may be agreed through a reasonable share of operating revenues, or, through a value fi xed where it is not feasible to negotiate participation under the first category. If in the Friday, December 9, 2016 - 35Registro offi cial No. 899 - supplement assignment produced a highlight this disproportion between the author remuneration and benefi ts obtained by the assignee, that one can ask for the review of the contract and, in default of agreement, go to the judge to attach an equitable remuneration, the circumstances of the case. This ability may exercise within ten years of the transfer.

Article 168.-Exclusive and non-exclusive cession of copyright.-subject to the provisions of the preceding article, exclusive assignment of copyright transfer ere the assignee the right of exploitation exclusive of the work, takes effect against third parties and the author himself. Also confi ere the exclusive assignee, within the framework of the rights that have been the subject of assignment and unless otherwise agreed, the right to grant assignments or licenses to third parties, and to enter into any act or contract for the exploitation of the work. Also the exclusive assignee has legitimacy, to pursue violations of copyright relating to the powers granted to him.

In non-exclusive assignment, the author shall retain the right to exploit the work or authorize its exploitation to third parties. Unless stated otherwise, the non-exclusive assignment shall be non-transferable and the assignee may not grant licenses to third parties.

In the absence of express stipulation, transfer shall be considered non-exclusive.

Article 169-Invalidity of the assignment of the economic rights in works created in the future.-without prejudice to provisions with respect to works created under a dependent work relationship, is void the transfer of the economic rights in the works that the author may create in the future, unless they are clearly defined in the contract at least in terms of their gender and that this does not exceed five years.

It is also void any provision whereby the author undertakes not to create any work in the future.

Article 170.-Exclusive copyright license-subject to the provisions of article 167 leave exclusive confi ere author's rights to the licensee the right to exclusive exploitation of the work, takes effect against third parties and the author himself within the scope of the assignment.

Non-exclusive license, the author shall retain the right to exploit the work or authorize its exploitation to third parties.

Unless stated otherwise, license, exclusive or not, it will be non-transferable and licensee may not grant sub - licensing to third parties.

In the absence of express stipulation, the license shall be deemed non-exclusive.

Without prejudice to rules on consumer protection, practical commercial restrictive of free competition and unfair competition, the acquisition of copies of works that are sold together with the corresponding license shall include the consent of the transferee to the terms of such licenses.

Such licenses shall be drafted in clear enough terms to understand by the consumer.

Article 171.-Obligation of exploitation granted.-in all contracts in which the author receives directly or indirectly participation in the benefi ts of the exploitation that is made of the work, shall be included, without stipulation expresses, the obligation to make all the means necessary for the effectiveness of the granted exploitation, according to the nature of the work and existing uses in the professional activity industrial or business concerned.

Article 172. Dissemination of responsible works susceptible of publication through newspapers, magazines, or other means.-Notwithstanding the above provisions, the natural or legal person who has commissioned newspaper articles, papers, photographs, graphic cos or other works susceptible of publication through newspapers, magazines, or other public media, have the right to publish such works by the means of broadcasting under the custom as well as authorize or prohibit the use of works by means similar or equivalent to its original publication. They are the rights of the author to exploit the work in different media, always that is made in good faith and does not prejudice the normal exploitation of the work.

If such works have been carried out under labour relationship, the author shall retain the right to be independent in the form of collection Edition.

Contemplated in this article may be changed by agreement between the parties.

Third paragraph of contracts from editing article 173.-contract of Edition-publishing contract is that by which the author or rightholder authorizes another person called Publisher to reproduce and distribute the work at own risk, under the agreed conditions.


Article 174-Notice of a work published the new editor of a work-if the author has held prior publishing contracts on the same work with a third party, or if it has been published by a third party with your authorization or knowledge, should be to these circumstances to the editor before the conclusion of the contract. Otherwise, it will respond of the damages that he or she causes.

Article 175.-Prohibition of conclusion of a new contract.-during the term of the contract and subject to the stipulated territorial scope, unless agreed otherwise or consent of the Publisher, the author does not may conclude new 36 - Friday, December 9, 2016 supplement - registration offi cial No. 899 contract of edition of the same work with a third party, or reproduce it and distribute it or authorize its reproduction or distribution to third parties.

Article 176-Prohibition of publishing change the work each.-the Publisher may not publish the work with abbreviations, additions, deletions or any other modifi cations, without the consent of the author.

Article 177-Right to publish changed the work each.-the author shall retain the right to make corrections, amendments, additions or improvements that it deems fit until you start printing his work.

When the modifi cations make more costly the Edition, the author shall be exempt from refund the expenses which for that reason are caused to the Publisher, unless otherwise agreed.

If modifi cations related fundamental changes in the content or form of the work, and these are not accepted by the Publisher is deemed withdrawal of the work, owing the author compensate for damages that are deferring to the editor and to third parties.

The provisions of this article shall apply also to the reprints that this work is done during the term of the contract.

Article 178-Pricing of the work-in the absence of express stipulation, the editor shall have the right to fi jar the selling price of each copy.

Article 179-Use of unsold copies-if, at the expiration or termination of the publishing contract, the Publisher remains unsold copies of the work, the author you can buy them at cost over ten percent. This right may exercise within thirty days counted from the expiration or termination, after which the Publisher may continue to sell the copies in the same conditions stipulated in the contract.

Article 180.-Termination of the contract of Edition.-the publishing contract will end once concluded the period stipulated for its duration, or when the Edition.

Article 181.-Obligation who edit a work-anyone who edit a work in the national territory is obliged to enter in a visible place, at all the specimens, at least the following indications: 1. the title of the work and the name of the author or his pseudonym, or expression that the work is anonymous;

2. the name of the compiler, adapter or author of the version, when appropriate;

3. the mention of reservation of rights or the indication of the type of license under which published the work;

4. the year and registration of copyright;

5. the name and address of the Publisher and printer;

6. the place and date of printing;

7. the number of editing; and, 8. The bar code with the standard international number for books (ISBN).

Article 182.-Number of copies made by the editor-the editor may not publish a greater number of copies than the agreed with the author, and if you do so, you must pay the author for the greatest number of copies actually edited, without prejudice to compensation to any place.

Article 183.-Liquidation of copies of a work-unless is manner a different term, the editor will be obligated to liquidate and pay semi-annually to the author or who represent you amounts that apply in respect of remuneration. In any case, the author or who represent you, shall have the right examine, at any time, facilities, records and receipts from sale of those who edit, distribute or sell the work and they relate to the contract. Publishers, distributors, and sellers must take and preserve these documents.

Article 184-Bankruptcy or insolvency of the Publisher-bankruptcy or insolvency of the editor does not produce the termination of the contract, except in the case that the printing of the work has not started. The broken editor rights may not be assigned if it causes prejudice to the author or the dissemination of its work.

Article 185-Edition of works contracts musicals-the foregoing provisions shall apply to contracts for the publication of musical works, unless they are incompatible with the nature of the exploitation of the work.

Article 186.-Inclusion of the work in phonograms.-unless agreed otherwise, the editor or the sub-editors or licensees, as the case may be, shall be entitled to authorize or prohibit the inclusion of work on phonograms, its synchronization with advertising purposes, its public communication, or any other form of exploitation, similar to those authorized by the publishing contract, without prejudice to the rights of the author and of the obligation to pay the agreed remuneration in its favour in the contract.

Article 187-Editor rights.-unless otherwise agreed, the editor has legitimacy, regardless of the author or his successor in title, to pursue violations to copyright that affect the powers that they have authorized you.

Paragraph fourth inclusion EQU contracts ca article 188-inclusion EQU ca contract-inclusion EQU ca contract is one in which the author of a musical work or his successor in title, editor or the corresponding collective management society, authorizes a phonogram producer to record or fi x work to reproduce it on a disc EQU co , a band Friday, December 9, 2016 - 37Registro offi cial No. 899 - magnetic supplement, a digital media or any other device or similar mechanism, with fi nes of reproduction and distribution of copies.

Unless otherwise agreed, the authorization to the producer does not include the right of public communication.

Article 189-Economic participation of the author.-unless otherwise agreed, the economic participation of the author will be directly proportional to the value of the copies sold.


Unless a different term is manner, the producer shall be required to liquidate and pay semi-annually to the author or who represent you amounts that are for economic participation. In any case, author or who represent you will have right to examine, at any time, facilities, records and proof of sale of the producer and that relate to the object of the contract. The producer must carry and retain these documents.

Article 190-Minimum data to be recorded in the material of the Phonograms-phonogram producers shall enter in the material support of the phonograms, at least the following indications: 1. the title of the work and the names of the authors or their pseudonyms, works that make up the phonogram and, the author of the release, when appropriate;

2. the names of the performers. The orchestral or choral ensembles will be listed by its name or by the name of its director, as the case may be;

3. when appropriate, the mention of reservation of rights by means of the symbol (P) (letter inscribed within a circle P) followed by the year of the first publication;

4. the business name of the producer EQU co or the brand that it identified. and, 5. Phonogram, necessarily must be printed the number of order of the circulation.

Indications which are not possible to enter on the labels of the copies, due to lack of suitable place will be printed on the envelope, cover, or enclosed booklet.

Article 191-Fixing of the price of the work.-the provision contained in article 189 shall apply in the relevant to the literary work which is used as the text of a musical work or Declamation or reading for its fastening in a phonogram, fi nes of reproduction and distribution.

Paragraph fifth contracts of representation article 192.-contract of representation-is that by which the author or his successor in title authorizes a natural or legal person the right to represent or perform publicly a work of literary, dramatic, musical, dramatico-musical, mimed or choreography ca, under the agreed conditions.

These contracts must be concluded by certain time or a certain number of representations or public executions.

Unless otherwise agreed, agent acquires the exclusive right to the representation of the work six months from its release and, without exclusivity, for the remaining period of duration of the contract.

In the contract, shall stipulate the period within which unique or first performance of the play should be put into effect. Unless otherwise agreed, the period shall be one year from the date of the contract or, where appropriate, since the author put the agent capable of performing the representation.

The provisions on the agency contract are applicable to other forms of public communication, what is relevant.

Article 193-Percentage of participation of the author by function not determined in the contract.-when the participation of the author has not been determined contractually, you shall be, at a minimum, ten per cent of the total value of each function and twenty percent of Premiere function inputs.

Unless otherwise agreed, in case of free shows, applies the percentage indicated in the preceding paragraph on the total value of potential revenue that would have been obtained if the show had not had such character.

Unless a different term is manner, the agent will be forced to liquidate and pay semi-annually to the author or to whom every six months represent amounts that are in respect of remuneration. In any case, the author or who represent you will have right to examine, at any time, facilities and records of the agent and that relate to the object of the contract. Agent must bring and preserve these documents.

Article 194.-Penalty to the employer who fails to comply with its obligation to pay the author.-If the agent fails to pay the economic participation that corresponds to the author, the competent national authority, at the request of the author or who represent you, will order the suspension of the representations of the work or immediate retention of the product of the levy.

Where the same agent represents other works of different authors, the authority will have immediate retention of surplus amounts of revenue after satisfied copyright of such works, to cover the total of the amount owed to the unpaid author. In any case, the author shall have the right to terminate the contract to remove the power of the agent work and to exercise any other actions to any place.

38 Friday 9 December 2016 supplement - registration offi cial No. 899 article 195.-termination of the contract of representation-the agent will be able to terminate the contract, losing advances has made to the author if the work represented by the rejection of the public during the first three functions, or by unforeseen circumstances or force majeure.

Sixth paragraph of contracts for broadcasting article 196.-contract of broadcasting-is that by which the author or rightholder authorizes the transmission of the work to a broadcasting organization.

These provisions shall apply also, in whatever is relevant to transmissions by wire, cable, optical fi bers, or other similar procedure.

Article 197.-Authorization for the transmission of a work-authorization for the transmission of a work excludes the right to broadcast or exploit it publicly, unless otherwise agreed.

For the transmission of a work towards or outside it will require express authorization of the author or his successor in title, except for the transmission of a work by digital media or others that naturally involve the possibility of transmissions over the Internet or cross-border which, unless otherwise agreed, involves the authorization for its transmission to or seventh paragraph of article 198.-contracts of audiovisual work audiovisual work contracts abroad.-is the one by which the author, or his successors in title, or the corresponding management societies, authorize a person to reproduce, distribute and publicly communicate an audiovisual work, by account and risk of this person, in the agreed conditions. In the absence of contract of audiovisual work are presumed transferred in favour of the producer, the patrimonial rights as provided for in Art. 154 of this code.


Article 199.-Prohibition of distribution of an audiovisual work.-can not negotiated the distribution or public communication of audiovisual work if it has not previously entered into with author, artists, performers, or their successors in title, or the corresponding collective management societies, the Convention which fully guarantee the payment of the rights belonging to them.

Eighth paragraph of article 200.-contracts advertising contracts advertising-are those whose purpose is the exploitation of works with fi nes of advertising or identifi cation of ads or through any medium of broadcasting propaganda.

Unless otherwise agreed, the contract will enable the dissemination of advertisements or advertising up to a maximum period of six months from the first communication, and must pay separately for each additional period of six months.

The contract shall specify the material support that will play the work, as regards the right of reproduction, as well as the number of copies that will include the circulation if it is the case. Each additional print run will require an express agreement.

The provisions relating to contracts for the issue, including EQU ca and audiovisual work, are applicable to these contracts what is relevant.

Section VII of the limitations and exceptions to the economic rights first paragraph of article 201.-duration of the economic rights duration-the duration of the protection of the economic rights includes the life of the author and 70 years after his death.

When the ownership of the rights applicable to a legal entity, the term of protection referred to in the foregoing paragraph shall run from disclosure or publication of the work. If the work had not reported or published within the space of seventy years since its implementation, the term of protection referred to in the foregoing paragraph shall run from the making of the work.

Article 202.-Duration of the economic rights in the posthumous work.-in the case of posthumous works, the term of seventy years shall run from the death of the author.

Article 203. Duration of economic rights of obraanonima or pseudonymous-the work anonymous or pseudonymous shall be seventy years protection once the work has been lawfully made accessible to the public. However, if the author of an anonymous work or pseudonymous reveals his identity during the above time protection or, when the pseudonym adopted by the author do not leave doubt about his identity, the term of protection shall be that laid down in article 201.

If the identity of the author of the reported work under a pseudonym is not seised, it deemed it anonymous. Case, shall apply the provisions of the preceding article.

Article 204.-Duration of the economic rights in works made in collaboration-for works collaboratively, protection period stipulated in the 201 run since the death of the last coauthor.

Article 205.-Duration of the economic rights in collective-if a collective work works give to Friday December 9, 2016 - 39Registro offi cial No. 899 - supplement known for parties, the period of protection shall run from the disclosure or publication of each supplement, part or volume.

Article 206.-Duration of the economic rights in audiovisual works.-for audiovisual works, the term of protection shall be seventy years from the disclosure of the work, or, if such fact does not take place within a period of at least fifty years from the making of the work.

Article 207.-Duration of economic works fotografi cas rights and arts applied-for fotografi cas works the term of protection shall be seventy years from realization, dissemination or publication which is further. For works of applied art, the term of protection shall be seventy years counted from the realization, disclosure or publication of the work, which may be further.

Article 208.-Duration of the economic rights in works of communities, peoples or nationalities-in the case of works of communities, peoples or nationalities to which the Constitution recognizes collective rights, which cannot be determined individual authorship any, the term of protection shall be seventy years from the registration of such work to the competent national authority in intellectual property the check which face among other requirements, the application having the collective consent of communities, peoples or nationalities.

Article 209-Computation of the term of protection of a work-the term of protection shall run from the date of the death of the author or of the making, disclosure or publication of the work, as appropriate. When that date is not seised, the term of protection shall run from the first of January of the year following the death of the author or to the making, disclosure or publication of the work, as appropriate.

Article 210-Completion of the terms of protection of a work-met deadlines for protection provided for in this paragraph, works pass into the public domain, and as a result, they may be used freely by anyone, respecting the authorship of the work.

Second paragraph of the limitations and exceptions article 211.-use right-will not constitute a violation of the proprietary rights the use or exploitation of a work or other protected subject, in the cases set forth in the following article, provided it does not infringe the normal exploitation of the work or providing protected and not cause harm injustifi ED to the legitimate interests of the owner or owners of the rights. To determine if the use of the work or other subject conforms to the provisions of this article, be taken into account the provisions of this code and the international treaties to which Ecuador is a party. In addition, at least the following factors should be considered: 1. the objectives and the nature of the use;

2. the nature of the work;

3. the amount and importance of the portion used in relation to the work as a whole, if applicable;

4. the effect of the use on the market value of current and potential work; and, 5. The enjoyment and effective exercise of other fundamental rights


Article 212.-Acts that do not require authorization for use.-without prejudice to the provisions of the preceding article, in accordance with the nature of the work, the international instruments to which Ecuador is party and the principles of this code, shall not constitute a violation of the proprietary rights of the owner of rights, those cases determined in this article, provided that does not infringe the normal exploitation of the works and do not cause harm injustifi ED to the legitimate interests of the owner or owners of the rights. In this regard, the following acts do not require the authorization of the owner of the rights or are subject to any remuneration: 1. the inclusion in a work of brief fragments of works outside of written, sound or audiovisual nature, plastic character, fotografi co, fi gurativo or similar, insofar as it is already disclosed works, that inclusion is carried out by way of quotation or for analysis , commentary or critical judgement, educational purposes or research, in the custom proof by the purpose to be achieved, always indicating the source and the name of the author, and in no case constitute a covert exploitation of the work.

Regular collections made in the form of reviews or press review will be considered appointments;

2. the use of a work in the course of procedures offi cials of the Government, the legislature or the administration of Justice;

3. display, execution, interpretation and communication to the public of works in acts offi cial educational or organized by institutions of the State, with fi nes Memorial, cultural, scientifi, always that assistance is free and participants do not receive specific remuneration for their role in the Act. It means acts offi cial those that are organized with the presence of several authorities (civil, military or ecclesiastical) and that have a protocol for their development;

4. the reproduction, translation, distribution and communication to the public with informative purposes of articles, reviews, photographs, illustrations and similar works about news and events of interest, provided that mention the source and the name of the author, if the original implies, and not been recorded in origin the reservation of rights;

40 Friday 9 December 2016 supplement - registration offi cial No. 899 5. The reproduction, translation and public communication with informative purposes of lectures, speeches and similar works disclosed at assemblies and public meetings and public debates on matters of general interest;

6. the reproduction, adaptation, distribution and communication to the public with informative purposes of news of the day or different facts having the character of simple journalistic information, disseminated by any means or procedure, provided that its origin;

7. the reproduction, adaptation, distribution or public communication with fi nes scientists or educational and to ensure access to persons with disabilities of architectural works, photographic cas, fine art, applied art, or similar, that are permanently located in places open to the public, by means of photography, painting, drawing, fi shooting or any other technique or similar procedure , provided that the name of the author of the original work, if it is known, and the place where it is located;

8. the reproduction and public communication with fi nes information of works seen or heard in the course of events of today by means of photography, cinematography or broadcasting or communication to the public of how wired or wireless;

9. the reproduction in individual of a work by a library, archive or Museum, when the respective specimen is in the collection of the library, archive or Museum, and the reproduction is made with the following fi nes: a. preserve the copy and replace it in the event of loss, destruction or rendering unusable;

b. deliver to another library or archive copy reproduced for purposes of loan to the user of this library or archive. Library or archive that receive the issue may in turn make one copy of it if this is necessary for the preservation of the copy and the copy is intended for use by users; or, c. replace, in the permanent collection of another library or archive, a specimen that has been lost, destroyed or disabled.

A library or archive may, in addition, perform the following acts: i. the reproduction of fragments of works that are in his collection, at the request of a user of the library or archive exclusively for personal use;

II. the electronic reproduction and communication to the public of works from its collection to be consulted free and simultaneously up to a reasonable number of users only in the networks of the respective institution or terminals for users of that institution under its control, under conditions ensuring that electronic copies of those reproductions; can not be

III. the translation of works originally written in a foreign language and legitimately acquired when, at the end of a period of three years from the first publication or one year in the case of periodical publications, its translation into Spanish, other languages of intercultural relationship and offi cials in the respective territories languages, not has been published in the country by the owner of the right;

IV. translation shall be made with purposes of research or study for the users of such libraries or archives, and may only be reproduced in partial citations in publications resulting from these translations;

v. The provision of temporary access to the users of the library or archive, or other libraries or archives, works protected by copyright or performances protected by related rights, which are incorporated in a digital format or another between intangible, within their collections;

VI. reproduction and supply a copy of works protected by copyright or benefits related to another library or archive, or other libraries or archives where want to located, or in accordance with any other exception allowing the file or receiving library to carry out such copyrighted copies;


VII. the reproduction, adaptation, translation, transformation, arrangement, distribution and communication of a work protected by copyright or a benefit protected by related rights, in one or more formats accessible for use by people with disabilities;

VIII. the mining of texts. Libraries or archives and its officials shall be exempt from liability for acts that its users make when they act in good faith and have reasonable grounds for believing that the work protected by copyright or the provision protected by related rights has been used in the framework permitted by the limitations and exceptions provided for in this paragraph or in a way that is not restricted by the rights in the work or other subject , or that such work or service is in the public domain or under a license that permits its use;

10. the public loan in individual form of an audiovisual work by a library or another collection of audiovisual works, when the respective specimen is in the Repertoire of the video library or collection;

Friday, December 9, 2016 - 41Registro offi cial No. 899 - Supplement 11. The performance, by a broadcasting organization and using their own equipment and for use in their own broadcasts, of ephemeral recordings of a work which have the right to broadcast it. The broadcasting organization shall be required to destroy such recording within five years, except for recordings with a special historic or cultural value that merit preservation;

12. the realization of a transmission or retransmission by a broadcasting organization, of a work originally made for him, always that such retransmission or communication to the public, is simultaneous with the original broadcast and the work is issued by broadcasting or publicly transmitted unaltered;

13 satire, pastiche or parody of a work disclosed, provided that it conforms to the rules of these genres, while it does not involve the risk of confusion with this or may cause damage to the work or reputation of the author or artist performer, as the case may be. In any case this use may constitute a covert exploitation of the work.

14. the annotation and record, even by non-audiovisual technical means, with fi nes for personal use of lessons and conferences given at universities, polytechnics, colleges technical and technological colleges, schools, education and training centres in general, and other education institutions, part of those whom these lessons and lectures are aimed. The aforementioned annotations and records may not be marketable or any public use without the authorization of the holder of the rights;

15. the reproduction with teaching purposes or for examinations in educational institutions of articles lawfully published in newspapers or periodicals, or short excerpts or extracts from lawfully published works, or isolated plastic works, provided that such use is not subject to sale or other transaction for consideration.

The works mentioned in the preceding paragraph may be used in the course of processes of study or face-to-face, blended, dual, online and distance learning, provided that is intended exclusively for the students of the respective classes.

16. in the case of orphan works, or who are not lawfully available in national trade for a period exceeding one year from its first publication, and while they remain in that capacity or circumstance, educational institutions may use in its entirety the works to be refi eren the two preceding subparagraphs, provided that the use of such works may be required by the appropriate educational authority;

17. the representation, execution and communication to the public of a work in the course of the activities of an educational institution by the staff and students of such institution, provided that no charges for such an Act and the public is composed mainly by the staff and students of the institution or parents / guardians of students and other persons directly connected with the activities of the institution;

18. the translation or adaptation of a work with academic purposes in the course of the activities of an educational institution, without the possibility that such a translation or adaptation can be distributed later;

19. the use of software with fi nes of demonstration to customers in commercial establishments in that they expose or sell or repair equipment or computer programs, provided that this is done at the own local or section of the establishment for these objects and in conditions that prevent their dissemination abroad;

20. the use of works of plastic arts with fi nes only of advertising the public exhibition or sale of them;

21. the public exhibition of works of art or reproductions thereof carried out with fi nes for the dissemination of culture, not charged input or direct has an economic benefit in favor of the Organizer;

22. the interpretation, implementation and communication of musical or audiovisual works inside of establishments of public health and education systems; social rehabilitation centres, always be destined to the inmates of such establishments and that people who are in these institutions are not subject to a payment specifi c for who manages such institutions for access to the interpretation, execution or communication;

23 playback interim of a work that so that it is transient or accessory, form an integral and essential part of a technological process and have as sole purpose the lawful transmission in a network between third parties by an intermediary, and that in no case has a significant independent economic planning;

24. the reference or link of online sites, or other lawful similar activities, as well as playback and storage necessary for the process of operation of a search engine on the Internet if this does not involve violation of protected content;

25. the communication to the public and reproduction of texts, drawings, figures, and other content in an application or registration of industrial property or request or certifi cate breeder through databases open to the public provided that, in the case of applications, they have a public character;

42 Friday 9 December 2016 supplement - registration offi cial No. 899


26. the public communication of works to be performed in establishments open to the public of property of microentrepreneurs, small businesses or artisans Qualifi ed, through a single home appliance whose main activity not involving such communication to the public of essential form or that the use does not have purposes of setting. For purposes of this type of communication means including neighboring rights that exist on the benefits involved;

27. the public communication of works to be performed in units of public transport which are not intended for tourist activities or entertainment;

28. the performance or public communication of works with educational and non-profit purposes. May not make use of this exception: a. institutions private non-profit purposes not considered micro-enterprises;

b. private entities nonprofi profit having link with a private entity with aim of profit; and, c. Entities without foreign non-profit purposes; and, 29. Entities nonprofi non-profit recognized by the State or those that receive fi nancial this support and who provide services of education, pedagogical training, adapted reading or information access for people with disabilities, may of those works that have been purchased legally, play them, distribute them and make them available to the public, in formats accessible to persons with disabilities. Access to such works will include the possibility to represent them and execute them publicly, with the aim that can be accessible to people with disabilities.

People with disabilities or who act on its behalf, may be the same detailed activities in the foregoing paragraph of those works that have been legally purchased for personal use.

30. the public communication, transmission and retransmission made by a broadcasting organization community, provided this conforms to the provisions of the relevant legislation.

It is understood that there is end of profit whenever it generates a benefi t economic direct or indirect to who uses the work or to a third party who facilitates the use of the same; in this case the General rules on authorisation of use or exploitation of works by third parties provided for in this code shall be respected.

The provisions of this article also apply for benefits. Limitations and exceptions that are described in this article when using the work of political proselytism or religious purposes may be applied under any circumstances. These shall not constitute fair use of it.

Article 213-Other acts included.-limitations and exceptions specified in this paragraph shall include, not only the rights expressly mentioned, but also those who, by the nature and purpose of the limitation or exception, is understood to have also included. Thus, in all cases in which the reproduction of a work is permitted, the translation of the same means understood when it is originally written in a foreign language. Thus, in cases in which the reproduction of a work is permitted, the distribution of copies of the same means understood also in so far as the proof that the authorized act of reproduction.

In all these cases will be observed the provisions of the international treaties to which Ecuador is a party.

Article 214.-Works or subject-orphan-refers to works or other subject those orphans whose copyrights or related rights are effective according to the protection periods established in this code, but whose holders are not identifi ed or living it has not been possible location.

Who is seeking to use works or orphan benefits must be performed all acts and reasonable efforts to identify the holder of the right and notify the competent national authority in the field of intellectual rights.

In case that the legitimate owner or rightholder appear and proof care properly such quality, may exercise the actions provided for in this code.

Article 215.-Advertising works.-does not apply to audiovisual advertising works the obligation to indicate the names of the author and the performers. It will not be mandatory to mention the name of the author in the advertising photographs.

Article 216.-limitations and exceptions-limitations and exceptions provided for in this paragraph shall also apply to benefits protected by related rights, which is relevant.

Section VIII of compulsory licenses article 217-the granting of compulsory licenses.-the competent national authority on intellectual rights may confer compulsory licenses on the exclusive rights of a holder, constituted on literary or artistic, musical or audiovisual works in the following cases: 1. when practices that have been declared by the competent authority in the field of control of market power , as contrary to free competition, in particular when they constitute an abuse of a dominant position in the market by the owner of the copyright or related rights;

Friday, December 9, 2016 - 43Registro offi cial No. 899 - Supplement 2. When the owner of a musical work has given authorization for the interpretation or recording a person and there is the possibility to be able to get another authorization for new interpretation and recording by a third party. There is no application of this compulsory license where there is express refusal of authorization of the owner;

3 when a literary or artistic work is not translated into Spanish, one of the offi cial of intercultural relationship languages or offi cial languages in the respective territories and such a translation is not available in the domestic market;

4. when a literary or artistic work is not available in the domestic market and have elapsed since their publication in any form: three years in the works of content scientifi or technology; five years in the works of general content; and, seven years in the works such as novels, poetry and art books; and, 5. When an audiovisual work, videogram or other audiovisual binding is not available or accessible in the domestic market and a year has elapsed since their dissemination in any medium or format.


Article 218.-of the drive licenses mandatory-offi cio or request of a party the competent national authority in the field of intellectual property may grant compulsory licenses for the country's non-exclusive way in cases and for types of works listed in article 217. Such licences shall not be transferable except in the case that it was transferred as part of the enterprise or its intangible asset that allows their exploitation, and must record the transfer in writing and registered with the competent national authority on intellectual rights.

The granting of a compulsory licence does not relieve the licensee of the respect for existing moral rights on the work or the modalities that are not subject to the license.

License may be revoked, subject to the legitimate interests of the licensee, upon request motivated of the holder of the rights, or offi cio if the circumstances that gave origin have disappeared.

Article 219.-Payment of economic participation when there is a compulsory license.-the holder of the rights in a work which is the subject of a compulsory licence, shall be entitled to receive a payment for the effective use of this work, which will be attached by the competent national authority on intellectual rights as otherwise the respective regulations.

Where the owner refuses to receive payment or the payment can not be made, this value may be consigned to your representative or the company of collective management of the genre of the work or other subject.

Article 220.-Impossibility of other measures-the person who has requested the grant of a compulsory license on a literary or artistic work may not be subject to other judicial or administrative measures with respect to such work, to payment of fair compensation which, for those purposes, determined by the competent national authority on intellectual rights in accordance with the procedure applicable to compulsory licenses as to who makes the reproduction and distribution, meets the conditions and requirements that the respective regulations.

Chapter IV of the rights related section i. provisions general article 221-related rights protection-the protection of related rights shall not affect in any way the protection of copyright, or may be interpreted in detriment of that protection. In the event of confl ICT, it will always be to what most conducive to the author.

Article 222-Provisions fi nal related rights.-with respect to the related rights provided for in this chapter, shall apply, in the absence of express provision, other provisions of this title.

Section II of artists, performers moral right first paragraph article 223-recognition and grant of moral rights-regardless of the economic rights, and even after his transfer, the artists performers shall enjoy, with respect to their interpretations and performances, the right to be identifi ed as such, unless the default is determined by the mode in which the performance is used. Also have the right to object to any distortion, mutilation or other modifi cation of their performance, causing damage to his honor or reputation.

On the death of the artist, performer, the exercise of these rights will be up to his successors in title for the term of the economic rights.

Means the person who represents, sings, reads, recites, interprets or in any way executes a work by artist, performer.

44 Friday 9 December 2016 supplement - registration offi cial No. 899 paragraph second economic rights article 224. Exclusive rights-artists performers shall enjoy the exclusive right of authorizing, as regards their performances: 1. the broadcasting and communication to the public of their unfixed performances not fi tted, and;

2. the fixation of their unfixed performances fi no fi xed.

However, the artists performers may not object to the communication of his performance not set when they constitute by themselves a broadcast performance.

Artists performers, in relation to their unfixed performances fi xed by any means or procedure, shall have the exclusive right authorize or prohibit: 1. the direct or indirect reproduction, by any means or process;

2. distribution, which includes the commercial rental to the public of the original and copies thereof; and, 3. The making available to the public, whether by wire or wireless means, in such a way that members of the public may have access to them from a place and at a time in each of them to choose.

When the artist performer has consented to fixation of their performance or fi xed on audiovisual fixings, shall presume are transferred to the audiovisual producer, unless proven otherwise, exclusive rights of reproduction, distribution and making available provided in this code.

Article 225.-Rights of equitable remuneration.-performers performers shall have the right to single and equitable remuneration for the direct or indirect use for broadcasting and other forms of public communication of fi performances fixed in phonograms published with commercial purposes.

As established compensation with the previous paragraph, will be shared equitably among producers of Phonograms; and artists, performers whose interpretations and executions are fi fixed in phonograms.

Artists performers shall have the right to equitable remuneration for broadcasting and any other form of communication to the public of performances fi xed in audiovisual fixings.

Regardless of the assignment of exclusive rights provided for in this code, are recognized in favour of artists performers in an undeniable way, rights of equitable remuneration by making available and the lease of his interpretations, executions fi xed at fi xtures audiovisual.

The rights established in this article, shall be compulsory collective management.


Fundraising for copyright and related rights set out in this code, based on their gender, may be single window mode.

Article 226.-collective rights of performers, interpreters or performers-performers, performers who collectively participate in an identical construction shall designate a representative for the exercise of the rights recognized in this section. In the absence of such a designation, they will be represented by the director of the group which took part in the execution.

There is no director of the group, any interested party may require to the competent national authority on intellectual rights which designate a member of the group as a representative for these purposes. The distribution will be determined by the competent national authority on intellectual rights.

Article 227.-the protection of the rights of performers, interpreters and performers-the duration of the protection of the rights of performers performers shall be 70 years, counted from the first of January of the year following that in which took place the performer's performance, or its fastening, as appropriate.

Producers of phonograms article 228-section III rights of producers of phonograms-phonogram producers have the exclusive right to prevent third parties to perform without his consent, any of the following acts: 1. the direct or indirect reproduction of their phonograms, by any means or process;

2. the communication to the public with or without thread of Phonograms;

3. the import of illegal reproductions of Phonograms;

4. the distribution to the public of Phonograms; and, 5. The making available to the public of their phonograms either by wire or wireless means in a way such that members of the public may access it from a place and at the time that each one of them to choose.

Article 229-exhaustion of the right-Notwithstanding provisions of the previous article, the owner will not have the right to prevent a third party distribution on a phonogram, once it had introduced into the Commerce of any country.

Friday, December 9, 2016 - 45Registro offi cial No. 899 - supplement this right is exhausted with respect to successive resales within the country or abroad, but not exhausted, or affects the exclusive right to prevent the lease of the copies sold.

Article 230-licenses granted by the producer of phonograms-exclusive licenses which grant the producer of phonograms the rights whose exercise is authorized shall specify the licensee. Unless otherwise agreed, the licensee will have legitimacy, irrespective of the licensor, to pursue violations to rights relating to the powers granted to him.

Article 231.-the duration of the rights protected by producers of phonograms-the duration of the protection of the rights of the producer of phonograms shall be seventy years counted from the first of January of the year following that in which the phonogram was published. Where such publication does not occur within the seventy years from fixation of the phonogram, the period shall run from the binding.

Section IV of the broadcasters article 232.-of the rights of broadcasting-broadcasters have exclusive right to prevent third parties to perform without his consent, any of the following acts: 1. retransmission of their broadcasts by any means or process;

2. the binding and the reproduction of their broadcasts; and, 3. The communication to the public of their broadcasts when these are made in places accessible to the public on payment of an admission fee.

Article 233.-signals of broadcasting-production broadcast referred to in the previous article includes the production of program-carrying signals destined for a satellite broadcasting, as well as the dissemination to the public by an entity that emits or diffuse emissions of others, received through any of the above-mentioned satellites.

Article 234.-The set-top box cation of broadcast signals-without the authorization of the respective broadcaster, will not be lawful the set-top box cation of signals of satellite-carrying programs that are protected by technological measures of protection, its reception with fi nes of profit or dissemination, or import, distribution, sale, rental or or offer to the public of devices or systems that do not have a legitimate use different from the set-top box car such signals.

Article 235.-of the protection of broadcasting organizations.-for the purposes of the enjoyment and exercise of the rights set out in this section, recognizes a similar protection, as appropriate, to the stations of broadcasters transmitting programs to the public by wire, cable, optic bra or other similar procedure.

Article 236.-the duration of the rights of broadcasting-the duration of the protection of the rights of broadcasting organizations shall be 50 years counted from the first of January of the year following that in which the emission was.

Section V other rights Article 237.-the protection of rights of third parties.-who make a mere photograph or other fastening obtained by a similar procedure, do not have the character of work shooting, shall enjoy the exclusive right to prevent third parties to perform without their consent the reproduction, distribution or public communication of the mere picture or fi XING , in the same terms as the authors of works fotografi cas. This right will last five years from the first of January of the year following that of implementation, dissemination or publication, as applicable.

Chapter V of the societies of management collective article 238.-.-collective management societies collective management societies are legal entities nonprofi non-profit, whose social object is the collective management of economic copyright or rights related rights, or both.

Section I of the obligations and General powers of the collective management societies


Article 239.-societies of management-administration authorized collective management societies shall be obliged to administer the rights that are confi ados and will be entitled to exercise them in accordance with this book and on the terms laid down in its own statutes, mandates that they have been granted and contracts which have been concluded with foreign entities , as the case may be.

Without prejudice to actions that apply collect injustifi Ed, collective management societies enjoy presumption of representation for the collection of values by economic rights derived from copyright and related rights.

For the exercise of the actions of enforcement laid down in this code, collective management societies shall bring to the process copy of its statutes and the authorization to act as management entity, as well as to certify the quality of representatives, agents or representatives of the holder of the rights on behalf of who appear in the respective process or procedure.

46 Friday 9 December 2016 supplement - registration offi cial No. 899 article 240.-members of the collective management societies-collective management societies shall be required to admit as a partner to any holder of rights. The status of the management society shall prescribe the conditions for admission as members of the rightsholders who so request and certify the quality of such.

Article 241-AFI liation-affi liation of the holders of copyright or rights related to a collective management society will be voluntary.

Representation conferred to collective societies pursuant to this chapter shall not prejudice the right of holders to directly exercise the rights accorded to them in this title.

Section II of the approval and monitoring of the collective management societies the first paragraph of the General requirements for the establishment and authorization of operation article 242.-approval of the statutes of the collective management societies-the statutes of the collective management societies shall be approved by the competent national authority on intellectual rights, which also will authorize its operation. In addition, these companies will be subject to the monitoring, control and intervention of the said authority.

Article 243-Requirements-are general requirements for the establishment of collective management societies: 1. that the status of the applicant entity meets the requirements set out in this chapter;

2 that you have a minimum of fifty partners which are Ecuadorian rights holders to be managed; and, 3. That you have suffi cient resources for negotiations and activities required to complete the process of authorization of operation as applicant collecting society.

Article 244.-authorization of operation.-General requirements for the approval of operating to the collective management societies are: 1. who is duly constituted;

2 the data provided and information collected by the competent national authority on intellectual rights, it transpires that the requesting entity meets suffi cient resources to secure the effective administration of the rights whose management will be entrusted;

3 accrediting represent a repertoire quantitatively signifi cant of works or other subject-matter to manage;

4. to demonstrate that it is in ability to perform collective management abroad; and, 5. That has all the manuals and internal procedures based on best practices and recommendations of the competent national authority in the field of intellectual rights.

Second paragraph of the statutes of societies of collective management article 245.-of the Statute-without prejudice to other applicable legal provisions and the rules of procedure, the status of management companies shall, in particular, prescribe the following: 1. members: a. the requirement that can only be partners originating or derived from managed rights holders.;

b. the form and requirements for admission and withdrawal of the entity, the suspension of social rights and expulsion cases;

c. the means to certify the quality of holders of copyright or related;

d. form of revenue distribution;

e criteria for the allocation of social and social security benefits;

f the rights and duties of members and the disciplinary regime and, in particular, the rights of information and voting for the election of the organs of Government and representation. The vote will be democratic and secret. All members shall have the right of participation in the election of the authorities of the society, in accordance with the conditions laid down in the internal regulations of elections; and, g. regardless of categories of existing partners in a collective management society, all members shall have the right of participation in decisions taken in Assembly, for which the technological means can be used to fi n facilitate such participation.

2. of the organs of Government and representation: a. the organs of Government and representation of the company and their respective competencies, as well as the rules concerning the call, installation, operation and adoption of resolutions of the organs of collegiate character.

Friday, December 9, 2016 - 47Registro offi cial No. 899 - supplement the governing bodies are the General Assembly, the Board of Directors and the Monitoring Committee. In the formation of the Board of Directors and the Committee monitoring the implementation of policies for the inclusion of gender shall be guaranteed.


b. the requirement that can only be members of the Board of directors or the Monitoring Committee members which are a legal representative in the country in the case of legal persons in accordance with article 98 of this code, or who have residence in the country, in the case of natural persons who yielded during the twelve months prior to the election by a levy equivalent to the minimum provided by the management company with approval to the competent authority on intellectual rights and which have not been the subject of criminal, civil or administrative sanctions that show lack of probity in relation to the Administration, management and exercise of functions within a company, management or related entities.

The members of the Board of Directors may not simultaneously be members of the Monitoring Committee. They shall serve in office for a maximum of four years and may be re-elected for an additional period.

c. General Assembly, composed of all members of society, is the supreme organ of Government and its powers will be: i. know the annual budget and its fi nancing;

II. Economic and annual management report

III. meet the regulations of rates;

IV. procedures of distribution;

v. to know the fundamentals used by the Board of Directors and approved by the Council of monitoring for fi jar the percentages of revenue for administration costs and benefi ts social within legal limits;

VI. elect the members of the Board of Directors and the Committee monitoring;

VII. resolving on the expulsion and suspension of a partner; and viii. All others who decide their partners through a resolution in the Assembly.

d. the Board of Directors whose powers shall be: i. direct and administer the collective management society;

II. report of its management at each General Assembly;

III. grant General and special powers and revoke them where appropriate;

IV. setting the remuneration corresponding to the President and Director General in accordance with the budget for submission to the Assembly;

v. set rates after checking the Committee monitoring; and (vi). Others established in this code, the respective rules of procedure and the Statute of the collecting society.

e. Monitoring Council whose powers will be: i. review and submit comments to the maximum amounts that can be assigned to the Board of Directors compensation and remuneration of the Director General and administrators of the company;

II. review and submit comments to the annual budget and its fi nancing;

III. review and submit comments to the economic report and annual management;

IV. review and submit comments to the fees regulations;

v. review and submit comments to the distribution procedures; and (vi). Review and submit comments on the criteria for fi jar the percentages of revenue for administration costs and social benefits within the legal limits.

3. of the heritage and balances: a. initial heritage and the resources provided;

b.. the fate of the heritage or the resulting net assets, in the event of liquidation of the entity, shall be subject to approval by the competent authority in the field of intellectual rights;

c. the requirement to submit the balance sheet and the accounting documentation to the consideration of an external auditor appointed from a list presented by the competent authority on intellectual rights chosen by the society to its coast, and the obligation to this 48 - Friday, December 9, 2016 supplement - registration offi cial No. 899 exam available to partners , and must in addition forward a copy of the same to that authority within five days of completed, without prejudice to the review and report that corresponds to the internal organs of monitoring, in accordance with the by-laws; and, d. The prohibition to the collective management society to make contracts with the members of the organs of Government and representation, as well as the spouse, cohabitant or with relatives within the fourth degree of consanguinity and second from affi nity of such members, with the exception of management contracts and all those conventions that link to a partner or administered with the society for the representation of their rights.

The same prohibition applies to contract with legal entities in which any of such persons is representative, officer, or partner.

Paragraph third destination of revenues article 246.-allocation of administrative costs of the collective management societies-the General Assembly shall be obliged to establish annually the percentage earmarked for administrative costs and expenditure management, which together may not exceed thirty per cent of total revenue.

One percentage not to exceed ten percent of the proceeds will be invested in projects of training and/or promotion of the creative activity of the partners, which must be approved by the General Assembly of the entity's management.

The percentage that is intended for health care and social security benefits may not be more than ten nor less to five per cent of the proceeds, as the General Assembly establish it. Where members are legal persons, such values must add to the percentage for promotion of creative activity.

Exceptionally, after consulting the Committee for monitoring and approval of the competent national authority on intellectual rights, the percentage corresponding to administrative expenses and management fees will be of up to thirty-five percent, decline in the amount earmarked for the promotion of creative activities of the partners. When the percentage of administrative and management costs is less to thirty per cent of total revenue, the remaining will be added to the percentage of distribution.

At least fifty percent of total revenue, should be distributed obligatorily equitably between different rights holders, in proportion to the actual exploitation of works, performances, broadcasts or phonograms, as the case may be.

In the case of collective management societies which conform from the issuance of this code, the percentage of costs administrative and expenditure management, during the first three years, be added together the percentage of benefi t health care and pension benefits and the percentage for promotion of creative activity projects.


Article 247-the legal capacity of the collective management societies-fi n effect against third parties, collective management societies are required to register with the competent national authority in intellectual rights, the appointment of the members of their governing bodies as well as the instruments evidencing representations engaged in partnerships or foreign organizations the mandates conferred on their behalf by partners or in favour of third parties for the payment of wages by economic rights and their respective repertoires.

Fourth paragraph of the obligations of the members of the organs of Government and representation article 248.-obligations of the Board of Directors, monitoring and the Director-General the Committee members of the Board of Directors of the Committee monitoring and the Director-General, at the time of assuming office and every two years, shall submit to the competent national authority on intellectual rights an affidavit not to be included in any of the incompatibilities that set out in this chapter along with an affidavit of assets and income.

Fifth paragraph of the obligations subsequent to the authorization of operation article 249.-the obligations of collective management societies.-without prejudice to other obligations laid down in their statutes, collective management societies must once authorized: 1. publish, at least annually, in a newspaper of wide national circulation, the balance sheet and the statements of income; and, 2. Refer to its partners, at least every six months, complete and detailed information on all activities related to the exercise of their rights.

Sixth paragraph of rates article 250.-creation of a database.-collective management societies shall maintain a database of publicly accessible information clear and precise works, performances Friday, December 9, 2016 - 49Registro offi cial No. 899 - supplement or performances, broadcasts or phonograms whose copyrights or related rights managed , as well as persons who are its partners and represented domestic and foreign, with indication of: 1. the singling out of each of the works, performances, broadcasts or phonograms which represents with respect to each holder or represented;

2. the rates for each type of use and user category;

3. the applications reported for each work;

4. the methods applied for distribution; and 5. Additionally, the collective management society will make available permanently for physical or electronic form of the partners: the annual budget, the internal rules, reports management and distribution partner.

This information must be available to the public both in the online sites as in registered collective management societies.

Article 251-Rates-the collective management societies shall establish reasonable, equitable and proportional rates for the use of the works, performances, broadcasts or phonograms included in their respective repertoires.

Established rates shall be subject to authorization by the competent national authority on intellectual rights, which previously collected or will request the factual and technical than the proof quen, background as well as the fulfilment of the formal requirements established in this code, the respective regulations and statutes of the society. Once authorized, the rates will be published on the registry offi cial and in a newspaper with broad national circulation by order of the competent national authority in the field of intellectual rights.

The competent national authority on intellectual rights, check face rates established a regime special and differential, transmission of community media, in consideration of criteria such as population density and coverage.

Article 252.-Celebration of contracts-the collective management societies may conclude contracts with associations or guilds of users who establish rates for uses in particular. Any interested person may qualify for these rates if requested in writing to the corresponding management body.

Seventh paragraph of the liquidation and distribution of the revenues article 253-societies of collective management by genre of work-if there are two or more societies collective management by genre of work, an entity must become unique fundraiser, whose corporate purpose is exclusively the collection of proprietary rights on behalf of the constituent societies. If management companies do not agree the formation, organization and representation of a servicer, its designation and conformation will correspond to the competent national authority in the field of intellectual rights.

In any case, the only servicer referred to in the preceding paragraph shall constitute the authorization of the competent national authority on intellectual rights.

The only servicer collection costs will be charged to the costs of administration of the respective management societies represented.

Article 254-sharing the revenues.-at the time of the distribution of the proceeds, the collective management societies shall provide information suffi cient that allows understanding the partner form by means of which proceeded to the respective settlement. The provision of information will be individual for each partner using the format which, for this purpose, authorized by the competent national authority on intellectual rights to each collective management society.

Article 255-type revenues.-revenues must be effectively settled, distributed and paid by the collective management societies to the holders of rights pertaining to no later than the semester following their perception by the respective society. Except for cases in which the competent national authority on intellectual rights authorize a different period after approval by the General Assembly.

The exact dates of payments to members must be reported annually to the competent national authority on intellectual rights and more partners no later than the first quarter of each year.


Article 256-Fines for unauthorized use.-who exploit a work, performer's performance, broadcast or phonogram in violation of this title shall pay, by way of compensation, a surcharge of fifty percent off the rate, calculated by all the time that, knowing the need to obtain authorization from the owner of the rights, effected exploitation. The payment of this surcharge is made without prejudice to the payment of the amounts due for the exploitation.

The preceding paragraph shall also apply to the collective management societies where they have granted licences on works, performances, broadcasts or phonograms that do not represent, and must in all case ensure licensee's use and enjoyment pacifi co of the corresponding rights.

The action to demand the payment of which is this article is barred after two years from the date of the Act which gave rise.

50 Friday 9 December 2016 supplement - registration offi cial No. 899 article 257-obligation of record keeping bodies of broadcasting, television or cable-all of broadcasting, television or cable and in general bodies who carry out communication to the public of works, performances, broadcasts or phonograms protected, with fi nes business and to make a detailed selection of materials that communicate directly to the public they must bear catalogues, records, or monthly schedules in which will be registered by order of broadcast, the title of the broadcast works and the name of the authors or owners of copyright and related rights that correspond and be aware. These catalogues, registers or returns must be sent to each of the collective management societies and the sole servicer of rights by public communication for the fi nes set out in this chapter.

The collecting society shall grant receipts or certificates that take into account the receipt of catalogs, records or forms of which is this article.

Eighth paragraph of the fi scalizacion, intervention, and sanction article 258.-of inspections and monitoring.-the competent national authority on intellectual rights may, offi cio or at the request of the party concerned, carry out inspections and monitoring to verify the correct functioning of the collective management societies as well as perform summary proceedings or investigations in cases of breaches of the regulations that govern them.

In any case, offi cio or at the request of an interested party, the competent national authority on intellectual rights may make inquiries and investigations, and speak a collective management society, if this does not comply with the regulations that govern them. The intervention will include all areas of society. Produced the intervention, acts and contracts must be approved by the competent national authority on intellectual rights to its validity.

The intervention may be decreed by the competent national authority on intellectual rights, prior research and by a duly motivated administrative act, as precautionary measures prior or during the conduct of an investigation or summary against a collective management society. For these purposes, the competent national authority on intellectual rights shall appoint as auditor to an official of the authority or other person who review the technical conditions for the exercise of the function. The intervention will last until completion of the proceedings or investigation. Where Qualifi ed by the competent national authority on intellectual rights, may impose the intervention, as a measure to ensure compliance with the sanctions imposed on the management company for breaches of the regulations that govern them, and until this remedy them.

Article 259-Sanctions for management companies-if the collecting society does not comply with the provisions of this code, the respective regulations or statutes, observing the procedure in the previous article; and not remedied within period breach, within the period specified by the competent national authority, it may impose, in relation to the gravity of the infringement, or relapse one of the sanctions listed in this article.

Sanctions will be imposed considering the following criteria: the seriousness of the breach and failure to comply with the standards established in this code and other applicable standards: and, having incurred the fact for the first time or recurring form.

In case of concurrence of faults the sanction be imposed for more serious lack. The maximum of the punishment shall be imposed be all equal gravity.

The sanctions are that then outlined: 1. written reprimand;

2 fine;

3. suspension of the operating license for a period of six months; and, 4. Revocation of the operating license.

When a collective management society has been sanctioned it shall inform its partners with the scope of the same and the competent national authority on intellectual rights will make public such sanction in the form determined by the respective regulations. Breach of this provision the competent national authority on intellectual rights can sanction it with fine that determines the rules for the effect.

In cases in which violations are the result of malice or gross negligence of the Director-General, administrators, members of the Board of directors or Committee of monitoring, the collecting society must be repeated against the officers for damages caused to fine under this article title.

Article 260.-Determination of non-compliance or non-compliance.-the competent national authority on intellectual rights can offi cio or at the request of an interested party perform inspections or inquiries to determine non-compliance or failure to comply with the rules of this code and other rules applicable to the operation of collective management societies, by administrators, trustees and Monitoring Committee. Establish responsibilities of the competent national authority on intellectual rights, will have the collective management society to proceed to impose the following sanctions: 1. written reprimand;

2. fine, and;

3. removal from office.


Friday, December 9, 2016 - 51Registro offi cial No. 899 - supplement these sanctions will be imposed without prejudice of the corresponding actions according to what stated the common law.

Article 261.-Effects of the suspension of a collective management society-where it has ordered the suspension of the operating license, the management company will retain its legal personality only to effect remedy the non-compliance. If the society not remedied within period the breach within a period of six months of decreed the suspension, the competent national authority on intellectual rights revoked defi nitively authorization of functioning of society; in this case, be to the liquidation of the company and the immediate return of that apply among members, in equal parts.

Notwithstanding the above, in all cases of suspension of the operating license, the society may, under control by the competent national authority on intellectual rights, raise the economic rights of the authors represented by that society.

The fruit of the fundraising will be deposited in an account separated on behalf of the competent national authority on intellectual rights and will be returned immediately to the company once issued the resolution by which the suspension rescission.

Article 262.-access to the mediation-an association, Guild or representative group of users constituted formally, whose representation is properly accredited, you can apply for mediation to the competent national authority on intellectual rights, when it considers that the rates established and authorized to a society of collective management of copyright or of related rights they do not comply with the budgets set out in this code, in the case claimed to be.

Title III of the property industry chapter I by the claim of priority article 263.-of the right of priority-the first application for grant of patent of invention or utility, or mark or industrial design registration model, validly filed with a national, regional or international authority with which the Ecuador is bound by a treaty that establishes a right of priority similar to establishing this chapter It will confer with the applicant or his successor in title a right of priority patent application in the Ecuador or a registration in respect of the same matter. The scope and effects of the right of priority shall be those provided for in the Paris Convention for the protection of Industrial property.

The right of priority may be based on an earlier application filed with the competent national authority on intellectual rights, provided that this request has had not invoked a right to priority. In such a case, the presentation of the subsequent application by invoking the right of priority will mean the abandonment of the previous application regarding the matter that was common to both.

Recognizes that it gives rise to the right of priority any validly admitted request admissible.

To benefi ciar is of the right of priority, the request that invoked it must be within the following extended periods counted from the filing date of the application whose priority is invoked: 1. twelve months for patents of invention and utility model applications; and, 2. Six months for applications for registration of industrial designs and trademarks.

Article 264.-requirements to invoke the right of priority.-for the purposes of the provisions of the preceding article, shall be a statement with relevant documentation, in which the priority of the earlier application is invoked indicating the date of its filing, offi ce which arose and their number.

The Declaration and the relevant documentation should occur, together or separately, with the application or at the latest within the following extended periods counted from the filing date of the application whose priority is invoked: 1. in the case of applications for grant of patent of invention or of a utility model: sixteen months; and, 2. In the case of applications for registration of industrial design or mark: nine months.

Also, copy of the application whose priority is invoked certifi cate must be presented by the authority that issued it and a certifi cate from the date of filing of the application issued by the same authority.

For purposes of the right of priority, other additional formalities shall not be exacted stipulated in this article.

Article 265-Loss priority the breach - lie of deadlines or the submission of documents referred to in the previous articles will entail the loss of the priority claimed.

Chapter II of the patent of invention article 266.-patents of invention-the patent system is a tool to promote the development of industrial and technological and for the achievement of good living.

52 Friday 9 December 2016 supplement - registration offi cial No. 899 section I requirements protection article 267-protectable matter-will be granted for any invention patent, either product or procedure, in all fields of technology, provided that new, inventive level and is susceptible of industrial application.

Not considered matter protectable traditional knowledge.

Article 268.-Not considered inventions-are not considered as inventions: 1. discoveries, principles and cas scientific theories and mathematical methods;

2. the whole or part of living beings such as are found in nature, natural biological processes, biological material existing in nature, or that can be isolated, including genes, proteins, genome or germplasm of any be alive;

3. a new form of a substance, including salts, esters, ethers, complex, combinations and other derivatives;

4. the polymorphs, metabolites, pure forms, particle size and isomers;

5. the applications and any new property or new use of a known substance or use of a procedure or a machine or apparatus known;

6. the genetic resources that contain biodiversity and agro-biodiversity, as such;

7. the literary and artistic works or any other protected by copyright law.

8. schemes, rules and methods for the pursuit of intellectual activities, games or commercial activities;


9. software or software, as such; and, 10. The ways of presenting information.

Article 269-Newness.-an invention shall be considered new when it is not comprised in the State of the art.

The State of the art comprises everything that has been accessible to the public in any place or time, by a written or oral description, use, marketing or other means before the filing date of the patent application or, where applicable, the recognized priority.

Only for the effect of the determination of novelty, also will be treated within the State of the art, the contents of a patent application pending before the competent national authority on intellectual rights, whose filing or priority date is earlier than the date of filing or of priority of the patent application was considered provided that such content is included in the earlier application when it is published or had passed the period provided for in article 289.

Article 270.-No disclosures of patentability-for purposes of determining patentability, no account shall be taken disclosure occurred within one year preceding the date of the filing of the application or within the year preceding the date of priority, if this had been invoked, provided that such disclosure would have come from: 1. the inventor or his successor in title;

2. a competent national office which, in contravention of the rule governing the matter, publish the contents of the patent application filed by the inventor or his successor in title;

3. a third party, including public officials or State agencies, which had obtained the information directly or indirectly from the inventor or his successor in title;

4. an order of authority;

5. an evident abuse to the inventor or his successor in title; and, 6. The fact that the applicant or his successor in title has displayed the invention at exhibitions or fairs recognized offi cially or, when for academic purposes or research, have needed to make it public to continue the development. In this case, the person concerned must be given, at the time of filing his application, a Declaration on that point that the invention has actually been displayed and submit the corresponding certifi ed.

Article 271-inventive level.-shall be considered that an invention has inventive if, for a person of the offi cio usually skilled in the relevant technical subject, this invention not obvious nor is had obviously derived from the State of the art, and also constitute a technical contribution signifi cant.

It refers to person of the offi cio usually skilled in the technical field corresponding to an expert or group of experts with qualifi cation derived from studies and experience in the technical area of the invention.

Article 272.-Applicability industrial-shall be considered that an invention is susceptible of industrial application when its object may be produced or used in any productive activity, including services.

Article 273.-Non-patentable inventions: will not be patentable as follows: Friday, December 9, 2016 - 53Registro offi cial No. 899 - Supplement 1. Inventions whose commercial exploitation must necessarily be prevented to protect ordre public or morality, including to protect the health or life of persons or animals or plant or to prevent serious harm to the environment or ecosystem. For these purposes, shall not be considered contrary to public order or morality the commercial exploitation of an invention, by the mere existence of a legal or administrative provision prohibiting or governing such exploitation;

2 methods of diagnosis, surgical and therapeutic for the treatment of humans or animals;

3. plants and animals, as well as essentially biological processes for production of plants or animals that are not non-biological or microbiological; procedures

4. the product of the polymorphs, metabolites, pure forms, particle size and isomers which not have been investigated in Ecuador; and, 5. The product of genetic resources that contain biodiversity and agro-biodiversity which have not been investigated in the Ecuador.

For the purposes of the provisions in paragraph 1, shall not be patentable, among others: a. the procedures of cloning of human beings;

b. the human body and its genetic identity;

c. the use of human embryos for industrial or commercial purposes; and, d. Procedures for the modifi cation of the genetic identity of animals when they cause them suffering without any substantial for human medical benefit has been obtained or animals.

Article 274-Products or processes do not object to a second patent-products or processes already patented, included in the prior art, in accordance with article 269, will not be subject to new patent, by the simple fact of attributing a use other than the originally understood by the initial patent.

Section II holders article 275.-of the proprietor of the patent.-the Faculty of law by means of a patent belongs to the inventor. This ability is transferable by Act between living and transmissible by cause of death.

The patent holders may be natural or legal persons.

If several persons have jointly made an invention, the right is in common to all of them or their successors in title. Not be considered as inventor or co-inventor who has not provided an inventive, as, for example, who has been limited to provide assistance in the execution of the invention.

If several people made the same invention independently from one another, the patent shall be granted to one to submit the first application or that invoke the oldest priority, or to his successor in title.


Article 276.-Distribution of ownership, benefi ts of inventions and royalties made in educational centres and research.-in the case of inventions made in the course of research or academic activities in institutions of higher education or public research institutes, ownership and the distribution of benefits derived from the exploitation of the patent must be negotiated between these and the inventors involved , such as: teachers, researchers, or assists you. However, not you can correspond to the latter a percentage less than the 40 percent of the value of the ownership of the patent, so inventors receive royalties that are generated from their exploitation. Holders, prior agreement, may license or transfer his rights.

The patent can be licensed or transferred to a third party, always and when it has the agreement of the co-owners, not achieved agreement, the competent national authority on intellectual rights may offi cio or at the request of part grant a compulsory licence as provided for in this code.

Patent may be filed together or on behalf of us all, by any of the joint proprietors, however costs associated with protection and enforcement, as well as the acts and contracts after the application or grant of the patent, shall be borne by the institutions of higher education or public research institutes.

Article 277.-ownership developed in fulfillment of a contract.-for cases not included in the previous article, the Faculty of law by means of a patent on an invention developed in fulfillment of a contract belongs to the client or to the employer, unless stated otherwise. However, not you can correspond to the inventors a percentage less than twenty-five percent of the value on the ownership of the patent, so inventors receive royalties that are generated from their exploitation. Holders, prior agreement, may license or transfer his rights.

When an employment contract does not require the employee's exercise of an own inventive, but performing an invention using resources or information confi dential from the employer, ownership will correspond to the employee, but the employer is entitled to a non-exclusive, non-transferable and free patent license.

When an employment contract does not require the employee's own inventive exercise, and the invention do not use resources or information confi dential from the employer, the ownership will correspond to the employee.

54 Friday 9 December 2016 supplement - registration offi cial No. 899 when an employee or Commissioner has not participated directly in the inventive process, ownership will correspond you only to people involved in that process.

Article 278.-Right of paternity of the inventor-the inventor shall have the right to be mentioned as such in the patent or may also object to this mention.

Section III of the patent article 279.-application of the application for the patent.-the application for a patent of invention will be presented to the competent national authority on intellectual rights according to the content, requirements and other rules requiring regulation.

Article 280.-Description of the patent.-the description shall be suffi ciently clear and complete to enable a person skilled in the relevant technical subject can run it without requiring undue experimentation. The description shall indicate the title of the invention and shall include the following information: 1. the technology sector which is refi ere or applies to which the invention;

2. the previous technology known to the applicant that would be useful for the understanding and examination of the invention, and the references to documents and previous publications relating to such technology;

3. a description of the invention in terms that allow the understanding of the technical problem and solution provided by the invention, exposing the differences and possible advantages over previous technology;

4. a review of drawings, when any;

5. a description of how best known by the applicant to execute or implement the invention, using examples and references to the drawings of these relevant;

6. an indication of the way in which the invention satisfies the condition to be susceptible of industrial application, if it wasn't obvious from the description or nature of the invention; and, 7. An indication that the applicant was in possession of the invention to the date of the filing of the application.

Article 281.-Deposit of biological material when the invention is refer to biological material, which can not be properly detailed in the description, it must be deposited this material in a depositary institution authorized by the competent national authority on intellectual rights, in accordance with the respective rules of procedure.

The deposit must be made at the latest on the date of filing of the application or, if it was the case, on the date of filing of the application whose priority is invoked.

The deposits made to an international authority recognized under the Budapest Treaty on the international recognition of the deposit of microorganisms to the purposes of the procedure in patent, of 1977, or other institution recognized by the competent national authority on intellectual rights for these purposes shall be valid. In these cases, the description will indicate the name and address of the institution's deposit, the date of the deposit and the number of deposit attributed by such institution.

The deposit of the biological material is only valid for the purposes of the grant of a patent if it is performed in conditions that enable anyone interested to obtain samples of the material later than the date of the expiry of the period laid down in article 289 of the code.

Article 282-patent and the disclosure of origin-according to the provisions of international treaties which the Ecuador is a party, this code and their respective regulations, in the event that the subject of a patent application involves the use of genetic resources and associated traditional knowledge, the applicant to inform: 1. the country where were these resources or associated traditional knowledge; and,


2 source, including details about the entity, if any, which were obtained from these resources or associated traditional knowledge.

You must also attach copies of a certifi cate of compliance with the law of access to genetic resources or associated traditional knowledge recognized internationally. If a certifi cate of compliance with recognized internationally is not applicable in the source country, the applicant shall provide relevant information regarding compliance with prior informed consent and access and the fair and equitable participation in the benefi ts, as it required by the national legislation of the country providing genetic resources or associated traditional knowledge be the country of origin of such resources or a country that has acquired the genetic resources or associated traditional knowledge in accordance with the Convention on biological diversity and other international treaties which Ecuador is a party.

Article 283-of the claims-claims defi niran matter to be protected by the patent. They must be clear and concise, and entirely sustained by description.

The claims may be independent or dependent. It will be independent when defi na matter to be protected without reference to another claim Friday, December 9, 2016 - 55Registro offi cial No. 899 - previous supplement. It will be dependent when define laughing matter to be protected refi to a previous claim. A claim that they refer to two or more previous claims is considered a multiple dependent claim.

In the case of claims on a group of pharmaceutical products, the application shall provide suffi cient information about trials and experiments carried out to enable the reproduction of each form of realization of the invention, unless the description present evidence that would provide the same result reported if any element of the claimed group is replaced.

Article 284-overview-the overview will consist of a synthesis of the technical disclosure contained in the patent application. If the invention consisted of a pharmaceutical product, must indicate its international generic name, when it was known at the date of the request.

The summary will be used only for purposes of technical information and will not have any effect to interpret the scope of protection conferred by the patent.

Article 285.-Invention-drive patent application only can understand an invention or group of inventions interrelated, in such a way that they form a single inventive concept.

Article 286.-Penalties for misrepresentation or deliberate omission-falsehood, deliberate omission, deliberate darkness, or deliberate complication of the information in the application or in the description of the invention, that may impede or diffi culte injustifi cadamente to the competent national authority on intellectual rights carry out the examination of the patent application, misleading her in the examination of the patent application or do not allow to implement or carry out playback causal of rejection of the same or of absolute invalidity of the granted patent, without prejudice to the claim for damages and losses of any affected third party.

Article 287-Modifi cations of the request-offi cio or at the request of part can be Modifi ed car, the application at any time during the procedure even before of the competent national authority on intellectual rights to issue an administrative decision in the first instance. Modifi cation shall not imply a change of the object of the invention nor an extension of protection which would correspond to the disclosure contained in the initial application.

In the same way, any material error correction may be required.

Similarly, the applicant may divide or merge a patent application or convert it to a utility model, if applicable.

Article 288.-Remission-the corresponding regulations shall establish requirements, deadlines and procedures, among others, for the examination of the application, publication, presentation of oppositions, and the grant or refusal of the application.

Article 289.-the public nature of the record-after eighteen months from the date of filing of the application or if it was the case since the priority date which has been invoked, the file shall be public and may be consulted by third parties, and the competent national authority on intellectual rights will order the publication of the application in the respective media. The publication will include the first claim and, if it is the case, a summary of the required information.

Notwithstanding the provisions of the preceding paragraph, the applicant may request publication is the application at any time provided that the formal examination is concluded. In such a case, the competent national authority on intellectual rights will order its publication.

Article 290-the quiet character of the record-while the publication is not carried out or had not elapsed period stipulated in the preceding article, the record will be reserved and may only be consulted by third parties with the consent of the applicant. This provision shall also apply in the event of abandonment of the application before publication.

However the previous point, anyone who can prove that the applicant for a patent has sought to assert rights deriving from the application, in front of him may consult the file prior to publication without the consent of the applicant.

Section V rights and limitations article 291.-duration of the registration of a patent-patent shall have a term of 20 years, counted from the date of filing of the application. Shall be deemed filing date: 1. in the case of national applications, the date of filing of the application certified by the competent national authority on intellectual rights.

2. in the case of international applications, the date of filing of the international application; or, 3. In the case of applications which claim priority under any other treaty, the filing date of the application whose priority is claimed.

There is no type of protection additional or complementary, under any title or mode, that extend the period referred to in this article.


Article 292.-Scope of the protection.-the scope of the protection conferred by the patent shall be determined by the wording of the claims. The description, drawings 56 - Friday, December 9, 2016 supplement - registration offi cial No. 899 or drawings, biological material and any other item deposited with the competent national authority on intellectual rights serve to interpret the claims.

Article 293.-Rights of the proprietor of a patent-patent confi ere on its proprietor the right to prevent third parties to perform without his consent, any of the following acts: 1. when the patent is claimed to be a product: a. manufacturing the product;

b. offering for sale, selling or using the product; or import it to any of these fi nes; and, 2. When the patent is claimed a procedure: a. use the procedure; or, b. perform any of the acts listed in paragraph 1 with respect to a product obtained directly by means of the procedure.

Article 294.-Limitations to the right of the proprietor of a patent.-a patent owner may not exercise the right prescribed in the preceding article in any of the following cases: 1. acts done in private and non-commercial scale;

2. acts with purposes of experimentation, with respect to the object of the patented invention;

3. acts with purposes of teaching or scientific research or academic;

4 acts referred to in article 5ter of the Paris Convention on Industrial property;

5. when the patent protects biological material which is able to reproduce it, use it as the initial basis for a new viable material, except that such production requires the repeated use of the patented entity; and, 6. Related acts with the testing, use, manufacture or sale of a patented invention with the sole aim of generate and submit information required for approval of the manufacture, use or sale of any product, including agricultural, in the Ecuador or in another country pharmaceutical and chemical products, as well as for the production of products intended for sale after the date of expiry of the patent.

Article 295-exhaustion of the right.-the patent shall not confer the right to prevent a third party carry out acts of trade with respect to a product protected by the patent, once that product had introduced into the Commerce of any country with the consent of the owner, a licensee, of a person economically linked to the holder or the licensee , or any other person authorized to do so.

For the purposes of the preceding paragraph, means that two persons are economically linked when one can exercise directly or indirectly on the other, a decisive influence with respect to the exploitation of the patent or a third party can exert such influence on both persons.

When the patent protects biological material capable of reproducing, the patent shall not extend to biological material obtained by reproduction, multiplication or propagation of the material introduced in the trade in accordance with the first subparagraph, provided that the reproduction, multiplication or propagation is necessary to use the material in accordance with the fi nes for which was introduced in the trade and that material derived from such use is not used for purposes of multiplication or propagation.

Article 296-Prior user.-without prejudice to the provisions on the nullity of the patent provided for in this chapter, the rights conferred by the patent may not make you exercise against a third party, in good faith and before the date of priority or filing of the application on which the patent was granted already he was using or exploiting the invention , or has made preparations to make it serious or effective.

In this case, that person will have the right to initiate or continue the use or exploitation of the invention, but this right may only be assigned or transferred together with the establishment or the company that was making such use or exploitation.

Article 297.-The transfer.-a granted patent or pending grant application may be transferred by Act inter vivos or by succession via.

Any transfer, on a granted patent or pending grant application must register with the competent national authority on intellectual rights. These legal businesses will be further developed and shall have effect as from its registration with the competent national authority on intellectual rights.

For purposes of registration, the transfer must be in writing.

Any interested person may request the registration of a transfer.

Article 298-The granting of licenses-a granted patent or pending grant application may be license to one or more third parties to exploit the respective invention.

All operating licence of a granted patent or pending grant application must register to the competent national authority on intellectual rights and they shall have effect as from its registration with the competent national authority on intellectual rights.

Any interested person may request the recordal of a license.

Friday, December 9, 2016 - 57Registro offi cial No. 899 - supplement where there is any change concerning the name or address of the proprietor of the patent during the period of validity of the licence, the holder of the registration should apply for registration to the competent national authority on intellectual rights.

Otherwise, any notifi cation accomplished under the fi guren data in the register shall be deemed valid.

The otherwise will require express authorization from the rights owner.

Article 299.-Registration of transfer or licensing contracts.-the competent national authority in the field of intellectual rights do not register contracts through which was transferred was or is granted license for the exploitation of patents that do not conform to the provisions of the common regime of treatment of foreign capital and for trademarks, patents, licenses and royalties , or that do not conform to community or national provisions on business practices restrictive of free competition or unfair competition. Otherwise, what is it will be relevant, to the provisions of the organic law for the regulation and Control of power of market and apply the penalties provided for in the same.


Section VI of acts subsequent to the award article 300.-Modifi cations to the registry.-the owner of a granted patent must register with the competent national authority on intellectual rights any change in name, address, domicile or other data of the holder or his representative or agent. Otherwise, any notifi cation accomplished under the fi guren data in the register shall be deemed valid.

Article 301-Reforms to the claims-the proprietor of a patent may request the competent national authority on intellectual rights that are Modifi cations to the patent to restrict the scope of one or more of the claims. Similarly, it may request the correction of any material error in the patent.

Section VII of the resignation article 302-waiver.-a patent owner may waive one or more claims of the patent or the patent in its entirety, by declaration addressed to the competent national authority on intellectual rights. The resignation will take effect from the date of receipt of the respective statement.

Section VIII of the nullity of the patent article 303-invalidity of the patent.-the competent national authority in the field of intellectual rights, offi cio or at the request of anyone showing a legitimate interest, and at any time, declare the absolute invalidity of a patent, in the following cases: 1. If the subject of the patent not constituted an invention;

2. If the patent had been granted for an unpatentable invention;

3. If the invention not fulfilled with the patentability requirements;

4. If the patent were not suffi ciently invention;

5. If the claims contained in the patent were not entirely sustained by the description;

6. If the granted patent contained a dissemination wider that the request initial and this implied an extension of protection;

7. to be the case, if not submission of copy of the access contract, where the products or processes whose patent is requested have been obtained or developed from genetic resources or their by-products which the Ecuador is the country of origin;

8. to be the case, if not has been filed the copy of the document that certifies the license or authorization of use of traditional knowledge of indigenous, Afro-American or local communities of the Member countries of the Andean Community, and the Ecuador when products or processes whose protection is being requested have been obtained or developed from TK which the Ecuador or any of the Member countries of the Andean Community is a country of origin;

9. If the patent had been granted in contravention of article 282;

10. If the patent had been granted in contravention of article 286;

11. Yes is confi gurasen the grounds for absolute invalidity provided for in the law for the administrative acts; and, 12. If the patent had been granted with any other violation of the law that substantially has led to its grant.

When the grounds indicated above only affect some of the claims or parts of a claim, be declared invalid only with respect to such claims or such part of the claim, as appropriate.

The patent, claim or part of a claim that is declared void shall be deemed null and void from the date of filing of the patent application.

58 Friday 9 December 2016 supplement - registration offi cial No. 899 article 304-relative nullity-administrative acts affected by defects that may not produce the absolute nullity, in accordance with the preceding article, shall be affected relative nullity. In these cases the competent national authority on intellectual rights may declare such cancellation within five years counted from the date of the grant of the patent article 305-action for annulment by lack of law.-the competent national authority on intellectual rights may cancel a patent when it had granted who was not entitled to obtain it. The action for annulment may only be initiated by the person to whom belongs the right to obtain the patent. This action is barred after five years from the date of grant of the patent or two years from the date when the person to whom belong the right had knowledge of the exploitation of the invention in the country, to apply the term which expires first.

Article 306-Notifi cation and presentation of arguments and evidence-in cases of invalidity, is notifi face parties so they will affirm the arguments and submit evidence that they deem suitable.

When it is necessary to resolve on the nullity of a patent, may be requested to the owner of the patent to present one or more of the documents referred in article 300 relating to the patent subject to the procedure.

Article 307.-Deadlines for the presentation of arguments and evidence-the arguments and evidence to be refi ere the previous article shall be submitted within two months of the notifi cation. Before the expiration of the term, either party may request an extension by two additional months.

The time periods that will refi ere this article, the competent national authority on intellectual rights will decide on the nullity of the patent, which notify face to the parties through resolution.

Article 308-Damage and damages-action precedents will not affect which may be applicable for damages.

Article 309-Expiration of the patent term of grace-to maintain the patent or, where appropriate, the patent pending application, must be paid annual rates fi fixed by the competent national authority on intellectual rights. Annuities may be paid in advance.

Each annuity due date is the last day of the month on which was submitted the request, according to article 291. You can prepay is two or more annual rates.

An annual fee may be paid within a period of grace of six months from the date of start of the annual period, paying the surcharge established jointly. During the grace period, the patent or patent application shall remain in full force.

The lack of payment of an annual fee under this article will produce full revocation of the patent or the patent application.


Section X of the regime of compulsory licenses article 310.-grant of compulsory license for lack of use-due within three years from granting patent or four years counted from the application of the same, which is greater, the competent national authority in the field of copyright, at the request of any interested It will grant a compulsory license primarily for the industrial production of the product to which the patent or the integral use of the patented process, only if at the time of your request the patent has not been exploited, or if it had been suspended for more than one year.

Non-exploitation of the object of the patent refers to lack of use in Ecuadorian territory by lack of manufacturing or manufacture of the product, or even, the lack of comprehensive use of the patented process together with the distribution and marketing of the results obtained, in a manner sufficient to meet the demand of the market.

The compulsory license shall not be granted if the holder of the patent proof ca its inaction by restrictions imposed by laws or regulations, or for reasons of force majeure or unforeseen circumstances.

Article 311-Notifi cation and scope of the compulsory license-the granting of compulsory licenses that is refi ere the previous article, shall be prior notifi cation to the patent-holder, within sixty days following do assert their arguments if he sees fit.

The competent national authority on intellectual rights will establish the scope or extent of the license, specifi c when, in particular, the period which is granted, the subject of the license, the amount and the conditions of the compensation. This compensation should be adequate, depending on the circumstances of each case, especially considering the economic value of the authorization.

Article 312-Modifi cation of compulsory license terms-at the request of the holder of the patent or the licensee, the conditions of compulsory licenses may be modifi ed by the competent national authority on intellectual rights when the proof new Queen made and, in particular, when the owner of the patent grants another license on terms more favourable than those established in the compulsory.

Article 313.-Obligations of the licensee-licensee shall be required to exploit the invention within a period of three years counted from the date of grant of the license, except in cases of inaction for reasons Friday, December 9, 2016 - 59Registro offi cial No. 899 - supplement of unforeseeable circumstances or force majeure, duly proof Cates, during which the period of concession in favour of the licensee shall be suspended.

Otherwise, at the request of the patentee, the competent national authority on intellectual rights shall revoke the compulsory license.

Article 314-Declaration and scope of the compulsory license granted for reasons of interest public.-prior declaration by Executive Decree or ministerial resolution of the existence of reasons of public interest, emergency or national security and, just as these reasons remain, the State may, at any time and without need of prior negotiation with the owner of the patent have non-commercial public use of an invention patented by a governmental entity or contractor, or undergo compulsory license the patent. The competent national authority on intellectual rights grant the licenses requested, without prejudice to the rights of the proprietor of the patent to be paid as provided for in this section. The owner of the patent shall be notifi ed when reasonably possible.

The grant of the compulsory license decision shall establish the scope or extent of the same, specifi c cando in particular the period for which is granted, the subject of the license, the amount and conditions of payment of royalties, without prejudice to the provisions of article 319 of this chapter.

The granting of a compulsory license for reasons of public interest does not affect the right of the proprietor of the patent to continue exploiting it.

Article 315.-Compulsory license for anti-competitive practices-offi cio or request of a party, the competent national authority on intellectual rights grant compulsory licenses where they are practices that have been declared by the competent national authority in the field of competition as contrary to the relevant regulations, in particular when they constitute an abuse of a dominant position on the market by the patent owner.

In these cases, to determine the amount of the compensation in benefit of the owner of the patent, it shall take into account the need to correct anti-competitive practices.

Article 316.-Compulsory license for reliance.-the competent national authority on intellectual rights grants licence at any time if this is requested by the holder of a second patent whose exploitation necessarily requires the use of a first patent. Such leave will be subject, without prejudice to the provisions of article 319, to the following: 1. the invention claimed in the second patent must imply an important technical advance of considerable economic significance with respect to the invention claimed in the first patent;

2. the owner of the first patent shall be entitled to a cross-licence on reasonable terms to use the invention claimed in the second patent; and, 3. You may not assign the license of the first patent with the assignment of the second patent.

Article 317.-Compulsory license for licensee variety vegetable-when the breeder of a plant variety may not exploit a certifi cate breeder without violating the rights resulting from a patent, may request a compulsory about this patent license in so far as it is necessary to exploit the variety that certifi ed object.

In this case, the owner of the patent shall be entitled to a reciprocal compulsory license to use the protected variety as soon as necessary to use the patented invention.

The compulsory licence granted only may transfer with the certifi ed or the patent whose exploitation need the license.


Article 318-Compulsory license for lack of agreement-licensing mandatory for lack of agreement.-in the case provided for in article 276, the competent national authority in the field of copyright, at the request of the legitimate applicant, grant a compulsory license mainly for industrial product production object of the patent or the use of the integral of the patented process, if at the time of the request the joint proprietors of the patent have not agreed to the terms and conditions of a voluntary licence.

The application for a compulsory licence for lack of agreement may not be submitted before having within six months from the grant of the patent or one year from your application.

The compulsory license shall not be granted if the applicant for the license not proof ca have requested a voluntary licensing, which has not been granted due to lack of agreement of the co-owners; and that has made reasonable efforts to obtain the grant of the license voluntarily.

Article 319.-Conditions for the granting of compulsory licenses-the granting of compulsory licences and non-commercial public use regulated in this section shall be subject to the following: 1. when requesting a compulsory license according to the articles 310, 316 and 317, the potential licensee must prove that it has tried to obtain authorization from the owner of the rights on reasonable terms and conditions business and , that such attempts have not been answered or have been negatively, within a period of not less than four months after the formal request that has been included such terms and conditions in the form suffi cient to allow 60 - Friday, December 9, 2016 supplement - registration offi cial No. 899 in the patent-holder form criteria. In the case of cases of national emergency, other circumstances of extreme urgency or in cases of public non-commercial use, is notifi face to the holder of the intellectual property rights to the extent reasonably possible;

2. the compulsory license shall not be exclusive and otherwise may not be granted. Only you can transfer with the part of the enterprise or its intangible asset that enables their industrial exploitation, must the transfer be in writing and register to the competent authority in the field of intellectual rights;

3. the compulsory licence shall be granted mainly to supply the domestic market, unless in the case of the export of pharmaceutical products in accordance with the Decision of the world Organization of trade on August 30, 2003 or the standard that the substitution, or unless in the case of practices that have been declared by the competent authority in the field of competition as contrary to the relevant regulations;

4. the licensee shall recognize in benefi t from the patent-holder adequate remuneration according to the circumstances of each case, taking into account the economic value of the license or public non-commercial use, without prejudice to the provisions of article 315. In the absence of agreement between the parties, after the term of thirty days of notifi each decision of the competent authority in intellectual rights to the patent-holder on the granting of the license or the non-commercial public use, compensation will be determined by such authority;

5. the compulsory licence revoked, subject to the adequate protection of persons who have been granted authorisation for the use of the patent, to request motivated by the proprietor of the patent, if the circumstances that gave origin have disappeared and it is not likely to arise again. The competent authorities shall have the authority to review, upon request established, if such circumstances continue to exist;

6. the scope and duration of the compulsory license shall be limited according to the fi nes for which it was granted; and, 7. For patents that protect semiconductor technology, the compulsory license only shall be allowed for public non-commercial use or to remedy or rectifi car a practice declared by the competent authority in defence of competition as contrary to the relevant regulations.

Article 320.-Compulsory licensing challenges-challenge of the compulsory licence or non-commercial public use granted pursuant to this section shall not prevent exploitation or will exercise no infl uence on the terms and deadlines that are running. Their interposition will not prevent the patentee to perceive, in the meantime, the compensation determined by the competent national authority on intellectual rights, in the unclaimed part.

Chapter III of the models of utility article 321-matter protectable under utility-model shall be granted patent of utility model to all new forms, confi guration or arrangement of elements of any appliance, tool, instrument, mechanism or other object, or any of its parts, allowing a better or different operation, use or manufacture of the object incorporating it, or which provide some utility advantage or technical effect that previously did not have.

Article 322-Matter cannot be protected under the model of utility-procedures not may be patented as utility models nor materials excluded from protection as patents of invention.

Models of utility, sculptures, architectural works, paintings, prints, prints or any other object of purely aesthetic character will not be considered.

Article 323-Hotkey of the application patent.-the applicant for a utility model patent may request that your application becomes a patent of invention or industrial design registration application, permitting the matter subject to the initial request.

Article 324.-Provisions applicable to utility-are model patents applicable to utility model patents the provisions on patents for inventions in whatever relevant, except provisions in relation to terms and deadlines for processing, which will be reduced to under half the corresponding regulation otherwise. However the above, the time limit set in article 289 shall be twelve months.

Article 325.-Term of protection of utility.-the term of protection of utility models models shall be ten years, counted from the filing date of the application for the patent, in accordance with article 291.

CHAPTER IV OF THE LAYOUT-DESIGNS OF INTEGRATED CIRCUITS


Section I of the protection article 326-originality of a layout schema requirements.-a layout scheme will be protected if it is original. A mapping scheme will be considered original when Friday, December 9, 2016 - 61Registro offi cial No. 899 - supplement is its creator's own intellectual effort and is not current among creators of layout-designs and manufacturers of integrated circuits in the time of its creation.

Scheme layout that consists of a combination of elements or interconnections that are current, will be protected only if the combination, as a whole, meets the conditions referred to in the preceding paragraph.

Section II holders Article 327-ownership-the Faculty of acquisition of a right through the registration of a scheme of integrated circuitry corresponds to its designer. This ability can be transferred by Act inter vivos or by succession via.

Where the scheme has been designed by two or more persons jointly, the right to the registration shall be responsible for them in common.

Article 328.-Distribution of ownership and benefi ts of layout-designs of integrated circuits developed in educational centres and research.-shall apply Article 276 of this code when the schema has been designed in the course of investigations or activities referred to in that article.

Article 329.-ownership of the developed integrated circuits layout scheme in fulfillment of a contract-applies article 277 of this code when the schema has been designed pursuant to a contract of work or in the framework of an employment relationship.

Section III of the application article 330.-term of presentation-where the layout scheme had been commercially exploited anywhere in the world, the registration application shall be submitted within a period of two years from the date of first commercial exploitation of the layout. If the request is submitted after of expiry of that period, the registration will be denied.

Section IV of the processing of the application article 331.-of the procedure of registration.-the application to acquire the right on a scheme of integrated circuitry will be presented to the competent national authority on intellectual rights according to the content, requirements and other rules requiring regulation. Similarly, requirements, deadlines and procedures for, among others, the examination of the application, publication, opposition and the granting or refusal of the application in the corresponding regulation will be established.

Section V rights and limitations article 332.-duration of the protection of the scheme of path-protection over a registered layout scheme will have a duration of ten years counted from the oldest of the following dates: 1. the date that has been the first commercial exploitation anywhere in the world; or, 2. The date that the application for registration has occurred.

The protection of a registered layout scheme will expire in any case to overcome a period of fifteen years from the last day of the year in which the schema was created.

Article 333.-Independence of protection-protection over a registered layout scheme applies irrespective of that integrated circuit incorporating the registered layout scheme is incorporated in an article and regardless of that layout scheme has been incorporated in an integrated circuit.

Article 334.-Rights of the proprietor of a registration-the acquisition of a scheme of integrated circuitry confi ere on its proprietor the right to prevent third parties not having his consent to perform any of the following acts with commercial purposes: 1. reproducing, by incorporation in an integrated circuit or otherwise, the protected path scheme in its entirety or a part thereof that meets the condition of originality under article 326;

2 import, sell or distribute in any way protected layout scheme, or an integrated circuit that incorporates such a scheme; or, 3. Import, sell or distribute in any way the article in which the protected integrated circuit, is built only to the extent that this follow containing an unlawfully reproduced layout scheme.

Article 335.-Scope of protection-exercise conferred by the acquisition only relates to the layout scheme itself, and does not include any idea, algorithm, concept, process, system, technique or information coding ED or incorporated in the mapping schema.

Article 336.-Limitations to the right of the holder-the acquisition of a layout scheme shall not confer the right to prevent the following acts: 1. acts done in the private sector and with non-commercial nes fi;

62 Friday 9 December 2016 supplement - registration offi cial No. 899 2. Acts carried out with fi nes of evaluation, analysis, or experimentation;

3 acts exclusively purposes of teaching or research scientists with ca or academic; and, 4. Acts referred to in article 5. of the Paris Convention for the protection of Industrial property.

Article 337-exhaustion of the right.-the acquisition of a layout scheme shall not confer the right to prevent a third party to perform acts of trade with respect to layout-designs protected, integrated circuits that incorporate them or articles containing those integrated circuits once they had introduced into the Commerce of any country.

Article 338-Second scheme layout created using evaluation-the holder of the registration of a first scheme of layout may not prevent to a third party carry out acts of industrial or commercial exploitation relating to a second scheme path created by a third party through the evaluation or analysis of the first protected layout scheme, provided that the second path scheme thus created meets the condition of originality under article 326. Nor to prevent those acts with respect to the integrated circuits that incorporate the second schema path thus created or articles incorporating such integrated circuits.

Article 339-Independent creation.-the holder of the registration of a layout schema may not prevent a third party perform the acts referred to in article 334 with respect to another scheme of original design created independently by a third party, even though it was identical.


Article 340.-Non-infringement-not be considered infringement of rights in a registered layout scheme carrying out any of the acts referred to in article 334 with respect to an integrated circuit that incorporates a scheme tracing illicitly reproduced, or an article containing such integrated circuit, where the person who commits or enjoin those acts demonstrated that , by acquiring the integrated circuit or article incorporating such integrated circuit, unaware that this mapping scheme had reproduced illegally. From the moment in which that person receives notice enough of the wrongfulness of the layout diagram, you can continue to perform those acts with regard to products that were still in existence or that it had requested from before, but, at the request of the holder of the registration, shall pay compensation equivalent to a reasonable royalty based on that would pay for a contractual license.

Article 341-Application and procedure concerning applications for registration and records of layout-designs of integrated circuits.-shall apply to applications for registration of layout-designs of integrated circuits and the records of layout-designs of integrated circuits the provisions in articles 297 to 299 of this code.

Section VI of the nullity of a registration article 342-nullity absolute.-the competent national authority in matters of intellectual rights, offi cio or on request from party certifying legitimate interest, and at any time, declare the absolute invalidity of a layout-design registration, in the following cases: 1. the object of registration not constituted a scheme of layout;

2. the registration does not comply with the protection requirements referred to in article 326;

3. the registration had been granted for a scheme of layout then presented of period designated in section 330; and, 4. Is confi gurasen the causes of absolute invalidity provided for in national legislation for administrative acts.

When the grounds indicated above only affect a portion of the registered layout scheme, be declared invalid only in connection with such part, leaving the existing for other parties register, provided that they as a whole comply with the requirement of originality referred to in article 326.

Article 343.-Procedure to declare the nullity of system registry path-in terms of a layout-design registration, articles 304 to 307 of this code shall apply.

Section VII of the regime of compulsory licenses article 344.-licenses-due to lack of exploitation or for reasons of public interest, in particular of national emergency, public health or national security, or to remedy an anticompetitive practice, the competent national authority on intellectual rights may, at the request of an interested person or national authority, available at any time : 1. a registered mapping scheme to be used or exploited industrial or commercially by a State agency or by one or more persons of public or private law designated for this purpose; or, 2. That such a scheme of path is open to the grant of one or more compulsory licenses, in which case the competent national authority on intellectual rights may grant such a license to request it, subject to the conditions laid down.

Shall apply to the grant of a compulsory license with respect to a layout scheme the conditions laid down for the granting of compulsory licenses on patents of invention, what is relevant.

Friday, December 9, 2016 - 63Registro offi cial No. 899 - supplement chapter V of the designs industrial section I of protection article 345-protectable subject requirements.-shall be regarded as industrial design the particular appearance of a product resulting from any meeting of lines or combination of colors, or any two-dimensional or three-dimensional external shape, line, outline , confi guration, texture or material, unless you change the destination or purpose of the product.

Article 346.-Protection requirements-acquisition of an industrial design wherever new.

An industrial design shall not be new if, before the date of application or the date of priority validly claimed, it had been made available to the public in any place or time, by his description, use, marketing or other means.

An industrial design shall not be considered new by the mere fact of presenting secondary differences from previous realizations or because you refer to another kind of products other than these realizations.

Article 347-Matter cannot be protected-will not be accessible: 1. industrial designs whose commercial exploitation must necessarily be prevented to protect morality or public order. For these purposes, shall not be considered contrary to morality or public order the commercial exploitation of an industrial design, by the mere existence of a legal or administrative provision prohibiting or governing such exploitation;

2. industrial designs whose appearance is dictated essentially by technical considerations or by the realization of a technical function, which does not incorporate any arbitrary contribution by the designer;

3 industrial designs which only consist of a form whose exact reproduction was necessary to allow that the product incorporating the design is mechanically assembled or connected to another product of which it forms part. This prohibition shall not apply in the case of products in which the design is situated in a way designed to enable Assembly or multiple products connection or your connection within a system modular; and, 4. Industrial designs that contain signs, symbols, fi gures, characters, among others, which constitute the expression of culture or traditional knowledge of indigenous, African American, or local communities.

Section II of article 348.-ownership-the right-holders to acquire an industrial design belongs to the designer. This right may be transferred by Act inter vivos or by succession via.

The registration holders may be natural or legal persons.

If several persons jointly made an industrial design, the right to register corresponds in common to all them.


If several people made the same industrial design independently from one another, the acquisition shall be granted to that or to its successor to first submit the corresponding application or that invoke the oldest priority.

Article 349.-holders of rights to industrial designs created in the institutions of education educational center and upper - applies Article 276 of this code when the design has been carried out in the course of investigations or activities referred to in that article.

Article 350.-Industrial design made in fulfillment of a contract-applies article 277 of this code when the design has been carried out pursuant to a contract of work or in the framework of an employment relationship.

Section III of the application for registration the registration procedure article 351-.-the application for an industrial design will be presented to the competent national authority on intellectual rights according to the content, requirements and other rules requiring regulation. Similarly, requirements, deadlines and procedures for, among others, the examination of the application, publication, opposition and the granting or refusal of the application in the regulation of this code will be established in the rules of this code.

Section IV rights and limitations article 352.-duration of the registration of industrial design.-registration of an industrial design shall have a duration of ten years from the date of filing of the application. Shall be deemed filing date: 1. in the case of national applications, the date of filing of the application certified by the competent national authority in the field of intellectual rights; or, 64 - Friday 9 of December 2016 supplement - registration offi cial No. 899 2. In the case of applications which claim priority under any treaty, the filing date of the application whose priority is claimed.

Article 353.-Right of the proprietor of a design industrial-the acquisition of an industrial design shall confer on its proprietor the right to prevent third parties not having his consent to manufacture, sell or import fi nes commercial products that incorporate or reproduced industrial design.

Registration also will confer the right to take action against third parties who manufacture, sell, or imported with commercial purposes a product whose design only present secondary differences with respect to the protected design or whose appearance is similar.

Article 354.-Scope of exercise-exercise conferred by the registration of an industrial design shall not extend to the elements or design features essentially dictated by technical considerations or by performing a technical function, which does not incorporate any arbitrary contribution by the designer.

The exercise conferred by the registration of an industrial design shall not include those elements or features whose exact reproduction was necessary to allow that the product incorporating the design is mechanically assembled or connected to another product of which it forms part. This limitation shall not apply in the case of products in which the design lies in a way designed to enable Assembly or connection to multiple products, or your connection within a modular system.

Article 355-exhaustion of the right.-the acquisition of an industrial design shall not confer the right to prevent a third party carry out acts of trade with respect to a product incorporating or reproducing that design, once that product had introduced into the Commerce of any country with the consent of the owner, a licensee, of a person economically linked to the holder or the licensee , or any other person authorized to do so.

For the purposes of the preceding paragraph, means that two persons are economically linked when one can exercise directly or indirectly on the other a decisive influence with respect to the exploitation of the industrial design, or when a third party can exert such influence on both persons.

Section V of the nullity of a registration item 356-nullity absolute.-the competent national authority in matters of intellectual rights, offi cio or on request from party certifying legitimate interest, and at any time, declare the absolute invalidity of a registration of industrial design, in the following cases: 1. the object of registration not forge an industrial design;

2. the industrial design does not comply with the protection requirements;

3. the registration had been granted for a matter excluded from protection as industrial design; and, 4. Is confi gurasen the causes of absolute invalidity provided for in national legislation for administrative acts.

Article 357.-Procedure applicable to invalidation.-as for the nullity of a registration of industrial design, articles 304 to 307 of this code shall apply.

Section VI referral article 358.-provisions applicable to industrial designs-the provisions of articles 270, 287, 294 paragraphs 1,2, 3 and 4, 297, 298, 299 and 300 of the code shall apply to industrial designs.

Chapter VI of the brands section I of Article 359.-registration of trade mark protection requirements.-mark means any sign that is suitable for distinguishing goods or services in the market. The signs that are susceptible of graphic representation may be registered as trademarks.

The nature of the product or service which has to apply a mark in any case will be obstacle for your registration.

They may constitute trade marks, among others, the following signs or devices: 1. words or word combinations;

2. the images, fi gures, symbols, graphic cos, logos, monograms, portraits, labels, emblems and coats of arms;

3. the sounds, smells and tastes;

4. the letters and numbers;

5. a color defined by a form or a combination of colors;

6. the shape of products, their packaging or wrapping;

7. the relief and texture perceptible by the sense of touch;

8. the animations, gestures and sequences of movements;

9. the holograms; and, Friday, December 9, 2016 - 65Registro offi cial No. 899 - Supplement 10. Any combination of the signs or means indicated in the preceding paragraphs.


Brands that identify who to public sector institutions, must reflect the cognitive and cultural of the country or locality identity as appropriate, in accordance with the corresponding regulation. The decision of change of these marks should be by reasoned decision of the highest authority, in the case of the autonomous governments, it will be necessary to have the approval of the respective Council.

The cognitive and cultural identity of the country or locality shall consider among other things the colors of flags, coats of arms, emblems of national or local as appropriate.

Article 360-Absolute prohibitions to mark-not signs that can be registered as trademarks: 1. can not constitute a trademark pursuant to the first paragraph of the preceding article;

2 lack of distinctiveness;

3 consisting exclusively in usual shapes of products or their packaging, or in forms or features imposed by the nature or function of that product or service in question;

4 consisting exclusively in forms or other elements that give a functional or technical advantage to the product or service to which they are applied;

5 exclusively consist of a sign or indication which may serve in trade to describe the quality, quantity, destination, value, geographic origin, the time of production or other data, characteristics or information products or services for which it has used that sign or indication, including laudatory expressions relating to those goods or services;

6 exclusively consist of a sign or indication that is technical or generic name of the product or service concerned;

7 consisting exclusively or had become a common or usual designation of the product or service in question in the current language or in the style of the country;

8 consist of a color alone considered, unless it is delimited by a form specifi;

9 they can deceive the commercial media or to the public, in particular on the geographic origin ca, nature, mode of manufacture, characteristics, qualities or suitability for use of the products or services concerned;

10 reproduce, imitate or contain a designation of origin protected for the same product or different products, when its use may cause a risk of confusion or association with the denomination; or it involved an unfair exploitation of its notoriety;

11 contain a designation of origin protected for wines and spirits;

12 reproduce or imitate, without permission from the competent authorities, either as trademarks, as elements of marks concerned, the name, the coats of arms, flags and emblems of States and any imitation from a heraldic point of view, as well as the coats of arms, flags and other emblems, acronyms or designations of any international organization. However, these signs may register when non-misleading confusion concerning the existence of a link between the applicant and the State or organization concerned;

13 reproduce or imitate, without permission from the competent authorities, either as trademarks, as elements of the marks concerned, signs, stamps or punches offi cials of control or warranty adopted by States when its use may cause a risk of confusion or association;

14 reproduce or imitate the name of the State, local governments or their offi cial symbols, as well as names, acronyms and symbols offi cials of the institutions, agencies and public entities, or signs constituting brand country, except that your registration is requested by the competent authority;

15 reproduce or imitate signs in accordance with technical standards, unless registration is requested by the competent national body on standards and qualities of the country;

16 reproduce coins or banknotes legal tender in the territory of the country, or any country, securities values and other business documents, seals, stamps, stamps or species fi scales in general;

17 reproduce, imitate or contain the name of a plant variety protected in the country or abroad, if the sign will provide products or services related to that variety or its use is likely to cause confusion or association with the variety;

18 they are contrary to law, morality, public order or morality; or, 19. Contain the name of a traditional speciality guaranteed protected.

The signs referred to in paragraphs 2, 5, 7 and 8 which are not inherently capable of distinguishing the goods or services that are relevant can register as when mark had acquired distinctive fitness due to its consistent nationwide application to identify the products or services of the applicant or its cause in accordance with the provisions of the respective regulations.

66 Friday 9 December 2016 supplement - registration offi cial No. 899 also usual three-dimensional shapes of the containers, which have acquired distinctive fitness due to its consistent nationwide application to identify such products, in accordance with the provisions of the respective regulations, be registered as a trademark, insofar as they do not constitute forms imposed by the nature of the product; they may be necessary to obtain a technical result; or, form contribution substantial value to the product.

Article 361-Prohibitions relating-nor can register as a trademark symptoms that affect the rights of third parties, such as those signs that: 1. they are identical or similar to a mark previously requested for registration or registered, for the same goods or services, or for goods or services with respect to which the use of the mark could cause a risk of confusion or association;

2 they are identical or similar to a protected trade name, or, if applicable, to a label or teaches, whenever given the circumstances, its use could cause a risk of confusion or association;

3 they are identical or similar to an advertising slogan applied for or registered, always under the circumstances, its use could cause a risk of confusion or association;

4 they are identical or similar to a distinctive emblem of a third party, provided that the circumstances its use could cause a risk of confusion or association, where the applicant is or had been a representative, distributor or a person expressly authorized by the proprietor of the sign protected in the country or abroad;


5. constitute a reproduction, imitation, translation, transliteration or transcription, total or partial, of a notoriously well-known distinctive sign, any which products or services to which the mark applies when its use would be likely to cause a risk of confusion or association with that third party or its products or services; an unfair use of the prestige of the sign; or the dilution of its distinctive force or its value commercial or advertising;

6 consist of a sign which affect identity or reputation of legal entities with or without fi nes of profit, or natural persons, in particular, in the case of the name, surname, fi rma, title, hipocorístico, pseudonym, picture, portrait or caricature of a person other than the applicant or identified each sector with the public as a person other than the applicant, except that certifying the consent of that person or of his heirs;

7 consist of a sign which infringes the industrial property right or copyright of a third party right, except that mediate the consent

8 consist of the name of peoples, nationalities and indigenous, Afro-American or local communities or denominations, words, letters, characters or signs used to distinguish their products, services, or how to process them, or which constitute the expression of their culture or practice, or the name of their traditional knowledge, unless the request is filed by the community itself or with its express consent; and, 9. Consist of, include or reproduce medals, awards, diplomas and other awards, except by those who grant them.

Article 362-Request in bad faith.-the competent national authority on intellectual rights when prima facie evidence enabling it to infer that a record had been applied for in bad faith or to perpetrate, facilitate or consolidate an act of unfair competition, it may refuse said record.

Article 363.-of the registration procedure-application for registration of a trade mark will be presented to the competent national authority on intellectual rights according to the content, requirements and other regulations that have the corresponding regulation. Similarly, the rules shall lay down the requirements, deadlines and procedures, for, among others, the examination of the application, publication, opposition and grant or refusal of the application.

Section II rights and limitations article 364.-right to the exclusive use of a mark-the right to the exclusive use of a mark be acquired by registration with the competent national authority on intellectual rights.

The brand should be such which was registered. Only be accepted variations in elements which do not alter the distinctive character of the registered sign.

Article 365.-Duration of the registration of a mark-the acquisition of a brand will have a duration of ten years counted from the date of their grant and it may be renewed for successive periods of ten years.

Article 366-Renewal of trademark registration-the holder of the registration, or who have a legitimate interest, shall request the renewal of the registration by the competent national authority on intellectual rights within the six months prior to the expiry of the registration. However, both the holder of the registration and who have a legitimate interest shall have a period of grace of six months from the date of expiration of registration to apply for its renewal. During the referred period, mark remain in full force.

For the renewal, proof of use of the mark shall not be required. Simply filing the respective application and renewal will be granted without further formality, in the same terms of the original registration. However, the holder may reduce or limit the products or services listed in the original registration.

Friday, December 9, 2016 - 67Registro offi cial No. 899 - supplement article 367-rights conferred by the registration of trademark-the acquisition of the brand confi ere on its proprietor the right to prevent third parties to perform without his consent, any of the following acts: 1. apply or placing the trademark or an identical or similar distinctive sign on products which have been registered mark; about products related to the services for which it has been registered; or on containers, wrappers, packaging or packaging of such products;

2. delete or modify the car brand with commercial purposes, since it had applied or on products for which there has been the brand; about products related to the services for which it has been registered; or on containers, wrappers, packaging or packaging of such products;

3 manufacturing labels, containers, wrappers, packaging or other materials that reproduce or contain the brand, as well as sell or hold such materials;

4 use the trade a sign identical or similar to the mark with respect to any products or services, when such use could cause confusion or a risk of association with the holder of the registration. In the case of the use of an identical sign for identical goods or services it shall be presumed that there is likelihood of confusion;

5 use in trade a sign identical or similar to a well-known with respect to any products or services brand, when it could cause economic or commercial harm unfair by reason of a dilution of distinctive force or advertising of the brand or commercial value, or by reason of an injustice of the prestige of the brand or its owner use to the holder of the registration; and, 6. Publicly use a sign identical or similar to a well-known mark, even for non-commercial purposes, when it could cause a dilution of the distinctive force or commercial or advertising value of the mark, or an unfair exploitation of its prestige.

Article 368.-Use of a sign in trade by a third party.-for the purposes of the provisions of paragraphs 4, 5 and 6 of the preceding article, shall constitute use of a sign in trade by one third party, among others, the following acts: 1. enter into trade, sell, offer for sale or distribute products or services with the trademark;

2 import, export, store, or transport goods under that sign; or, 3. Use the sign in advertising, publications, business documents or communications, written or oral, regardless of the means of communication used and without prejudice to the rules on advertising that were applicable.


Article 369.-Use of the mark by third parties purposes news-provided that is done in good faith and does not constitute use by way of mark, third parties may, without consent of the owner of the registered trademark, use in the trade name, address or pseudonym; a geographic co name; or, any other indication some concerning the kind, quality, quantity, destination, value, place of origin or time of production of products or the provision of services or other features of these; provided that such use is limited to purposes of identification or information and is not able to mislead the public about the origin of the goods or services.

Article 370-Branding advertisement.-the registration of the mark shall not confer on its owner the right to prohibit a third party from using the mark to announce, including comparative advertising, offering for sale, or indicate the existence or availability of products or services legitimately marked; or, to indicate compatibility or adaptation of parts replacement or accessories usable with the trademark products; provided that in both cases such use is in good faith, the purpose of information is limited to the public for sale and is not likely to induce to error or confusion about the business origin of the respective product.

Article 371-exhaustion of the right.-the registration of a mark shall not confer the right to prevent a third party carry out acts of trade with respect to a product protected by such registration once that product had been introduced into the Commerce of any country.

Article 372.-Prohibition of marketing products and services identifi ed with the foreign brand-when in a Member State of the Paris Convention, trips or with which the Ecuador have some kind of agreement in the field of industrial property, is a mark identical or similar to a registered in the country but to a different owner name registered to distinguish the same products or services, is prohibited marketing in the country of the products or services identifi ed with the foreign brand, except that the proprietors of trade marks enter into agreements allowing such marketing.

In case of reaching such agreements, parties should assume the obligations necessary to avoid confusion of the public with respect to the origin of the goods or services concerned, including with regard to the identification of the origin of the goods or services in question with prominent and proportional characters to them for proper information to consumers. These agreements shall respect the pubic interest and the rules on free competition restrictive trade practices and unfair competition. In addition, they shall be to the competent national authority on intellectual rights.

In any case, it will not prohibit the importation of a product or service that is in the situation described in the first paragraph of this article, when the mark is not being used in the country, according to the provisions of article 68 - Friday, December 9, 2016 supplement - registration offi cial No. 899 380, unless the proprietor of the trade show to the competent national authority on intellectual rights that the non-use of the mark is due to causes proof ed.

Article 373-Obligation to indicate the place of manufacture of the product or service.-where the mark consists of a geographical co name, cannot market the product or the service without indicating in the form visible and clearly legible, the place of manufacture of the product or service origin.

Article 374.-Transfer of registration of the mark.-a trademark registration or a request in the registration process is transferable by Act between living and transmissible by cause of death, with or without the business to which it belongs.

You must register with the competent national authority on intellectual rights and they shall have effect as from its registration with the competent national authority on intellectual rights.

For purposes of registration, the transfer must be in writing.

Any interested person may request the registration of a transfer. However, the competent national authority may refuse registration if the transfer acarreare risk of confusion or association.

Article 375.-License for the exploitation of the brand.-a trademark registration or an application on registration process may be subject to license one or more third parties to exploit the respective brand.

You must register with the competent national authority on intellectual rights and they shall have effect as from its registration with the competent national authority on intellectual rights.

Any interested person may request the recordal of a license.

Article 376.-Registration of transfer or licensing contracts.-the competent national authority in the field of intellectual rights do not register contracts through which was transferred was or is granted license for the exploitation of brands that do not conform to the provisions of the common regime of treatment of foreign capital and for trademarks, patents, licenses and royalties , or that do not conform to community or national provisions on business practices restrictive of free competition and unfair competition. Otherwise, what is it will be relevant, to the provisions of the organic law for the regulation and Control of power of market and apply the penalties provided for in the same.

The otherwise will require express authorization from the rights owner.

Article 377 - Modifi cations to the registry.-the owner of a registered trademark shall ask the competent national authority on intellectual rights that registers any change in name, address or other data of the holder, his representative or agent. Otherwise, any notifi cation accomplished under the fi guren data in the register shall be deemed valid.

Section III of the cancellation of the registration


Article 378.-cancellation of registration of a trade mark due to lack of use. will cancel the registration of a mark at the request of any interested person when, without reason proof cado, mark has not had used by its owner, his licensee or another person authorized to do so, during the three consecutive years preceding the date that starts the Cancel action. The cancellation of a registration for non-use of the mark may also be requested as a defence in opposition proceedings filed based on the unused mark.

However the provisions of the preceding paragraph, may not start is the Cancel action before after three years from the date of notifi cation of the resolution which exhausted the procedure of registration of the respective mark on the administrative.

Article 379-Cases of force majeure or unforeseen circumstances.-the registration may be canceled when the holder prove that non-use is due to force majeure, unforeseen circumstances or limitations offi cial imposed on the goods and services protected by the mark.

Article 380.-Characteristics of the use of the mark-means that a mark is in use when the products or services that it distinguishes have been placed in trade or are available on the market under that mark, in the amount and mode which normally corresponds, taking into account the nature of the products or services and the modalities under which its marketing in the market occurs.

Subject to the provisions of the preceding paragraph, also is considered to be a mark is in use, in the following cases: to) when it had introduced and distributed in the market genuine products with the trademark, by persons other than the holder of the registration; and, b) when only distinguish products that are exported from the country, as set out in the preceding paragraph.

Article 381.-Use of the mark that difficulty was the form in which it was registered.-the use of a mark in way such that difficulty was the form in which it was registered only for elements that do not alter its distinctive character, not will motivate the cancellation of the registration for lack of use, or lessen the protection corresponding to the brand.

Article 382-Tests to identify the use of the mark-the burden of proof of use of the mark shall be the holder of the registration.

Friday, December 9, 2016 - 69Registro offi cial No. 899 - supplement the use of the mark may be proved, among others, by commercial invoices, accounting documents or certifi cations of audit showing the regularity and the amount of the marketing of the goods or services identified ed with the brand.

Article 383.-Reduction or limitation of the list of the goods or services covered by the registration of the mark-when the lack of use of a mark afectare only one or some of the goods or services for which the mark was registered will be ordered a reduction or limitation of the list of the goods or services covered by the registration of the mark eliminating those with respect to which brand has not had used, for which will be taken into account the identity or similarity of the goods or services.

Article 384-Preferential right to apply mark-the person who obtains a favorable ruling shall have preferential right to registration. This right may be invoked after the filing of the cancellation request, and within the three months following the date on which cancellation resolution sits tightly in the administrative.

Article 385-Genericity.-cancellation will cancel the registration of a trademark shall be the limitation of its scope, offi cio or at the request of the person concerned, when its owner had caused or tolerated that she will become a common or generic sign to identify car or designate one or more of the products or services for which it was registered.

Means that a mark has become a common or generic sign when in the commercial media and for the public, the trade mark has lost its distinctive character as an indication of business origin of the product or service to which it applies. For these purposes, must attend the following facts in relation to that mark: 1. the need which they have competitors from using the sign to be able to develop their activities by there is no other name or right to appoint mark or identify in the market the product or respective service;

2. the widespread use of the mark by the public and commercial media as common or generic sign of product or respective service; and, 3. Ignorance or low recognition by the public that the brand means a particular undertaking.

Article 386.-Procedure of the action for cancellation-received a request for cancellation, be notifi face to the owner of the registered mark so that, within a period of sixty days from the date of notifi cation, enforce, if it is deemed suitable, their arguments or present evidence.

Expired term that will refi ere this article, will decide on the cancellation or not of the registration of the mark by a duly motivated resolution.

Section IV of the renunciation of registration article 387.-waiver of registration brand.-the owner of a trademark registration may waive at any time, wholly or partly, their registration rights. If the renunciation is total, the registration will be cancelled. When the renunciation is partial, the registry shall be limited to products or services about which does not see the resignation.

You will not accept the resignation if on the mark there are liens or registered rights in favour of third parties, unless there is consent of the holders of such rights.

Resignation will only take effect from your registration to the competent national authority on intellectual rights.

Article 388.-The acquisition of mark.-the competent national authority in matters of intellectual rights, offi cio or to request that accredits legitimate interest, and at any time, declared invalid the absolute nullity of the acquisition of a brand in the following cases: 1. when the acquisition would have been granted based on data or false documents that are essential for its granting;

2. when had the acquisition been granted in contravention of the provisions in Article 359 first paragraph or article 360 of the code;


3. When is confi gurasen the causes of absolute invalidity provided for standard for administrative acts; or, 4. When would have the acquisition been granted with any other violation of the law that substantially has led to its grant.

Article 389-Causales of invalidity of the acquisition of the brand.-the competent national authority in the field of intellectual rights, offi cio or at the request of the person concerned, shall declare the relative nullity of the registration of a trademark in the following cases: 1. when the acquisition would have been granted in contravention of article 361;

2. when had the acquisition been carried out in bad faith; or, 3. When had the acquisition been carried out to perpetrate, facilitate or consolidate an act of unfair competition.

This action is barred after five years from the date of grant of the registration.

70 Friday 9 December 2016 supplement - registration offi cial No. 899 item 390-impediment to declare nullity of the registration of mark-not be declared the nullity of the registration of a mark by causes that they had ceased to be applicable at the time resolve the nullity.

Article 391-Severability.-when a causal of nullity only afectare to one or some of the goods or services for which the mark was registered, the invalidity shall be declared only for those products or services, and they will be deleted from the registration of the mark.

Article 392-Nullification procedure.-in cases of invalidity, is notifi face parties so they will affirm the arguments and submit evidence that they deem suitable.

The arguments and evidence to be refi ere the foregoing paragraph, shall be submitted within two months of the notifi cation. Before the expiration of the term, either party may request an extension by two additional months.

The time periods that will refi ere this article, the competent national authority on intellectual rights will decide on the invalidity of the mark, which notify face to the parties through resolution.

Article 393-Independence of actions for damages-action precedents will not affect which may be applicable for damages.

Section VI of the expiration of registration Article 394-expiration of registration of brand-the registration of the mark shall lapse full-fledged if the holder or who had legitimate interest does not request renewal within the legal term, including the period of grace of agreement, with the provisions of Article 366a.

Chapter VII of the SLOGANS trade Article 395.-Defi nition-means advertising slogan the word, phrase or legend used to complement a mark.

Article 396 - Acquisition of commercial slogans.-can purchase commercial slogans that do not contain references to products or similar marks or expressions that would be prejudicial to such products or brands.

Article 397.-Content of the application for registration of commercial slogans.-without prejudice to other requirements to be determined in the rules of procedure, the application for registration of an advertising slogan shall specify registration of trademark or the trademark application pending to which the theme complements.

Article 398-transfer or license-transfer or license of an advertising slogan or a request in the registration process registration shall be jointly with trademark registration or the application for registration of trade mark in proceedings to which the theme complements.

Article 399.-Validity of registry-the validity of the acquisition of an advertising slogan shall be subject to the validity of registration of mark which the theme complements.

Article 400-Tests for the use of commercial slogan-shall apply to commercial slogans, what is relevant, the provisions of Chapter VI of this title.

As to the proof of use of a commercial slogan, such use must be demonstrated together with the brand to which the theme complements. The evidence of use of an advertising slogan may include, in addition to those mentioned in in the article 382, any others which demonstrate its use in advertising or on the market.

Chapter VIII of the brands collective article 401-Defi nition-means collective mark any sign which is suitable to distinguish the origin or any other common characteristic of goods or services belonging to two or more persons or different companies and using it under the control of a licensee.

Article 402.-owners of collective marks-associations of producers, manufacturers, traders, providers of services, organizations or groups of individuals, cooperatives and other organizations that make up the popular solidarity, economy legally established, can acquire collective marks to distinguish in the market the goods or services of its members.

Article 403.-Requirements and procedure for the acquisition of collective mark-the application for a collective mark acquisition will be presented to the competent national authority on intellectual rights according to the content, requirements and other regulations that have the corresponding regulation.

Similarly, the rules shall lay down the requirements, deadlines and procedures for publication, among others, the examination of the application, the filing of oppositions and the granting or refusal of the application.

Article 404.-Transfer or license of collective mark.-the registration of a collective mark or a pending registration request may be transferred or licensed in accordance with the provisions of the internal rules of the Association, organization, group, cooperative or organization.

In any case, its use is reserved to the members of the Association, organization, group, cooperative or organization. Otherwise may not be granted.

Shall register with the competent national authority on intellectual rights any transfer, authorization of use or license on a granted collective mark or an application in the process of granting and they shall have effect as from its registration with the competent national authority on intellectual rights.

Article 405.-application-apply to collective marks, what is relevant, the provisions of Chapter VI of this title.

Friday, December 9, 2016 - 71Registro offi cial No. 899 - supplement chapter IX of the brand certification


Article 406-Defi nition-certifi cation mark means a mark to be applied to products or services whose quality, origin or other characteristic has been certified by the proprietor of the mark.

Article 407-Headlines-may be owner of a certifi cation mark a company or institution, public or private law, or a State, regional or international body.

Article 408. of the rules of use of the mark-with the application for registration of a trademark of certifi cation must accompany the rules of use of the mark. Without prejudice to other requirements established in the relevant regulations, these rules indicate products or services that may be of certifi cation by the holder, defi niran the characteristics guaranteed by the presence of the brand, and described the way that control of such features shall be exercised before and after authorizing the use of the mark.

The rules of use shall be recorded along with the brand, as well as all your modifi cations. This should be made to the competent national authority on intellectual rights. The lack of registration will cause that modifi cation not take effect against third parties.

Article 409.-Authorization of certifi cation mark.-without prejudice to community or national provisions on business practices restrictive of free competition, the proprietor of a mark of certifi cation may authorize its use any person whose product or service meets the conditions laid down in the rules of use of the mark.

The certifi cation mark cannot be used in connection with goods or services produced, rendered or marketed by the own the trademark holder.

Article 410-application-apply to certifi cation marks, what is relevant, the provisions of Chapter VI of this title.

Section I of the brand country article 411-Defi nition-means brand country to sign to distinguish, promote and position the cultural, socio-economic, political identity, biodiversity, the image, reputation and other values of the country.

Article 412-Declaration of brand country.-the Declaration of brand country will be made by Executive Decree and shall remain in force at the time, until it is changed.

Prior to issuing the Executive Decree will require favorable report of the competent national authority on intellectual rights, who must verify that it does not affect third-party rights.

Article 413.-Use of the brand country.-the sign of which is this chapter will be of ownership of the State, the processes of licensing, authorization of use, Declaration, application, dissemination, training, use and enforcement, shall be exercised through the competent authority envisaged in the Decree on Declaration of brand country.

Article 414.-Applicable legislation-apply to the brand country, on whatever relevant, the provisions of Chapter VI of this title, as established in the corresponding regulation.

The provisions of the preceding paragraph, the competent national authority on intellectual rights will register the signs covered by this chapter in a separate record. Without authorization from the competent authority referred to in article 413, no person may use such signs.

Chapter X of the names commercial article 415-Defi nition-means trade name any sign that is suitable to identify car a person or commercial establishment in the exercise of their economic activity and distinguish it from others carrying out identical or similar activities.

A person or commercial establishment may be more than one trade name. They may constitute trade name, among others, a company name, trade name or other designation registered in a register of persons or corporations.

Trade names are independent of designations or names of legal persons, and both can co-exist.

Article 416-Declarative registration of the trade name.-the exclusive right to a trade name is acquired by its first use in trade, public, continuous, in good faith and always that it does not infringe rights priority duly constituted in the country and will end when cease the use of the trade name or cease the activities of the person or business that uses it.

The holder of the trade name may be registered with the competent national authority on intellectual rights, the registry will have declarative character. The right to the exclusive use of a trade name only be acquired under the terms provided in the preceding paragraph.

In any case in which is alleged or it intends to recognize the exclusive right to a trade name, use public, continuous and in good faith, must prove at least within the six months prior to such claim or claims. The proof of use will be up to the holder of the trade name. For the purposes specified in this subsection, if the holder is not part in the respective procedure, will you notify offi cio face.

Article 417.-Renounces the registration: the holder of a trade name registration may renounce their rights on the register. The renunciation of the registration of the trade name shall take effect from your application to the competent national office.

72 Friday 9 December 2016 supplement - registration offi cial No. 899 article 418-signs not copyrightable or recordable brand name-will not be protected or may be registered as trade name a sign which is covered by any of the following cases: 1. can not constitute trade name in accordance with the first paragraph of article 415;

2. when it is identical, or resembles a hallmark of a third party, provided that the circumstances, its use could cause a risk of confusion or association;

3. when consist of a sign which infringes the industrial property right or copyright of a third party right, except that mediate consent

4. When is its use likely to cause confusion or deception in the commercial media or the public about the identity, nature, activities, the sales draft or any other aspect of the person using it;

5. When is its use likely to cause confusion or deception in the commercial media or the public about the business origin, origin or other characteristics of the goods or services that the person produced or marketed; and,


6. when consists, wholly or partly, a sign contrary to law, morality, public order or good customs.

Article 419.-Remission-the corresponding regulations shall establish requirements, deadlines and procedures, among others, for the examination of the application, publication, presentation of oppositions, and the grant or refusal of the application. The application for registration of a trade name shall be established for the registration of marks.

Article 420.-Term of the trade name registration-the registration of a trade name shall have a duration of ten years counted from the date of their grant and may be renewed, prior evidence of use, for successive periods of ten years.

Article 421.-Rights of the owner-the owner of a trade name may prevent any third party trade using a distinctive sign identical or similar, when this could cause a risk of confusion or association with the brand name or its activities.

In the case of notorious declared trade names, the holder may prevent any third party using a distinctive sign identical or similar trade when it could cause unjust economic or commercial damage, by reason of a dilution of the distinctive force or the commercial or advertising value of the name, or by reason of the unfair use of the prestige of the name or the owner.

Article 422-Trade name transfer-transfer of a trade name can only be made together with the enterprise in which the identified activity is desarrollare each using the trade name.

Article 423-application-apply to trade names, what is relevant, the provisions of Chapter VI of this title.

Chapter XI of the labels or emblems article 424-Defi nition-means label or teaches any sign that is suitable to distinguish a trade settlement.

Article 425-Protection and registration of sign or school-protection and registration of signs or emblems shall be governed by the provisions relating to trade names.

Section I distinctive appearances article 426-Defi nition-refers to distinctive appearance whole set of colors, forms, presentations, structures and characteristic and designs of an establishment of trade or a product on the market, provided that they are capable to distinguish it in the presentation of services or sale of products.

Article 427-Acquisition and exercise of distinctive appearances-distinctive appearances will be acquired and shall exercise rights identically to trade marks, provided they have acquired a distinctive aptitude in the Ecuadorian market, in accordance with the respective regulations, or are inherently distinctive.

Chapter XII of appellations of origin section I requirements of protection article 428-Defi nition-appellation of origin means the indication geographic constituted by the denomination of a country, a region or a place determined, or made up of a denomination that not be a country, a region or a specific place is refi ere to a certain geographic area used to designate a product originating them, when certain quality, reputation or other characteristic of the product are attributable exclusively or essentially to the average geographic co which produces, extract or processed, including natural and human factors.

In the case of homonymous appellations of origin, the protection shall be accorded to each. In the regulations the conditions will be established to differentiate between if indications or homonymous designations in question, taking into account the need to ensure that the concerned products receive fair treatment and consumers are not misled.

Article 429.-Not copyrightable signs.-may not be declared as designations of origin, those which: 1. do not conform to the defi nition of the preceding article;

2 they are contrary to law, morality, public order or morality;

3 they can mislead the public about the geographic origin ca, nature, mode of manufacture, or quality, reputation or other characteristics of the respective products;

Friday, December 9, 2016 - 73Registro offi cial No. 899 - Supplement 4. They are common or generic indications to distinguish the product concerned, when they are considered as such by connoisseurs of the matter or by the public in general in the Ecuadorian territory;

5 they had been applied for or registered in good faith as marks until the designation of origin would be protected in the country of origin; and, 6. In relation to wine products, had been the name usual a variety of grapes in the Ecuadorian territory to January 1, 1995.

Section II of the Declaration of protection article 430.-statement.-an appellation of origin will be protected from the Declaration which issued the competent national authority in the field of intellectual rights.

Article 431.-the legitimate interest.-the Declaration of protection of an appellation of origin will be offi cio or at the request of people who have proven to be legitimate interest, understanding as such the natural or legal persons directly engaged in the production, extraction or processing of the product or products that is intended to designate with the denomination of origin , as well as to the associations composed of such persons. Public administration central or autonomous decentralized authorities also consider is concerned, in the case of appellations of origin of their respective constituencies.

Article 432-Remission-the regulation shall establish the requirements for the application. Admitted to processing, shall apply the procedure for the registration of marks, which is relevant.

Article 433-Validity of the Declaration of protection of an appellation of origin-the validity of the Declaration of protection of an appellation of origin shall be determined by the subsistence of the conditions that led to it, in the opinion of the competent national authority on intellectual rights. The term of their validity be solved if such conditions were not kept. Without prejudice to the resources that any against such a resolution, interested parties may request again the Declaration of protection when they deem that conditions have been restored for your protection.


Article 434-Modifi cation of the Declaration of protection.-protection declaration can be Modifi Ed each at any time in accordance with as determined by this code and the corresponding regulations. Modifi cation shall be subject to the procedure for the Declaration of protection, insofar as applicable.

Section III of article 435-permission authorization.-persons who are directly engaged in the extraction, production or processing of the products designated by a protected designation of origin and perform such activity within the area geographic determined in the respective protection declaration, they may ask the competent national authority on intellectual rights , authorization to use the designation of origin. The authorization of use may also be granted by public or private entities representing the benefi ciaries of the denominations of origin, in accordance with the regulation that is issued for the purpose.

When the competent national authority on intellectual rights is deemed appropriate for the examination of the application, may require information or documents to persons, associations or authorities, as appropriate.

Article 436.-Remission-the regulation shall establish the requirements for the application. Admitted to processing, shall apply the procedure laid down therein.

Article 437.-Entry into force of the authorization of use-the authorization to use a protected designation of origin will have a duration of ten years and may be renewed for periods of equal way indefi nida.

They shall apply to the renewal of the authorization to use, what is relevant, the provisions of Chapter VI of this title concerning the renewal and expiration of the registration of marks.

Article 438.-Cancellation of authorization use.-the competent national authority on intellectual rights, offi cio or request, cancel the authorization of use when the appellation of origin is used in the trade in a way that does not correspond to the respective Declaration of protection.

They shall apply to the cancellation of the authorization to use, what is relevant, the provisions of Chapter VI of this title relating to the cancellation of the registration of marks.

Article 439.-Authorization of use.-the competent national authority on intellectual rights declared invalid, offi cio or request of a party, the authorization for use of an appellation of origin null and void if it had been granted in contravention of the rules of this chapter.

They shall apply to the nullity of the authorization to use, what is relevant, the provisions of Chapter VI of this title relating to the invalidity of the registration of marks.

Section IV rights and limitations article 440-reserve use.-the use of an appellation of origin protected in relation to products designated by it is reserved exclusively for producers, manufacturers and craftsmen who have their production, extraction or processing establishments in the area geographic that is designated with this name.

74 Friday 9 December 2016 supplement - registration offi cial No. 899 only producers, manufacturers or craftsmen authorized to use a protected designation of origin may be used along with it the term "APPELLATION of origin".

They shall apply to protected designations of origin, what is relevant, the provisions of the articles 367 to the 372.

Article 441.-Authorization of operation.-the competent national office may authorize the operation as a grouping of benefi ciaries or offi ce regulatory organisations, either that legal or associative form and always be legally recognized, requesting it and that they comply with the requirements laid down in the corresponding regulation.

Public or private entities representing the benefi ciaries of the denominations of origin, or those designated for the purpose, shall provide mechanisms that allow effective control of the use of protected designations of origin.

Article 442-Prohibition of use-the use of an appellation of origin protected by people who are not those referred to in the first subparagraph of article 440 when such use may lead to a risk of confusion as to the origin of the products is prohibited.

Article 443.-Designation of origin for wines and spirits-is prohibited the use of an appellation of origin protected to identify wines or spirits for that genre products which do not originate in the place designated by the appellation of origin, even if the true origin of the product is indicated or use the appellation of origin translated or accompanied by expressions such as "gender" , "kind", "type", "style", "imitation" or other similar.

Article 444.-Limitations to the rights-protection established in this section shall not extend to continued and similar use of a particular denomination of origin of another country identifying wines or spirits in connection with goods or services that, when this designation of origin had been used in the country on an ongoing basis for those same products or services, or other afi nes for ten years at least before April 15, 1994 , or in good faith, prior to that date.

Section V recognition of protection article 445-appellations of origin of other countries-in the case of appellations of origin protected in countries other than those listed in the preceding article, the competent national authority on intellectual rights may recognize the protection of such names, provided that this has been planned in any existing international Convention for the Ecuador.

For the purposes of the preceding paragraph, not be protected appellations of origin that are not protected or they had ceased to be so in their country of origin, or which have fallen into disuse in that country.

Article 446.-the protection keep appellations of origin protected in accordance with provisions in this chapter will not be considered common or generic to distinguish the product designating, while persists that protection in the Ecuador or in the country of origin.

CHAPTER XIII OF THE TRADITIONAL SPECIALITIES GUARANTEED


Article 447-Defi nition-means by specialty traditional guaranteed (ETG), to identify the type of agricultural product or foodstuff which has features specific cas since it has been produced from raw materials or traditional ingredients, or has a composition, working or production or processing traditional or crafts that correspond to the traditional practical cultural identity applicable to that product or food.

Protection as guaranteed traditional speciality gives the right to incorporate in the labelling or in any other type of advertising promoting the product the indication "Traditional speciality guaranteed" or its abbreviation "TSG".

Article 448.-Characteristics of a traditional speciality guaranteed.-the characteristics of a traditional speciality guaranteed constitute the element or set of elements for which the agricultural product or foodstuff is identified clearly differs from similar, belonging to the same type of the same category. These features are due to the use of raw materials, composition, preparation or traditional production processes, not linked to a defined geographic area.

Not an agricultural product or foodstuff whose features specifi c cas are only limited to its provenance or origin geographic co. may be registered as a traditional speciality guaranteed

Article 449-Not copyrightable signs-No may be declared as a traditional speciality guaranteed those which: 1. do not conform to the defi nition of article 447 of this legal body; and, 2. In relation to agricultural products, they had previously been recorded as plant variety.

Article 450.-Of the application for registration-request for a guaranteed traditional speciality will be Friday, December 9, 2016 - 75Registro offi cial No. 899 - supplement request of a group of producers or manufacturers, understanding as such the groupings that directly engage the composition, production or preparation of the product which is intended to protect as guaranteed traditional speciality.

A grouping may only submit an application for registration for agricultural or food products that produce or obtain.

Article 451.-the list of conditions for the application of traditional speciality guaranteed-all agricultural product or foodstuff seeking registration as a traditional speciality guaranteed (TSG), must adhere to the specifications of the applicant Association of producers or manufacturers. This must be presented together with the other requirements that set the rules for the effect.

Article 452.-content of the statement of conditions the specification for guaranteed traditional speciality will contain at least the following elements: 1. the name of the traditional speciality guaranteed.

To be registered, the name must: a. be specifi c by itself;

b. express the features specifi c of the agricultural product or the foodstuff;

c. be traditional and comply with national provisions or be consecrated for use.

Can not register the name as: a. will refer only to requirements of a general nature used for a set of products or foodstuffs;

b. are deceptive, or reference to an obvious characteristic of product that does not correspond to the specification.

2. Description of the agricultural product or foodstuff including its main physical, chemical, microbiological or organoleptic characteristics.

3. Description of the method of composition, development or production to be followed by the producers, including.

4. Description of the nature and characteristics of the raw material or the ingredients used.

5. Description of the method of preparation of the agricultural product or foodstuff.

6. Description of the elements key to defi nan specifi c characteristics cas product and, where appropriate, the reference used.

7. Description of the key elements that demonstrate the traditional character of the product.

8. Description of the minimum requirements and procedures for the control and regulation of the features specifi c required to contain the product.

Article 453.-Procedure-the procedure for the processing of the request will be the same designated for indications geographical cas, with the caveats that establishes the respective regulations.

Article 454.-Claims for misuse of guaranteed traditional speciality-any interested person may bring a claim of alert before the respective grouping of products and manufacturers (ETG), who if the case shall take the necessary measures to ensure the identity of the traditional guaranteed speciality or deception to the consumer.

Chapter XIV of the indications of origin article 455-Defi nition-means indication of source a name, expression, image or sign that designates or evokes a country, region, locality or place.

Article 456. Restrictions of use. an indication of source cannot be used in trade in connection with a product or service, when it is false or misleading with respect to origin or its use could mislead the public to confusion regarding the origin, provenance, quality or any other characteristic of the product or service.

For purposes of the provisions of the preceding paragraph, it will also constitute use of an indication of source in the trade which was made in advertising and in any commercial documentation relating to the sale, exposition or offer of products or services.

Article 457-Disclosure of origin.-any person able to tell your name or your address about the products they sell, even if they came from a country, region, locality or different location, provided that the name or domicile submission accompanied by precise indication, suffi ciently featured characters of the country, region, locality or place of manufacture or production of products or other indication enough to avoid any mistake on the true origin of the same.

Article 458.-procedure-the procedure for the processing of the request will be the same designated for indications geographical cas, with the caveats that establishes the respective regulations.

76 Friday 9 December 2016 supplement - registration offi cial No. 899 Chapter XV of the signs distinctive NOTORIOUSLY known section I of the protection requirements


Article 459-Defi nition-means notoriously well-known distinctive sign which is recognized as such in the country or in any Member State of the Paris Convention, trips, or that the Ecuador maintains treaties in the field of industrial property by the relevant sector, regardless of fashion or the means by which had been made known.

Article 460.-Factors-to determine the notoriety of a distinctive sign, shall be taken into consideration, among others, the following factors: 1. the degree of know-how among the members of the relevant sector in the country;

2. the duration, amplitude and extension of use geographic, inside or outside the country;

3. the duration, amplitude and spread geographic of its promotion, inside or outside the country, including the advertising and presentation at trade fairs, exhibitions or other events of products or services, the establishment or activity to which it relates;

4. the value of any investment to promote it, or to promote products or services, or the establishment or activity to which it relates;

5. the figures of sales and income of the company owner in regards to the sign whose notoriety is alleged in the country;

6. the degree of inherent or acquired distinctiveness of the sign;

7. the book value of the sign as a business asset;

8. the volume of orders for people interested in obtaining a franchise or license of the sign in the country;

9. the existence of significant activities exist of manufacture, purchase or storage by the proprietor of the sign in the country;

10. the aspects of international trade; and, 11. The existence and age of any registration or application for registration of the distinctive sign in the country.

Article 461. Special factors-will be denied the Declaration of notoriety to a sign by the single fact that: 1. is not registered or pending registration in the country or abroad;

2. not have been used or is not used to distinguish products or services to identify establishments or activities in the country; and, 3. May not be well known abroad.

Article 462-Relevant sectors-to declare the notoriety of a distinctive sign shall be regarded as relevant sectors of reference, among others, the following: 1. the consumer actual or potential of the type of goods or services to which it relates; or, 2. The business circles that Act turns relative to the type of products, services, establishment or activity to which it applies.

For purposes of the Declaration of the notoriety of a sign, just that it be known within any of the sectors referred to in the above literals.

Article 463-Declaratory procedure.-the owner of the distinctive will request to the competent national authority on intellectual rights recognition of the notoriety of the distinctive sign.

To request you must include tests deemed relevant to show the notoriety of it, according to the factors set forth in the preceding article; You must also include proof of payment of the respective fee.

The order and the evidence submitted by the party will be evaluated by the competent national authority on intellectual rights to issue resolution or respective pronouncement.

The request for declaration of notoriety can also be performed within any administrative procedure that is is prejudice to the competent national authority on intellectual rights, provided that the effect it is alleged expressly considered the factors detailed in this code, will accompany the payment of the respective fee, and is observed in the relevant declaration procedure laid down in this article.

In the case of regular administrative resources notoriety you can meet whenever it has been alleged in the contested decision.

Section II rights and limitations article 464.-scope of protection-a notoriously known declared hallmark will be protected against use and registration not authorized under this chapter, without prejudice to the other provisions of this title that were applicable and the rules for the protection against unfair competition.

There is no such protection for distinctive signs that have been used or registered, or whose application for registration has been filed prior to Friday December 9, 2016 - 77Registro offi cial No. 899 - supplement the notoriously known declared distinctive reached such character in the country, except for the cases in which the distinctive has been used or registered , or whose application for registration has been filed in bad faith.

Article 465-Rights holder of the sign distinctive.-the owner of a notoriously known declared distinctive sign shall have the right to prevent any third party, without your consent, the use of the sign, in its entirety or in an essential part, or a reproduction, imitation, translation, transliteration or transcription of it, liable to create confusion, in relation to products, services, facilities or activities identical or similar to those that apply.

You will also have the right to prevent any third party without your consent, the use of the sign, in its entirety or in an essential part, or of a reproduction, imitation, translation, transliteration or transcription of the sign, even regarding products, services, facilities or activities different from those who applies the notoriously known declared sign, if such use could cause any of the following effects : 1. risk of confusion or association with the owner of the sign or its products, services, facilities or activities;

2 damage economic or commercial unfair to the proprietor of the sign by reason of a dilution of the distinctive force or the commercial or advertising value of the sign; or, 3. Unfair use of the prestige or popularity of the sign.

The use can check carse through any means of communication, including electronic ones.

Article 466.-application-367 to 371 of this title shall apply to the notoriously known declared distinctive signs.

Article 467-Good faith-to resolve on an action relating to the unauthorized use of a distinctive sign declared notoriously known, be taken into account the good or bad faith of the parties in the adoption and use of that sign.


Article 468-Prescription of the action by the unauthorized use of the distinctive sign.-the action against unauthorized use of a notoriously known declared distinctive barred after five years from the date on which the holder of the sign had knowledge of such use, except that this has started in bad faith, in which case the action is not barred.

Article 469-Cancellation or modifi cation of a domain name-when a notoriously known declared hallmark had improperly registered in the country as part of a domain name or name of an e-mail address by an unauthorized third party, at the request of the holder of that sign, the competent national authority on intellectual rights will order to the body which was inscribed the name or address or had done to whom such registration, cancellation or modifi cation of the registration of the domain name or e-mail address, or your transfer in favour of the proprietor of the sign, provided that use of that name or address would be likely to have any of the effects mentioned in article 465.

Item 470-Cancellation of registration of a mark by notoriety-without prejudice to the provisions on nullity or other provisions on cancellation of a trademark registration, the competent national authority on intellectual rights will cancel the registration of a mark, at the request of the legitimate owner, where it is identical or similar to one that it had been declared a well-known in accordance with the legislation in force at the time of registration is.

Title IV of the new varieties vegetable section I requirements of protection article 471-protectable matter.-the protection provided for in this title extends to varieties belonging to all genders and plant species provided that its cultivation, possession or use is not prohibited for reasons of human health, animal or vegetable, food sovereignty, food security and environmental security.

Is not granted protection to the species: a) in wild, natural or native;

(b) resulting from a mere discovery, except for mutations, provided compliance with steps of natural mutation, selection and registration processes. In any case, they shall comply with the requirements of distinctiveness, homogeneity and stability; and, c) where there is or involves a process of crop improvement derived from the simple long-term symbiotic relationship between the species and the human being.

If applicable, for the protection of breeder, will abide by concerning the protection of the country's biological and genetic heritage, which prior to the filing of the application for a breeder's right must have been obtained access permissions corresponding, which will be presented together with the application.

Article 472.-Requirements for the acquisition.-will be granted breeder's right to the person who has created a plant variety, when it is new, distinct, uniform and stable, and you had been given a denomination that constitutes their generic designation.

For these purposes, means creation of a plant variety, the result of a new variety by applying methods scientists through techniques 78 - Friday, December 9, 2016 supplement - registration offi cial No. 899 conventional and non-conventional plant breeding; and the empirical method based on experimentation and observation made by farmers to obtain improved varieties better adapted to its local realities, such as those obtained by natural mutations, provided the requirements laid down in the preceding article. In both cases is always applied to the inherited improvement of plants that allow differentiate it from any other.

That difference shall be established by the expression of at least one character that is expressed in agronomic way, same differentiate it from any other variety known and being reproduced, multiplied or spread, keep the essential features that are her own.

Article 473-Organisms genetically modifi ed.-when a breeder right application is submitted for a variety that is within the scope and limits of the current legislation on genetically modifi Ed organisms, the competent national authority on intellectual rights shall inform the competent national bodies on the application as filed, obtain on the fi nes consequential damages.

Article 474.-news.-a variety shall be considered new when the material reproduction or propagation of the variety, or a product of his own, had not been sold or handed over to a third party, by the breeder or his successor in title with their consent, for purposes of commercial exploitation of the variety.

The novelty is lost in the following cases: 1. If the holding in the country has started at least one year before the date of filing of the application or of the priority claimed; or, 2. If the exploitation in any other country has begun at least four years or, in the case of trees and vines, for at least six years before the date of filing of the application or of the priority claimed.

Article 475.-Conservation of novelty-novelty is not lost by the sale or delivery of material of the variety to a third party when such acts: 1. are the result of a wrongful act or an abuse committed to the detriment of the breeder or his successor in title;

2 they are part of an agreement to transfer the right on the range, provided that this does not imply that the material of the variety is delivered to a third party with purposes of commercial exploitation;

3 they are part of an agreement as a third increased which, on behalf of the breeder, stocks of the material reproduction or multiplication, always multiplied stocks to remain under the control of the breeder or his successor in title and that these stocks are not used for commercially producing another variety;

4 they are part of an agreement between the breeder and a third one under which this tested field, laboratory or procedure on a small scale to evaluate the variety;

5 relate to the material of harvest of the variety that has been obtained as secondary or surplus product of the activities mentioned in paragraphs 3 and 4 of this article, provided that the product is sold or delivered without identifi cation; or,


6 are carried out in compliance with a legal obligation, in particular with regard to environmental safety or the registration of the variety in a registry offi cial of varieties accepted for marketing.

Article 476.-Distinction.-a variety shall be considered distinct if clearly differs from any other whose existence was well known, the date of filing of the application or of the priority claimed.

In particular, the presentation in any country of a request for the grant of the breeder's right or for the registration of the variety in an offi cial register of cultivars range from that date, will make such a well-known if such an act would lead to the grant of the right or the registration of the variety, according to be the case.

The notoriety of the existence of another variety may be established by various references, such as exploitation of the variety already in course, registration of the variety in a varieties register maintained by a legal and technically recognized professional association, or presence of the variety in a reference collection.

Article 477-Homogeneity.-a variety shall be considered homogeneous if it is suffi ciently uniform in its essential and discriminatory character in the case of varieties obtained by conventional methods.

In unconventional methods a variety shall be considered homogeneous if it is uniform enough in their relevant and discriminatory character, in these cases it may propose a certain percentage of plants outside type within the plot, according to the corresponding regulation.

In both cases always be taken into account variations predictable according to their form of reproduction, multiplication or propagation, respectively.

Article 478.-Stability.-a variety shall be considered stable if its essential and discriminatory character remain unchanged of generation in generation and at the end of each particular cycle of reproduction, multiplication or propagation.

Article 479-Generic designation.-the variety subject to a right of breeders, will be designated with a name destined to be its generic designation.

Friday, December 9, 2016 - 79Registro offi cial No. 899 - supplement any right relating to the designation registered as the denomination of the variety hamper the free use of the denomination in connection with the variety, even after the expiry of the certifi ed breeder's.

The denomination of the variety shall be indicated in the application of right of breeders. If that denomination does not comply with the conditions laid down shall be required to the applicant that proposes to another denomination. While these conditions are not met, the right of the breeder shall not be granted.

A variety may only be a request of right of breeders in the Ecuador under the same name used for that variety in other Member countries of the International Union for the protection of new varieties of plant - UPOV-. However, if it is found the inconvenience or inability to use that appellation in the Ecuador by any previous right or other legal impediment exist, will require the applicant that proposes to another denomination.

Who imported or comercializare in the country, or exporting from the country, the material of a variety protected in the Ecuador is obliged to use the denomination of the variety, even after the expiration of the breeder's right on that variety.

When it is offered for sale or material of a protected variety is marketed in the country, can be used together with the denomination of the variety a trademark, a trade name or a geographic indication. In any case, the variety denomination must be easily recognizable.

Requirements that must comply with the generic designation will be established in the corresponding regulation.

Section II of article 480.-holders-the right breeder holders belongs to the breeder of the variety. This right is transferable by Act between living and transmissible by cause of death.

Holders of the right of the breeder shall be natural or legal persons.

If several persons have jointly created a variety, entitlement belongs in common to all of them or their successors in title.

Article 481-Variety in educational centres and research.-applies Article 276 of this code where the variety has been obtained in the course of investigations or activities referred to in that article.

Article 482.-New varieties developed in fulfillment of a contract.-applies article 277 of this code where the variety has been obtained pursuant to a contract of work or in the framework of an employment relationship.

Section III of the application article 483.-right of priority-the first application for protection of a variety validly filed in a member country of the International Union for the protection of new varieties of plant - UPOV-, a member of the Andean Community country or in another country that grants reciprocal treatment to applications from the countries members of the Andean Community shall confer to the applicant or his successor in title a right of priority for a period of twelve months to present their request for protection for the same variety in the Ecuador. This period shall run from the date of filing of the first application.

For the purposes of the provisions of the preceding paragraph, the applicant must claim the priority of the first application, the request indicating date, number and the Offi ce of filing of the first application as well as the indication of the relevant legal instrument.

Section IV of the processing of the application article 484.-of the procedure registry.-the application for the acquisition of a plant variety shall submit to the competent national authority on intellectual rights according to the content, requirements and other rules requiring regulation. Similarly, requirements, deadlines and procedures will be established for its publication, among others, the examination of the application, the filing of oppositions and the granting or refusal of the application in the corresponding regulation.

Section V rights and limitations


Article 485.-Duration of the breeder's right-once granted the breeder's right, it will have a period of eighteen years in the case of varieties of vines and forest, fruit trees and ornamentals, including its porta grafts, and fifteen years for the other varieties, from the date of granting of the certifi cate.

For those varieties which have not been marketed in the country, the term of the breeder's right, initially registered in the country of origin, last time remaining to complete the term of the first record in that country.

Article 486.-Obligations of the breeder-during the term of the right of the breeder, its holder shall have the obligation to maintain and, where necessary, replace the material of the variety subject to your certifi ed.

Article 487.-rights of the holder.-the breeder set right ere on its proprietor the right to prevent third parties make without your consent any of the following acts with regard to the material of 80 - Friday, December 9, 2016 supplement - registration offi cial No. 899 reproduction, propagation or multiplication of the ornamental variety protected: 1. production, reproduction, multiplication or propagation;

2. preparation with fi nes of reproduction, multiplication or propagation;

3. offer for sale, sale or any other Act that involves the introduction in the market of material reproduction, propagation or multiplication;

4 export or import; and, 5. Possession for any of the fi nes mentioned in the preceding.

Also confi ere the right to prevent the acts indicated in literals earlier with respect to the entire plants and parts of plants, obtained through the unauthorized use of reproductive or multiplication of the protected variety material, unless the holder had reasonably been able to exercise his exclusive right in relation to the reproduction or multiplication material.

Also confi ere the right to prevent the commercial use of plants or parts of plants as multiplication material in order to produce ornamental plants or parts of plants ornamental article 488.-effect of the right granted to the breeder-the right granted to the breeder shall have effect subject to his prior authorization the following acts: 1. production with commercial purposes;

2 making the sale; and, 3. The marketing of the material reproduction or vegetative propagation, in his capacity as such, of the variety.

Also confi ere the right to prevent the acts referred to in the paragraphs above with respect to the product of the harvest, including entire plants and parts of plants, obtained through the unauthorized use of the material of the protected variety production, unless the holder would have been able to reasonably exercise his exclusive right in relation to the reproduction or multiplication material.

Article 489.-Exceptions-No injures the rights of the owner of a breeder who book, reproduce, multiply or sow the product retrieved from the cultivation of the protected variety, or of a variety essentially derived from it, when such acts were carried out: 1. for your own use;

2. to sell or trade, without fi nes of nonprofit that product as raw material or food; and, 3. In the context of ancient agricultural practices or in a traditional community agriculture, including to sell or Exchange, without purposes of nonprofit seed or other material of that variety.

This article is excepted the commercial use of multiplication, reproduction or propagation material, including whole plants and parts thereof, of fruit, ornamental and forest species.

Article 490.-Limitations to the right of the breeder-breeder the right not confi ere on its proprietor the right to prevent third parties perform the following acts with respect to the protected variety: 1. acts done in private and without fi nes commercial;

2 acts carried out with fi nes of experimentation;

3. acts with purposes of teaching or scientific research or academic; and, 4. Acts carried out with the aim of obtaining a new variety;

Use by farmers with purposes of multiplication or for Exchange with other farmers for the purpose of multiplication of seed or other propagating material which farmers have obtained from the planting of the protected variety or Exchange with other farmers, with the condition that this multiplication will not or will be extended to producing with commercial purposes. This Exchange will be made respecting the rules, laws and regulatory provisions for mobilization of plant material.

Article 491.-Other limitations to the right of the breeder-the holder of a breeder's right may not prevent the use by farmers with purposes of multiplication or for Exchange with other farmers for the purpose of multiplication of seed or other propagating material which farmers have obtained from the planting of the protected variety or Exchange with other farmers with the condition that this multiplication or Exchange does not extend to the mark or trade name of the owner. This Exchange will be respecting customary law, legal and regulatory provisions for mobilization of plant material.

Article 492.-of the exhaustion of the right.-the breeder didn't trust certifi ere on its proprietor the right to prevent a third party perform acts with respect to the material its variety or a scheduled variety in Article 487, or material derived from such material once that material had introduced into the Commerce of any country with the consent of the proprietor of a licensee, of a person economically linked to the holder or the licensee, or any person authorized to do so, unless such acts: Friday, December 9, 2016 - 81Registro offi cial No. 899 - Supplement 1. Involve a new reproduction or multiplication of the variety to produce material to be marketed as material reproduction or multiplication; or, 2. Involve an export of material of the variety, allowing you to play it, a country which does not protect varieties of the genus or species to which belong the variety, except where the exported material is intended for consumption.


For the purposes of this article, means that two persons are economically linked when one can exercise directly or indirectly on the other, a decisive influence with respect to the exploitation of the variety or a third party can exert such influence on both persons.

Article 493.-Transfer or license of the breeder-a right of breeders right to request or a request pending may be subject to transfer or license for the exploitation of the variety.

Any transfer, authorization of use or licence of a right of plant breeder or a request pending of concession, must be in writing and register to the competent authority on intellectual rights and they improved and they shall have effect as from its registration.

Any interested person may request the registration of a transfer or license.

Article 494.-Registration of transfer or license agreements-the authority on intellectual rights not registered through which a certifi cate breeder or a pending request is subject to transfer or license for the exploitation of the variety when such contracts do not conform to the provisions of the common regime of treatment of foreign capital and for trademarks , Patents, licenses and royalties, or not in accordance with community or national provisions on business practices restrictive of free competition or unfair competition. Otherwise, what is it will be relevant, to the provisions of the organic law for the regulation and Control of power of market and apply the penalties provided for in the same.

The otherwise will require express authorization from the rights owner.

In any case, the value of the royalties set out in the contracts, shall be proportional to the use of the plant variety rights whose rights are current.

Article 495-Modifi cations to the registry.-the owner of the right of breeders must register with the competent authority in the field of intellectual rights any change in name, address, domicile or other data of the holder, his representative or agent. Any notifi cation accomplished under the fi guren data in the register shall be deemed valid.

Section VI delete article 496-cancellation.-the competent national authority on intellectual rights declared, offi cio or to request, at any time, the cancellation of the breeder right in the following cases: 1. when it is check that the protected variety has ceased to meet the conditions of uniformity and stability;

2. when the breeder does not submit statement information and necessary documents demonstrating the maintenance of the conditions referred to in the preceding paragraph or not perform replacement of the material of the protected variety in the form and time limits required by the competent national authority in the field of intellectual rights; and, 3. When with subsequent to the granting of the right of breeders has had declared inadmissible the initially assigned to the variety denomination and the holder of the certifi cate does not comply with present a new name right within the period fixed by the competent national authority in the field of intellectual rights.

Section VII of the resignation Article 497.-waiver to the right.-the owner of a breeder right may waive, at any time, their rights by declaration addressed to the competent national authority on intellectual rights. The resignation will take effect from the date of presentation.

Article 498.-Annulment of the right of breeder.-the competent national authority on intellectual rights, offi cio or at the request of the person concerned, at any time, declare the nullity of a right of breeders, in the following cases: 1. If the variety subject to the right of the breeder did not comply with the requirements of novelty, distinctness, stability and uniformity at the time of the granting of the certifi cate;

2 if it had been awarded in favour of who was not entitled to it;

3. If no submission of copy of the access contract, where the variety has been obtained or developed from genetic resources or their by-products which the Ecuador or any of the Member countries of the Andean Community is country of origin;

82 Friday 9 December 2016 supplement - registration offi cial No. 899 4. If you set gurasen the grounds for annulment provided for in the law for the administrative acts; or, 5. If had been granted with any other violation of the law that substantially has led to its concession or has obtained based on data, information or erroneous or false documents.

Section VIII of revocation Article 499.-payment for maintenance of law and expiration-to keep the right of breeders, they must be paid the corresponding annual rates, otherwise all expire full.

Payment must be made within the first four months of each year. They can afford two or more annual fees in advance, pointing out specifi cally the consecutive years which is paying the maintenance.

An annual fee may be paid within a period of grace of six months from the expiration of the period provided for in the foregoing paragraph jointly paying the surcharge established. During the grace period, the right of breeders will maintain in full force.

The lack of payment of an annual fee under this article will produce full expiration.

Section IX of the regime of compulsory licenses article 500-Declaration of free availability.-prior declaration by Executive Decree or ministerial resolution of the existence of reasons: 1) public interest 2) emergency; or (3) of national security, the national competent authority in intellectual rights may declare a variety protected by right of breeders from freely available, on the basis of fair compensation to the owner.

The competent national authority on intellectual rights determines the amount of compensation, after hearing the parties and expert report, on the basis of the scale of exploitation of the variety subject to the license.


Article 501-Exploitation of the variety of free availability-during the validity of the Declaration of free availability, the competent national authority on intellectual rights will allow exploitation of the variety concerned persons who provide technical guarantees suffi cient and register for this purpose before it.

Article 502.-Entry into force of the Declaration of the variety of free availability.-the Declaration of free availability shall remain in force while remaining the causes that led to it.

Article 503.-compulsory licences by anti-competitive practices-offi cio or request of a party, the competent national authority on intellectual rights grant compulsory licenses when practices that have been declared by the competent national authority in the field of competition as contrary to the relevant regulations, in particular when they constitute an abuse of a dominant position on the market by the holder of the certifi cate of breeder.

In these cases, the need to correct anti-competitive practices are taken into account to determine the amount of the compensation in the benefi t of the holder of the certifi cate.

Article 504.-Compulsory for the holder of a patent-when the owner of a patent of invention not could commercially exploit the invention without the use of a variety protected by a certifi cate breeder, may request a compulsory on that variety in so far as it is necessary to exploit that invention.

In this case, the holder of the certifi cate breeder is entitled to a reciprocal compulsory license to use the patented invention when it is necessary to exploit the protected variety.

The compulsory licence that was granted only may transfer the patent or certifi ed which need the license.

Article 505-remission-shall apply to compulsory licenses provided for in this article, what is relevant, the provisions of section X of chapter II of title III of this code.

Title V other modes related with property intellectual article 506.-information undisclosed-undisclosed information enjoys effective protection against disclosure to third parties and to unfair practices.

Article 507. Marketing authorization.-to approve the marketing of products pharmaceutical or agricultural chemical that contain new chemical entities, will be required including any information to prove the safety and effi ciency of them, such as test data, studies and documents on identity physical chemistry and pharmacokinetics or bioequivalence, sanitary or comparable obtained foreign equivalents , or any other evidence that would ensure the safety and effi ciency of the product that is intended to sell.

Article 508 test data-protect test data or other undisclosed safety and effi ciency of pharmaceuticals and agricultural chemicals, in accordance with the provisions of article 27 number Friday, December 9, 2016 - 83Registro offi cial No. 899 - Supplement 7 of the Organic Act of Control of the power market, where the information contained in the data complies with the following conditions (: a) is secret in the sense that is not, as a body or in the confi guration, meeting accurate of its components, generally known or readily accessible to people in the circles that normally uses the type of information in question;

(b) has a value of trade to be secret; and (c) has been subject to reasonable steps under the circumstances, to keep it secret, taken by the person who rightfully controls it.

Article 509.-Data exclusivity for test-where the competent authority requires as a condition for approving the marketing of pharmaceutical or chemical agricultural products that contain new chemical entities, the submission of data from testing or other undisclosed information about safety and effi ciency, which involves a considerable effort, will be them granted a period of exclusivity of five years from the date of approval of marketing for pharmaceuticals , and ten years for agricultural chemicals.

For the purposes of this article, shall be new chemical entity that has not been previously approved in the Ecuador for use in an agricultural chemical or pharmaceutical product.

In the event that the competent authority does not require the submission of data from testing or other undisclosed information about safety and effi ciency for approving the marketing of pharmaceutical or chemical agricultural products that contain new chemical entities, the protection granted is provided for in the preceding article. Not necessary the presentation of test data when it can be shown the safety and effi ciency with any other information.

Article 510.-Access to undisclosed information.-the competent national authority on intellectual rights to request of a party may authorize a third party to access information not disclosed, including that information contained in test data, for reasons of public interest, situations of national emergency or extreme urgency.

The authorization will remain in force while the circumstances that led to its issuance, shall also include the payment of reasonable compensation. The information should be used in the terms, fi nes and conditions provided for in the authorization.

The authorized person will ensure that the information is kept in reserve which will establish the necessary mechanisms. Responsibility will remain even after conclusion of the validity of the authorization of access to undisclosed information.

Provisions of the preceding article shall not apply to the provisions of article 88 of the code.

Title VI of the knowledge traditional article 511-knowledge traditional ones-are all those collective knowledge, such as practices, methods, experiences, skills, signs and symbols of peoples, nationalities and communities that are part of their cultural heritage and have been developed, updated and transmitted from generation to generation. They are traditional knowledge, among others, ancestral and local knowledge, the intangible component associated to genetic resources and traditional cultural expressions.


These traditional knowledge may relate to aspects ecological, climatic, agricultural, medicinal, artistic, craft, fishing, hunting, among others, themselves that have been developed from the close relationship of human beings with the territory and the nature.

The recognition and protection of traditional cultural expressions and collective rights on the intangible component will be complementary to the rules on access to genetic resources, cultural heritage and other related. The spirit of the exercise of these rights is to preserve and perpetuate the traditional knowledge of communities, peoples, nationalities and communities, ensuring their expansion and protecting them from the commercial misappropriation.

Article 512-the recognition of traditional knowledge.-in accordance with provisions in the Constitution and in international treaties to which Ecuador is a party, are recognized the collective rights of legitimate holders over their traditional knowledge. These rights are imprescriptible, inalienable and indefeasible, and form part of the cultural identity of their legitimate owners.

The protection of this knowledge shall be according to their own customs, institutions and cultural practices, the Constitution and the international treaties governing the matter, contributing to the strengthening of its traditional internal structures. In this form of protection, the legitimate owners have, among others, the right to maintain, promote, manage, enrich, protect, control, innovate and develop their traditional knowledge according to their usages, practices, customs, institutions and traditions, as well as to prevent or stop the access, use and improper use to this knowledge.

The recognition of rights over traditional knowledge includes the expression of their culture or practice, as well as the ability to appoint to the traditional knowledge and keep this denomination in products that can generate the same, with the fi allow traceability to its source. This 84 - Friday 9 of December 2016 supplement - registration offi cial No. 899 ability to appoint their knowledge also implies the ability to oppose the registration of names of peoples and nationalities by third parties, who if the case must have obligatorily with the prior, free and informed consent of their legitimate owners, which will establish a fair and equitable distribution of monetary and non-monetary benefits.

Collective rights over TK are susceptible of enforcement measures by the competent national authority on intellectual rights according to the provisions of this code, its regulations and other rules applicable.

Similarly, will recognize these rights to persons belonging to the communities, peoples and nationalities in equality and equity conditions and without gender discrimination.

Article 513-Legitimate possessors of traditional knowledge.-for purposes of this code, afro-Ecuadorian, means lawfully to communities, peoples, indigenous nationalities, the people the montubio people and legally recognized communities that live in the national territory.

Article 514.-Legal entity cannot be traditional knowledge holder.-in any case a legal person may be subject to rights over traditional knowledge. This implies that a legal person may never have the quality of legitimate holder of traditional knowledge.

In those cases that authorizing access to a genetic resource or to grant consent for access to traditional knowledge in favour of a legal person, this does not give possession rights over knowledge traditional nor on the genetic resources but only the authorization to make use of it in the terms indicated in the permit or in the contract according to the case.

Article 515.-Subrogation of the State-State is not owner of rights on the traditional knowledge, however in cases in which legitimate owners do not exercise their rights willingly, the State through the Ministry of higher education, science, technology and innovation, exceptionally with the aim of protect, manage and conserve TK You subrogated right to grant consent and agree on the distribution of benefi ts.

Benefi ts perceived in these cases will be earmarked for the strengthening of traditional knowledge.

Section 516-Shared traditional knowledge.-recognizes the protection of the traditional knowledge-sharing between municipalities, communities, peoples and nationalities settled in a same area geographic co to their legitimate owners, who must seek joint management of such knowledge.

In these cases who intends to access the knowledge shall require the consent of the communities which has identifi ed as legitimate holders. The applicant must make their best efforts in search and identifi cation of the legitimate holders.

Once consent granted and registered the access contract, the emergence of new persons lawfully unknown at the time of the access, will not affect the contract signed.

Every legitimate owner may freely exercise their collective rights without prejudice to the exercise of these rights on the part of other persons lawfully. This means that in cases where there are several legitimate groups same knowledge holders, the consent and benefits received by one of them do not prevent other legitimate groups owners to give consent on behalf of a third party. This generates nor the right in favour of the legitimate group holder who would have not been consulted initially, to claim benefi ts of part of who obtained the consent and agreed to knowledge initially.

The legitimate holders that have not been consulted have the right to give consent and sign access contracts with new researchers. No legitimate group holder can exercise exclusive rights over traditional knowledge that is shared among the various human groups


Article 517.-Collective knowledge of an individual.-in those cases when a traditional knowledge, in reason of the extinction of the human group that guarded it, reach borne by an individual, this would be considered the rightful owner and as such, may exercise all rights belonging to him; If can prove that knowledge was conceived in a collective way.

Article 518.-residents in areas other than their native territories.-persons or groups belonging to communities, peoples or nationalities and are outside the original territory or normally keep their collective rights, provided that does not harm the legitimate holders.

Article 519.-Of the legitimate cross-border weapon-not affect the exercise of the collective rights recognized in the present Code, the fact that traditional knowledge is cross-border.

Article 520.-Right to free determination.-recognized powers and exercise in the decisions on traditional knowledge the legitimate holders according to self-determination and their own forms of coexistence, social organization, institutions, generation and exercise of authority.

Article 521-of what can-are recognized as collective heritage of nationalities and indigenous, montubio, afro-ecuatoriano village, peasant communities and communes, among others, the following TK: Friday, December 9, 2016 - 85Registro offi cial No. 899 - supplement to) therapeutic methods for the prevention, treatment and cure of diseases of ancestral form;

(b) knowledge of combinations of natural biological extracts for the preparation of traditional medicine;

(c) knowledge of natural biological compounds for the preparation of food, dietary, dyes, cosmetics and derivatives or similar products;

(d) knowledge about natural products and compositions containing them for agricultural use, as well as hunting, fishing and other subsistence activities;

(e) knowledge of mechanisms and practice of planting, harvesting, maintenance and collection of seeds, among other agricultural practices.

(f) tangible forms of traditional cultural expressions such as: clothing, works of art, drawings, designs, painting, sculpture, pottery, woodwork, jewelry, basketry, textiles and carpets, handicraft, traditional architectural works, musical instruments of farming, hunting, and ancestral fishing; and, g) intangible forms of traditional cultural expressions as: myths or legends, symbols, dances, traditional games, songs and interpretations traditional cas EQU, indigenous names and ritual ceremonies, regardless of whether or not fi tted in support of any kind.

Are generally protected all traditional knowledge, that conform to the defi nition of the present Code, and who therefore express the genuineness of the practices of communities, peoples and nationalities, which constitute, both orally and written, its historical, cosmological and cultural tradition article 522.-form of protection-it guarantees the effective and positive protection of TK from access use or improper use by third parties not authorized, expressed in the mechanisms of prevention, monitoring and sanctions that are generated in the regulation which shall be issued to the effect. The recognition of the collective rights of legitimate holders of their traditional knowledge is not subject to formality or any record for the purposes of ensuring their protection, validity and exercise, since this lies in the legitimacy of the EU.

Mechanisms of strengthening local capacities on the collective right to traditional knowledge for its revitalization, promotion and protection will be promoted.

Article 523.-Voluntary deposit of TK legitimate owners may make a deposit of their traditional knowledge to the competent national authority on intellectual rights.

This deposit can be confi dential and restricted to the public at the request of the legitimate holders. The objective of this deposit will be avoid illegitimate appropriation of such cognitive acquis, as well as, it will be a means of verifi cation for recognition of collective rights over traditional knowledge which may be infringed in any application for intellectual property rights. TK deposit does not grant the depositary any authorization of grant of use and access to third parties without the express authorization of the legitimate holders and holders of such knowledge traditional and previous compliance with the corresponding standard.

Prior to the granting of intellectual property rights, the competent national authority on the subject must verify the information which is refi ere the preceding paragraph in order to prevent the misappropriation of traditional knowledge.

Without prejudice to the provisions of this article, you can compile traditional knowledge that have been made public previously.

The deposit information, as well as to which is refi ere the previous paragraph, will be part of the national system of information in science, technology, innovation and traditional knowledge.

Article 524-custodians of traditional knowledge at the community level-the State will recognize and award technical and economic resources prior request of the legitimate holders, for the development of community registries of TK to be managed and guarded by the communities themselves, under the responsibility of the competent authorities.

Article 525.-Access, improper use and use.-the exercise of collective rights over TK are exclusive to their legitimate owners, and through more legislation and enforcement measures provided for in this code, may prevent the access, use or improper use by unauthorized third parties.


Article 526-Traditional knowledge and its dissemination: defi nition and treatment-traditional knowledge are diffused when such knowledge and information have come out of the culture of communities, peoples and nationalities, and are deposited in high diffusion publications or in collections ex situ centres of ethnobotany, or have been reported form oral and informal to the point at which have become State of the art obtained with or without the free, prior and informed consent of communities, communities, peoples and nationalities.

However of the preceding provision, the State recognizes the right of the legitimate holders on such traditional knowledge, which includes the right to a fair and equitable participation in the benefi ts through terms mutually agreed upon with the respective 86 - Friday, December 9, 2016 supplement - registration offi cial No. 899 custodians and their users, notwithstanding that the same protected by intellectual property regimes are classics. The State shall establish the most appropriate mechanisms to enforce compliance with this provision safeguarding the right of communities, peoples and nationalities.

Article 527-State support to the efforts of the legitimate holders.-in respect for the right of self-determination and a development of culturally appropriate of the legitimate holders, the State will promote and support strengthening their capacities and efforts for the generation and maintenance of their traditional knowledge, and, if the case, research, and the development of scientifi and technological knowledge obtained Recognizing their intellectual rights. For this purpose it will allocate necessary financial and technical resources.

Article 528.-Use of TK by the legitimate owners-the State recognizes the right of communities, peoples and nationalities to the use, enjoyment and disposal of their traditional knowledge in accordance with its rules of cultural coexistence.

The State will create incentives for communities, peoples and nationalities strengthen their own initiatives for research, development and innovation; respecting their right to self-determination.

Article 529.-Applications for access, use and exploitation of traditional knowledge.-applications for access, use and management of traditional knowledge must have prior consent, free and informed of their legitimate owners, which will establish a fair and equitable distribution of monetary and non-monetary benefits. This is without prejudice to the rights that correspond to the State in the case of genetic resources, as established in the Constitution and the law.

Article 530.-Free, prior and informed consent-legitimate holders in accordance with their customary laws, and institutions of legally constituted, and legitimate representation through participatory mechanisms, have the Faculty exclusive to authorize a third party freely, express and informed the access, use or exploitation of their traditional knowledge, through free, prior and informed consent. Prior to obtaining consent, the person concerned must provide enough information concerning the purposes, risks, implications, any uses and future applications of knowledge, providing conditions that will allow a fair and equitable distribution of benefits obtained from such knowledge. The Ministry of higher education, science, technology and innovation can provide at the request of a party, advice on negotiations between communities and stakeholders.

The person concerned should commit themselves to respect the collective rights, and, if applicable, to maintain confi dentiality in relation to the information, materials, experiences, methods, instruments and other tangible or intangible elements related to traditional knowledge. Similarly, the dialogue of knowledge and implementation of culturally appropriate techniques such as fundamental elements of this consent shall be respected.

For cases in which the application of free, prior and informed consent see on an intangible component associated with genetic resources, interested users will present a plan detailing the access, use and exploitation of these components, with the Ministry of higher education, science, technology and innovation, as the governing body in the field of traditional knowledge, in accordance with what has the respective regulation.

Free, prior and informed consent and fair and equitable sharing of monetary and non-monetary benefits are prescribed by the regulations issued for the purpose, which must be considered among others to the authorities, institutions and traditional modes of decision-making of communities, peoples and nationalities, as well as ensure participation of the decisions, an intergenerational and gender perspective.

Article 531.-of the concession or refusal-the granting and refusal of the legitimate holder to authorize access, use or exploitation of their traditional knowledge must be registered with the competent national authority on intellectual rights, fi n that it can perform the corresponding control on the decision of the legitimate holder.

At the request of a party, the Ministry of higher education, science, technology, and innovation may attend negotiations carried out for the granting of a consent, and to advise the persons lawfully during the same.

Article 532.-Contract-once the person concerned has with the prior, free and informed consent, you must subscribe a contract written in Spanish and, if applicable, simultaneously in the mother tongue of the legitimate holders.

In the event that the mother tongue is not likely to be recorded in writing, the contract will be held in Spanish as the language of cultural interrelation.

This contract will establish the terms and conditions on the use, access or utilization of traditional knowledge, among which are indicated, relevant motivation in terms of the scope and potential international effects that is expected to obtain; the fair and equitable sharing of the benefi ts monetary and non-monetary, including the plan for sustainability and sustainability of traditional knowledge; and the possible authorizations or future assignments.


Article 533.-for registration of contracts-contracts that will refi ere the previous article shall be entered by the competent national authority rights Friday, December 9, 2016 - 87Registro offi cial No. 899 - intellectual supplement, who will approve them once you have favorable criterion Secretary of higher education, science, technology and innovation , and relevant institutions in relation to the scope of their powers and shall have effect as from its registration with the competent national authority on intellectual rights.

Prior to registration, the competent national authority on intellectual rights, mainly, ensure and check face that there is the free, prior and informed consent, and a fair and equitable benefi t for legitimate holders of traditional knowledge, as well as, will monitor compliance with national and international regulations.

Where the competent national authority on intellectual rights considers that the contract does not contain the provisions of the preceding paragraphs or that could cause injury to the persons lawfully, be forwarded to these observations and suggestions to fi t that be accepted wholly or in part and be Modifi ED or ratifi that the contract.

Article 534-Dispute resolution-in case of discrepancies or confl ICT with regard to agreements which is under a contract of access, use or exploitation of traditional knowledge, these will be resolved necessarily in Ecuadorian jurisdiction and by the more favourable to the persons lawfully mechanisms.

Article 535.-Penalties-access, use, or improper use, of total or partial form of traditional knowledge will lead to the application of sanctions and measures, for the cessation of the infringing acts, to prevent these and repair their possible effects.

The competent national authority on intellectual rights, offi cio or at the request of a party, may take the measures it deems necessary to fi n avoid or cease acts of infringement on collective rights over traditional knowledge.

The free, prior and informed consent and fair and equitable sharing of monetary and non-monetary benefits are prescribed by a regulation issued for this purpose, which should be considered among others to the authorities, institutions and traditional modes of decision-making of communities, peoples and nationalities. As well as ensuring the participation of decisions an intergenerational and gender perspective.

Article 536-Advisory Board-for everything related to this title, the Advisory Council of traditional knowledge as a space for participation of peoples and nationalities, which will be made by a representative of the indigenous nationalities, a representative of Afro-Ecuadorian peoples, a representative of the montubios peoples and a representative of the institutions of higher education is created. With regard to its functioning, it will be as provided in the respective regulations.

Its function will be the of providing advice to the actors involved in this chapter.

Article 537.-Traditional knowledge management.-the Secretary of higher education, science, technology and innovation, will allocate the funds necessary for the management and protection of traditional knowledge.

The management of traditional knowledge includes: research, development, technological scientifi, mechanisms of revitalization, promotion and protection, as well as the prevention of the loss and misuse of such knowledge.

For this purpose, the competent authority shall issue a protocol of access, use and exploitation of TK binding for the institutions and actors of the system.

Title VII of the enforcement chapter I principles General Article 538-Confl ICT of competence-in judicial or administrative procedures in which keep together identity of persons, objects and controversial intellectual property rights, the judge or the administrative authority which lies first competition will be which continue to know the cause and the authority which has avocado knowledge of the cause then , you must suspend processing until the original cause is resolved, regardless of the authority and in which they were initiated.

For those processes in which keep together identity of persons, objects and controversial intellectual property rights and are processed between authorities belonging to the same authority, either administrative or judicial, the authority hierarchically superior is that you must know the cause and the subordinate authority shall forward the dossier for the accumulation of cars.

The authorities will be sent to meet the confl ICTs presented at its headquarters, and responsibility of the parties will be the to inform the appropriate authority the existence of pending litigation or the confl ICT of existing jurisdiction in accordance with this article.

Article 539-Enforcement in general-judicial and administrative measures are established to ensure the protection of intellectual rights, as well as to ensure trade, competition and the legitimate use of products or materials protected by intellectual property rights.

Article 540. Positive enforcement.-the violation of intellectual rights established in this code will result in the exercise of judicial and administrative actions.

88 Friday 9 December 2016 supplement - registration offi cial No. 899 in exceptional circumstances, without prejudice to the conduct or outcome of the main action, in application of the principle of proportionality and at the request of part may order the lifting or the suspension of measures precautionary.

Article 541-Refusal enforcement.-the competent national authority on intellectual rights, at the request of a party, and the competent judge shall exercise functions of inspection, monitoring and penalties to prevent and repress the abusive exercise of intellectual property rights, as well as ensure the lawfulness of acts with respect to the rights of intellectual property of third parties and the full and effective exercise of limitations and exceptions to these rights.


Subject as described in the preceding paragraph, the competent national authority on intellectual rights and the competent judge may offi cio or upon request part and exercise negative enforcement ensure the effective protection of fundamental rights and the dissemination of knowledge.

In exceptional circumstances, without prejudice to the conduct or outcome of the main action, in application of the principle of proportionality and at the request of part you may order lifting or the suspension of measures precautionary.

Article 542.-Shares of co-owners.-in the case of co-ownership of a right, any of the joint proprietors may engage in actions that treats this title without requiring the consent of the other co-owners, except legal provision or agreement to the contrary.

Article 543-Counterclaim-in administrative procedures and judicial processes in the field of intellectual property enforcement is permissible the related counterclaim, which will be resolved in resolution or statement, as appropriate. The counterclaim will be raised at the time of formulating the respective answer.

If so, the counterclaim within the powered may request; among other things, the invalidity of the which served as the basis for the filing of the action, as well as the cancellation, claim, expiration and other fi gures applicable to the various forms of intellectual property, regulated by this code.

The counterclaim Court observed the procedure provided for in the general rule of processes.

Administrative headquarters, the formality of this action will be laid down in Title VII, chapter III, section II of the present regulatory body.

Article 544.-Presumption of law copyright.-unless evidence to the contrary, that the author of a protected work is admitted as such suffice to his name or pseudonym, or any other denomination that leaves no doubt about their identity, put in the work in the usual way.

Article 545.-Protection of business secrets-in process or diligence involving business secrets, the respective authority shall take all necessary measures to protect those secrets. Only the competent authority and the designated experts will have access to the information, code, or other elements, and exclusively in terms of necessary for the practice of the proceedings in question.

All those who in accordance with the foregoing paragraph have access to such secrets will be bound to keep absolute reserve and will be subject to the actions required by this code and other laws for the protection of business secrets.

In any case, the competent authority may refrain from ordering one of the parts of the process to reveal business secrets, when, in the opinion of the authority, the revelation is impertinent to the fi nes of the process.

Article 546.-Inversion of the burden of proof in patent procedures.-in cases which alleges an infringement of a patent whose object is a procedure to obtain a product, will correspond to the defendant in question prove that the procedure that been used to obtain the product is different from the procedure protected by the patent whose infringement is alleged. For this purpose it is presumed, unless there is evidence to the contrary, that any identical product produced without the consent of the owner of the patent has been obtained by the patented process, if: 1. the product obtained by the patented process is new; or, 2. There is a substantial possibility that the same product has been manufactured by means of the procedure and the owner of the patent of this unable to establish through reasonable efforts has been the procedure actually used.

The presentation of evidence to the contrary, shall take into account the legitimate interests of the defendant or reported regarding the protection of their business secrets.

Chapter II of the processes judicial in matters of property intellectual section I principles General Headquarters Judicial article 547-legal actions.-the exercise of enforcement courts referred to in the previous chapter shall be dealt with in summary procedure in accordance with the requirements of the General organic code of processes.

Friday, December 9, 2016 - 89Registro offi cial No. 899 - supplement Article 548-Verifi cation of information.-the competent judicial authority shall require the competent national authority in matters intellectual rights, the information concerning the existence, validity or national recognition of the rights of intellectual property of the actor or of the powered to form its discretion to enact preventive measures or issue statement.

Article 549.-Competition in the field of intellectual property.-the knowledge of the processes that treats this chapter (of the judicial proceedings in the field of intellectual property) corresponds to the competent judicial authority in accordance with the requirements of the General organic code of processes. They will be also responsible for knowing these process, the judges of the place in which the infringement has been committed or where to warn the effects thereof.

The administrative acts of the competent national authority on intellectual rights are susceptible to challenge in the contentious jurisdiction administrative, for which it will not be necessary to exhaust administrative remedies. Other actions will be processed in the civil or criminal jurisdiction in accordance with the competence provided for in the legal system.

Section II enforcement positive article 550.-Action for infringement-the holder of an intellectual property right recognized in the country or other person entitled thereto may initiate legal proceedings against any person who infringes them. You can also operate against persons who perform acts that are forbidden the imminence of an infringement.

Article 551-Request for interim measures-is may apply for preparatory proceedings and preventive measures in accordance to the General Norma de Procesos.

Section III enforcement negative Article 552-lawful use.-any person may bring before the competent judge an action to learn about the legality of their acts, previous, current or future. This action will be filed with respect to the intellectual property rights of a third party, with the exception of distinctive signs.


For the purposes of the preceding paragraph, this action may be initiated without prejudice of the concerning receipt or no warning by the holder of the right or of a third party, with respect to an alleged violation of an intellectual property right.

The judge shall notify car owner or assignee of the intellectual property rights in the country, according to the information registered with the competent national authority in the field of intellectual rights.

Article 553.-abuse of law.-the competent judge shall exercise at the request of part, inspection functions, monitoring and penalties to prevent and repress the abusive exercise of intellectual property rights, provided that the action does not pursue the safeguarding of the general interest or welfare of consumers.

You may order the suspension, within their respective competence, the measures precautionary, as well as any other action that has been taken by third parties at the request of the holder or an interested party.

Chapter III the procedures administrative in matters of property intellectual section I principles General administrative article 554.-administrative actions.-in accordance with the provisions of the present title, the owner of a protected right or other person entitled thereto may engage in administrative action against any person who infringes the rights corresponding. You can also operate against persons who perform acts that are forbidden the imminence of an infringement.

The criminal proceedings to any place shall be exercised in accordance with the relevant legislation.

Article 555.-Preparatory proceedings-previous to initiate enforcement proceedings before the competent national authority on intellectual rights, anyone may request such authority the adoption of any of the preparatory proceedings provided for in the general rule of processes.

Article 556.-experts in administrative processes-in administrative proceedings, experts shall be appointed from among members of the payroll which will provide the Council of the judiciary, only in the case of absence of experts accredited to the Council of the Judicature, the competent national authority on intellectual rights, may appoint a professional that has suffi cient in the respective field expertise in accordance with the provisions of the regulation issued for this purpose.

Article 557-Competence in the field of intellectual property.-the knowledge of the processes covered by this chapter corresponds to the competent national authority in the field of intellectual rights.

Article 558.-procedure in intellectual property-applies the procedure laid out in this chapter, the corresponding and subsidiary regulations - mind General rules on administrative procedures.

90 Friday 9 December 2016 supplement - registration offi cial No. 899 section II section I positive observance of the administrative supervision article 559.-of the administrative supervision.-the competent national authority on intellectual rights, shall exercise offi cio or at the request of part, functions of inspection, monitoring and sanctions to prevent and suppress violations of intellectual property rights.

Article 560-Measures ordered by the authority in the field of intellectual property.-the competent national authority on intellectual rights may order the adoption of one or more of the following measures: 1. inspection;

2 request including the Faculty of order the filing of documents or objects that are under the control or possession of the alleged infringer;

3. punishment of infringement of intellectual property rights; and, 4. The other preventive measures provided for in the general rule of processes.

Article 561-Bail or other guarantee suffi cient-they may require to the actor, attentive the circumstances constituting bail or other security sufficient to protect the defendant and to prevent abuse. The corresponding regulations shall determine the conditions that shall meet the fi bail or guarantee, the amount of which shall be proportional to the possible economic, commercial and social impact generated by the measure, in accordance with the respective regulations.

Interim measures requests they will have the character of reserved and must be qualified carse within 48 hours upon receipt.

Article 562-Inspections-inspections will be carried out to check the alleged infringement of intellectual property rights.

At the time of Stagecoach, are notifi face to the alleged infringer by administrative act which ordered the practice of diligence and, if applicable, the request of the affected Party, as a requirement for their validity and execution.

The competent national authority on intellectual rights shall request the judge authorization and intervention for which, or the servers of the competent national authority on intellectual rights, carried out raids which may include the breakdown of securities.

The authorization referred to in the preceding paragraph shall be conferred by the competent judge of the jurisdiction in which will perform the actions specified in the preceding paragraph, even if it is not of the domicile of the person under investigation or denounced, within a period of 24 hours.

Article 563. Measures granting precautionary at the start of the process-be ordered measures to the take over knowledge of the action, provided that upon request it substantiates its standing to act, the existence of the right infringed and present evidence allowing reasonably presume the accused offence Commission or its imminence.

Article 564.-Experts in the practice of inspections-for practice inspections, you may order the attendance of experts and, if so, its opinion shall be recorded in the minutes if it could be issued in the same proceedings or in the written report submitted within the period which is given to the effect. The expert report may be used for the execution of measures precautionary.

The administrative authority, offi cio or request of a party, may order the expert to attend a hearing that report orally on the technical issues that have previously requested in writing the same authority or any of the parties.

Article 565. Precautionary measures available.-According to the nature of the offence, it may order and practice one or more of the following measures precautionary:


1. the immediate cessation of the acts constituting the alleged infringement;

2. the removal of the commercial circuits of the products resulting from the alleged infringement, including, packaging them, packaging, labels, material printed or advertising or other materials, as well as materials and mainstream media that serve to commit the alleged violation;

3. the suspension of public communication of protected content in digital media, ranked the offender or intermediary;

4. the suspension of the services of the website by an alleged infringement to rights of intellectual property, ranked the offender or intermediary;

5. the suspension of the import or export of products, materials or means referred to in the preceding paragraph, that will notify immediately facing the customs authority;

6. the temporary closure of the establishment of the alleged infringer when necessary to prevent the continuation or repetition of the alleged infringement; and, 7. Be insuffi cient any of the measures described in the preceding paragraphs, you may request any other reasonable measure intended to cease Friday, December 9, 2016 - 91Registro offi cial No. 899 - supplement the Commission of the offence, pondering the legitimate interests of the holder of the intellectual property rights and those of the alleged infringer. It is measure shall apply if it does not affect the interests of third parties.

When issued precautionary measures involving the seizure of products, the competent national authority on intellectual rights, shall be empowered to require the collaboration of one of the depositories of the judicial function, from those contained in the payroll which will provide the Council of the judiciary.

The judicial depositary transfer goods to the place determined, leaving the seized under its responsibility. In addition, will be entitled to charge to the concerning expenses incurred for transportation, conservation, custody, exhibition, and administration of property under its responsibility.

It should prevail concerning in the administrative process, it shall be entitled to claim reimbursement of the costs of the depositary judicial, as part of the amount of compensation for damages can be claimed via the corresponding.

Article 566. Precautionary measures-measures precautionary will be applied on products resulting from the alleged violation and the materials or media that serve mainly to commit it.

Precautionary measures in case of an alleged infringement of copyright or related rights, shall not apply with respect to the purchased copy in good faith and for the exclusive personal use.

The administrative authority may perform any action relief necessary for the implementation of the measures, which will provisionally, and they are subject to modifi cation, revocation or confi rmation as provided for in article 568.

Article 567-Requirement of information.-when suspected infringement of intellectual property rights or the imminence of such violation, the competent national authority on intellectual rights may be required to provide them with any information which establish the existence or not of such infringement or its imminence.

Information must be delivered within a period of fifteen days from the date of the notifi cation. The lack of response to the request shall be taken as an indication against the alleged infringer.

Article 568.-Right to defence and term of trial-the alleged offender may present their arguments of Defense, discharge tests, and from where necessary, request to convene a hearing, within the term of 15 days from the date of notifi cation of the administrative act ordering inspection or requests for information.

The administrative authority will analyse the relevance or not carry out audience according to the elements of conviction that possess within the procedure for issuing the resolution, according to the respective regulations.

Article 569-Motivated resolution.-expired the end of test or conducted the hearing referred to in the preceding article, as appropriate, the competent national authority on intellectual rights will give reasoned ruling.

If it is determined that there was infringement of intellectual property rights, shall be punished the offender with the closure of the establishment of three to seven days or by a fine of between one coma five basic salaries unifi Ed, up to one hundred and forty-two basic wages unifi Ed according to the nature of the offence and the criteria that establish the corresponding regulation to the effect. In the same resolution available is the adoption of any of the measures provided for in this section or confi rmed that has been ordered on a provisional basis.

The same resolution is set to the destination of the goods or products that have been withdrawn from the commercial circuits in accordance with the corresponding regulation. The competent national authority on intellectual rights apply the penalties laid down in this title when you meet and resolve issues of unfair competition.

Article 570. Precautionary compensation of damages actions for annulment of measures-in cases in which precautionary measures are revoked or left without effect for reasons imputable to the applicant, or in those cases in which we subsequently determined that there was no infringement or imminent infringement of an intellectual property right, the party against whom the administrative process was initiated can sue the actor , the payment of compensation for damages as well as court costs.

Precautionary measures dictated by the administrative authority does not expire, by lack of interposition of a process in judicial article 571-compensation for infringement of intellectual property.-in the case of use of intellectual property rights, without the authorization of the holder, for part of the State or of a third party authorised by the State, the judicial authority or the competent national authority on intellectual rights You can restrict the actions or remedies against such use to payment of compensation, the amount of which shall be attached by the authority which adopted the measure.


Natural or legal persons of private law, only can benefi ciar is this exception when the use has been carried out on the basis of a relationship of any kind with the State or any of its institutions.

92 Friday 9 December 2016 supplement - registration offi cial No. 899 item 572-obstruction in the enforcement of the acts.-the competent national authority on intellectual rights will impose penalty equal to that established in Article 569 who injustifi cadamente hinder or diffi cultaren compliance with the acts, measures or inspections arranged by that authority , or not enviaren the information required within the term granted.

Article 573-The organizer of a public spectacle where go to communication to the public of works or performances protected by copyright must obtain the authorization or license by rights holders or their representatives.

As the corresponding regulations for the granting of such an authorization or license parts must be an exchange of information, in particular as regards the possible works interconnecting, with the aim of determining the management and rights.

Not necessary authorization for events when: 1. submission of works is not signifi cativa in relation to the number of attendees, input value, organization costs, value attached with performers or any information that can be determined with clarity the size of the event;

2. the owner is the organizer of the event and be interpreted only works whose rights belong to him; and, 3. When is the owner not partner of copyright collection society.

The competent national authority on intellectual rights, may be the preparatory proceedings laid down in the General organic code of processes, as may be applicable, to verify: 1. transparency and accuracy of the information presented by the Organizer, the owner of rights or representative; and, 2. The existence of the authorization by the owner of the rights or representative.

Article 574-Help enforcement.-the national police is obliged to provide to the servers of the competent national authority on intellectual rights assistance requesting these for the fulfilment of its functions.

Section II of article 575-border measures request for measures in border-the holder of a registration of trademark or copyright that had evidence enough to assume that it will perform the import or export of goods which injured his right over your brand or the right of author, may request the competent national authority on intellectual rights to suspend this Customs operation.

Once filed the request for measures in border, the competent customs authority shall suspend the operation of import or export of the products in question, until the competent national authority on intellectual rights resolved the request.

Also, when the competent national authority in intellectual rights has knowledge of an import or export of goods that injured the right on the mark or copyright, may order the suspension of the Customs operation, offi cio.

Article 576.-the procedure.-actions of border measures will be presented to the competent national authority intellectual rights according to the content, requirements, deadlines, procedure and other rules that have the corresponding regulation.

Article 577.-Information on the import or export.-who ask for measures to be taken in border, must supply to the competent national authority on intellectual rights information and a description of suffi ciently detailed and precise products object of the alleged infringement so that they can be recognized.

For the purposes of the preceding paragraph, the competent authority in customs matters that has control of the entry or exit of goods in the country, will provide the service of information relating to the import or export of goods operations.

Article 578. Bail.-the competent national authority on intellectual rights, to provide measures precautionary, it may require the presentation of fi dence or security that protect the importer or exporter and prevent possible abuses of rights.

Jado fi amount should be proportional to the possible economic, commercial and social impact generated by the measure.

Article 579.-Inspection of merchandise.-for the purpose of support of their claims, the holder of the intellectual property right may apply directly to the competent national authority in customs matters, which allows you to inspect the goods will be imported or exported, without prejudice to that take the measures which are necessary for the protection of confi dential information.

Article 580.-of the measures on border of merchandise that injured copyright or brand falsifi each.-when measures are imposed at border to request regarding the import or export of pirate merchandise that injured the right of author or merchandise with Friday, December 9, 2016 - 93Registro offi cial No. 899 - supplement brand falsifi each These will be carried out only after the presentation of evidence suffi cient, as well as a detailed account of the alleged infringement. The competent national authority on intellectual rights, to provide measures precautionary, it may require the presentation of fi dence or security that protect the importer or exporter and prevent possible abuses of rights. Cannot be carried out measures on border regarding imports or exports that do not have commercial scale and those schuberth songs, such as: which are not of commercial nature or which form part of the personal luggage of travellers or that are sent in small consignments.


Article 581-Sanction-when the competent national authority rights intellectuals determined through reasoned ruling that there was infringement of intellectual property rights, it punished the offender with a fine of between one coma five basic salaries unifi Ed, up to one hundred and forty-two basic wages unifi Ed according to the nature of the offence and the criteria that establish the corresponding regulation to the effect. In the same resolution the adoption of any of the measures may be provided precautionary provided for in this section or confi rmed that has been ordered on a provisional basis.

Article 582-Expiration of border measures-after ten business days from the date of notifi cation of the suspension of the customs operations unless the plaintiff has initiated the main action, or unless the competent national authority has extended the suspension, the measure will rise and will proceed with the clearance of the retained goods.

Shall be deemed fulfilled this requirement by the onset of action of administrative supervision, a civil action or if any criminal proceedings, at the choice of the concerning.

Article 583-Exclusions-are excluded from the application of the provisions of this chapter the quantities of goods which have no commercial character and forming part of travellers personal luggage or sent in small consignments.

Section III use abuse of intellectual property rights in the Internet article 584.-the action.-the owner of a trademark or other proprietary right intellectual may initiate an action of administrative supervision, if a third party, without the consent of the owner, bad faith tries to take advantage of intellectual property rights and records, sells, or uses a domain name that at the time of the registration of the domain name (: a) has been similar or identical with a trade mark or other intellectual property right recognized in the country; or, b) is capable of causing dilution with a brand well known in the country.

May also be entitled to initiate this action, the natural person whose name or pseudonym identifi ed by the sector relevant for the public as a person other than the owner of the domain name, except that certifying the consent of that person or of his heirs;

Article 585.-Factors to consider the intention of bad faith-to determine whether a person intends a bad-faith described in the previous article, the competent national authority on intellectual rights be considered among others, the following factors: 1. the intention of who registered the domain to divert consumers from the proprietor of the mark to a site accessible under the domain name which might damage the good reputation of the brand, either with commercial purposes or with the intention of dull or disparage the brand; or, with the aim of profiting from another intellectual property right recognised in the country or the image of a third party;

2. the offer of who registered the domain lease, transfer, sell, or assign the domain name holder mark or natural person whose name or pseudonym is identifi ed by the sector relevant for the public, in Exchange for a benefit cio economic or material, without have used, or intend to use the domain name to offer their products or services in good faith to have , or indicating their conduct such intention; and, 3. He have provided material and false or misleading information when applying for the registration of the domain name, or his conduct to indicate this intention.

Article 586-Factors to be considered fair use of the domain name.-to determine if a person has used the domain name legitimately, the competent national authority on intellectual rights be considered among others, the following factors: 1. If who registered the domain name has a mark or other intellectual property right included in the domain name;

2. If the domain name is the trade name, company name, name, or pseudonym of who registered the domain; and, 3. Previous use by who registered the domain name in connection with the offer in good faith of the products or services offered or purposes of identifi cation or information and not be able to mislead the public about the origin of them.

Article 587-Sanction.-where the competent national authority on intellectual rights considers that registration, marketing or use of a domain under this section name was made in bad faith to take advantage of brand of a right of property 94 - Friday, December 9, 2016 supplement - registration offi cial No. 899 intellectual from a third party , he may order the owner of the registration of the domain name and/or the supplier where the domain name is hosted or registered and/or any other authority names domain, cancellation, or transfer to the holder of the right to intellectual property, the name of the domain in question.

Article 588.-Competition.-the competent national authority on intellectual rights may substantiate this kind of action of administrative supervision, if who registered the domain name, the provider of the accommodation service, the registration of the domain name, or any other authority or entity that has registered the domain name in question, you are domiciled in the country.

Section III enforcement negative paragraph only of the use lawful and abuse of the law article 589.-use lawful-anyone may bring before the competent national authority on intellectual rights, action to learn about the legality of their acts, previous, current or future. This action will be filed with respect to the intellectual property rights of a third party, with the exception of distinctive signs.

For the purposes of the preceding paragraph, this action may be initiated without prejudice of the concerning receipt or no warning by the holder of the right or of a third party, with respect to an alleged violation of an intellectual property right.

Article 590.-abuse of law.-the competent national authority on intellectual rights, shall exercise offi cio or at the request of part, functions of inspection, monitoring and penalties to prevent and repress the abusive exercise of intellectual property rights, provided that the action does not pursue the safeguarding of the general interest or welfare of consumers.


You may order the suspension, within their respective competence, the measures precautionary, as well as any other action that has been taken by third parties at the request of the holder or an interested party.

Article 591.-Of the notifi cation.-the competent national authority on intellectual rights shall notify car owner or assignee of the intellectual property rights in the country according to the information registered with the competent national authority in the field of intellectual rights and subject to the provisions of this code; and, if the case to licensees and other interested persons.

Article 592.-the reply-powered, in the term of fifteen working days from the date of the notifi cation shall answer to the action. In reply, the respondent can upbraid the actor for breach of their intellectual property rights; the formality of this action be reconvened the actor, will be laid down in the article 543 of the present regulatory body that regulates the counterclaim.

Article 593.-term of trial and hearing.-rear to reply, the competent national authority on intellectual rights will order the term of fifteen-day trial opening.

During that term, either party may request to convene hearing, in which they may submit their allegations. The hearing will be held after expired the end of test.

Article 594-Motivated resolution.-expired the end of test or conducted the hearing referred to in the preceding article, as appropriate, the competent national authority on intellectual rights shall adopt reasoned ruling.

Article 595-Compensation for damages-in this type of procedure, will not be acceptable to the owner of the intellectual property rights to claim compensation for damages, as well as the costs against the concerning.

Title VIII of the action REIVINDICATORIA chapter single action REIVINDICATORIA in headquarters JUDICIAL article 596-reivindicatoria action before judicial authority-when a trademark, a patent, a certifi cate breeder, a registration of industrial design or a scheme of integrated circuitry had been requested or obtained by who was not entitled to obtain it, or to the detriment of another person who also had such right the affected person may start before the competent judicial authority, the action reivindicatoria asking to be recognised as the applicant or owner; or, as co-applicant or co-holder of the right.

You may exercise this action without prejudice to any other actions provided for in this code.

The reivindicatoria action will be processed in the ordinary procedure, in accordance with the general rule of processes.

Title IX of the resources article 597.-of the resources.-resolutions or administrative acts issued by the competent authority on intellectual rights will be subject to challenge as administrative remedies Friday, December 9, 2016 - 95Registro offi cial No. 899 - supplement and judicial foreseen in the legal system. Resources are granted the suspensive and devolutive effects in administrative headquarters.

In the case of the administrative acts issued with respect to the resolution of compulsory licensing and enforcement negative actions, administrative resources will not have suspensive effect.

Administrative resources will be processed before a specialized collegiate body which will form part of the competent national authority on intellectual rights, attributions and organization of this body will be in accordance with the provisions of the respective regulation.

Book IV of the financing and incentives to the actors of the national system of science, technology, innovation and knowledge ANCESTRAL title I provisions common on the financing and incentives Article 598.-promoting the social economy of knowledge, creativity and innovation-the Ecuadorian State will encourage fi nancial, tax and administratively to the actors of the national system of science Technology, innovation, and ancestral knowledge, to fi n promote activities aimed at the development of the production of knowledge, creativity and social innovation in a democratic, collaborative and supportive way.

The Ecuadorian State will lead the interaction between academia and the sectors public, private, mixed, popular and supportive, cooperative, associative and community, with the aim of creating an ecosystem where generated responsible for research, technological development, social innovation and creativity, promoting effective resource use, both human and financial.

Article 599.-Sources of fi nancing-the origin of fi nancing for the actors of the national system of science, technology, innovation and ancestral knowledge, will come from resources of the General budget of the State, of those generated by the different actors of the system, as well as other sources of funding.

Article 600-Defi nition and kinds of incentives-incentives are mechanisms or instruments of motivation aimed to generate changes in the behaviour of the actors of the national system of science, technology, innovation and ancestral knowledge for the fulfillment of their fi nes. In the framework of this code, the incentives are classifi caran in: financial, administrative and tax.

Article 601-Benefi ciaries of the incentives provided for in this code. May benefi ciar fi nancial, tax incentives or administrative provided in this code or in other related standards, the actors of the national system of science, technology, innovation and ancestral knowledge that are, as the case may be, duly accredited or registered by the competent authorities, including the higher education institutions, where appropriate.

Title II of the financing to the actors of the national system of science, technology, innovation and ANCESTRAL knowledge article 602-the pre-assignment for social knowledge economy, creativity and innovation-to ensure the funding of activities related to the system creates the pre-assignment for the national system of science, technology, innovation and ancestral knowledge, with the following resources :


1. the non-refundable contribution equivalent to one percent of the amount of the payment to contractors for services for the exploration and exploitation of hydrocarbons, since the beginning of the operating period, after deduction of income tax and labor participation;

2. the non-refundable contribution equivalent to one percent of revenues from services provided by the operators of telecommunications in accordance with article 92 of the telecommunications law;

3 the fifty percent of the contribution corresponding to 1% of the monthly payment to the Ecuadorian Institute of Social Security were transferred to the IECE, constant in the general arrangement tenth first of the monetary and financial code; and, 4. The values collected by the taxation of the private institutions of higher education when the internal revenue service has been verifi Ed that they have not complied with the requirements established by law to be exempted from the payment of taxes.

The contributions referred to in this article do not represent new tax burdens.

The resources referred to in paragraph 2 of this article fi nanciaran, among others, investment projects properly prioritized in accordance with the law, for the development and deployment of equipment and networks for connectivity, infrastructure, telecommunications; and, in general, the information and communication technologies.

The pre-assignment for the national system of science, technology, innovation and ancestral knowledge in each fi scal year equals at least the zero point fifty 96 - Friday, December 9, 2016 supplement - registration offi cial No. 899 and five percent of gross domestic product from the previous year. Where the sources of funding provided for in this article are insufficient to cover the amount indicated before, the governing body of fi nances public assigned the difference charged to investment from the General State budget spending, through investment projects prioritized in accordance with the law.

The Council of economic policy, in the event of a balance of payments crisis, may reasonably reduce this pre-assignment.

Article 603.-distribution of resources that make up the pre-assignment.-the Secretary of higher education, science, technology and innovation, in coordination with the competent public institutions, establish technical criteria and mechanisms for the allocation of resources that make up the pre-assignment referred to in the previous article, according to regulations which issued, according to the criteria and principles set out in this code to the generation of knowledge for the purpose , creations protected by intellectual property and protection of traditional knowledge and ancestral knowledge.

Title III of the incentives chapter I of the incentives for the strengthening of talent human section I incentives financial Article 604-incentives fi nancial measures for the strengthening of human talent.-the Ecuadorian State will create programs and projects focused on the fi nancing of training and formation of human talent and academic mobility of researchers. For this fi n will feature, among others, with the following mechanisms: 1. grants;

2. education credit; and, 3. Financial aid;

Article 605-Lines of preferential credit for the strengthening of human talent.-the Board of policy and financial and monetary regulation will establish credit lines, mandatory in preferential conditions, for the strengthening of the human resources through public and private banking.

For the establishment and regulation of these lines of credit, Board policy and financial and monetary regulation should coordinate with the Ministry of higher education, science, technology and innovation.

Article 606-Programs of fi nance for artistic and cultural promotion and development.-the sectoral Ministry responsible for culture in coordination with the Ministry of higher education, science, technology and innovation, will formulate programmes of fi nance for the development and promotion of artistic and cultural activities that contribute to strengthening the social economy of knowledge.

Section II of administrative incentives for strengthening human talent article 607-licenses or fees from services to servers and servants of public sector engaged in academic activities or training the Ecuadorian State will guarantee the granting of licenses or services with or without remuneration committees the servant or public servant carrying out studies of higher education or training. Licenses or services commissions apply while the offi cial studies.

Administrative unit of human resources of each institution will determine the relevance of the programme of studies or training motivated way and whether licensed or granted Utility Commission will enjoy or not pay.

Article 608-National awards program to excellence academic.-the Secretary of higher education, science, technology and innovation, will formulate the national programme of awards for academic excellence, which will aim to encourage high academic performance of students at different levels of formation.

Article 609-Academic excellence as a criterion of evaluation in the public merits and opposition contests and programs scholarships-public merits and opposition contests and programs of fi nancing activities in the social economy of knowledge, creativity and innovation, will be awarded an additional score to those applicants who have been creditors to a recognition of the programme referred to in the preceding article.

Article 610.-Additional score in public contracting processes.-persons natural and legal, suppliers of the State, which made fourth level training of Ecuadorian personal expenditure or are receivers in academic programs of dual training, recruiting scholars of public scholarship programs for at least one year or carried out internships of higher education, will receive additional scores in recruitment processes established in the organic law of the national system of public contracting.

Article 611-Migratory incentives for professionals-through regulation issued by the authority of human mobility, in coordination with the Friday, December 9, 2016 - 97Registro offi cial No. 899 - supplement


Secretary of higher education, science, technology and innovation, will establish a procedure shortened for the provision of labour and immigration permits for foreign persons not based in the country, wishing to carry out work activities, cas scientists and academic mobility, with professional, at least master's degree, or its equivalent, and relevant experience in areas of knowledge.

Persons resident abroad may participate in the contest of merits and opposition for entry to the race of the scientifi researcher and University Research Professor, from the country of residence. The national institutions of higher education and scientific research must have the necessary mechanisms to comply with this provision.

Article 612-Incentives for the public purchase of works or national benefits.-public procurement should give priority to products and services that incorporate the works or national benefits determined in Book III, title II of this code.

Section III of the tax incentives for the strengthening of the human resources article 613-tax incentives-tax incentives for human talent are: 1. deduction of one hundred percent (100%) extra for the calculation of the tax base for the income tax, by values for compensation earmarked for students in dual training and higher education scholarships awarded by taxable persons. The maximum additional deduction amount will be established by the tax administration in coordination with the Ministry of higher education, science, technology and innovation; and, 2. Deduction of one hundred percent (100%) extra for the calculation of the taxable income of the tax income, expenditures of salaries of tutors appointed to the dual training, by taxable persons. The maximum additional deduction amount will be up to the value corresponding to three coma five basic remuneration unifi ED for each tutor.

Chapter II of the incentives for the research responsible for section I incentives fi nancial article 614.-programs or development projects for the research.-the Secretary of higher education, science, technology and innovation and other relevant public institutions will create and manage programs or funding projects, public or private, natural or legal persons for the execution of responsible research and technological development projects , in accordance with the needs and national planning. These funds are refundable unavailable.

Interdisciplinarity as well as TRANS-disciplinarity, when they were applicable, and production and management of knowledge network, will be factors assessed by the governing entity of the system for the allocation of the competitive grants. Similarly, for the fi nancing of those lines intended for scientific research projects should be considered the significance of the research according to the parameters that shall be established in the corresponding regulation.

When the outcome of programmes or responsible for research projects is obtained products or services which are not susceptible of protection by the national intellectual property regime, the State may fi nance the protection of them abroad.

Other criteria, mechanisms, areas and products to be nanciados will be established by the Ministry of higher education, science, technology and innovation through the regulations and relevant, applicable databases for each funding program.

For those products or services result from fi nanciados State research projects, which are protectable under regime of patents for inventions, utility or the mapping schema register model, plant variety rights, industrial design shall correspond to the State ten percent of economic benefits of its exploitation.

Section II of tax tax incentives for responsible research article 615-incentives-tax incentives for responsible research are: 1. percentage reduction of the income tax rate, when taxpayers reinvested their profits in projects or responsible for scientific research and technological development programmes accredited by the Ministry of higher education, science , Technology and innovation, this applies only on the reinvested amount. In the case of actors operating in a city of knowledge reduction will be of 10%; for the actors that operate in other areas of knowledge reduction will be of eight percent; and, for the rest of the actors will be six percent;

2 exemption from the payment of tax income to taxable persons who are duly accredited with the Ministry of higher education, 98 - Friday 9 of December of 2016 supplement - registration offi cial No. 899 science, technology and innovation, and that activities exclusive of responsible scientific research or technological development of autonomously and to reinvest at least ten per cent of its profits in the country and in the aforementioned activity This exemption applies only on the reinvested amount; and, 3. Exemption from taxes to foreign trade on the import of equipment and supplies to be used in the development of programmes, projects and activities of scientific research. The categories of exempted goods shall be determined by the Ministry of higher education, science, technology and innovation.

Section III administrative incentives for responsible research article 616-preferential rates on services of telecommunications-public institutions responsible for regulating the rates for telecommunications services, be established in the areas of knowledge generation preferential rates for the actors of the system which develop activities in these spaces. For this fi n, the entity that regulates the rates for telecommunications services, will issue the corresponding regulation.


Article 617.-Program national recognition to the scientifi c research ca responsible.-the Secretary of higher education, science, technology and innovation, through the corresponding regulations, formulate national honors to the scientifi c research program ca responsible through prizes, awards, and other awards which will aim to encourage research and technological development related to the increase in productivity the diversifi cation of productive and satisfying needs.

Researchers categorizing processes and programs of fi nancing activities in the social economy of knowledge, creativity and innovation, will be awarded an additional score to researchers or researchers that prove to have been creditors to a recognition of the programme referred to in the preceding paragraph.

Chapter III incentives for the innovation SOCIAL section I incentives fi nancial measures for the social inoovacion Article 618-programs or projects to promote innovation-Secretary of higher education, science, technology and innovation and other relevant public institutions will create and manage programs or projects, whose benefi ciaries and unit-holders shall be natural or legal persons, public or private, and whose objective is the promotion or fi nance total or partial social innovation , in accordance with the needs and planning national.

Criteria, mechanisms, areas and products to be nanciados will be established by the Ministry of higher education, science, technology and innovation through the regulations and relevant, applicable databases for each funding program.

Additionally, Board policy and financial and monetary regulation will establish lines of credit and other instruments fi nancial for fi nancing of innovation.

Article 619-of encouraging the formation of networks-public institutions of higher education and public research institutes may transfer resources to private higher education institutions and academies of science, to the creation of networks of research, academic or innovation, or to co-execution of research or innovation projects. The Ministry of higher education, science, technology and innovation will establish instruments and procedures to ensure the partnership that exists between them through the corresponding regulation.

For the evaluation of higher education institutions, the CEAACES must be incorporated as one of the criteria, the establishment and operation of academic networks, research or innovation.

Article 620.-Programs fi nance of seed capital.-the Ecuadorian State will create programmes of fi nancing of seed capital for the development of social innovation. The actors of the sectors public, private, mixed, popular and supportive, cooperative, associative and community may benefi ciar is this fi nance.

The resources of these fi nancing programs given their nature, have high possibilities of loss that can reach all of the investments made and should be considered as such by the bodies of regulation and control.

The realization of investments or donations with resources pertaining to these programs, do not modify face legal actors benefi ciaries of fi nancing nature, even though the participation of seed capital funds exceed fifty per cent of the total amount invested or shares or shares of the same.

If as a result of the program or project for the promotion of social innovation starts up an innovative enterprise that produced economic gains, the State will be between 5% and 10% of ownership and economic benefits of saying Friday, December 9, 2016 - 99Registro offi cial No. 899 - supplement venture. Temporality and the way in which such participation of the State of innovative enterprises that produce economic gains is performed will be regulated according to the regulation issued by the Ministry of higher education, science, technology and innovation.

These resources obtained will be used for the funding of new programs of social innovation ensuring sustainability in time, in accordance with the regulations that the Ministry of higher education, science, technology and innovation for the effect.

Article 621-Programs of funding through capital risk.-the Ecuadorian State will create fi nance programmes through risk capital for the development of social innovation, as well as you can bring in existing funds, public or private, with this same fi n. public stakeholders may benefi ciar is this fi nance private, mixed, popular and supportive, cooperative, associative and community.

The resources of these programs of funding given its nature have high potential for losses that can reach all of the investments made and should be considered as such by the bodies of regulation and control. The realization of investments or donations with resources pertaining to these programs don't change face the legal actors benefi ciaries of fi nancing nature, even though the participation of seed capital funds exceed fifty per cent of the total amount invested or shares or shares of the same.

Article 622.-Regulation of incentives fi nancial for social innovation-Secretary of higher education, science, technology and innovation and other public agencies, within the scope of their powers, issued the technical and legal instruments that establish the appropriate conditions for the effective use of resources delivered because of financial incentives for social innovation respecting the rights of investors and innovators.

Projects benefi ciaries of these incentives must be accredited by the governing entity of the system, as set out in the respective regulations it issued.

Section II of tax tax incentives for social innovation article 623-incentives-tax incentives for social innovation are: 1. exemption from the payment of the advance of the tax income, for taxable persons, which introduce goods and innovative services to the market.

This exemption shall apply during the first two periods fi scales not receiving taxable income.


The exemption of the income tax advance payment will be only on the percentage of the expenses incurred by the taxpayer in the process that produced the innovative good and provided that the venture has had origin in an accredited incubator. This process will be established under the regulations issued by the Ministry of higher education, science, technology and innovation.

2. exemption from the income tax of income earned by taxpayers engaged in activities exclusive of free digital technology which includes Ecuadorian added value when the taxable person has registered to the respective license as set out in this code.

Taxable persons are may benefi ciar this exemption for a maximum period of five years.

3. exemption from taxes to foreign trade on the import of equipment and supplies to be used in the development of innovative accredited innovation spaces.

The regulations respective defi nira necessary parameters for the application of this incentive.

Section III of the administrative incentives for social innovation article 624-accreditation of the actors of the national system of science, technology, innovation and ancestral knowledge for the issuance of securities in the market values.-the Secretary of higher education, science, technology and innovation, will issue a certifi cation for the actors of the system performing activities of social innovation to participate as issuers and obtain funding in accordance with the rules provided for in the securities market law, through simplifi ed.

For the realization of this accreditation the Ministry of higher education, science, technology and innovation will be the collaboration of the Superintendency of companies and securities and other specialized public and private institutions as determined by the regulation that emits such entity for the effect.

The certifi cation issued by the Ministry of higher education, science, technology and innovation, will be considered as a requirement for the approval of the corresponding public offering, by the Court of audit of the stock market.

Article 625.-emission values-The actors of the national system of science, technology, innovation and ancestral knowledge that activities of social innovation, for the Constitution or increase of capital of anonymous companies, may do so by the public subscription of shares through public offering in the stock market, according to the provisions of the companies act and the securities market law.

100 Friday 9 December 2016 supplement - registration offi cial No. 899 in the case of small and medium-sized enterprises and organizations of the popular and solidary economy, may participate through stock market segment REB.

The debt securities issued by the actors of the national system of science, technology, innovation and ancestral knowledge that activities of social innovation, can count on the warranty of venture capital funds.

Article 626-Record health simplifi ED for new products-sanitary regulations governing entity will issue a process of obtaining registration simplifi Ed, which will allow initial sales of a new product before performing industrial processes of production.

Article 627.-Additional score in public contracting processes for entrepreneurs-ventures that were born of an accredited innovation space and are suppliers of the State will receive additional scores in recruitment processes established in the organic law of the national system of public contracting.

Title IV of the monitoring and transparency of the incentives allocated to the national system of science, technology, innovation and ANCESTRAL knowledge article 628.-for the monitoring and evaluation of tax incentives-the evaluation of the fulfilment of the obligations assumed by the benefi ciaries of the incentives, will be in charge of the Ministry of higher education, science, technology and innovation.

The tax and customs authorities, must submit annual and half-yearly, in cases that apply to the Ministry of higher education, science, technology and innovation, a listing of all taxable persons that have been applied to the incentives, so that that institution draw up a register of this information.

The Ministry of higher education, science, technology and innovation, together with the competent tax and customs authorities, in the cases which it administers, may be controls to verify compliance with the criteria which motivaren the application of the incentive. The regulation will establish parameters of implementation of this assessment. Any type of control should be back, agile and timely.

If the benefi ciary does not meet the established budgets to access incentives, Secretary of higher education, science, technology and innovation, will analyze the seriousness of breaches identifi ed, it will start the corresponding procedures for tax and customs enforcement of the relevant actions, without prejudice to the exercise of the powers of the authorities competent.

PROVISIONS General first.-for the implementation of the provisions of this code are will attend provisions of article 425 of the Constitution as well as international treaties subscribed by the Ecuador.

SECOND.-the provisions laid down in this code on intellectual property will be applied not whatever contrary or opposed to the commitments entered into by Ecuador in the decisions of the Andean Community, as a member country.

THIRD.-in the institutes public scientific research, teaching with research universities and public enterprises whose main activity is related to scientific research, there will be incubators of enterprises of technological basis and centres of transfer of technology, according to the rules that the Ministry of higher education, science, technology and innovation for the effect. Accredited transfer centers will have the same exemptions and tax deductions of those entities that are assigned


Fourth.-scientific research projects that run research institutions scientifi in the public sector, in terms of its prioritisation shall be authorized exclusively by the Ministry of higher education, science, technology and innovation, without omitting the priority of public investment opinion issued by the National Secretariat of planning planning and development. For the issuance of the opinion is binding technical pronouncement of the Ministry of higher education, science, technology and innovation. The annual plan of investments of public scientific research institutes, as well as its restructuring, they must have the endorsement of the Ministry of higher education, science, technology and innovation.

In the case of institutions of higher education, scientific research projects are fi nanciados with own resources, including resources fi scales generated by institutions, donations, internal and external credits arising from non-reimbursable cooperation and the pre-asignaciones of income, are not subject to the first paragraph of this provision, nor will need authorization from any institution.

In accordance with paragraphs 355 and 357 of the Constitution of the Republic of Ecuador, articles 80 and 163 of the organic code of planning planning and public finance, and articles 40, 41, 42 and 46 of the organic code monetary and financial, stakeholders generators and managers of knowledge of a public nature and public system of higher education institutions should request the creation of collection accounts in institutions correspondents of the Central Bank of Ecuador for revenues generated by self-management of the institution, and the creation of own current accounts at the Central Bank of Ecuador for the management of the resources from self-management, external credits, Friday, December 9, 2016 - 101Registro offi cial No. 899 — supplement credits internal and international cooperation, which accumulate balances. The resources of these accounts may not be reorganized or intended for other fi nes by the Ministry in charge of fi nance public. In the case of the technical colleges application for the creation of collection accounts and current accounts will be performed only by the Ministry of higher education, science, technology and innovation, as well as its management. The application of this standard will observe the principle of free higher education established in the Constitution of the Republic and developed the law of higher education.

Resources for self-management that question by the productive activity of educational institutions established in educational units of production, may be managed through the collection accounts and current accounts own in the Central Bank of Ecuador, managed respectively by the national education authority.

Gathering and current accounts will be managed according to the regulations issued by the governing body of the fi nance public.

Fifth.-public institutes of research scientifi, depending on the corresponding budgetary availability, occupationally join scholars who have conducted thesis or research projects in these institutes. The Ministry of higher education, science, technology and innovation will establish the requirements and mechanisms of incorporation.

SIXTH.-the committees regional advisory of planning planning of higher education, provided for in article 194 of law of higher education, will work as a single body chartered with the regional advisory committees of planning cation of higher education, science, technology, innovation and ancestral knowledge, therefore the applicable secondary legislation should be changed to comply with this provision.

SEVENTH.-the technology transfer centers created by the institutions of higher education will be oriented towards the strengthening of its sponsoring institution, through innovation, technology development and other related activities. These centres, by decision of the higher academic College or the maximum authority, as the case may be, be able to fi nancial and administrative autonomy.

The centers of technology transfer from universities and polytechnic schools should transfer to the institution of higher education which was, at the end of each fi scal year, all utilities, surplus or benefi ts obtained by their activities.

Tangible and intangible assets that manage or administer technology transfer Center will be owned by the University or Polytechnic that constituted it, who will dispose of them in accordance with institutional needs.

It eighth-in the application of the rules of this code, you will notice and will respect the principle of solidarity and responsible autonomy enjoyed by universities and polytechnics in the country.

NINTH.-When this code is refi ere to international treaties which the Ecuador is party, means that they are all signed instruments and ratifi ed by the Ecuador, especially those relating to human rights and intellectual property.

It DÉCIMA.-in the formation of the Committee National Advisory of the economy Social knowledge, creativity, innovation and ancestral knowledge as well as of regional advisory committees of planning planning of higher education, science, technology, innovation and ancestral knowledge, must be guaranteed the participation of communities, peoples and nationalities.

Tenth first.-the State shall progressively establish policies and strategies aimed at the repatriation of the genetic patrimony of the Ecuador unduly appropriated by third parties, and endeavour to achieve the service of persons who have been subject of experimentation scientifi through practices that violate the human rights.

TENTH second.-the codes of ethics and bioethics issued or that they issue in the country must be attached to the principles established in the code of national ethics.

Rules governing the code of bioethics will remain in force in what will not contradict this code.

10th third.-the Secretary of higher education, science, technology and innovation will provide the necessary technical support for the formation and fulfillment of the responsibilities of the instance to ensure ethics in research at national level.


Tenth fourth: those intangible assets of public entities, subject to the system of intellectual property protection, not shall be subject to the regime of administration, use, management and control of goods and stock of the public sector, being these entities responsible for the proper use, maintenance and operation thereof, in accordance with the provisions laid down in this code.

10th fifth.-the National Institute of statistics and censuses will become public Research Institute responsible for studies related to statistics and censuses.

Tenth sixth-the public companies whose object allows it, will be responsible for purchases of imported products and services that are required by the actors of the national system of science, technology, innovation and ancestral knowledge, as well as those goods whose sale and marketing is restricted by law or by order of the competent authority, and which are necessary for the activities of these.

102 Friday 9 December 2016 supplement - registration offi cial No. 899 tenth seventh.-the individuals or legal, national or foreign, an intellectual property right holders, are required to exhaust all instances within the Ecuadorian jurisdiction, in relation to the acts and contracts concluded or signed; and with regard to the resolution of disputes over the interpretation, application and implementation of measures taken by the bodies of regulation and control, and on the implementation of the rights and obligations arising from the application of this code or of an international treaty.

10th eighth-if the action for infringement versare with respect to a patent whose object is a procedure to obtain a product, will correspond to the defendant prove that the procedure that been used to obtain the product is different from the procedure protected by the patent whose infringement is accused. For these purposes, it shall be presumed, unless evidence to the contrary, that any identical product produced without the consent of the owner of the patent has been obtained by the patented process, if: 1. the product obtained by the patented process is new; and, 2. There is a substantial possibility that the same product has been manufactured by means of the procedure and the owner of the patent of this unable to establish through reasonable efforts has been the procedure actually used.

In the submission of evidence to the contrary, the legitimate interests of the defendant regarding the protection of their business secrets shall be taken into account.

Tenth ninth.-industrial property rights, plant variety rights and economic rights derived from copyright and related rights law is are said to be movable property exclusively for the Constitution of levies on them. You can however, Decree the prohibition of disposal of such rights subject to the provisions of the Civil Code, General organic code of processes, as well as its embargo and auction or sale at public auction.

TWENTY-committed budget balances of the universities and polytechnic schools, which are generaren by not earn resources from their budgets to the end time of the fiscal year if, must obligatorily incorporated into exercise fi scal following, if there is a pending payment commitment within the framework of the provisions of articles 116, 117 and 121 of the organic code of planning planning and public finance This value refunded to the relevant university or Polytechnic School by the Ministry of finance with the purpose of the acquired obligations.

It means budget balances committed committed not accrued value.

Balances of budget resources which do not correspond to a pending payment commitment, will be part of an assignment, which will form a Fund for universities and polytechnic schools, to fi n in fi nance investment projects aimed at the improvement of the quality of the higher education system. They will not form part of this allocation resources generated by self-management, internal and external credits and those which derive from international cooperation, which will be refunded to the relevant university or Polytechnic School by the Ministry of finance.

Balances of budget resources means the differential between the amount coding Ed and the committed amount.

Therefore at beginning of each year fi scal the Ministry of Finance shall inform the Ministry of higher education, science, technology and innovation and the National Secretariat for planning cation and development, the amount of the committed budget balances and balances of budgetary resources to discriminate the origin of resources.

The Executive function, through the competent body, delivered to institutions of higher education during the first half of the year the resources assigned to them by concept of reassessment of tax VAT and income tax allocations to the FOPEDEUPO, as well as budgetary balances that you must repay.

The Fund determined in the second paragraph of this article will be administered as provided in this code and the corresponding regulation, it must be assigned in a sub-account of the single national treasury account.

TWENTY first.-public institutions must be a random control of assets ex post the acquisition, to check car that they do not suffer from obsolescence.

For the purpose of application of this standard means as planned obsolescence the set of techniques by which a manufacturer, importer or distributor of goods, in the creation or through the modifi cation of the product, reduces deliberate and injustifi cadamente its duration in order to increase their rate of replacement.

The public body responsible for public procurement in coordination with the INEN will regulate the application of this provision.

In cases in which the existence of planned obsolescence is determined, the suppliers of such goods will be disabled for contracts with the State on a permanent basis, without prejudice to civil liability and administrative sanctions and criminal that any place in application of the law of consumer protection, the organic law on Control of the power of the market and the comprehensive code of criminal respectively.


The effects specified in the preceding paragraph, where, through the relevant bodies, the obsolescence in trade between individuals will generate.

Friday, December 9, 2016 - 103Registro offi cial No. 899 - supplement twentieth second.-the State, through the sectoral Ministry of culture, will establish programmes of development, promotion, funding and dissemination of artistic production according to the principles of this code and other applicable laws, giving priority to independent production and non-commercial.

TWENTY third.-the natural or legal persons in private law who receive public funds under the incentives fi nancial measures laid down in this code, must use those resources with the aim of strengthening the social economy of knowledge, creativity and innovation. Their contracts must observe the principles of efi science, effi ciency, quality, technological validity, fairness, transparency, publicity, evaluation and planning, however do not govern the rules and procedures applicable to the national system of public contracting.

TWENTY fourth.-public institutions must be the recycling of electronic waste through the services that provide companies that have the technical capacity in accordance with the rules laid down for this regime.

The economic resources that are generated from the recycling of electronic waste from public institutions, must be used for the funding of research projects in science, technology and innovation.

TWENTY fifth.-investment contracts signed under the auspices of the organic code of production, trade and investment, must incorporate technology transfer as a parameter for the application of the incentives established by law for new productive investment.

TWENTY sixth.-the public entities and natural persons or legal private having under his power documents, genetic data, banks or personal data and reports about people or their property, files made available to the public through a portal of information or website the following information and resources: to) rights that assist you with regard to the protection of your personal data , among them the right to know the use that is made of such information, its purpose, origin and destination, and the time of validity of the file or database; and their rights to request the rectifi cation, deletion or cancellation of your personal data;

(b) detail of policies and institutional procedures for the protection of the privacy of personal data; and, c) service of process online queries and claims in respect of personal data.

TWENTY seventh.-without prejudice to the exceptions provided for in the law, the processing of personal data that includes actions such as the collection, systematization and storage of personal data, prior and informed holder's authorization required.

Not required the authorization of the holder when the treatment is developed by a public institution and has a fi statistical purpose or scientific; protection of health or safety; or be done as part of a public policy of constitutionally recognized rights. In this case must be taken measures conducive to the Suppression of identity of the holders. The DINARDAP may request that banks of personal information held by a private legal person shall be delivered to the same with the purpose of this article.

Are not subject to the requirements of this article: to) databases or files maintained in an area exclusively personal or domestic;

(b) databases and files of press information, and other editorial content; and, c) databases that contain data whose use can be prejudicial to the privacy of individuals such as those that reveal political, religious convictions or fi arising cas, membership of political or social organizations.

TWENTY-eighth-to fi n strengthen national capacities for technology transfer, the work of qualification races or academic programs offered by institutions of higher education may consist playback or in search of a second use of patents.

TWENTY ninth.-for the use of State funds for the funding of venture capital, shall constitute collective investment funds and fi deicomisos that may invest in and out of the stock market or contribute to existing funds, in accordance with the provisions of the securities market law.

THIRTY-public sector institutions must grant services with remuneration Commission to the or the public servants that are accepted to attend academic programs of fourth level at the Institute of high national studies. The Commission's services with remuneration will be granted for as long as the institution of higher education which, over the duration of the academic program, regular certifi.

THIRTY first.-the entity governing the national system of science, technology, innovation and ancestral knowledge as well as other public entities that are part of the system, propenderán gradually decrease and elimination of duplication of requirements and activities unnecessary, with the purpose that the citizen can be accessed in an agile way and effi cient public services.

104 Friday 9 December 2016 supplement - registration offi cial No. 899, to ensure that programmes and projects that you create to access benefits set out in this code, as well as other administrative procedures set out in this legal instrument, to run under the principles of simplicity, economy, legality, Celerity, presumption of truthfulness, responsibility for information , privacy of personal information, transparency, privilege of subsequent tests, informalism, beginning managed pro, free of charge and interconnection.


THIRTY second.-the Secretary of higher education, science, technology and innovation, will continue the rectory, academic, financial and administrative institutes and public conservatories that do not have as a promoter to a public University; as well as offering quotas that report these institutions in the national system of admission and leveling of all those technical and technological careers that are found recorded in the database of the Board of higher education with current status.

THIRTY third.-exceptionally, the related parties established in literals a) and b) article 161 of law of higher education may hold positions of legal representatives, directors, managers, directors, Chief Executives or charges of similar or higher hierarchy of legal persons created by the institutions of higher education whose purpose is responsible for research, technological development , social innovation, habitat of innovative companies, incubation of innovative ventures or acceleration of innovative firms.

THIRTY fourth.-the Board of education upper defi nira a percentage of the FOPEDEUPO allocated to the fi nancing of postgraduate fellowships in institutions of higher education of the country, duly accredited, always that ensure free education in the undergraduate.

These funds will be credited in the corresponding accounts of each institution by the governing body of the fi nance public based on grants awarded by the governing body of the politics of grants from the Government, on the basis of the cost per program per student, established by the Ministry of higher education, science, technology and innovation.

The public resources of the percentage referred to in subsection unused year fi scal, will be used for fi nancing of the undergraduate institutions of higher education.

TRANSITIONAL provisions first.-until the Ministry of higher education, science, technology and innovation issues the respective norm for certifi cation of receivers for the dual training, this training can continue running without this certifi cation.

Second: the certifi cation of the Qualifi cations professional will be implemented progressively, according to the terms established by the competent authority.

THIRD.-El Instituto Ecuatoriano intellectual property, as well as all institutions created by the intellectual property Act, published in the supplement of the registry offi cial No. 426 of December 28, 2006, will exist until it is established by the corresponding Executive Decree, the new national authority on intellectual rights, responsible for the regulation, management and control of intellectual rights and traditional knowledge belonging to the Executive function and assigned to the Ministry of higher education, science, technology and innovation, within a period which may not exceed 90 days from the entry into force of this code.

Likewise, all provisions and functions assigned in this code to the new national authority on intellectual rights, to its conformation, will continue being exercised by the Ecuadorian Institute of the intellectual property, through the different bodies that comprise it.

In terms of the procedures that are are prejudice as intellectual property law will follow the procedure and terms stipulated in this law. However, those procedures that empezaren to support from the force and promulgation of the code, must be carried out according to the rules laid down in this body of law, in what is not regulated, shall apply temporarily the law of intellectual property and other regulations, while the respective regulations are issued.

The new national authority competent in matters of intellectual rights, responsible will be the successor in law of the Ecuadorian Institute of intellectual property, assuming the heritage, budget, rights and obligations including the labor, according to arrangements applicable to each case.

From FL to comply with this provision, within the period of two years, the competent national authority on intellectual rights, will be a process of evaluation, selection and rationalization of human talent, so according to the new structure, it may delete unnecessary posts or determine that the profi les existing conform to institutional needs; in accordance with the provisions laid down in the organic law of the public service, its rules of application, of the labour code, General Regulation to this code and other applicable regulations.

Empower, in accordance with the law, the holder of the national competent authority in respect of intellectual rights to make available any action which may be necessary, in order to implement the management structure of the competent national authority in the field of intellectual rights.

Friday, December 9, 2016 - 105Registro offi cial No. 899 - supplement fourth: centers of technology transfer created by universities, polytechnic schools, higher and technological institutes recognized legally, which currently are operating, must register or register according to the rules and deadlines established by the Ministry of higher education, science, technology and innovation.

Likewise, until the Secretariat issued regulations governing the transfer centers, they will remain under the provisions contained in the law of centers of transfer and development of technologies, published in the supplement of the registry offi cial 319 of November 16, 1999.

Fifth.-the obligation of universities and polytechnic schools public and private to provide free academic community wireless Internet throughout the area of its branches and extensions, as well as the autonomous governments that should be available free citizens access to wireless internet in the public spaces of massive concurrency for leisure and entertainment It must be met progressively within the period of one year from the promulgation of this code, which may be extended only once and up to a year, for reasons duly proof ed by the applicant, for which the Ministry of higher education, science, technology and innovation will give the respective resolution.


SIXTH.-all titles and Qualifi cations professional records will become part of the public record of Qualifi cations professional that will keep the competent public authority for the purpose.

SEVENTH.-the polygon of intervention of the city of the "Yachay" knowledge will be shaped by the properties declared of public utility for the effect and included in the master plan of the city.

The Board of the public company YACHAY EP will approve the Master Plan of the city of knowledge.

EIGHTH.-the Executive Directors of each public Research Institute, have the period of five years starting from the entry into force of this regulatory body, to comply with the requirements laid down in article 25 of this code.

NINTH.-procedures concerning accreditation, categorization, career, registration and enrollment of the researcher scientifi in execution, shall be valid in everything in which is not contrary to this code and the regulations issued by the Ministry of higher education, science, technology and innovation.

DÉCIMA-within a maximum period of six months from the entry into force of this code, public institutions, higher education institutions, public and private, centers and public research institutes, possessing information concerning traditional knowledge in its files, transmit all relevant documentation to the Ministry of higher education, science, technology and innovation, to fi n consolidate and register it within the national system of science information offi cio Technology, innovation and traditional knowledge.

Tenth first.-the Secretary of higher education, science, technology and innovation and the national environmental authority, within the period of three hundred and sixty-five days, harmonize protocols for the granting of authorisations for access to biological, genetic resources and their derived products.

DÉCIMA second.-all validly acquired right on distinctive signs which consist of the name of the peoples, nationalities and indigenous, Afro-American or local communities or denominations, words, letters, characters or signs used to distinguish their products, services or the way of processing them, or that they constitute the expression of their culture or practice or the name of their traditional knowledge It shall be governed by the provisions in force at the date of its issuance, according to the previous national legislation.

10th third.-the institutions obliged to use free software must be designed, within the period of 180 days, a migration plan according the criteria established in article 145. These institutions will have a term of up to five years for its implementation.

Tenth fourth.-all intellectual property right validly granted with national legislation prior to this code, shall be governed by the provisions in force at the date of its grant, except in what is refi ere to duration, in which case preexisting intellectual property rights will be adapted to the provisions of this code.

In regard to the use, enjoyment, obligations, licensing, renewals and extensions will apply the standards contained in this code.

In the case of procedures pending, this code shall govern in the stages that have not had met at the date of its entry into force.

DÉCIMA QUIN TA.-until the Ministry of higher education, science, technology and innovation implement the accreditation process of the research scientists, scientific research institutions, as well as public or private entities that carry out activities for the incubation of innovative ventures, acceleration, and habitat of innovative enterprises and technology transfer, may participate in the obtaining of the incentives established in book IV of this code.

The Ministry of higher education, science, technology and innovation, will establish transitional requirements for the obtaining of such incentives. In case that a 106 - Friday, December 9, 2016 supplement - registration offi cial No. 899 person natural or legal incentives has been obtained and subsequently is not accredited by the Ministry of higher education, science, technology and innovation, must not be refunds granted incentives, however can not participate to obtain incentives until it meets the requirement of accreditation.

Tenth sixth.-until the Ministry of higher education, science, technology and innovation to implement the process of accreditation, accreditation by the Council for evaluation, assurance and accreditation of higher education shall apply to universities and polytechnic schools for application of incentives provided for in this code.

SEVENTEENTH-the pre-assignment for the national system of science, technology, innovation and ancestral knowledge be governed from the fifth year of entry into force of this code. During this period the Central Government will meet its fi nancing progressively.

10th eighth-the body responsible for setting tariffs, within the period of one hundred eighty days shall issue the relevant standards to establish exemption from taxes to foreign trade on the import of equipment and supplies to be used in the development of scientifi c research projects ca tenth ninth.-starting from the entry into force of this code, public superior conservatories of music and arts located in the cities of Quito Cuenca and Loja will become the headquarters of the University of the arts. For effect, issued once this organic code, the University of the Arts will present the respective records of creation of each venue before the Council of higher education, serving as determined in the regulation of creation of sites, extensions and academic units of the universities and polytechnics.

Technology qualification process will continue in charge of these conservatories superior public, until the Council of higher education issued the resolution of creation of the headquarters of the University of the arts.

Once the Council of higher education issued the approval of the establishment of the headquarters, the University of the Arts will assume the quotas of the force of public superior conservatories technological careers offer until it is approved in these races its redesign as the Council of higher education degrees.


Academic staff and administrative public servants who had been providing its services with appointment in the conservatories of music and arts, will become part of the University of the arts, preserving all the rights laid down in the law, provided that they comply with the requirements established in the organic law of higher education and organic law of the public service , and other regulations applicable as appropriate. A period of three years from the entry into force of this code is granted to get the academic staff appointment the title of fourth level, as they establish the law of higher education and organic law of the public service.

Servers in the form of contract of occasional services that were working in the conservatories of music and arts, spend a part of the University of the arts on the basis of the needs and institutional interests.

The heritage of the conservatories of music and arts, will become part of the heritage of the University of the arts.

In any case, heritage, teachers and administrative staff of the conservatories: national music of the city of Quito, J dare María Rodríguez of the city of Cuenca, and Bustamante Celi of Loja's city at its middle level will maintain their current legal status.

In the evaluation of the University of the arts, in the first five years of operation, the CEAACES shall not consider extensions mentioned in the previous paragraph, this period may be extended by the CEAACES only once, for up to five additional years.

TWENTY.-the Council of higher education shall establish mechanisms that guarantee the continuity of studies of people who have started racing in the conservatories that will become part of the University of the Arts before the entry into force of this code, also will establish a transition plan of the technical technological offer to the third level.

TWENTY first.-the governing body of the national system of public contracting, in coordination with the Ministry of higher education, science, technology and innovation, will issue the corresponding resolutions to establish the parameters of qualifi cation recommended the implementation of incentives for additional points in the procurement processes.

TWENTY second.-the function Executive will have within one hundred and eighty days for the issuance of the regulations of this code. Likewise, implementing regulations must be issued within the period of three hundred sixty-five days may be extended by a period equal and only once.

TWENTY third.-for the fulfilment of the provision contained in article 124 of the law of higher education (encoding each), with reference to the responsibility of providing those who graduate from any of the races or programs the domain of a different from the mother tongue, is awarded to technical, technological, pedagogical, colleges of Arts and the conservatories within five years from the entry into force of this code. This provision may be applied progressively until the effective fulfillment of the same.

Friday, December 9, 2016 - 107Registro offi cial No. 899 - supplement provisions REFORMATORIAS.-reforming the law of internal tax regime, the following: 1.1.-then the number 20) article 9, joining the following numerals: "21) the revenues obtained by the taxable persons duly accredited to the Ministry of higher education, science, technology and innovation, exclusive activities of research scientists responsible for ca in an autonomous way and to reinvest at least ten percent" its utility in the country and in the aforementioned activity, this exemption applies only on the reinvested amount."

1.2 replacement of article 10, the phrase "(...) Deductions-in general, with the purpose of determining the taxable income subject to this tax will be deducted expenses that are carried out in order to obtain, maintain and improve the Ecuadorian source income that are not exempt (...) ", by the following:" (...) "Deductions-in general, with the purpose of determining the taxable income subject to this tax be deducted expenses and investments carried out in order to obtain, maintain and improve the Ecuadorian source income that are not exempt (...)"

1.3.-then the number 18) article 10, enter the following numerals: "19) will be deducted one hundred percent additional for the calculation of the tax base from income tax, values intended for students in the dual training compensation and by grants from education, by taxable persons duly accredited by the competent authorities registered with the Ministry of higher education Science, technology and innovation, as the receivers depending on the case. The regulations will establish the technical and formal parameters that must be met to access this additional deduction. ((553.1) 20) will be deducted one hundred percent additional for the calculation of the tax base from income tax, values in respect of salaries, wages and other remuneration in general; benefi ts social; and the participation of workers in the utilities, which are carried out to the guardian appointed for the dual training, by taxable persons duly accredited by the competent authorities registered with the Ministry of higher education, science, technology and innovation, as receivers depending on the case. The regulations will establish the technical and formal parameters that must be met to access this additional deduction."

1.4. for the following of article 37 Add the following article:


"Article 37.1.-reduction of the rate of the tax for economic responsible and sustainable development of science, technology and innovation-taxpayers who reinvest their profits in the Ecuador, projects or responsible for scientific research and technological development programs accredited by the Ministry of higher education, science, technology and innovation will have a percentage reduction from 10% when they operate in a territory of knowledge , of eight percent when it is in other areas of the knowledge and the six per cent for the rest of the actors. "This applies only on the amount reinvested, in conditions that establishes it the regulations of this code."

((1.5 to below of the literal or) of article 41, added the following letter: p) exemption from the payment of the advance of the tax income, for taxable persons, introducing innovative goods to the market process duly accredited by the Ministry of higher education, science, technology and innovation that come from accredited hatcheries. This incentive applies only during the first two periods fi scales that do not get taxed income.

1.6. to below of article 9.3 merge the following: 9.4.-exemption from the income tax of income earned by taxpayers engaged in activities exclusive of any free digital technology which includes Ecuadorian added value, provided that the taxable person has registered the respective license as set out in this code.

Taxable persons are may benefi ciar this exemption for a maximum period of five years. The regulations respective defi nira necessary parameters for the application of this incentive.

SEGUNDA.-reform in the organic code of production, trade and investment, the following: 2.1.-A continuation of the literal m) of article 125 of the organic code of production, trade and investment, added the following literal: "n) equipment and elements to be used exclusively in the development of research or projects of social innovation, by natural or legal persons private or mixed, cooperative, associative or community, national or foreign, who are duly accredited with the Ministry of higher education, science, technology and innovation.

"108 Friday 9 December 2016 supplement - registration offi cial No. 899 the same benefi t apply to natural and legal persons who make donations of these imported goods to researchers, research institutes, technological development centers, and taxable persons dedicated exclusively to activities of social innovation, recognized by the Ministry of higher education, science, technology and innovation."

2.2 replaced in article 46, the phrase "(...) with the exemption of tariffs on foreign goods entering such areas, for the performance of authorised processes (...) ", by the following:" (...) with the exemption of the payment of taxes to trade except fees for customs services, foreign goods entering such areas, for the performance of authorised processes (...)"

2.3 Add the following subparagraph in article 43 of the organic code of production, trade and investment: "Exceptions made this prohibition to managers and operators of the special areas of economic development of technological type, in the case of public sector entities.".

2.4 replace the literal c) article 54 with the following: "(...) "Authorize the creation and oversee the development of infrastructure, specialized in this field, such as: MSMES development centers and others that are required to promote, facilitate and promote the productive development of these companies in accordance with the relevant laws of each sector;"

2.5 added the following General provision: "eighth.-the governing body of telecommunications and the information society policies will be commissioned to defi ne the economic activities related to information and communications technologies applied software among others to make them subject to present in this code, incentives according to be specifi ed in the numeral two two point of the second reform provision of the organic code of the Social economy of knowledge" ", Creativity of innovation."

THIRD.-reform in the organic law of the national system of public procurement, the following: 3.1.-continuation of paragraph 8 of article 1, add the following subparagraph: "Are excluded from this law, contracting of services and procurement of goods by the actors of the national system of science, technology, innovation and knowledge, ancestral, duly accredited, which have been acquired with public funds of public venture capital or seed capital proceeds".

CUARTA.-reform in the organic code of Territorial Organization, autonomy and decentralization as follows: 4.1.-repeal of the literal f) article 32.

4.2.-a continuation of the literal m) of article 42 of the organic code of Territorial Organization, autonomy and decentralization, added the following literal: "n) determine the policies of research and innovation of knowledge, development and transfer of technologies needed for provincial development, within the framework of the national planning."

Fifth.-reform where says: "Institute Ecuadorian of intellectual property" by "Secretary of higher education, science, technology and innovation", in the formation of collective bodies set out in the regulations.

SIXTH.-reforming the law of higher education, the following: 6.1.-replace the law of higher education where say intellectual property law, with the following: "(...) Code organic of the economy Social knowledge, creativity and innovation (...)"

6.2 replace the article 117, with the following:


"Article 117.-typology of universities and polytechnics-universities and polytechnics are classifi caran according to the field of academic activities, that being that they may be teaching with research institutions or institutions of teaching." What types of races shall be established depending on the type or programs may offer each one of these institutions, notwithstanding that only teaching with research universities may offer academic degrees of PhD or equivalent. ”.

6.3 added as subsection end of article 65, the following: "in the case of the institutes superior technical, technological, pedagogical, arts and conservatories, created by a university or Polytechnic School, being academic units of these institutions of higher education, their Government officials will be designated by the top academic body or by the rector of the University or Polytechnic that belong ", according to the respective statute stated it."

Friday, December 9, 2016 - 109Registro offi cial No. 899 - Supplement 6.4.-replace the text of article 124 by the following: "article 124-training in values and rights-is the responsibility of the institutions of higher education provide to those who graduate from any of the careers or programs, actual duties and rights as citizens and socio-economic reality knowledge" cultural and ecological in the country; the domain of a different from the mother tongue and the effective management of tools".

6.5 replace the sixth general disposition by the following text: "sixth.-higher education institutions can count on branches and extensions only in those provinces where there is no public academic offerings or in those provinces in which according to the needs of the country and reasoned way, set the Council of higher education."

6.6 replace the text of article 36 with the following: "article 36.-allocation of resources for publications, scholarships for teachers or teachers and research-universities and polytechnic schools of public and private character mandatorily in their budgets allocated items to run research projects, acquire technological infrastructure, publish in high-impact journals, doctoral scholarships to their professors and payment of patent."

The universities and polytechnic schools of teaching this assignment will be at least 6% and in the teaching with research at least 10% of their budgets."

6.7 replace the text of article 77 by the following: ' article 77.-scholarships and grants economic-institutions of higher education established full scholarship programs or its equivalent in economic aid that support in their schooling to at least 10% of the number of regular students, at any of the levels of training of higher education. "

Are benefi ciaries who do not have economic resources suffi cient, regular students with high average and academic distinction, the high-performance athletes representing the country at international events, provided that they prove academic performance levels covered by each institution and the disabled."

6.8 replace the text of the second subparagraph of article 70 by the following: "teachers or teachers, educational technicians, researchers or researchers, technicians laboratory, assistants of teaching and other denominations afi nes used in public higher education institutions are public servants subject to an own system which will be referred to in the regulation of career and ranks of the Professor and researcher of the system of higher education fi sets the rules governing entry, promotion, stability, evaluation, training, remunerative scales, institutional strengthening, retirement and cessation. In the institutions of higher education individuals will observe is the provisions of the labour code."

6.9. replace the text of the literal k) article 174 by the following: "k) provide certifi Cates of institutional accreditation as well as programs and careers, institutions of higher education and academic units that have fulfilled all the requirements for the effect." The validity of this certifi cate will be at least three years."

6.10 replace article 109 paragraph 9 with the following: 9. for the creation of universities or polytechnic schools must have with the certifi cation of the Ministry of economy and finance for the creation of the corresponding budget item that ensures their fi nancing.

6.11 replace subsection end of article 148 with the following text: "the terms and amount of participation will be established by each institution of the higher education system in accordance with the provisions laid down in the organic code of the Social economy of knowledge, creativity and innovation and exercise his responsible autonomy."

6.12 replace the text of article 95 with the following: "article 95.-Accreditation-Accreditation is validation performed by the Council of evaluation, accreditation and assurance of the quality of higher education, for certified car quality of institutions of higher education, a career or educational program on the basis of a prior assessment.

Accreditation is the product of a rigorous assessment of the compliance of guidelines, standards and criteria of international quality, races, programs, postgraduate courses and institutions, compulsory and independent, to defi nira Council evaluation, accreditation and assurance of the quality of the higher education.

The procedure includes a self-assessment of their own institution, as well as an external evaluation carried out by a team of expert peers, who in turn must be periodically accredited.

110 Friday 9 December 2016 supplement - registration offi cial No. 899 evaluation, accreditation and assurance of the quality of the higher education Council is the body responsible for the assurance of the quality of higher education, their decisions in this matter are forcing all agencies and institutions that make up the system of higher education of Ecuador.

The validity of accreditation shall be at least three years.


6.13 replace the first subparagraph of article 26 with the following: "For the use of the funds that do not come from the State, universities and polytechnic schools special is subject to the respective internal regulations approved by the top academic College and its control is subject to the mechanisms that establish the Council of higher education".

6.14 added to the fi nal of the first paragraph of article 27 the following: "Additionally the private institutions of higher education will deliver the information required by the revenue service internal, in the scope of their powers, in accordance with the conditions and requirements that establish this entity."

The Council of higher education and the internal revenue service will conduct a coordinated to ensure compliance with the prohibition of the non-profit institutions of higher education."

6.15 article 34 replaced by the following: ' article 34.-indebtedness of the institutions of higher education.-public higher education institutions can get public borrowing fulfilling the provisions of the Constitution and laws. " Debt can only be used for programmes and projects of investment, infrastructure and equipment, improvement of the quality criteria.

Private higher education institutions may contract indebtedness, public or private to fulfilling the provisions of the Constitution and the law".

6.16 added to the fi nal of the second subparagraph of article 39 the following: "related parties, as set out in article 161 of this Act, may not positions of legal representatives, directors, managers, directors, Chief Executives or charges of similar or higher hierarchy in legal persons created or may be holders of equity or equity created legal persons.

Proven breach of this provision, the Board of higher education, may apply one or more of the sanctions set out in article 161 of this Act".

6.17 replaced subsection end of article 89 by the following: "if any surplus in its fi nancial statements, these will be used to increase its institutional heritage. The Board of education check upper face strict compliance.

Proven breach of this provision, the Board of higher education, may apply to one or more of the sanctions set out in article 161 of this Act.

The penalty does not release the higher education institution from the obligation to allocate surplus to increase its institutional heritage".

6.18 article 161 replace by the following: ' article 161.-Prohibition of profit-the system of higher education institutions will not have non-profit purposes as provides it for the Constitution of the Republic of the Ecuador; " This character will be guaranteed and secured by the Council of higher education.

Institutions of higher education not may make contracts, agreements or transactions with legal persons domiciled, established or located in havens fi scales or jurisdictions of lower taxation, with the exception of those directly related to the fi nes of higher education established in this law.

In addition, the institutions of higher education may not perform acts, contracts, conventions or transactions with related parties.

They are considered to be related parties: to) promoters, rector or Rector, Vice-Chancellor or Vice-Rector, academic authorities, director or principal fi nancial or charges of similar or higher hierarchy.

(b) members of the top academic College.

(c) the spouses, who maintain union fact or relatives within the fourth degree of consanguinity or second of affi nity, of persons referred to in the preceding paragraphs.

(d) persons legal, national or foreign, in which people identified in previous literals are, directly or indirectly, legal representatives, founders, directors associate members, managers, administrators, senior executives or charges of similar or higher hierarchy.

Friday, December 9, 2016 - 111Registro offi cial No. 899 - supplement e) persons legal, national or foreign, in which persons specified in literals a, b and c, directly or indirectly, are holders of at least twenty five percent (25%) of the share capital or equity.

Proven non-compliance, the Board of higher education, whereas the amount of the contracts, agreements or transactions, may apply one or more of the following penalties, in proportion to the infringement, the institutions that violate or infringe these prohibitions: 1. monetary fine of up to ten per cent (10%) of the annual income of the institution.

2. suspension of the delivery of public resources.

3. loss of exemptions and benefits tax up to a period of five years.

In these cases the Council of higher education may order the institution decreases or does not increase tariffs, fees and rights up to a period of five years.

Without prejudice to the penalties established in the preceding paragraphs, the Board of higher education, you can apply one or more of the following penalties, in proportion to the infringement, to natural persons established in the literal a and b of this article which comply with these prohibitions: 1. monetary fine of up to ten per cent (10%) of the amount of contracts agreements or transactions.

2. immediate dismissal from his post.

3. disqualification of up to ten (10) years to exercise public office, be a member of the top academic College, authority in the system of higher education and to promote the creation of an institution of higher education.

The values collected by concept of monetary fine is for the granting of scholarships for higher education for students with limited financial resources, through the governing body of scholarship of the Government policy".

6.19 added then the literal w) Article 169, the following literal: "x) oversee, monitor, control, investigate and regulate compliance with the prohibition of the non-profit institutions of higher education and sanction the institutions and those who violate or infringe this prohibition, without prejudice to the powers and competences of the other bodies of the State."

6.20 include the following General layout:


"Tenth second-highest monthly remuneration of the primerasautoridades of the private institutions of higher education will be regulated by the Council of higher education based on the fi xed to the titular academic staff compensation auxiliary level 1 and minimum remuneration established for other employees of the institution."

The first authorities, as well as academic staff, the servers and workers hired under a relationship of dependency, must be afi bundled to social security by the totality of the values received for their services.

The first authorities of private higher education institutions and the members of the top academic College must submit, at the beginning and end of his administration, a statement sworn in with regard to their heritage and their participation in national or foreign legal persons in accordance with requirements established by the Board of higher education, otherwise applies the sanction provided for in article 204 of this Act".

6.21 included the following transitional provision: "twenty eighth.-private higher education institutions and its authorities shall comply with the obligations laid down in reformatorias of the articles 39 and 161 provisions within a period of one year from publication on the registry offi cial."

6.22 added as subsection end of article 97 the following text: "the accreditation of institutions, careers or programs that are classifi ed academically, or to obtain a category that does not comply with the guidelines, criteria, and standards of quality of international level, may be revoked by the Council of evaluation, accreditation and assurance of the quality of higher education."

6.23 included the following General layout: "tenth third.-the Council of higher education shall establish the regulation to ensure higher education paths that allow adequate transition and transit from the technical level or superior technology, toward the third and fourth level, as well as between the various institutions of higher education."

6.24 include the following General layout: "fourth 10th.-higher education Council will regulate on transfers that institutions of higher education by concept of subscriptions or memberships to international networks."

SEPTIMA.-reform in the corridors of real estate law, the following: 112 - Friday 9 of December 2016 supplement - registration offi cial No. 899 7.1.-removed the literal c) article 3 the phrase "and obtain the certifi ed corresponding of the Ministry of education, as the case may be".

7.2 repealed article 9.

OCTAVA.-reformed the organic law of public service, the following: 8.1.-replace literal b) of article 28 by the following text: "b) subject to the needs and institutional interests, prior authorisation of the appointing authority, to carry out studies regular postgraduate in higher education institutions, for the period that lasts the academic program, provided that the server or server has completed at least two years of service in the institution where he works;"

8.2 Add after the paragraph end of article 65 the following subparagraph: "During the qualifi cation of the merits and oppositions contests, will be awarded an additional score to applicants who prove to have been creditors to a recognition within the national program of awards for academic excellence".

8.3 article 84, replace by the following: ' article 84.-career teacher-teaching staff in all levels and modalities will enjoy stability, update, continuing education, pedagogical and academic improvement, shall receive fair compensation according to the professionalism, performance and academic merits. " They will be subject to the law of education and promotion of the Magisterium. As well as the teachers and researchers of the universities that will be governed by the law of higher education, according to the consecrated in Article 355 of the Constitution."

8.4 the last subparagraph of article 30 replaced by the following text: "for meetings, conferences, internships and visits of observation abroad or in the country, that benefit one hundred to the public administration, shall be granted Service Commission for up to two years, prior favourable opinion of the unity of the human talent management, provided the server or server has completed one year of service in the institution where he works. This benefi t may also be granted for regular studies of postgraduate courses for the period that lasts the programme of studies.

After the Commission's services, the server or server must provide services for public administration for a period not less than the duration of the Commission's services."

NOVENA.-reformed the organic law for the regulation and Control of the power of the market, the following: 9.1.-replace rule d) to meet and resolve on the violation of business secrets laid down in article 27 number 7 of the organic law for the regulation and Control of the power market, by the following: d) relating to marketing approval of products of any nature by a competent public authority in implementation of its legal mandate does not imply unfair commercial use tenth.-reforming the law of Intercultural education, the following: 10.1.-added after the general arrangement tenth fourth the following: "tenth fifth-PCEI craft technical schools, and the educational PCEI unit of craft training, can deliver the level of complementary tecnico-productivo high school, according to the standards and curriculum defi nests by the national education authority. They may receive high school graduates of baccalaureate general unifi Ed technical and become educational production units."

10.2 added after the general arrangement tenth fifth as follows: "tenth sixth.-students who have completed their educational training in the form of"Productive technical high school"and"Artistic high school", must be certified car such qualifi cation according to the national system of Qualifi cations professional."

10.3 Add the fi nal of the seventh general arrangement the following text:


"Until the national education system have the number sufficient teachers in the areas of aesthetic and artistic training, may enter public educational career, in the corresponding category, the high schoolers that show experience in artistic teaching at the level of basic education, secondary education, conservatories or artistic institutes centers. They may exercise teaching in any school education of the country, urban or rural, and extends them a provisional appointment for six years, period in which it must obtain a teaching professional degree. The interim appointment will be revoked to the high schoolers who do not obtain your teaching professional degree in this period.

The State shall establish agreements with institutions of higher education to facilitate its professionalization."

Tenth first.-reform in the code organic General process, the following: Friday, December 9, 2016 - 113Registro offi cial No. 899 - Supplement 11.1.-added the following innumerado article following article 133: "article (...). -Preventive measures in the field of intellectual property.-with the aim of avoiding that occur or continue the infringement on intellectual property rights, or avoid that goods entering the commercial circuits, including imported goods, either to preserve relevant evidence relating to the alleged infringement, the judge of the civil part request and prior report favorable of the competent authority in the field of intellectual property (, the adoption of the following preventive measures are available: to) immediate cessation of the activity constituting the alleged infringement, which shall comprise: 1. the suspension of the infringing activity or ban the infringer from resuming it, or both;

2. the provisional closure of the premises or establishment, which necessarily will be issued when the infringing goods or illegal copies are based on substantial regular trade of the offender;

3. the removal of the trade of goods, illegal copies or infringing objects and their judicial deposit.

(b) the suspension of the activity of use, exploitation, sale, offer for sale, import or export reproduction, making available, communication or distribution, as appropriate; and, c) kidnapping or retention; the same thing may order about goods that will ensure the payment of compensation, for the products or goods that violate intellectual property rights, as well as the equipment, apparatus and means used to commit the infringement and the original specimens that have served for the reproduction or communication.

Demand leading to this type of action, will be initiated before the competent Civil judge by summary procedure, according to the provisions of this code.

TENTH second.-reforming the laws of creation of the Experimental Research University Yachay, Amazon Ikiam Regional University, National University of education UNAE, University of the arts.

12.1 the sixth transitional provision, constant in all of these laws, replace by the following text: sixth-this institution of higher education will participate in the distribution of the Permanent Fund of development University and Polytechnic (FOPEDEUPO). The Board of education upper defi nira a formula of transient distribution of resources tailored to the level of development of this University.

10th third.-reform in all the provisions of legal and regulatory character where it says: "Law of intellectual property" by "Organic code of the Social economy of knowledge, creativity and innovation".

Tenth fourth.-reform law of special regime for the province of Galapagos.

"Add the following General provision 14.1: tenth sixth.-from the fi scal year 2017 period, the Governing Council of the special regime for the province of Galapagos will allocate annually up to five per cent of resources perceived by the rate of income and conservation of natural protected areas, for the funding of projects and programs of research responsible for the province of Galapagos."

REPEALING provisions first.-repeal of the law of intellectual property, published in the supplement of the registry offi cial Nro. 426 of December 28, 2006 and all reformatorias provisions incorporated into it.

SECOND.-are also repealed, the entry into force of this code, other provisions of equal or lower hierarchy who are opposed to the provisions therein.

THIRD.-repeal of rule c) paragraph concerning meet and resolve on the violation of business secrets of paragraph 7 of article 27 law of regulation and Control of the power market.

Fourth.-repeal of the law of centers of transfer and development of technologies, published in the supplement of the registry offi cial 319 of November 16, 1999.

DISPOSAL only.-the present Code shall enter into force from their publication on the registry offi cial.

Given and signed at the headquarters of the National Assembly, located in the Metropolitan District of Quito, at twenty-nine days of the month of November of two thousand sixteen.

f.) GABRIELA RIVADENEIRA BURBANO, President.

f.) Dr. Libya RIVAS ORDÓÑEZ, Secretary General.

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