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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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ORGANIC CODE

OF THE ECONOMY

KNOWLEDGE

KNOWLEDGE,

CREATIVITY and

INNOVATION

Year IV-Nº 899

Quito, Friday 9 December 2016

Value: US$ 3.75 + VAT

ING. HUGO DEL POZO BARREZUETA DIRECTOR

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Printed on National Editor

116 pages

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At the service of the country from 1 July 1895

S U P L E M E N T O

2- Friday, December 9, 2016 Supplement-Ofi cial Registration No. 899

REPUBLIC OF ECUADOR NATIONAL ASSEMBLY

Ofi cio No. SAN-2016-2135

Quito, 01 December 2016

Engineer Hugo Del Pozo Barrezueta Director of the Ofi cial Register In his office.-

Of my considerations:

The National Assembly, in accordance with the He also discussed and approved the PROJECT OF THE ORGANIC CODE OF THE SOCIAL ECONOMY OF KNOWLEDGE, CREATIVITY AND INNOVATION.

In session on November 29, 2016, the National Assembly plenary met and gave a statement on the partial objection presented by the Constitutional President of the Republic.

Article 138 of the Constitution of the Republic of Ecuador and Article 64 of the Organic Law of the Legislative Function, accompanied the text of the ORGANIC CODE OF THE SOCIAL ECONOMY OF KNOWLEDGE, CREATIVITY AND INNOVATION, to serve publish it in the Ofi cial Registry.

Attentive,

f.) DRA. LIBYA RIVAS ORDONEZ, General Secretariat.

REPUBLIC OF ECUADOR NATIONAL ASSEMBLY

CERTIFICATION

In my capacity as General Secretariat of the National Assembly, I allow myself to CERTIFY that the National Assembly discussed and approved the "PROJECT OF THE ORGANIC CODE OF THE SOCIAL ECONOMY OF KNOWLEDGE, CREATIVITY AND INNOVATION", in the first debate on 22, 29 October; 5 and 10 November 2015; in the second debate on 4 and 6 October 2016; on 11 October 2016; and, on the partial objection of the Constitutional President of the Republic on 29 November 2016.

Quito, November 30, 2016

f.) DRA. LIBYA RIVAS ORDONEZ, General Secretariat.

REPUBLIC OF ECUADOR NATIONAL ASSEMBLY

THE PLENO

CONSIDERING:

What, Article 276 of the Constitution provides for the development regime to have for objectives, among others, to improve the quality and life expectancy, and to increase the capacities and potentialities of the population in the framework of the principles and rights established by the Constitution; to build an economic system, fair, democratic, and partner productive, supportive and sustainable based on the equal distribution of benefits the development, means of production and the generation of decent and stable work; and, guaranteeing national sovereignty, promoting Latin American integration and promoting a strategic insertion in the international context;

Article 387 of the Constitution provides that it will be the responsibility of the State to facilitate and promote the incorporation into the knowledge society in order to achieve the objectives of the development regime; to promote the generation and production of knowledge, encouraging scientific and technological research and enhancing knowledge In order to contribute to the realization of good living, to ensure the dissemination and access to scientific and scientific knowledge, the usufruct of its discoveries and findings in the framework 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 according to the Law;

Article 283 of the Constitution of the Republic establishes that the economic system is social and solidarity; recognizes the human being as the subject and the fi n; it proposes a dynamic and balanced relationship between society, state and market, in harmony with nature; and aims to guarantee the production and reproduction of material conditions and

article 284 of the Constitution of the Republic establishes the objectives of economic policy, among those that are: to ensure an adequate distribution of income and wealth. national production, national production, productivity and systemic competitiveness, accumulation of scientific and scientific knowledge, strategic integration into the world economy and complementary productive activities in regional integration; and, maintaining the highest level of sustainable production and employment 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, cultures and sovereignty, will have as its (a) to generate, adapt and disseminate scientific and technological knowledge; strengthen and strengthen traditional knowledge; develop technologies and innovations that drive national production, enhance science and productivity, improve quality of life, and contribute to the realization of good living;

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What, Article 277 of the Constitution provides for the general duties of the State for the achievement of good living to promote and promote science, technology, arts, traditional knowledge and, in general, the activities of the creative community initiative, associative, cooperative and private;

What, article 388 of the Constitution provides for the State to allocate resources The European Community has a key role to be played in this field. (i) the development of knowledge and the recovery and development of knowledge, and that a percentage of these resources will be used to finance projects through eligible funds, and that organisations receiving public funds will be able to they will be subject to accountability and respective state control;

What, article 25 of the Constitution provides that people have the right to enjoy the benefits and applications of scientific progress and knowledge ancestral;

What, literal d) of article 66 of the Constitution, recognizes and guarantees to people the right to personal integrity, including the prohibition of the use of genetic material and scientific experimentation that are against human rights;

That, Article 322 of the Constitution recognizes the intellectual property according to the conditions outlined in the Law and likewise prohibits all forms of appropriation of collective knowledge in the field of traditional sciences, technologies and knowledge and appropriation on the genetic resources containing biological diversity and agrobiodiversity;

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

Article 57 (12) of the Constitution recognizes and guarantees indigenous communities, communities, peoples and nationalities the collective right to maintain, protect and develop collective knowledge; their sciences, technologies and additional knowledge; genetic resources containing biological diversity and the agrobiodiversity; its medicines and traditional medicine practices, including the right to recover, promote and protect the ritual and sacred sites, as well as plants, animals, minerals and ecosystems within their territories; and knowledge of the resources and properties of the fauna and the fl ora;

What, it is essential to create a system of protection of traditional knowledge in the benefit of the communities in their condition of legitimate holders;

Article 22 of the Constitution provides for the right of persons to benefit from the protection of the moral and heritage rights that correspond to the scientific, literary or artistic productions of their authorship;

That, the Law of Intellectual Property promulgated 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 as a central point private rights and an essentially mercantilist approach to intellectual property rights;

What, it is necessary to do a strategic use of Intellectual Property rights to favor the transfer of technology, the generation of science, technology, innovation and the 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 constitutional rights and guarantees as stated in the preceding recitals;

That, Article 298 of the Constitution provides for the establishment of pre-budget allocations In the field of education and higher education, research, science, technology and innovation in terms of the law;

What, the Minister of Finance in accordance with Article 74 numeral 15 of the Organic Code of Planning and Public Finance, by means of office. MINFIN-DM- 0314, of 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 of the Republic provides: " Education respond to the public interest and will not be at the service of individual and corporate interests ";

That, article 133, states that" Laws shall be organic and ordinary. They shall be organic laws (...) 2. Those governing the exercise of constitutional rights and guarantees ";

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

What, Article 350 of the Constitution of the Republic of the Republic of the Republic of the European Union, is:" The higher education system has the academic and professional training with scientific and scientific vision; scientific research This is the first time that the Commission has been working on a number of issues, including the creation of new technologies, the 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 development regime "

Constitution of the Republic mandates: " The higher education system will be articulated to the national education system and the National Development Plan; the law will establish the mechanisms of coordination of the higher education system with the Executive. This system will be governed by the

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principles of responsible autonomy, co-governance, equal opportunities, quality, relevance, integrality, self-determination for production of the thinking and knowledge, in the framework of the dialogue of knowledge, universal thought and scientific production of global technology ";

In exercise of its constitutional and legal faculties, it issues the following:

" FROM THE SOCIAL ECONOMY OF KNOWLEDGE, CREATIVITY AND

INNOVATION "

PRELIMINARY TITLE

OF THE COMMON PROVISIONS TO THE SOCIAL ECONOMY OF KNOWLEDGE,

CREATIVITY AND INNOVATION

Article 1.-Object.- This Code has the to regulate the National System of Science, Technology, Innovation and Ancestral Knowledge provided for in the Constitution of the Republic of Ecuador and its articulation mainly with the National System of Education, the System of Higher Education and the National Culture System, with the aim of establishing a legal framework in which the structure the social economy of knowledge, creativity and innovation.

Article 2.-Scope.- All natural, legal and other associative forms that develop activities are governed by this Code.

The activities related to the social economy of knowledge, creativity and innovation are those focused on creating value from the social economy of knowledge, creativity and innovation.

the intensive use of the generation, transmission, management and use of the good of interest public knowledge, which includes traditional knowledge; promoting in all social and productive sectors the collaboration and empowerment of individual and social capacities, democratization, equitable distribution; and Efficient use of resources in harmony with nature, aimed at obtaining good living.

Article 3.-Fines.- This Code has, as the principal, the following fi nes:

1. Generate instruments to promote an economic model that democratizes production, transmission and appropriation of knowledge as well in the public interest, thus ensuring the accumulation and redistribution of wealth in a fair, sustainable and harmonious way with nature;

2. Promoting the development of science, technology, innovation and creativity to meet needs and to effectively exercise the rights of people, peoples and nature;

3. Encourage the production of knowledge in a collaborative and democratic way solidarity;

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

5. Pluralistic and inclusive vision in leveraging knowledge, giving supremacy to the value of use on the value of change;

6. Develop the forms of ownership of knowledge compatible with good living, being these: public, private, community, state, associative, and mixed;

7. Incentivize 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 fair distribution (a) to ensure that, in the case of the European Community, the Commission has been responsible for the implementation of the programme, in particular in the field of research and development, and in the field of research and development. social factors of production to increase the knowledge pool and innovation;

9. Establish sources of funding and incentives for the development of the social economy's activities of knowledge, creativity and innovation;

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

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

Article 4.-Principles.- For the application of provisions contained in this Code, the following principles shall be observed:

1. Knowledge constitutes a good of public interest, its access shall be free and shall not have more restrictions than those laid down in this Code, the Constitution, the international treaties and the Law and, its distribution shall be fair, equitable and democratic manner;

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2. Intellectual rights are a tool for the proper management of knowledge. The acquisition and exercise of intellectual property rights will ensure a balance between holders and users. In addition to the limitations and exceptions provided for in this Code, the State may take the necessary measures to ensure health, nutrition, education, culture, scientific and technological development, innovation and transfer and Technological diffusion as sectors of vital importance for the socio-economic and technological development of the country. Nothing in this Code may be interpreted in a manner contrary to the principles, rights and obligations established in the International Treaties of 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, which is why it must be of excellence and democratically distributed;

4. knowledge will be developed collaboratively and jointly;

5. generation, transmission, management, use and exploitation of knowledge, creativity, technology, innovation and traditional knowledge will be oriented towards the realization of good living, seeking the satisfaction of the needs of the population, the effective exercise of the rights and the biophysically sustainable use of the resources of the country, in the framework of the guarantee of the reproduction of the life;

6. The sovereignty over the knowledge is objective State strategic to guarantee people the generation, transmission, management, use and use of knowledge, technology and innovation to make good living;

7. Academic training and scientific research should contribute to the achievement of the objectives of the National Development Plan;

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

9. Activities linked to the social economy of knowledge, creativity and innovation, will be developed in a framework of equal opportunities, coordination, transparency, quality, evaluation of results and accountability;

10. In the operation of the social economy of knowledge, creativity and innovation, the mechanisms of decentralization and 11. Relevant deconcentration, enabling efficient management and close to the territory;

11. Ethics in science, technology, innovation must be geared to the satisfaction of needs and the preservation of human dignity and its applications must be rational, pluralistic and fair;

12. The research and technology and innovation generators must be able to protect and protect the rights, dignity and physical and psychological integrity of the people involved. Any risk or impact on the rights of persons or nature shall be legitimate, proportionate and necessary. In the relevant cases, the free, prior and informed consent of the potential affected should be provided;

13. Freedom of research and technological development is guaranteed in the framework of regulation and limitations that for reasons of safety, health, ethics or any other public interest, determine the Law;

14 It is an important element for the social economy of knowledge, creativity and innovation. The State must recognize, protect and encourage creativity as a fundamental mechanism for solving problems, satisfying the needs of society and individual realization in relation to responsible research, innovation

15.

State will foster the favorable environment for the expansion and strengthening of artistic and cultural activities, encouraging, mainly, the free creation; research in the art and culture, with an approach to gender equality and non-discrimination, as well as, the interaction of these with the other activities of the social economy based on knowledge, creativity and innovation;

16. Biodiversity and genetic heritage are inalienable, imprinted and immeasurable property of the State; they cannot be privatized and, their access, use and exploitation will be realized in a strategic way, seeking the generation of endogenous knowledge and national technological development;

17. to contribute to the generation and dissemination of knowledge, in particular by creating cultural and artistic. The State should grant all facilities for the public space to be used in the benefit of creators and users;

18. The dialogue of knowledge is recognized as the process of generation, transmission and exchange of knowledge and traditional knowledge, for the realization of the Plurinational and Intercultural State; and,

19. For its magnitude and economic, social and political impact, the State will give priority to the activities Research and technological development in economic sectors called industries basic.

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BOOK I

THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY, INNOVATION AND KNOWLEDGE

ANCESTRAL

TITLE I GENERAL PROVISIONS

Article 5.-National System of Science, Technology, Innovation and Ancestral Knowledge.- Comprises the coordinated and correlated set of norms, policies, instruments, processes, institutions, entities and individuals taking part in the social economy of knowledge, the creativity and innovation, to generate science, technology, innovation, as well as to rescue and empower traditional knowledge as fundamental elements to generate value and wealth for society.

The Executive Function will coordinate between the different systems that have an impact on the social economy of knowledge, creativity and innovation for the articulation in the issuance of public policy by the Secretariat of Higher Education, Science, Technology and Innovation.

Article 6.-Conformation.- The National Science System, Technology, Innovation and Ancestral Knowledge will be integrated by the following institutions, agencies and entities:

1. Decision-making and policy-making bodies, control and assessment:

a) The institution of the National System of Science, Technology, Innovation and Ancestral Knowledge; and,

b) The Autonomous Decentralized Governments, in the scope of your competencies.

2. National authority responsible for intellectual rights.

3. Advisory bodies for the planning of the public policy

a) National Advisory Committee on the Social Economy of Knowledge, Creativity, Innovation and Ancestral Knowledge; and,

b) Regional Advisory Committees Planning for Higher Education, Science, Technology, Innovation and Ancestral Knowledge.

4. Knowledge-generating actors and managers:

a) Decentralized autonomous governments, in the field of their competencies;

b) Institutions of higher education;

c) Centifi research entities;

(d) Science academies;

e) Natural persons, legal entities and other types of associations related to activities of the social economy of knowledge, creativity and innovation, in all sectors of the economy, including the productive partner sector and the popular and solidarity economy sector;

f) Indigenous communities, peoples, and nationalities, through their contributions in the field of knowledge; and,

g) Public institutions, public companies and other entities related to responsible research, strengthening of human talent, knowledge management, science, technology, social innovation, traditional knowledge and creativity, both centrally and unconcentrated.

5. The Scientific Research Ethics Agencies Cientifi ca:

a) National Commission on Ethics in Research Cientifi ca; and,

b) Institutional Bodies of Ethics.

TITLE II ORGANS AND ENTITIES OF THE SYSTEM NATIONAL OF SCIENCE, TECHNOLOGY,

INNOVATION AND ANCESTRAL KNOWLEDGE

CHAPTER I OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY,

INNOVATION AND ANCESTRAL KNOWLEDGE

Article 7.- National System of Science, Technology, Innovation and Knowledge System Ancestral.- The Secretariat of Higher Education, Science, Technology and Innovation, is part of the Executive Function, is responsible for the rectory of national public policy in the areas governed by this Code, as well as coordination between the public sector, the private sector, the public sector and solidarity, the institutions of the Higher Education System and the 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 entity

The governing body has regulatory capacity, sanctioning power and co-active jurisdiction, in accordance with the provisions of this Code and the applicable legal order.

Is in charge of the Secretary or Secretary of Higher Education, Science, Technology and Innovation.

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Article 8.-Duties and attributions of the National System of Science, Technology, Innovation and Ancestral Knowledge System.- The Rector Entity The National System of Science, Technology, Innovation and Ancestral Knowledge, has the following attributions and duties:

1. Advocate nir, execute and evaluate the national public policy of National System of Science, Technology, Innovation and Ancestral Knowledge for the social economy of knowledge, creativity and innovation, especially as regards research, innovation, transfer, monitoring, knowledge dissemination, technological development, intellectual property, traditional knowledge;

2. To ensure that the public policy objectives of the National System of Science, Technology, Innovation and Ancestral Knowledge are met;

3. Dictate the rules, manuals, instructions, guidelines, and other regulatory instruments that will be mandatory for all System actors;

4. Dictate the regulations for the registration, accreditation and categorization, as the case may be, of the actors who carry out responsible research and social innovation according to the following standards and criteria, among others: quality, safety, Scientifi production, open technology, infrastructure, human talent management, and social transfer of the results of the processes they run;

5. Issuing the rules for accreditation and monitoring in the field of incentives for the promotion of activities related to the social economy of knowledge, creativity and innovation;

6. I advocated priorities and criteria for allocation and distribution of the resources that make up the pre-allocation for research, science, technology and innovation, as provided for in this Code;

7. Coordinate with the regulatory entities of the Monetary and Financial System, as well as the securities regimes and insurance instruments aimed at activities related to the social economy of knowledge, creativity and innovation;

8. Coordinate with all entities, institutions and agencies of the National System of Science, Technology, Innovation and Ancestral Knowledge the application and implementation of public policy in the field of this Code;

9. Encourage the strengthening of human talent in order to meet the requirements of this Code;

10. Dictate the regulations for the creation, accreditation, operation and control of knowledge spaces;

11. Coordinate with the Decentralized Autonomous Governments the decentralized exercise of the competencies linked to the National System of Science, Technology, Innovation and Ancestral Knowledge based on the objectives outlined in the Plan National of the Social Economy of Knowledge, Creativity, Innovation and Knowledge Ancestral;

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

13. Participate and advise on national regulatory and international treaties that have an impact on the National System of Science, Technology, Innovation and Ancestral Knowledge at the national level;

14. Design, implement, administer, and coordinate the National System Information on Science, Technology, Innovation, Traditional Knowledge of Ecuador articulated to the National System of Information of Higher Education of Ecuador;

15. Promote the use of information and transfer of technology among the actors of the National System of Science, Technology, Innovation and Ancestral Knowledge;

16. Grant, modify and revoke the authorization of the operation of the spaces for knowledge development, innovation under this Code, its regulations and other applicable rules;

17. Incentives and encouragement projects focused on the production, transfer and management of science, technology and innovation, training of human talent or professional qualifications among others, in the economic sectors identified as basic industries;

18. Issue binding opinion prior to setting up Special Zones Technological Economic Development;

19. Coordinate in collaboration with research institutes, institutions of higher education, and other entities that are part of the social economy of knowledge, creativity and

20.

20.

20.

20. Coordinate and evaluate the management of intellectual rights;

21. Develop an international mapping system, mainly on scientific and scientific publications and on applications for the registration or deposit of intellectual property rights that may infringe collective rights of the legitimate holders who inhabit the national territory; among others;

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22. Advise and support ex ante and ex post to legitimate holders in negotiations with third parties interested in obtaining their prior, free and informed consent for access, use and exploitation of their traditional knowledge;

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

24. Designate the technical advisors who will accompany the permanent representation to the international organizations that have links with the National System of Science, Technology, Innovation and Ancestral Knowledge;

25. To issue guidelines for the generation, management and dissemination of knowledge of activities related to research, technological development and innovation of national interest, as well as, I defend the conditions of access, use and use of knowledge derived from biodiversity, in coordination with the national environmental authority in the field of its competence, and traditional knowledge;

26. Prepare and submit to the competent authorities the projects of reform to the regulations on the matters that this Code regulates. In case such projects were referred to as knowledge management, they should do so in coordination with the national intellectual rights authority;

27. Grant the necessary permits for research associated with biodiversity in coordination with the national environmental authority;

28. Issue the regulations and public policy necessary for the subscription of contracts for access, use and exploitation of genetic resources associated with biodiversity or traditional knowledge, in coordination with the Environmental Authority National;

29. Designate the highest authority of the competent entity on intellectual rights; and,

30. The others to be established in this Code.

Article 9.-National Plan of the Social Economy of the Knowledge, Creativity, Innovation and Ancestral Knowledge.- It is the set of guidelines of a public nature, whose actions lead to ensuring an economic model that generates value, democratizes knowledge and is environmentally sustainable. It will have a national scope with a territorial and intercultural approach, will be oriented towards the creation of academic, cultural, research and social innovation networks and the free, social and solidarity transfer and reproduction of the knowledge. For its design and evaluation, it will have to observe what is foreseen in the National Development Plan and must also feed back the information provided by the actors of the System.

The National Plan of the Social Economy of the Knowledge, Creativity, Innovation and Ancestral Knowledge will be developed by the National Committee of Planning of the Social Economy of Knowledge, Creativity, Innovation and Ancestral Knowledge in coordination with the Ministry of Higher Education, Science, Technology and Innovation, which will be brought to the attention of the Part of the National Planning Council.

CHAPTER II BODY RESPONSIBLE FOR THE PROTECTION OF RIGHTS

INTELLECTUALS

Article 10.-National Competent Authority on Rights - the technical body attached to the Secretariat of Higher Education, Science, Technology and Innovation, with its own legal personality, endowed with administrative, operational and financial autonomy, which exercises the powers of Regulation, management and control of intellectual rights and consequently has its responsibility mainly the services of acquisition and exercise of intellectual property rights, as well as the protection of traditional knowledge. In addition to the functions inherent in its powers, it will be the main task of executing the public policies that emanate from the governing body in matters of management, monitoring, transfer and dissemination of knowledge.

The national authority In the field of intellectual rights it will have jurisdiction over copyright and related rights; industrial property; plant variety; traditional knowledge; and, knowledge management to encourage development. technological, scientific and cultural national. Competencies that should be considered when regulating their conformation, attributions, organization and institutionality.

Additionally, it will have coactive jurisdiction for the collection of the credit titles as well as any type of of obligations in their favour, in accordance with the applicable legal order.

The national authority responsible for intellectual property rights shall be funded by its self-management, through the collection of fees; General budget of the State to allocate the necessary resources for To ensure its normal functioning and financing.

To be appointed head of the national intellectual rights authority, it will be required:

1. Have a fourth-level title, legally recognized in the country, in areas with intellectual rights management;

2. Have experience of at least five years in university management or teaching in areas with intellectual rights management; and,

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3. Have experience of at least three years in the exercise of functions at the top hierarchical level in the public sector or their equivalents in the private sector.

Article 11.-Privileges of the entity in charge of management of the intellectual property and the protection of traditional knowledge.- They shall be the responsibility of the entity responsible for the regulation, control and management of intellectual property and the protection of traditional knowledge following:

1. Protect and defend intellectual rights, recognized in this Code and in the international instruments of mandatory compliance; organize and administer the information on the records of all kinds of intellectual property rights in articulation to the National System of Information of Science, Technology, Innovation and Ancestral Knowledge of Ecuador;

2. Substantiate the procedures and resolve on the granting or refusal of the patent industrial property rights records of invention; utility models; industrial designs; trademarks; trade slogans; trade names, Distinctive features; geographic indications; layout schemes for semiconductor circuits, topographies and other forms to be established in the relevant legislation, as well as the registration of traditional works and knowledge;

3. To substantiate the procedures for granting and registering the rights to new plant varieties and to administer the deposit of the living samples. Technical management, in respect of the administration of the deposit of live samples, may be entrusted to an institution of higher education or public research institute to present the necessary technical and infrastructure capacities. for the effect;

4. To process and resolve the oppositions on intellectual property rights records to be filed;

5. To process and resolve the requests, claims, and administrative resources that are subject to their knowledge and in accordance with the competencies established in this Code in the field of intellectual property and traditional knowledge;

6. To process all processes of observance of intellectual property rights, of traditional knowledge in the administrative field;

7. Monitor permanently the collective rights of the legitimate holders of traditional knowledge and in the event that a direct or indirect violation of these collective rights is presumed, immediately notify the legitimate holders of traditional knowledge and initiate the appropriate actions that are necessary;

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

9. Run public policy by the Secretary of Higher Education, Science, Technology and Innovation;

10. Exercise co-active jurisdiction for the collection of claims and any kind of obligations in their favor, this will be exercised by the legal representative of such entity; and,

11. The others determined in this Code.

CHAPTER III ADVISORY BODIES FOR THE

PLANNING OF PUBLIC POLICY

Article 12.-National Advisory Committee on the Social Economy of Knowledge, Creativity, Innovation and Ancestral Knowledge.- The Committee will be a consultative body of the National System of Science, Technology, Innovation and Ancestral Knowledge, of articulation with the unconcentrated work of the Regional Advisory Committees Planning for Higher Education, Science, Technology, Innovation and Knowledge Ancestral with the actors of the social economy of knowledge, creativity and innovation and in coordination with the Executive Function. This committee will participate in the academy, the productive partner sector, the state, the cultural arts sector, peoples and nationalities, and civil society.

Its fi nality is to be a tool for horizontal consultation of the National System. " Science, Technology, Innovation and Ancestral Knowledge, at national level that will guarantee the planning of the Social Economy of Knowledge, Creativity.

Its conformation and attributions will be established in the regulation that for the The Secretariat of Higher Education, Science, Technology and Innovation will be issued by the Secretariat.

Article 13.-Regional Advisory Committees for the Planning of Higher Education, Science, Technology, Innovation and Ancestral Knowledge.- The Regional Advisory Committees for the Planning of Higher Education, Science, Technology, Innovation and Ancestral Knowledge, without prejudice to the functions established in the Organic Law of Higher Education, will have the following:

1. Propose science planning policies, technology, innovation, traditional knowledge at regional level;

2. Propose modalities of articulation between the institutions of the National System of Science, Technology, Innovation and Ancestral Knowledge and the Executive Function;

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3. Propose modalities of articulation between the institutions of the National System of Science, Technology, Innovation and Ancestral Knowledge, the social, productive and economic sectors through the different forms of organization of the public type, private, national, regional, mixed, popular and supportive at regional level, communes, communities, indigenous peoples and nationalities, the Afro-Ecuadorian people and the mountain people; and,

4 for the elaboration of the National Plan for the Social Economy of Knowledge, Creativity, Innovation and Ancestral Knowledge, which will be brought to the attention of the National Committee on the Planning of the Social Economy of Knowledge, Creativity, Innovation and Ancestral Knowledge.

CHAPTER IV OF THE ACERS GENERATORS AND MANAGERS

OF KNOWLEDGE

Article 14.-Scientific Research Entities.- It is those public bodies, legal persons, associations, private or mixed, including institutions of higher education, accredited according to the rules issued by the governing body of the System that dedicates its activities to scientific research, technological development, or providing related services.

The Secretariat of Higher Education, Science, Technology and Innovation, in accordance with the Strategic Plan of each scientific research entity and through the respective regulation, will determine those services that are related to scientific research or technological development.

Article 15.-Academies of Science.- (i) private legal persons who are not profit-making, aimed at promoting science, as well as facilitate the linking of public policy with the needs of the scientific and academic community.

Within the scope of its functions, it may be constituted in instances of advice to the public and private bodies that require

The general regulation and regulations issued by the Secretariat of Higher Education, Science, Technology and Innovation will regulate its conformation, recognition, operation and incentives.

CHAPTER V ORGANISMS ETHICS INSURERS

IN SCIENTIFIC RESEARCH

Article 16.-Assurance of ethics in Cientifi Research.-For the assurance of the ethical in research at the national level, an instance will be formed whose attributions will be:

1. and values on ethics in science, technology, innovation, traditional knowledge, as well as their applications. In the case of health research, this body will coordinate with the Ministry of Public Health's National Commission on Bioethics in Health;

2. Issue the National Ethical Code;

3. Ultimately resolve public or private private or entities that are generated in relation to ethics in science, technology, innovation, traditional knowledge and their applications;

4. Credit and register the institutional bodies of ethics; with the exception of the Research Ethics Committees in human beings, whose approval of conformation and follow-up is the responsibility of the Ministry of Public Health; and,

5. The others that establish the Law.

Its conformation and functioning will be regulated in the general regulation and the norms that for the effect dictate the Secretariat of Higher Education, Science, Technology and Innovation.

the ethical protocols and the Code of Ethics may be sanctioned depending on the gravity with admonition, the obligation to take corrective actions, total or partial loss of the benefits established in this Code, suspension or revocation of the accreditation; and, the others to be 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 its applications, will issue an ethics policy in the research; will be responsible for approving the ethical protocols to be the instance of liaison and coordination between the respective institutions and the National Ethics Commission in the research.

In case of ethical confl the framework of an investigation, the entity will form a commission, according to its rules

In case of human research, it will be established in the rules of the matter.

TITLE III OF THE SPACE FOR DEVELOPMENT

OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY, INNOVATION AND KNOWLEDGE

ANCESTRAL

Article 18.-The spaces for the development of knowledge and innovation ecosystems.- They are spaces defended territorially where they are concentrated

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public and private services needed to democratize the generation, transmission, management and exploitation of knowledge, in which they interact and cooperate with the system's actors, aimed at facilitating social innovation.

In these spaces, of national, regional or local impact, the collaborative works of knowledge and technology will be stimulated and managed among all the actors of the the social economy of knowledge, creativity and innovation that drive the The creation and growth of innovative technological base enterprises among its members and other actors.

These spaces for the development of the technology, the generation of social capabilities for the creation and the growth of innovative technological base enterprises.

knowledge and innovation ecosystems, are:

1. Special areas of technological economic development;

2. Research and knowledge-oriented territories;

3. Cientifi parks-technologists;

4. The techno-industrial parks;

5. The technology transfer centers; and,

6. Other spaces that would be necessary to create for the full implementation and achievement of the System's fi.

The corresponding regulation will establish the regime and conditions applicable to each of the spaces described in the

Without prejudice to the foregoing, other spaces for the development of knowledge and innovation ecosystems may arise spontaneously, which in order to gain access to the financing of state funds, must be duly accredited under the rules of this Code.

Article 19.-Special Zones (a) Special Areas of Technological Economic Development-ZEDES-may be set up within the framework of the Organic Code of Production, Trade and Investments, in order to carry out scientific activities, transfer, development and technological manufacturing and innovation. These spaces will be oriented to the impulse, the creation and the development of enterprises, technology transfer and innovation and will be normalized by the governing body of the System in coordination with the authority of the productive policy.

Article 20.-From territories oriented to research and knowledge.- It is established as a private and strategic sector of the State to the territories oriented to research, technological development and knowledge, created by law, once the requirements laid down in the issued regulation have been met for the purpose of the Secretariat of Higher Education, Science, Technology and Innovation.

These territories will be constituted in delimited spaces, self-sustaining, dedicated to carrying out research activities, experimental development, technological transfer and manufacturing aimed at the promotion, strengthening and development of basic and higher education, science, technology, innovation and creativity made up of a scientific and residential academic complex productive.

Article 21.-From science and technology parks.- These are the areas of support and planning, which ensure the presence of human talent, support infrastructure, technological achievements, public and private services, and financial tools necessary to carry out research activities, development, technology transfer and innovation. These parks are oriented to develop technological base ventures, whose results strengthen the social economy of knowledge, creativity and innovation and the development of science.

Article 22.-From parks technological-industrial.- They are spaces defi nids and planifi cations that have a support infrastructure, public and private services and financial tools necessary to execute industrial manufacturing activities, related to the production of knowledge-intensive goods or services.

Article 23.-Technology Transfer Centers.- They are strategic spaces of public, private or mixed law, created by research centers, public companies or higher education institutions, among others, that maintain research activities, aimed at the reception and practical use of scientific knowledge, disaggregation and technological transfer in any of its forms, mainly for the preparation or development of a good or service, new or similar in preliminary phase or as a final prototype.

Article 24.-Public research institutes.-The public research institutes are entities with administrative and financial autonomy which are designed to plan, promote, coordinate, execute and promote research processes. cientifi, the generation, innovation, validation, diffusion and transfer of technologies.

The permanent functioning of public research institutes related to: public health, biodiversity, research agriculture, fisheries, geology, mining and metallurgy, energy science and renewable energy, oceanography, space study, Antarctic polar study, cartography and geography, meteorology and hydrology, statistics and censuses, cultural heritage and the others deemed necessary by the President of the Republic.

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

They will have the following attributions:

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1. Plan, program, and execute research projects in the field of your competence;

2. Establish relationships with universities and public and private national and private research centers for the development of programs and research projects in the relevant subject;

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

4. Generate innovation, development and technology transfer processes;

5. Provide laboratory and specialized research services based on the priorities established by the sector's governing body. These services may be onerous; and,

6. The others to be established in this Code, in the general regulation that is issued for the effect and in the current regulations.

Article 25.-Maximum authority of the public research institutes.- Each public institute of The investigation will be led by an Executive Director, who will be appointed for five-year terms and may be re-elected. Must have the academic degree of PhD; be accredited by the Secretariat of Higher Education, Science, Technology and Innovation; have experience of participation in research and development processes; have managed and managed projects of research; and, having indexed publications or patents. The general regulation defends the particularities of these requirements considering the nature of each institution.

TITLE IV OF THE NATIONAL SYSTEM OF INFORMATION ON SCIENCE, TECHNOLOGY, INNOVATION, AND

KNOWLEDGE TRADITIONAL

Article 26.-National Information System for Science, Technology, Innovation, Traditional Knowledge.- The National System of Science, Technology, Innovation and Traditional Knowledge Information collect, debug and organize information concerning the actors and activities (i) the social economy of knowledge, creativity and innovation, in order to produce technical instruments to enable the formulation, monitoring and evaluation of public policy, as well as the dissemination of the results of the responsible research and social innovation procedures and the transfer and learning of the procedures generated from incentives to the social economy of knowledge, creativity and innovation. This System will be articulated with the National Information System.

The National System of Information Science, Technology, Innovation and Traditional Knowledge, in order to comply with its fi nese objectives and objectives

This Code will coordinate actions that are necessary with the institution of statistics and censuses in the field of its competences.

The Secretariat of Higher Education, Science, Technology and Innovation, through the regulation This information system will determine the mechanisms and conditions of this Information System.

Article 27.-Delivery of Information to the Rector System of the System.- The actors accredited in the National System of Science, Technology, Innovation and Ancestral Knowledge, are required to supply the Education Secretariat Superior, Science, Technology and Innovation all information required.

Actors who do not comply with this obligation will not be able to receive the incentives and benefits provided for in this Code.

TITLE V THE

SOCIAL ECONOMY OF KNOWLEDGE, CREATIVITY AND INNOVATION

CHAPTER I OF THE STRENGTHENING OF HUMAN TALENT AND THEIR LINKAGE WITH

ACTIVITIES OF THE SOCIAL ECONOMY OF KNOWLEDGE, CREATIVITY AND

INNOVATION

Article 28.-Strengthening of human talent for the achievement of the social economy of knowledge, creativity and innovation.- The Secretariat of Higher Education, Science, Technology and Innovation, in coordination with public bodies competent, will formulate public policy aimed at consolidating human talent as a primary factor in the social economy based on knowledge, creativity and innovation through its continuous strengthening.

Section I Training and Training Mechanisms

of the Human Talent

Article 29.-Priority of the training and training of human talent.- It will be a priority for the State to encourage, formulate, monitor and implement programs, projects and actions aimed at continuously training and training the citizens in order to achieve the production of knowledge in a democratic way collaborative and supportive. Grants, economic aid and educational credits will be available for this year.

Article 30.-Beca.- It is the total or partial grant awarded by higher education institutions, the Ministry of Higher Education, Science, Technology

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and Innovation, the operating entity for grants and financial assistance, foreign bodies or entities created or empowered for such purposes, to natural persons to carry out higher education studies, academic activities in higher education institutions, academic mobility, training, training, training or vocational training, research, dissemination and other information provided by the Secretariat for Higher Education, Science, Technology and Innovation.

The Secretariat of Higher Education, Science, Technology and Innovation, through the corresponding regulation, will establish the mechanisms, requirements and other conditions for the formulation and implementation of programs or projects of scholarships. These guidelines will be mandatory when public resources are used in their financing.

Without prejudice to the law, higher education institutions, on the basis of their responsible autonomy, will be able to establish their own mechanisms, requirements and other conditions for the formulation and implementation of their scholarship programs or projects.

The public administration will not be required to request guarantees from the grantees. In the event that it is deemed necessary to guarantee the use of the public resources, the requested guarantees cannot constitute a barrier for the benefit of the recipient or the recipient of the scholarship.

Those students who are beneficiaries of the Quota policy issued by the Secretariat of Higher Education, Science, Technology and Innovation will enter an institution of higher education through the National System of Level and Admission. Higher education institutions, both public and private, will not be able to require another requirement than those established by the National System of Level and Admission.

Article 31.-Educational credit.- (a) the financial resources for which the financial institutions are entitled to the effect, grant natural persons, for the financing of the costs in full or in part of the costs of the development of their activities; academic, academic mobility, training, training, training, training, vocational training, research, dissemination and the others that the Secretary of Higher Education, Science, Technology and Innovation has advocated.

The educational credit conditions will be preferred, both in the rate and in the grace period and period.

Article 32.-Economic aid.- It is an exceptional non-refundable grant, awarded by the Secretary of Higher Education, Science, Technology and Innovation, the educational institutions higher, the operating entity for grants and economic aid, international bodies or entities created or empowered for such purposes, natural persons who are

in terms of vulnerability, to cover specific categories inherent in higher education, academic mobility, programme development, projects and activities of research, training, improvement, professional training and the others that the Secretary of Higher Education, Science, Technology, Innovation.

The Secretary of Higher Education, Science, Technology and Innovation will establish, through the relevant regulation, the mechanisms, requirements and other conditions for the formulation and implementation of economic aid programmes or projects. These guidelines will be mandatory when public resources are used in their financing.

In any case, the guarantees requested cannot constitute a barrier to the benefit of the recipient of the aid.

Section II The participation of the productive partner sector in the

training of human talent

Article 33.-Participation of the productive partner sector in the training of human talent.- introduction of students in real work processes where they complement their theoretical training with the practical application. The intervening parties in these participatory processes of human talent training will be:

1. Receiving entities: may be any natural or legal person, private, public, mixed economy or popular economy and solidarity belonging to the productive and service partner sector, which must be duly certified by the Secretary for Higher Education, Science, Technology and Innovation or the national competent authority. These entities must be the case with accredited tutors linked to that entity who possess the knowledge and experience of one or more productive processes or services in order to pass on their practical knowledge. the students and students throughout their practical training in that entity; and,

2. Human talent: are those students of all levels of higher education, oriented to the development of skills and skills of knowing how to do. In order to link these students to the receiving entities, the curricular mesh that they have will be considered mainly will be considered.

As long as the student is in the process of these learning, at all levels of training, there shall be no relationship of employment dependency between the student and the receiving entity. However, the student may be compensated by the receiving entity in which he/she complies with his/her training activities. Compensation will be fair, equitable and proportional. The social security system will be differentiated, according to the resolution issued by the Board of Directors of the Ecuadorian Social Security Institute.

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Article 34.-National System of Professional Qualifications.- It is the articulated set of plans, programs, instruments, institutions and actors whose aim is to plan, design, implement and evaluate the processes of qualification and professional certification.

The national competent authority determined by the Executive Function, through the regulation corresponding, will regulate, the institutionality, mechanisms and conditions of this System.

Article 35.-National Training Plan.- Contain the guidelines and guidelines for the training of professional qualifications, articulating for the purpose with the planning and national development, the productive policies, of human, social and territorial talent; will be in charge of the competent body.

Article 36.-National Catalogue of Professional Qualifications.- It is the technical instrument in which the families and perfi professionals (i) the identification of the qualifications and the qualifications of the individual; skills required for the exercise of a profession, art or office.

The National Catalogue of Professional Qualifications will be a reference for the offer of training and vocational training, will be designed from the methodology of functional analysis and will be organized by levels of qualification and standards of competence.

Article 37.-Certifi cation of professional qualifications.-The certification of professional qualifications is the public recognition knowledge, skills and skills acquired by people in a way formal or non-formal, after the corresponding evaluation process.

The compulsory certification of professional qualifications will be established by the governing authority of the field of work and the academic effects will be defended. in coordination with the rectors of each level of training.

They shall be entitled to grant this certificate all entities which are duly accredited in accordance with the rules laid down in this Code and the rules governing the Ecuadorian Quality System.

The competent national authority must keep a public record of the certificates of professional qualifications issued by the accredited entities for that purpose. These entities shall notify the competent national authority of the payroll of the certificates issued as determined by the relevant regulation.

The governing body of higher education shall issue the regulations in order to obtain approval mechanisms for the training and training for the work acquired that allow the transition to the formal levels of higher education.

Article 38.-Monitoring, Control and Evaluation of the National System of Professional Qualifications.- The governing body of the System National of Professional Qualifications will implement mechanisms for the monitoring, control and evaluation of results and impact of the actions developed from the National Catalogue of Professional Qualifications, for which articulate with the knowledge and productive partner sectors.

CHAPTER II ACCESS AND SOVEREIGNTY OF KNOWLEDGE IN

DIGITAL AND COMPUTER ENVIRONMENTS

Article 39.-Universal, free and secure access to knowledge in digital environments.- Access to free and secure knowledge in environments digital and IT, by means of information and communications technologies developed on compatible platforms; as well as the deployment of telecommunications infrastructure, the development of digital content and applications and the appropriation of technologies, constitute a cross-cutting element of the social economy of knowledge, creativity and innovation and is indispensable to achieve the satisfaction of needs and the effective enjoyment of rights. Universal, free and secure access to knowledge in digital environments is a right for citizens.

The state will generate the necessary conditions to progressively guarantee the universalization of access to the technologies of the information and communication, prioritizing the use of free technologies, under the principles of: technological sovereignty, security, net neutrality, free and unrestricted access to information and caution in privacy. These conditions shall be respected without prejudice to the service provider. The competent control bodies shall monitor compliance with these conditions.

The State shall direct and implement the corresponding actions to ensure the collaborative and participatory nature of the information technologies and communication, as well as fostering the development of community networks; and, enhancing the plurality and diversity of its users.

Article 40.-Internet access.- The State will guarantee universal access to the public Internet service in the terms provided for in the Constitution of the Republic. The competent bodies shall monitor that the price of this service is equitable, and shall establish the appropriate control and regulatory mechanisms.

Universities and polytechnic schools shall make available access to the Internet. free and free wireless throughout the area of its headquarters and extensions.

Decentralized autonomous governments must make available free and free of citizenship, wireless Internet access in public spaces mass concurrency intended for leisure and entertainment, according to the conditions laid down the corresponding regulation.

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RESPONSIBLE RESEARCH BOOK II AND THE

SOCIAL INNOVATION

TITLE I OF THE FREEDOM GUARANTEE OF

INVESTIGATION AND EXERCISE OF RESPONSIBLE INVESTIGATION

CHAPTER I OF THE GUARANTEE OF FREEDOM OF

RESEARCH

Article 41.-Freedom of investigation.- Freedom of investigation is guaranteed research in the context of respect for ethics, nature, the environment and the rescue, exploitation and strengthening of traditional knowledge.

Public policy, programmes, projects and actions taken by the State in the framework of this Code will not affect freedom of research, without prejudice to regulation or limitations that for reasons of safety, health or ethics determine provisions of the legal system.

In the exercise of responsible research, the actors of the National System of Science, Technology, Innovation and Knowledge Ancestral, they will maintain collaborative and joint relationships. Their activities will be governed by the principles of solidarity, equity, social responsibility, transparency, truthfulness, objectivity and quality.

CHAPTER II OF THE EXERCISE OF RESEARCH

RESPONSIBLE

Article 42.-Responsible research.- Comprises the research processes aimed at obtaining results oriented to the increase of productivity, productive diversification, satisfaction of needs or the effective exercise of the rights of persons, communities, peoples, nationalities and the

Article 43.-Exercise of Responsible Research.- The responsible research carried out by the actors of the National System of Science, Technology, Innovation and Ancestral Knowledge shall be subject to the following: parameters:

1. Investigations, at all stages, must respect the rights of individuals, communities, peoples, nationalities and nature;

2. In any research process, the integrity and dignity of people, especially when they are part of some kind of experimentation;

3. All actors involved in an investigation in which the violation of any rights is determined will be responsible for such involvement in the degree of their participation; and,

4. The investigations will be subject to the regulations established in this Code.

Article 44.-Registration of the actors related to the investigation.- All natural, legal or other associative, public, private or mixed persons, who carry out research and technological development activities, or the two activities jointly, may be registered with the Secretariat of Higher Education, Science, Technology and Innovation, in accordance with the regulations for the

The Secretariat of Higher Education, Science, Technology and Innovation administer this registry in accordance with the principles and rules established in the Title of the National System of Science, Technology, Innovation, and Traditional Knowledge provided for in this Code. The act of registration will only generate the benefits provided for in this Code.

Article 45.-Permits necessary for carrying out scientific research activities.-Without prejudice to the rules of each sector, for to obtain the necessary permits for the development of scientific research activities within the priority areas of the Secretariat of Higher Education, Science, Technology and Innovation, it will be essential that the or actors who are to carry out such activities are registered with the Secretary of Higher Education, Science, Technology and Innovation.

The Secretariat of Higher Education, Science, Technology and Innovation will defend the priority areas in which the accreditation of the actors and the actors they will execute Scientific research activities are mandatory to obtain the corresponding permissions.

Article 46.-Accreditation of scientific research entities.-Centifi research entities and laboratories must be accredited to the Secretariat of Higher Education, Science, Technology and Innovation, in order to access the benefits and incentives referred to in this Code, according to the regulation that the institution will issue for the purpose.

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

Article 47.-Security in scientific research.- The Secretariat of Higher Education, Science, Technology and Innovation will be in charge of establishing, through the relevant legal and technical instruments, principles and rules aimed at ensuring security in scientific research processes, with the aim of protecting human life and nature.

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CHAPTER III OF THE RECOGNITION AND REGULATION OF HUMAN TALENT DEDICATED TO THE

SCIENTIFIC RESEARCH

Article 48.-Accreditation of scientific researchers and researchers.-Accreditation is a validation process carried out by the Secretariat of Higher Education, Science, Technology and Innovation to certify the quality of scientific research, national or foreign, which executes its activities in Ecuador, on the basis of compliance of requirements and a rigorous evaluation of standards and quality criteria of international level. The certificate will last for five years and will be renewable for equal periods, prior to the completion of the corresponding formalities.

The Secretariat of Higher Education, Science, Technology and Innovation, will also establish accreditation procedures for different research-related regimes.

Accreditation is a requirement for entry into the research career in public institutions that are not part of the education system. above, as well as to access the benefits and incentives provided for in this Code.

Article 49.-Parameters for the accreditation of scientists and scientists.-For the accreditation of the and scientific researchers, the Secretariat of Higher Education, Science, Technology and Innovation should consider the following parameters:

1. Academic: Contar with at least one master's degree or its equivalent in accordance with the Organic Law of Higher Education; for medical professionals the medical specialty title will be valid, in all cases recognized or registered in the Secretary of Higher Education, Science, Technology and Innovation;

2. Publications: Being an author or co-author of relevant works, an indexed article or having made a protected invention under the industrial property regime; and,

3. Experience: Participation in scientific research processes.

The Secretariat of Higher Education, Science, Technology and Innovation will determine in the corresponding regulations the procedures for accreditation based on these parameters, which may have the effect of determining a higher level of academic training, a higher number of publications and years of experience, as well as the characteristics of the relevance of the works and the indexed articles.

parameters and requirements for other schemes related to the investigation, such as as arts, ancestral medicine, alternative medicine, among others, will be

regulated by the Secretariat of Higher Education, Science, Technology and Innovation in the respective regulations, considering their own levels and forms of transmission of knowledge, ensuring in all cases that the researcher possesses a high degree of knowledge in his area.

Article 50.-Suspension and loss of accreditation of and scientific researchers cause of suspension and loss of accreditation, as well as the procedure The regulations issued by the Secretariat of Higher Education, Science, Technology and Innovation, without prejudice to the application of the Public Service Organic Law, its Regulations, the regulations issued by the Board of Higher Education, the Code of Ethics and more regulations applied in each case.

Article 51.-Categorization of the researcher cientifi co.- The Secretariat of Higher Education, Science, Technology and Innovation, categorise the and the scientific scientists accredited through the evaluation of their academic training, scientific production and merit.

For this purpose, the Secretariat of Higher Education, Science, Technology and Innovation will dictate the respective regulations, in coordination with the institution of the human resource and public sector remunerations.

Article 52.-Career of the researcher scientifi co.-The research scientific researchers, as well as the technical auxiliary staff in charge of the public entities, whose powers are related to scientific research activities, are servers The public will be regulated by the Cientifi Research Career and Escalation Regulations, in terms of income, promotions, evaluations, improvements and promotions, considering in addition the different rules applicable to the effect. The provisions of this Code, the Labour Code or the Civil Code, as the case may be, shall be observed in the research entities in full with private resources.

It is excluded from the Carrera and Escalafon of the Investigator. It is the administrative and professional staff of the public institutions whose main powers are related to scientific research, which will be governed by the rules applicable to the sector in which it is perform.

The academic staff of the Higher Education System will be governed by The Organic Law of Higher Education and its respective regulations.

Article 53.-Income to the career of the researcher cientifi co.-Scientific researchers and scientists who enter the researcher's career, must meet at least the following requirements:

1. Be accredited to the Secretary of Higher Education, Science, Technology, Innovation as a Cientifi Researcher;

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2. comply with the requirements laid down in subparagraphs (a), (b), (c), (e), (f), (g), (h) and (i) of Article 5 of the Organic Law of the Public Service, and Article 3 of its general regulation; in whatever case; and,

3 requirements will be established in the Career and Escalation Regulations of the Cientifi Investigator, which will be issued by the Secretariat of Higher Education, Science, Technology and Innovation in coordination with the human resource and public sector remuneration.

Article 54.-Evaluation and promotion in the career of (i) the mechanisms, requirements and conditions for the assessment and promotion of scientific researchers and researchers who have entered the career of the investigator will be provided for in the Race Regulation and Escalafon by Investigator Cientifi co. In this sense, for these purposes, the provisions of the Public Service Organic Law will not apply.

Article 55.-The disciplinary regime applicable to researchers and researchers who have entered the Carrera del Researcher Cientifi co.-In case of misconduct, without prejudice to the regime established in the national code of ethics and in the codes of ethics of the institutions that are dedicated to scientific research, the public institutions apply to their accredited scientific researchers, the sanctions laid down in the Organic Law of the Public Service, its General Regulations, the others provided for in this Code and the corresponding regulation.

Article 56.-Licensing regime, commissions of services and permits.- The public institutions in which they lend their Scientific researchers and researchers will apply the licensing regime, service commissions and permits to be established in the Career and Escalation Regulations of the Cientifi Investigator. Under this scheme, the necessary conditions must be provided for the strengthening of scientific research staff in the light of the academic requirements of their activities. In addition, it will have to allow the mobility of researchers and researchers among the different national and international research centers.

Article 57.-Linking of scientific research personnel who are not in the Career of the Cientifi Researcher-Public institutions that are related to scientific research activities may link scientific research staff who are not within the Research Career under the the subscription of occasional service contracts, as provided for in Article 58 of the the Organic Law of Public Service. Except for the time limit set out in that article, for the duration and renewal of contracts or occasional services required for scientific research projects.

Article 58.-Of the remuneration of the Scientific research-The remuneration of the scientifi researcher co of the public entities that are not part of the system

of higher education, will be determined by the rector of the human resources and remuneration of the sector public in accordance with the law governing the public service and in coordination with the Secretariat of Higher Education, Science, Technology and Innovation.

In research entities that are not part of the higher education system funded exclusively with private resources, the provisions of this Code, of the Labor Code or the Civil Code, as the case may be.

To the investigators of the public research entities mentioned in the first paragraph of this article, who participate in research projects funded by external funds the institutional budget, they will be allowed to receive additional income under the same The academic staff of the higher education system.

Article 59.-Of the cessation of duties.- The scientific researchers of the public entities shall cease to be in office for the purposes laid down in Articles 47 and 48 of the Organic Law of the Public Service and those determined in the Rules of Career and Escalation of the Investigator Cientifi co. In the case of fully funded research entities with private resources, the provisions of this Code, the Labour Code or the Civil Code, as the case may be, shall be observed.

CHAPTER IV OF THE PROGRAMMES OF FINANCIAL OF

RESEARCH

Article 60.-Funds for research projects.-Is the non- repayable allocation of funding allocated to actors in the National System of Science, Technology, Innovation and Ancestral Knowledge, whether public, private, community or mixed, to be carried out Research activities for the implementation of programs and projects aimed at the effective exercise of the rights of individuals, communities, peoples, nationalities and nature.

A percentage of these resources to finance projects through eligible funds. These competitions will be guided by the principles of transparency, co-responsibility, excellence, equality, science, progressiveness, relevance and accountability.

A percentage of these resources will be devoted to financing projects Research for peoples and nationalities as an action for action.

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

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Article 61.-Areas and lines of research cientifi ca.- 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, the Higher Education System and social and productive system needs. These lines will be mandatory for the research programs and projects funded by the governing body, which may also be considered as research references by other actors of the National System of Science, Technology, Innovation and Ancestral Knowledge.

Article 62.-Public interest in projects and research programmes funded through public funds.- The research programmes and projects funded through the of public funds, by their nature, are in the public interest and are therefore in direct benefit of the community, so once the financing has been awarded, in accordance with the relevant procedures and principles, no subsequent declaratory of the competent authority shall be required for the allocation and transfer of the

Article 63.-Mechanisms for the assurance of the recovery of funds when they have been incorrectly used.- Without prejudice to the rules governing the activity of the State control bodies, the Secretary for Higher Education, Science, Technology and Innovation, through the In the case of the case-law of the Court of State, the Court of the Court of State held that the Court of State held that the Court of State held that the Court of State held that the Court of

The mechanisms mentioned in the previous paragraph must be proportional. Its implementation will not be able to affect the development of programs and projects funded.

The Secretariat of Higher Education, Science, Technology and Innovation will have co-active jurisdiction for the collection of credit titles that it issues for any concept of obligations.

Article 64.-Property of the goods acquired through the financing of the research.-Except provision to the contrary established in the respective procedures, the material goods, furniture and buildings, which have been acquired or produced with public funds will be ownership of the actor (s) of the National System of Science, Technology, Innovation and Ancestral Knowledge (s) that have executed the program or funding project.

The goods that are part of the circumstances described in the previous paragraph of the private estate must be subject to the control of public goods.

The managers of these assets will be responsible for the good use of the same until their useful life is exhausted.

The property and management of intangible assets, including software, acquired or generated through the funds provided by this chapter will be regulated according to the Knowledge Management book of this Code and the basis of the competitions.

The cientifi inputs and equipment that have been acquired with public funds will have to be inventoried and exposed in the National System of Science, Technology, Innovation and Traditional Knowledge of this Code, as the list and categories for the purpose of the Secretariat of Higher Education, Science, Technology e Innovation.

Article 65.-Optimisation of the use of infrastructure and (i) infrastructure and equipment of laboratories for the scientific research of universities, polytechnic schools and research entities, both public and private, for the purpose of scientific research; registered, must be made available to other actors duly registered or accredited to the System so that they can make use of such facilities. For the implementation of this standard, these institutions must have the corresponding planning.

The Secretariat of Higher Education, Science, Technology and Innovation will ensure compliance with this provision and regulate the compensation as well as the conditions of use of the infrastructure and equipment by third parties, which will be established in the corresponding regulation.

Article 66.-Of the service contracting regime, acquisition of (i) the institutions and bodies responsible for the research and development of the public authorities, both universities and polytechnic schools, as well as scientific research institutes, following a reasoned decision issued by the maximum authority which justified the direct relationship with activities aimed at scientific research. (i) the training of young people in the field of education and training in the field of education and training in the field of education and training in the field of education and training. goods for these purposes. This scheme will also apply for the purchase of laboratory inputs. Such processes will be published later in accordance with the Organic Law of the National System of Public Procurement. The procedure will be established in the Regulation to this Code.

In the hiring that takes place up to the amount established for the amount of the amount, the payments can be made through a corporate credit card, the conditions For the purpose of obtaining and using such a card will be set out in the Regulation to this Code.

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For the purposes of the existence of national suppliers of a good or service, they shall be subject to the provisions laid down in the present Regulation. Code.

Public higher education institutions and public research institutes will seek to de-concentrate the procurement of goods and services aimed at research to achieve greater efficiency in the implementation of the of the projects.

Additionally, the customs entity together with the Education Secretariat Higher, Science, Technology and Innovation, will establish a special and simplified procedure for permits for the importation of goods, inputs or equipment destined for scientific research responsible and technological development.

CHAPTER V ETHICS IN SCIENTIFIC RESEARCH

Article 67.-Ethics in scientific research.-The principles necessary for compliance with ethics in scientific research will be developed in a National Code of Ethics, which shall include at least the following areas:

1. Respect for the dignity of life and biodiversity;

2. Informed consent of persons involved in research;

3. Prior, free and informed consent of peoples and nationalities;

4. Respect and protection of the rights of persons involved in research;

5. Confi dentiality of personal data, as well as those excepted in the National Ethical Code, obtained in research processes; and,

6. Respect for animals with experiments.

CHAPTER VI OF SCIENTIFIC RESEARCH

IN BIODIVERSITY

Article 68.-Protection of biological and genetic resources in research cientifi cas.-For the development of scientific research on biological, genetic resources and their derived products in Ecuadorian territory, natural persons, legal or other associative forms, both national and foreign, must obtain the corresponding authorization for access to resources biological, genetic and its derived products with research applications.

The Secretariat of Higher Education, Science, Technology and Innovation to grant such access, will have to host

the technical criteria and protocols of the national environmental authority for the conservation of biodiversity.

It is prohibited to collect, capture, hunt, fish, manipulate or mobilize the biological resource, nationally and internationally, for research purposes without the corresponding permits. The violation of this rule will be punished according to the provisions of the Penal Integral Organic Code.

Failure to comply with this provision will be sanctioned in accordance with the relevant laws. This prohibition will not apply when the mobilization of the resource is carried out as part of the practice of traditional knowledge, by its legitimate holders.

Article 69.- Access to genetic resources and their derived products with (i) commercial purposes.-natural persons or legal persons, both domestic and foreign, who access the genetic resources of the country or its products derived from commercial purposes must obtain the prior authorization to access the resource.

The public research institute cientifi ca on the biodiversity, through the unit responsible for the transfer of technology, will be the competent to carry out the process of negotiation of the corresponding monetary and non-monetary benefits, as well as to authorize the access to the resource

" All products and research not originally contemplated in the negotiation will be subject to a new process.

The Advisory Board established in Article 536 of this Code may be consulted in the process of access to genetic resources containing biological biodiversity and agrobiodiversity found in the lands of the communities, peoples and nationalities.

The procedure for the application of this article will be developed in the respective regulations.

Article 70.-Periodic evaluation of access to genetic resources.- The Secretariat of Higher Education, Science, Technology and Innovation in coordination with the national environmental authority and the national authority responsible for intellectual rights must evaluate periodically the state of protection of biodiversity and traditional knowledge, so how to take actions to prevent the exploitation, patenting and commercialization of inventions consisting of genetic resources endemic or developed from these.

Article 71.-National Bank of Genetic Resources.- The public institute of scientific research on biodiversity will create the National Bank of Genetic Resources for the conservation and custody of the genetic resources of Ecuador.

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Natural or legal persons accessing genetic resources, duly authorized and after the subscription of the respective contract, Article 72.-Import and export permits for scientific research.-The Foreign Trade will generate a system for the production of a sample of the sample collected at the National Bank of Genetic Resources.

Article 72. special and simplified procedure for obtaining permits for the import or export of living organisms, specimens of scientific collections that have as their fi the development of research processes, pedagogical research and laboratory inputs.

The Secretariat of Higher Education, Science, Technology and Innovation, in coordination with the customs authority, the national environmental authority and other competent institutions, shall be responsible for establishing the rules and processes necessary to ensure the proper handling and transport of this type of imports or exports, with the result that no death, damage or loss of the living organisms or the biological material in question, so as not to put at risk their usefulness for the proposed research purposes.

The import and export of what is described in this Article shall only be regulated by this Code. and the regulations issued under it.

Article 73.-Benefits of the use of biodiversity.- According to public policy issued by the Secretariat of Higher Education, Science, Technology and Innovation, the State shall participate at least in the same proportion as any natural person or (a) a legal entity which has obtained monetary or non-monetary benefits arising from the research, use, transfer, development and marketing of biological or genetic material, as well as information, products or processes derived from the

The received benefits will be allocated according to the public policy determined by the Ministry of Higher Education, Science and Technology, which in all cases will have to provide a majority percentage for activities of science, technology, innovation, ancestral knowledge. Likewise, a portion of these benefits will be used for the conservation, restoration and repair of the biodiversity for which it will be coordinated with the environmental governing body.

In cases where the resources have been obtained from the territories of the indigenous communities, peoples and nationalities, the Ecuadorian Afro-people, the Montuvio people and their communes; the majority percentage will be allocated in those territories to the activities before detailed.

In the case of access to genetic resources with an associated intangible component, participation in the benefits by the State shall be given only in respect of genetic resources as provided for in this Article. The benefits derived from intangible components will correspond to their rightful holders.

TITLE II OF SOCIAL INNOVATION

CHAPTER I DEFINITION, COMPONENT

AND FEATURES

Article 74.-Social Innovation.- It is the creative and collaborative process through which a new or a captively improved signifi is introduced well, service or process with added value, which modifies and incorporates new social behaviors. for the resolution of problems, the acceleration of individual or collective capacities, satisfaction of the needs of society and the effective exercise of rights. It aims to generate social, economic, cultural and technological impacts that encourage good living.

In the processes of social innovation, they will be integrated in a dynamic and interdependent way, primarily 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 of the sectors: public, private, mixed, popular and supportive, cooperative, associative, Community which includes the cultural and creative industries, as well as all the other in the Constitution.

Social innovation will encourage the interaction of the different actors, media and instruments of the National System of Science, Technology, Innovation and Ancestral Knowledge, through ecosystems of social innovation, oriented to the effective use of the results of research, creative ideas or technologies, with the aim of creating and developing innovative enterprises.

The State, in collaboration with the private, mixed, popular and solidarity, cooperative, associative and community, will promote the processes of innovation The European Commission, in its report on the development of scientific and technological research, has been working on a number of issues, including the development of scientific research, the development of scientific research, the provision of specialized services, the provision of support infrastructure and public spaces. generation of financial and legal means and instruments and the implementation of other incentives.

Article 75.-Open innovation.- It is understood by open innovation to the cooperative contribution of one or more people to find a solution to a problem presented by a third party with which it does not necessarily maintain a employment relationship.

In cases of open innovation resulting in modalities protected by intellectual property rights, creators must receive reasonable compensation, in accordance with the percentages established in the This Code, as a consideration to its contribution, also seeks to recognize its ownership over creation.

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In the case of creations or inventions in which the input of each creator or inventors cannot be determined, the administration must be assured and reinvestment of these resources, in order to ensure that further research is carried out in this field, through the formation of a non-profit legal person.

The Secretariat of Higher Education, Science, Technology and Innovation facilitate social access to knowledge, in a public and open manner, in such a way as to facilitate and promote open innovation processes.

Article 76.-Innovative Entrepreneurship.- It is a project aimed at the development of a new or significantly improved signifi or service whose fundamental factor is the use of knowledge generated by from research, experimental and technological development processes or creative processes based on scientifi base, whose ultimate aim is its introduction into the market.

The Secretariat of Higher Education, Science, Technology and Innovation, in coordination with the other actors in this system, will foster innovation processes

CHAPTER II OF THE SOCIAL INNOVATION PROCESS

Article 77.-Social Innovation Process.- It is the management of results from research processes, experimental and technological development or creative processes based on scientifi base, carried out by the different actors of the National System of Science, Technology, Innovation and Ancestral Knowledge, including those other actors belonging to the cultural and creative industries. It mainly includes the following components: incubation, acceleration, habitat, technology transfer and technological acquis, aimed at generating social innovation.

Information on the results of the the processes of social innovation which have been fully or partially funded by public or benefit-funded tax incentives will be incorporated into the National System of Science, Technology, Innovation and Knowledge Information Traditional, in accordance with the provisions of this Code.

Article 78.-Of the incubation of innovative enterprises.- The competent agencies of the State, with the participation of the private sector, mixed, popular and solidarity or institutions of higher education, will establish mechanisms that allow the provision of specialized services for the development of innovative enterprises and their consequent generation of added value.

These specialized services consist of activities related to the search for ideas with market potential, market research, prototype production, development of business models, intellectual property management, network of contacts, investor portfolio and

fi nancistas, endowment of shared physical spaces, among others defended by the Secretariat of Higher Education, Science, Technology and Innovation.

Article 79.-Acceleration of innovative enterprises.- The State, in collaboration with the private, mixed, popular and solidarity sectors or institutions of higher education, will encourage the provision of services specialised for the support of innovative companies, which have generated taxable income with income tax for the past two years and have high growth potential.

Specialized services will focus on improving technical and marketing capabilities, growth plans in sales,

Article 80.-Habitat of innovative companies.-

State, in collaboration with the private, mixed, popular and solidarity sectors or institutions of higher education, will foster the the provision of specialised services, which will help to support innovative companies which develop products and services in series and with high added value, in addition to seeking their insertion in external markets.

Services in this phase will focus mainly on specialized market studies, design of access to international markets, trade promotion, contact networks, among others, supported by the Secretariat of Higher Education, Science, Technology and Innovation within the scope of its competence.

Article 81.-Of the transfer technology.- Comprises activities to transfer knowledge, techniques or technological processes for the production of products, processes or services. The technology transfer includes contractual agreements such as proof of concept, technological validation, transfer of intellectual property rights, licensing of intellectual property, contracts to know how to do, training, hiring of national labor, among others.

The technology transfer will be incorporated as a requirement in the public procurement of goods, works and services, including those of consulting, as well as in the contracts of investment and any other form of procurement carried out by the State, except for This is the case for a policy which for that purpose is issued. In such processes, specific parameters and criteria for qualifying may be established for those offerors who are willing to undertake further technological transfer commitments according to the methodology used by the Executive Function for The effect.

This public policy, prioritizing the strategic and public interest sectors, will determine the minimum levels and mechanisms of technology transfer that will be required in the contracts that the State makes, according to technical, economic and legal parameters, which shall be issued and updated in coordination with the different public entities on an annual basis.

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The State may establish, in accordance with the policy issued by the entity, market reserves in public procurement for the products and services with technological intensity from suppliers of Ecuadorian origin.

Article 82.-On the accreditation of entities participating in the process of social innovation.- Accreditation for public entities or Private companies carrying out incubation activities for innovative ventures, acceleration and (a) the habitat of innovative enterprises, and technology transfer, consists of the validation performed to certify the quality of these entities, on the basis of the fulfilment of requirements and a rigorous evaluation of standards and criteria of

Accreditation allows such entities to access the incentives set forth in this Code.

CHAPTER III OF DISAGGREGATION AND MONITORING

TECHNOLOGY

Article 83.-Disaggregation technological.- Comprises the technical breakdown or separation of the parts of the technological package, as well as the technological capacity and knowledge found in these components individually or jointly with the purpose of incorporating Ecuadorian added value into goods, services and processes.

goods, services, rights and processes of national and foreign origin, as well as in investment contracts and any other form of procurement carried out by the State, with the exception of due account in accordance with the policy for which the issue, technological unbundling processes must exist. In the public procurement processes and in the investment contracts that the State subscribes, preference will be given to those suppliers who are willing to assume greater commitments of technological disaggregation according to the methodology advocated by the State. national public purchasing authority, in coordination with the Secretariat of Higher Education, Science, Technology and Innovation.

The analysis of the technological package, or of its knowledge-intensive components, will be required for the public procurement with suppliers of goods, services and processes of national origin and According to the public policy issued by the country's planning and development governing body.

Article 84.-Technological monitoring.- It is the permanent process of search, capture, analysis, use and communication of scientific and scientific information with transfer potential available at national and global level, for the generation of knowledge and strategic decision-making aimed at improving the processes of social innovation. Its results will be incorporated into the National System of Science, Technology, Innovation and, Traditional Knowledge.

Technological monitoring will allow us to focus on technological developments that are critical, identify the best technology partners and take advantage of the latest developments.

BOOK III OF THE MANAGEMENT OF THE KNOWLEDGE

TITLE I PRINCIPLES AND GENERAL PROVISIONS

CHAPTER I GENERAL PRINCIPLES

Article 85.-Intellectual Rights.- Intellectual rights are protected in all their forms, the same which shall be acquired in accordance with the Constitution, the International Treaties of which Ecuador is a party and this Code. Intellectual property rights include intellectual property and traditional knowledge. Its regulation is a tool for the proper management of knowledge, with the aim of promoting scientific, technological, artistic and cultural development, as well as to encourage innovation. Their acquisition and exercise, as well as their weighting with other rights, will ensure the effective enjoyment of fundamental rights and contribute to the proper dissemination of knowledge in the benefit of the holders and society.

other existing modalities, this Code guarantees them protection against unfair competition.

Article 86.-Exception to the public domain.- Intellectual property rights constitute an exception to the public domain for encourage technological, scientific and artistic development; and, they will respond to the social responsibility in accordance with the provisions of the Constitution and the Law. Intellectual property may be public, private, community, state, associative, cooperative and mixed.

Article 87.-The acquisition and exercise of intellectual property rights.- the existence or granting of rights and for the exercise of the rights, maintenance and enforcement of such rights. Where appropriate, the acquisition shall also include the transfer made by any act and title.

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

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Both the acquisition and the exercise will be subject to the promotion of social innovation and the transfer and dissemination of knowledge, in benefi mutual producers and users, so that they favor social and economic welfare as well as the balance of rights and obligations.

Article 88.-Purposes of intellectual property.- Intellectual property rights they are a tool for the development of creative activity and social innovation, contribute to technology transfer, access to knowledge and culture, innovation, and reduction of cognitive dependence.

Article 89.-Intellectual property typology.- Intellectual property rights

Article 90.-Tipologia of goods.-

the purposes of this Code and on the basis of the rights of property intellectual, the following typology of goods is set:

1. Goods that guarantee fundamental rights;

2. Assets related to strategic sectors;

3. Goods related to biodiversity and traditional knowledge; and,

4.

Article 91.-Goods that guarantee fundamental rights.- Goods that guarantee fundamental rights and are protected by intellectual property rights are in the public interest and will enjoy a type of protection to satisfy the basic needs of the company, and without prejudice to the limitations and exceptions to the rights, other uses shall be permitted without the authorisation of the holder in accordance with this Code and in international treaties of which Ecuador is a party.

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

Article 92.-Goods related to the sectors the modalities of intellectual property related to the strategic sectors are of vital importance for the socio-economic and technological development of the country. Such arrangements shall enjoy a type of protection which allows the State to access the protected subject, for reasons of public interest, social or national interest in accordance with the conditions and conditions laid down in the Agreement on the Trade-related Intellectual Property.

In accordance with the circumstances of each case and after agreement between the parties, the State may access the undisclosed information related to the strategic sectors, in so far as it is grant all prior guarantees for the same to be held in reserve.

Only the protected subject matter referred to in the preceding paragraphs may be accessed in the case of intellectual property rights or undisclosed information of ownership of the contractors, grant beneficiaries or providers of services.

The holders will receive compensation, either as a royalty or as one of the services for the granting or hiring of services in these sectors.

The State will be able to access any information not protected from being generated from contracts where it is a party, and in these cases it must establish the obligation to share this information.

Article 93.-Knowledge generated from biodiversity.- The State will participate in the ownership of the modalities of intellectual property and other rights that fall on the processes and products derived or synthesized from biodiversity, in accordance with the provisions of the Constitution. Likewise, it will participate in the benefits resulting from the economic exploitation of these procedures and products, without prejudice to its protection through intellectual property rights.

Article 94.-Access, use and use - relation to traditional knowledge associated with or not to biodiversity, the provisions of the preceding article will apply to the benefit of the legitimate holders, who, at least, will participate in the equitably to the contribution of their traditional knowledge according to the Article 95.-Limitations and exceptions.-

rights and benefits that result from limitations and exceptions. established in the present Book are unrenountable. Any stipulation to the contrary will be void.

Article 96.-Other limitations on intellectual property rights.- 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 applicable to access to biological resources, genetic and traditional knowledge, consumer and environmental protection, trade practices restrictive of free movement competition and unfair competition, as appropriate.

CHAPTER II GENERAL PROVISIONS

Article 97.-National treatment.- The rights and obligations conferred by this Law apply equally to nationals and foreigners, domiciled or not in Ecuador. For the purposes of this Code, stateless persons shall be considered to be nationals of the country where they have established their domicile.

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Article 98.-Of the holders without domicile in the country.- Applicants or holders of the registration of an industrial property right or a certificate of plant breeder which does not have its registered office in Ecuador, must have a proxy domiciled in the country with a sufi tient registered with the national competent authority in the field of intellectual rights, in particular, answer requests, actions and demands. Any change in the said powers must be registered with that authority within the time limit to be determined by the regulation.

The same obligation, for the enforcement effect of copyright and related rights holders. registered, they will be subject to the provisions of this article.

Article 99.-Obligatory registration.- All transfer, authorization of use or license on any right of intellectual property or pending application, must be registered with the national authority responsible for intellectual property rights. Transfers, authorisations of use or industrial property licences shall have effect from their registration with the national intellectual rights authority.

In order to make the deductions effective Taxes derived from royalties of intellectual property rights, the document that supports the materiality of the transaction must be credited, however the above document must be previously registered with the national authority competent in the field of intellectual rights.

TITLE II OF THE COPYRIGHT AND THE

RELATED RIGHTS

CHAPTER I AMBITO

Article 100.-Recognition and Granting of Rights.- The rights of authors and the rights of other holders are recognized, granted, and protected his works, as well as the rights of performers, producers of phonograms and broadcasting organizations, in the terms of this Title.

CHAPTER II GENERALATIONS

Article 101.-Acquisition and exercise of copyright.- The acquisition and exercise of copyright and of the related rights are not subject to registration or deposit, nor to the fulfillment of any formality.

The rights recognized and granted by this Title are independent of the property of the material object in which it is

CHAPTER III OF COPYRIGHT

SECTION I General Precepts

Article 102.-Copyright.- Copyright is born and protected by the single act of copyright. the creation of the work.

The protection of copyright is granted without regard to the gender, merit, fi nality, destiny or mode of expression of the work.

It is exclusively protected the form by which the ideas of the author are described, explained, illustrated or incorporated into the works. However, if an idea has only a unique form of expression, this form will not be subject to protection.

The ideas contained in the literary and artistic works, the ideological or technical content of the works, are not protected. cientifi cas, not its industrial or commercial use. The procedures, methods of operation, or mathematical concepts themselves are not protected either.

Article 103.-Cumulative protection.- The copyright is independent and compatible with:

1. industrial property that can exist on the work; and,

2. The other intellectual property rights recognized by this Title.

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

Section II Object

Article 104.-Works susceptible to protection.- The protection recognized by this Title falls on all literary, artistic and scientific works, which are original and which may be reproduced or to be disclosed by any known or known means or to be known.

The works The following:

1. The works expressed in books, brochures, printed, epistollaries, articles, novels, stories, poems, chronicles, reviews, essays, missives, scripts for theatre, cinematography, television, lectures, speeches, lectures, sermons, pleadings in law, memoirs and other works of a similar nature, expressed in any form;

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2. Collections of works, such as encyclopedias, anthologies or compilations and databases of all kinds, which by the selection or disposition of the materials constitute original intellectual creations, without prejudice to the rights that exist on the works, materials, information or data;

3. Dramatic and dramatic musical works, choreographies, pantomimas and, in general plays;

4. Musical Compositions with or without letter;

5 . Cinematographic works and other audiovisual works;

6. The sculptures and works of painting, drawing, engraving, lithography and graphic art, tébéos, comics, as well as their essays or sketches and other plastic works;

7. Projects, drawings, models and designs of architectural and engineering works;

8. Illustrations, graphs, maps, sketches and designs relating to geography, topography and, in general, to science;

9. Photographic works and those expressed by procedures analogous to photography;

10. Works of applied art, in so far as their artistic value can be dissociated from the industrial character of the objects to which they are built-in;

11. Works remixed, provided that, by the combination of its elements, they constitute an original intellectual creation; and,

12. Software.

Article 105.-Derivative works.- Without prejudice to the rights that exist on the original work, the adaptations, translations, arrangements, revisions, updates and annotations are protected as derivative works; abstracts and extracts; and, other transformations of a work to the extent that the derivative work is original and that it has been authorized by the holder of the rights to the original work.

Article 106.-Of the creations based on cultural expressions.- The creations or adaptations based on the Traditions and ancestral practices, expressed in groups of individuals that reflect the expressions of the communes, communities, indigenous peoples and nationalities, Afro-Ecuadorian people and montubian people, their identity, their transmitted values orally, by imitation or by other means, whether they use literary language, music, games, mythology, rituals, customs, crafts, architecture or other arts, they must respect the rights of the communities in accordance with the regulations international, community and national for the protection of the expressions against of their illicit exploitation, as well as the basic principles of collective rights.

Article 107.-Non-protected matter.- laws and regulations, the bills, the resolutions are not protected. The Court of Justice, the acts, decrees, agreements, resolutions, deliberations and opinions of the public bodies, and the other official texts of legislative, administrative or judicial order, as well as their official translations.

object of protection of political discourses and speeches delivered in debates legal. However, the author will enjoy the exclusive right to collect in collection the works mentioned in this subsection subject to the provisions of this Chapter.

Section III Rights Holders

Article 108.- rights.- Only the natural person can be an author. Legal persons may be holders of property rights on a work, in accordance with this Title.

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

Article 109.-Works of indeterminate authors.- For the case of works created in communities of peoples and nationalities in which the authorship of the work cannot be identified and which are not in any of the categories mentioned in this Section, the ownership of the rights will be the responsibility of the community, leaving the right to self-determination.

Article 110.-Presanointing of authorship or ownership.- For the purposes of the application of the measures, initiation of procedures and the interposition of resources provided for under this Code, in relationship to the observance of copyright and related rights will be taken into account:

a) For the author of literary and artistic works, in the absence of proof to the contrary, to be considered as such and in has the right to initiate infringement proceedings, it will be sufficient for his name to appear in the work in the usual way. This presumption shall apply even if the name is a pseudonym, adopted by the author who does not leave the slightest doubt on his or her identity; and,

b) Literal (a) shall apply, as appropriate, to the holders of related rights. in relation to protected benefits.

Article 111.-Administration of copyright.- The copyright is not part of the conjugal society or society of property, as the case may be, and may be freely administered by the author, his or her spouse or survivor. Economic benefits, however,

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arising from the exploitation of the work are part of the estate of the conjugal society or the society of property, as the case may be.

Article 112.-Of the works in collaboration.- It is that work whose unitary result comes from the collaboration of several authors. The consent of all authors will be required for their dissemination and modification. Once the work is released, no coauthor will be able to refuse to exploit it in the way it was released. In the work in a divisible collaboration, unless otherwise agreed, each contributor may exploit his contribution separately, unless it causes prejudice to the common exploitation. Each contributor is also the owner of the rights on the part of which he is an author.

In the work in indivisible collaboration, unless otherwise agreed, the rights belong in common and prodiviviso to the co-authors. Each co-author, unless otherwise agreed, may exploit the work without the consent of the other, provided that it does not prejudice the normal exploitation of the work and without prejudice to the distribution of the economic benefits obtained from the holding on a pro rata basis

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

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 do not adversely affect the normal exploitation of the collective work.

It will be presumed that it has organized, coordinated and directed the work the natural or legal person listed as such in the same.

Article 114.- holders of works rights created in institutions of higher education and educational institutions.- In the case of works created in educational institutions, universities, polytechnic schools, technical higher institutes, technology, teaching, arts and conservatories, and public research institutes as a result of their academic or research activities such as title work, research or innovation projects, academic articles, or other analogues, without prejudice to the existence of a dependency relationship, the ownership of the property rights shall be the responsibility of the authors. However, the establishment shall have a free, non-transferable and non-exclusive licence for the non-commercial use of the work with academic purposes.

Without prejudice to the rights recognised in the preceding paragraph, the establishment may make commercial use of the work subject to the authorization of the holders and notify the authors if they are dealt with by

different persons. In which case the authors shall be responsible for a percentage of not less than 40% of the economic benefits resulting from the holding. The same benefit will apply to authors who have transferred their rights to higher education institutions or educational institutions.

The right referred to in the preceding paragraph in favor of the authors is inalienable and will be applicable. also in the case of works carried out within public research institutes.

Article 115.-Works under dependency and for order.- Unless otherwise agreed or special provision contained in this Title, the ownership of the works created under a relationship of employment or contract dependency it will be for the author.

In case the author cedes his rights, he shall retain the power to exploit the works in a manner other than that provided for in the contract, provided that he does so in good faith and does not adversely affect the exploitation

any case, the author shall enjoy the inalienable right of equitable remuneration for the exploitation of his work, in accordance with the provisions of this Code. In the case of software this right will not be applicable.

This right will be applicable even in cases of transfer or transfer of ownership of the work created under labor and contract dependency.

Article 116.-Rights Property of the Public Sector.- The ownership of the rights to the works created by public servants in the performance of their posts, will correspond to the agencies, entities, agencies of the public sector respectively.

case of works created under employment dependency relationship when the employer is a person In the case of private law with majority or financial participation by the State with public resources, the ownership of the property right shall be the responsibility of the employer.

State within a procurement procedure regulated by the Organic Law of the National System of Public Procurement, the ownership of the property rights shall be the responsibility of the Contracting Entity, which shall have the obligation to do so public and accessible through the National Information System of Science, Technology, Innovation and traditional knowledge, in accordance with the regulation. In the case of other goods and services, unless otherwise agreed, the ownership will be the author.

The information and content of the databases resulting from the financial investigations with public resources will be open access. The institutions or entities responsible for such investigations shall make such information available through the information technologies.

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When for reasons of security, sovereignty, protection in accordance with this Code of personal or non-personal data, or current or future rights of intellectual property, the dissemination of the information described in the preceding paragraph is not appropriate, the institutions or entities responsible for the investigation may thus determine it. In these cases they will be required to submit the information only to the Secretariat of Higher Education, Science, Technology and Innovation.

Article 117.-Of the anonymous works.- In the anonymous work, the publisher whose name appears in the works will be considered a representative of the author, and will be authorized to exercise and enforce his moral and heritage rights, until the author reveals his identity and justified his quality.

Section IV Copyright Content

First paragraph of moral rights

Article 118.-Of the moral rights.- They constitute inalienable, inalienable, unembargable and imprescriptible moral rights of the author:

1. Keep the unpublished work or divulge it;

2. Claim the paternity of your work at any time, and require that your name or pseudonym be mentioned or excluded each time it is used when the normal use of the work permits;

3. Oppose any deformation, mutilation, alteration or modification of the work that atents against the decorum of the work, or the honor or reputation of its author; and,

4. Access to the unique or rare copy of the work whose support is in possession or ownership of a third party, in order to exercise the right of disclosure or any other right that corresponds to it.

The latter right will not permit the movement of the work and access to it will take effect on the site and form which will cause less inconvenience to the legitimate holder or owner, to whom will be compensated, if any, for the damages and damages to be irradiated.

Mentioned moral rights in numerals 2 and 4 will have the character of imprescriptible. Once the term of protection of the works has been met, the rights referred to in numerals 1 and 3 shall not be enforceable against third parties.

Article 119.- Rights of the successors in title.- At the death of the author, the exercise of the moral rights shall correspond to their successors in title to the term of duration of the property rights, in accordance with the applicable provisions in each type of work or service.

Second paragraph of the property rights

Article 120.-Exclusive Rights.- Recognized in favor of the author or his/her entitled the following exclusive rights to a work:

1. The reproduction of the work by any form or procedure;

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

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

4. The import of copies made without authorization from the holder, the persons mentioned in Article 126 or the Law;

5. The 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 can access these works from the place and at the moment each of them chooses.

Article 121.-Right of equitable remuneration.- The author is recognized in a non-renountable form, rights of equitable remuneration as compensation for certain uses or forms of exploitation of his work which are specifically provided for in this Code. The right to receive compensation for the resale of plastic works is a fair remuneration. The rights of equitable remuneration shall be of compulsory collective management.

For the collection corresponding to the copyright and related rights set out in this Code, taking into account their gender, the right to appeal shall be Single-window mode.

Article 122.-Reproduction of a work.- The reproduction of the work in a medium that permits its perception, communication or the obtaining of copies of all or part of it is understood by reproduction. any means or procedures, known or known.

Article 123.-Communication - communication means any act by which a plurality of persons, whether gathered or not in the same place, and at the moment they decide individually, may have access to the work without prior distribution of copies to each of them. In particular, the following acts are included:

1. The performance, recitals, dissertations and public executions of the dramatic, dramati-musical, literary and musical works, by any means or procedure;

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2. The public display or exhibition of cinematographic works and other audiovisual works;

3. The emission of any works by broadcasting, television or by any other means used for the wireless broadcasting of words, signs, sounds or images. In this concept, the production of signals from a ground station to a broadcasting or telecommunication satellite is also understood;

4. The transmission of works to the public by wire, cable, optical fibre or other similar procedure, whether or not by credit;

5. The retransmission, by any of the means cited in the previous literals by a broadcaster other than the one of origin, of the broadcast or televised work;

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

7. The public exhibition of works of art or their reproductions;

8. The making available to the public of works by wired or wireless procedures; and,

9. In general, public dissemination, by any known or known procedure, of words, signs, sounds or images.

Any communication that exceeds the private scope will be considered public.

Article 124.-Distribution of the work.- It is understood by distribution the making available to the public of the original or copies of the work, in a material support, by sale or other transfer of the property, lease or lease.

means by lease the making available of the original or copies of a work for use for limited time in exchange for payment of a fee or price. They are excluded from the concept of renting, for the purposes of this Article, the provision of exposure and those for consultation on the spot.

The lease of a work shall not be deemed to exist where it is not the essential object of the contract. Thus, the author of an architectural work or work of applied art cannot object to the owner arriving at the construction or thing incorporating the work.

Article 125.-Exhaustion of the right of distribution.- distribution by sale or other transfer of the property is exhausted with the first sale or other form of transfer of ownership of the original or copies after they have been entered into the trade of any country.

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

Article 126.-Import of works without authorization.- The right of import confi ere to the holder the power to prohibit the introduction into the territory Ecuadorian copies of the work done without authorization from the holder. This right may be exercised both to suspend the entry of such copies in ports and borders, to obtain the withdrawal or to suspend the circulation of the copies that have already entered.

This right will not affect the copies that

and rights protection

Article 127.-Technology measures.- Copyright or copyright holders.

and rights protection

Article 127. related rights, may establish effective technological measures, such as encryption systems or others, in respect of their works and benefits protected by copyright and related rights, that restrict acts not authorized by the holders or established in the legislation.

Article 128.-Bans.- It is prohibited to perform any act that has as its purpose to induce, permit, facilitate or conceal the infringement of any of the rights provided for in this Title.

In particular, the following is prohibited:

1. Delete or alter without authorization of any electronic information about rights management; and,

2. Distribute, import for distribution, issue, or communicate to the public, without authorization, copies of works knowing that electronic information about rights management has been suppressed or altered without authorization.

electronic information included in copies of works, or appearing in connection with a communication to the public of a work, which identifies the work, the author, the holders of any copyright or related right, or the information concerning the terms and conditions of use of the work or the provision, as well as the numbers and codes representing such information.

Article 129.-Obligations of the rightholders.- It shall be the obligation of the holders of the respective rights on works and benefits protected by copyright and rights (a) to the extent to which they incorporate the technological measures in question in this paragraph, to provide under appropriate conditions the means, systems, devices and services necessary to neutralise or otherwise render such technological measures without effect; users who require the use of the

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works that are in the public domain or are subject to a limitation or exception to copyright and related rights of conformity with this Title.

Article 130.-From circumvention of technological measures.- Users who require to exercise a limitation or exception to copyright and related rights in accordance with this Code, may bypass, neutralize, or to leave without effect the technological measures covered by this paragraph, without prejudice to the measures administrative or judicial place.

Section V Special provisions on certain works

Software and databases first paragraph

First paragraph Of the closed code software and databases

Article 131.-Software protection.- The software is protected as a literary work. Such protection is granted regardless of whether they have been incorporated into a computer and whatever form they are expressed, either as source code; that is, in human-readable form; or as the object code; that is, in machine-readable form, either operating systems or application systems, including ujo fl diagrams, blueprints, usage manuals, and in general, those elements that conform to the structure, sequence, and organization of the program.

It is excluded of 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 to the software, or the owner or other legitimate user of a copy of the software, may perform the adaptations necessary for the use of the same, in accordance with their needs, provided that this does not imply their use with commercial purposes.

Article 133.-Rights holders.- It is the holder of the rights to a software the producer, that is, the natural or legal person who takes the initiative and responsibility of the performance of the work. The holder shall be presumed, unless proof to the contrary, to the person whose name is included in the work or his copies in the usual manner.

The holder is also authorized to exercise in his own name the moral rights to the work, including the faculty to decide on their disclosure.

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

This article may be amended by agreement between the authors and the producer.

Article 134.-Permitted activities without authorization.- Activities relating to a lawful circulation software are permitted, without requiring the authorization of the author or holder, nor payment of any value, in the following cases:

1. The copy, transformation or adaptation of the software that is necessary for the use of the software by the owner or other legitimate user of a copy of the software;

2. The copy of the software by the owner or another legitimate user of a copy of the same file as security and file, that is, intended exclusively to replace the legitimately obtained copy, when the copy can no longer be used for damage or loss;

3. Reverse engineering activities on a legitimately obtained copy of software that are performed for the sole purpose of achieving operational compatibility between programs or for research and educational purposes;

4. The activities performed on a copy legitimately obtained from a software for the sole purpose of testing, investigating or correcting its operation or the security of the same or other programs, of the network or of the computer on which it is applies; and,

5. The use of software with demonstration purposes to the clientele in commercial establishments where equipment or computer programs are exposed or sold or repaired, provided that it is carried out in the local or section of the

Article 135.-Exception to reproduction.-

does not constitute reproduction of a software, for the purposes provided for in this Title, the introduction of the same into the internal memory of the respective apparatus, for the purposes of its exclusive use personal.

Article 136.-lawful use of the software.- Unless otherwise agreed, it will be lawful to use the software for use in various workstations by the installation of networks, workstations or other similar procedures.

Article 137.-Exception to processing.- It is not transformation, for the purposes provided for in this Title, the adaptation of a software by the owner or other legitimate user for the exclusive use of the software.

Article 138.-Transfer ban to the modifications made to a software.-The adaptations or modifications allowed in this Paragraph

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may not be transferred under any title, without prior authorization from the holder of the respective right. Likewise, the copies obtained in the form indicated may not be transferred under any title, except that they are jointly with the program that served as the parent and with the authorization of the holder.

Article 139.-Other exceptions.- In addition to the exceptions to the copyright set out in this Section for the software, the exceptions or limitations laid down for literary works may be.

Article 140.-Matter protected by databases.- Compilations of data or other materials, in any form, which for reasons of the originality of the selection or disposition of their contents constitute creations of intellectual character, are protected as such. This protection of a database, according to this Title, does not extend to data or information collected, but it will not affect the rights that may be subsist on works or benefits protected by copyright or related rights.

The protection granted to databases under this Article shall not apply to software used in the manufacture or operation of databases accessible by electronic means.

Article 141.-Use Personal or Non-Personal Data in Protected or Non-Owned Content Intellectual.- Personal or non-personal data that is part of the contents protected or not by intellectual property available in databases or repositories and other forms of data storage belonging to natural or legal persons, whether in public or private law, may be used exclusively in the following cases:

a) When it is classified information each as affordable;

b) When they have the express authorization of the information holder;

c) When expressly authorized by law;

d) When authorized by a judicial mandate or other order of authority with jurisdiction to do so; and,

e) When required by public law institutions for the exercise of their the respective powers or the social object for which they have been constituted.

Personal or non-personal data may not be available on the basis of existing copyright on the form of arrangement of the elements protected in databases.

Information contained in databases, repositories, and other databases forms of storage of personal or non-personal data are in the public interest; therefore, they must

be used with equitable, proportional and in their use and transfer criteria must first the common good, the effective exercise of rights and satisfaction of social needs.

Second section of free technologies and open formats

Article 142.-Free technologies.-Free technologies are understood to be open source software, open standards, free content and free hardware. The first three are considered as Free Digital Technologies.

It is understood by open source software to the software in whose license the holder guarantees the user access to the source code and empowers him to use such software with any purpose. It especially gives users, among others, the following essential freedoms:

• The freedom to run the software for any purpose;

• The freedom to study how the software works, and modify it to suit it any need. Access to the source code is a prerequisite for this;

• The freedom to redistribute copies; and,

• The freedom to distribute copies of your modified versions to third parties.

set of instructions written in some programming language, designed to be read and transformed by some machine language software tool or executable instructions on the machine.

Open standards are forms of data handling and storage in which its structure is known and its modifi is permitted No restrictions on their use will be imposed and no restrictions imposed. Data stored in open standard formats does not require proprietary software to be used. These standard formats may or may not be approved by an international standards certification entity.

Free Content is access to all information associated with the software, including documentation and other technical elements designed for the delivery necessary to perform the program's security, installation and operation, which must be presented in open standards.

Free hardware is understood to be the designs of goods or materials and other documentation for the security and their respective functioning, give the users the following freedoms give users the following freedoms:

1. The freedom to study such specifications, and modify them to adapt them to any need;

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2. The freedom to redistribute copies of such specifications; and

3. The freedom to distribute copies of its modified versions to third parties.

The State in the acquisition of goods or services including those of digital technology consulting, will prefer the acquisition of free digital technologies. For the software acquisition case the order of precedence provided for in this code will be observed.

Article 143.-Of Free Hardware.-Institutions or bodies of Higher Education, Science, Technology and Innovation as well as the National Research, Innovation and Technology Transfer Plans, Human Talent Strengthening, Scholarship and Ancestral Knowledge, should support in their research plans the use and implementation of Free hardware.

There will be free hardware developed in the country, this will take precedence to contract it for part of the State.

Article 144.-Use of free digital technologies in education systems.- The institutions of the national education system and the higher education system, solely for their administrative operation, they shall use software in accordance with the ranking scheme and criteria set out in Article 148.

However, the institutions of the System of Higher Education will not be obliged to use exclusively digital free technologies in the exercise of the freedom of the Chair and of research, but one must guarantee holistic teaching of computer solutions regardless of their type of licensing.

Article 145.-Migration to open source software.- Public sector institutions will have to carry out a feasibility assessment of migrate their digital technologies to digital free technologies with the criteria laid down in the relevant regulation. The criticality of the software will be evaluated, considering the following criteria:

1. Solution Sustainability;

2. Opportunity Cost;

3. Security standards;

4. Technical capability to provide the support required for the use of the software.

Article 146.-Localization of data.- When public sector entities engage in software or other services involving the location of data, they must do so with suppliers who ensure that the data is located in computer centers that meet international standards in security and protection according to the following rules:

a) Related data National security and strategic sectors must be found in computer centers located in Ecuadorian territory;

b) The data of relevance to the State that are not contained in the literal a) of this article must be found preferably in computer centers located in territory Ecuador or in countries with equal or more demanding data protection standards than those established in Ecuador; and,

c) Data that is not contained in the literals a and b of this article must be found in a manner indistinct in computer centers located in Ecuadorian or foreign territory.

Article 147.- Access to source code.- Public sector contracting entities should make available to the public through the Information System of Science, Technology, Innovation and Ancestral Knowledge, the source code of the code software

a)

a) For reasons of national security;

b) You may keep in reserve the source code of the software contracted or developed by public institutions in the following cases:

a) For belonging to strategic sectors; and,

c) To be considered by the Regulatory body for electronic governance the existence of critical components within the code, in accordance with current regulations and as determined by the regulation of this code.

In these cases, in order to safeguard the principle of transparency and access, the source code of the previous immediate version shall be accessible in a restricted manner in accordance with the conditions that the regulatory entity in electronic governance establishes for the effect.

Article 148.- Priority in the procurement of software by the public sector.- For recruitment Public sector contracting entities shall follow the following order of precedence:

1. Open source software that includes source code development, parameterization, or implementation services with an important Ecuadorian aggregate value component;

2. Software in any other mode that includes services with a majority component of Ecuadorian aggregate value;

3. Open source software with no majority component of Ecuadorian value-added services;

4. International software through national suppliers; and,

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5. International software through foreign suppliers.

In case it is not possible for the public or relevant organ to acquire or develop open source software with services, with an important component of added value the public body involved in the acquisition must justify the acquisition of other technologies of other characteristics in the context of the Regulation on Electronic Government that the President of the Republic determines by means of Regulation.

In order to authorize such a case, this Instance shall evaluate the Software criticality based on the following criteria:

1. Solution Sustainability;

2. Cost and opportunity;

3. Security standards; and,

4. Technical capability to provide the necessary support for the use of the software.

It will be excluded from the justification provided in the preceding paragraphs, the hiring of software updates acquired prior to the entry into force of this Code. The regulatory body on electronic governance shall decide within 30 days.

In any event, after the acquisition of other non-free technologies, the acquiring institution shall submit to the authority competent in the field of electronic government within 180 days the plan of feasibility of migration to free digital technologies. If migration is feasible, it will be up to five years for its implementation. In the event of non-feasibility of migration, the competent authority in the field of electronic governance shall carry out periodic evaluations, as set out in the respective regulations.

Article 149. Works derived from open source software.-Works derived from open source software, may be closed code software, provided that it is not prohibited in the license of the original work.

Article 150.- software privacy.- In the acquisition of software it is prohibited to install agents or mechanisms that allow to extract information from the contracting entity without the authorization and knowledge of the acquiring institution of conformity with current regulations.

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 be offered only with the factory installed system.

In the purchase of personal computers and mobile devices, suppliers will be obliged to offer the Closed code software or open source software, if any, exist on the market. The price of the hardware and the price of the licenses must be shown separately.

Second paragraph of the audiovisual works

Article 152.-Co-authors of audiovisual works.- The following are presumed co-authors of the audiovisual work:

1. The director or performer;

2. The authors of the argument, the adaptation, and the script and dialogs;

3. The author of the music composed especially for the work; and,

4. The cartoonist, in case of animated designs.

Article 153.-First work.- Without prejudice to copyright on pre-existing works that may have been adapted or reproduced, the audiovisual work is protected as work

Unless otherwise agreed, the authors of the pre-existing works will be able to exploit their contribution in isolation in any kind, provided that they do so in good faith and do not harm the normal exploitation of the audiovisual work. However, the exploitation of the work in common, as well as the works specially created for the audiovisual work, will be exclusively for the holder of the rights to the audiovisual work, according to the following article.

Article 154.-Producer of audiovisual works.- The natural or legal person who assumes the initiative and the responsibility for the performance of the work is reputed to be the producer of the audiovisual work.

Producer shall be presumed, unless proof to the contrary, to the natural or legal person whose name appears in that work in the usual manner.

By contract of production of an audiovisual work shall be presumed to be exclusive to the producer, with the limitations provided for in this law, the rights of reproduction, distribution and public communication.

The remuneration of the authors of the audiovisual work by the transfer of the rights referred to in the preceding paragraph and, where appropriate, that corresponding to the authors of the pre-existing works, whether processed or not, shall be determined for each of the exploitation granted.

The author who has transferred or transferred to a producer audiovisual recordings, their right of distribution by rental in respect of an original or a copy of an audiovisual recording, shall retain the inalienable right to obtain an equitable remuneration for the rental of the same. Such remuneration shall be payable by those who have the effect of renting the audiovisual recordings to the public.

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In any case, and regardless of what is agreed in the contract, when the audiovisual work is projected in public places by paying a price entry, the authors will be entitled to receive from those who publicly exhibit such work a percentage of the proceeds from that public exhibition.

In the case of the export of the audiovisual work, the authors may yield the the right mentioned by a given quantity, when in the country of destination it is impossible or seriously difi (i) the effective exercise of the right.

Employers in public rooms or exhibition premises must make available to producers and the national authority responsible for intellectual property rights on a regular basis. amounts collected for the purposes of such remuneration.

Article 155.-Of producers of audiovisual recordings.- It is understood by audiovisual recordings the fi jations of a plane or sequence of images, with or without sound, whether or not they are capable of being classified as audiovisual works in the sense Article 104 of this Law. It shall constitute audiovisual works when an audiovisual recording complies with the requirements of a work.

It is understood by the producer of an audiovisual recording, the natural or legal person who has the initiative and takes responsibility for such audiovisual recording.

The producer of an audiovisual recording shall have the exclusive rights of reproduction of the original and its copies on the first publication of the audiovisual recording, of public communication, distribution and rights of exploitation of the photographs which were carried out in the production process of the audiovisual recording

The duration of the rights of exploitation recognized to producers of the fi jation of an audiovisual recording shall be fifty years, computed from 1 January of the year following that of its realization. However, if, within that period, the recording is lawfully disclosed, the said rights shall expire at the age of 50 from the disclosure, computed from 1 January of the year following the date on which it is produced.

Third paragraph of architectural works

Article 156.-Limitation to copyright.- The author of an architectural work may not object to the modifications of his work in the construction process or with after it is carried out by the owner of the building or is ordered by competent authority. However, it may require that its name be not mentioned in relation to the modified work.

The author of an architectural work will also not be able to oppose the demolition of the construction.

Article 157.-Use of other works.- The acquisition of an architectural work project implies the right of the acquirer to execute the projected work, but it is

requires the consent of its author, in the terms that he points out and according to the legislation that regulates the exercise of the architecture, to use it in other works.

works of plastic arts and other works

Article 158.-Right to obtain a participation in resales.- If the original of a plastic work or the original manuscript of the writer or composer is resold:

1. In public auction; or,

2. With the direct or indirect intervention of a trader of such works in the capacity of buyer, seller, agent of trade or intermediary.

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

This right is inalienable, inalienable and transmissible by cause of death in favor of the author's heirs. It may be exercised by the term of duration of the property rights on the work.

The action to require the payment of this right for each resale will be prescribed at two years from the date of the respective resale.

Article 159.-Responsible for commercial establishments.- Those responsible for commercial establishments, the trader or any other person who has intervened in the resale shall be jointly and severally liable with the seller for the payment of this right and must notify the resale to the national competent authority of the intellectual rights and the management company concerned or, failing that, the author or his heirs, within three months of the resale, accompanying the relevant documentation for the practice of the liquidation.

Article 160.-Of a person's portrait or bust.- The portrait or bust of a person may not be placed on the trade without his consent and, after his death, his heirs. However, the publication of the portrait is free when it relates solely to scientific, educational, historical or cultural purposes, or to facts or events of public interest or which have been developed in public.

Article 161.-Portrait photographs.- No one may use a photographic work or a mere photograph consisting essentially of the portrait of a person, if that photograph was not carried out with his express permission, that of his legal representative, that of his heirs, with the limitations established in the Law. The authorisation must be written and refer to the type of specific use of the image.

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The person pictured may object when the use is different from the authorized one, except that the fact-account image or events mentioned in the previous article.

Authorization will not be required when the photo person is a secondary component of the photograph.

Section VI Rights Transmission and Transfer

First Paragraph of Transmission by Cause of Death

Article 162.-Transmission of the property rights.- The property rights conferred by this Title are passed on to the heirs and legal persons under the provisions of civil law.

Article 163.-Rights of the heirs or legal persons.- On the contrary, each heir or legal person, as appropriate, may exploit the work without the consent of the other, subject to the consent of the other competent national authority, provided that he does so in good faith and not (ii) damage to the normal exploitation of the work and without prejudice to the distribution of pro rata the economic benefits obtained from the holding after deduction of the expenditure incurred and of a percentage of 20% of those benefits. This percentage shall be without prejudice to the participation that corresponds to the respective heir or legator for its share.

Second paragraph of the transfer of entitlement and of

exploitation of the works

First paragraph Of the transfer of entitlement of rights

Article 164.-Transfer of the property rights.- The property rights conferred by this Title, except express provision to the contrary, they are liable for transfer to any title and, in general, of any act or contract possible under civil or commercial law as well as furniture.

In case of transfer, to any title, the acquirer shall enjoy and exercise the rights derived from the ownership.

The disposal of the support material does not imply any assignment or authorization regarding the copyright on the work that such support incorporates.

Second paragraph of contracts in general

Article 165.-Disposition of copyright.- Subject to the rules of this Book, the

faculty of authors and other holders of rights to dispose of their rights or to authorize the use of their works or benefits, free of charge or for consideration, according to the conditions to be determined. This faculty may be exercised by free, open, and other alternative licensing or waiver models.

Article 166.-Contracts for the transfer of the use of copyright or the exploitation of works by third parties.- Contracts relating to the transfer of rights, authorisation for the use or exploitation of works by third parties shall be granted in writing and shall be presumed to be onerous. Unless otherwise agreed, the author shall retain the power to exploit the works in a manner other than that provided for in the contract, provided that he does so in good faith and does not adversely affect the normal exploitation of the transferee. In addition, when appropriate, they will last the time determined in the same contracts.

In these contracts, the author will guarantee the authorship and the originality of the work. Likewise, it will be understood, without the need for express stipulation, 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 of each other and, in such a virtue, the contracts shall be construed as circumscribed to the forms of exploitation expressly stipulated and, unless otherwise agreed, to which they are understood to be understood according to the nature of the contract or essential to meet their own needs. Thus, the assignment or license of the right of reproduction will imply the right of distribution by sale or other title of the copies whose reproduction has been authorized.

All other rights as well as the other rights will be reserved. rights to non-existent or unknown forms of exploitation at the time of the conclusion of the contract.

Unless otherwise stipulated, the contracts shall be ten years and shall be limited to the territory of the country where they are the contract is concluded.

The transfer of rights is limited to the operating modalities expressly provided for and the territorial time and scope to be determined.

The transfer of operating rights in respect of the set of works that the author may create in the future shall be null and void.

that the author undertakes not to create any work in the future.

The transfer of the exploitation rights does not reach the modes of use or means of dissemination that are non-existent or unknown at the time of the assignment.

the transfer of rights may be agreed through a fair share of the operating income, or a value of the value when it is not feasible to agree to the participation in the first modality. If in

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cession was produced by a manifest this disproportion between the remuneration of the author and the beneficiaries obtained by the transferee, he may ask for the revision of the The Court of Justice of the European Court of Justice of the European Court of Justice of the European Court of Justice This faculty may be exercised within ten years after the assignment.

Article 168.-Exclusive and non-exclusive transfer of copyright.- Subject to the provisions of the foregoing Article, exclusive assignment of the Copyright shall be transferred to the transferee by the exclusive right of exploitation of the work, against third parties and against the author himself. It also confi ere to the exclusive transferee, within the framework of the rights which have been the subject of cession and unless otherwise agreed, the right to grant disposals or licences to third parties, and to conclude any other act or contract for the exploitation of the work. Likewise, the exclusive transferee has legitimization, in order to pursue the violations of the copyrights that affect the faculties that have been granted to him.

In the non-exclusive assignment, the author will retain the ability to exploit the work or authorising their exploitation to third parties. Unless otherwise provided, the non-exclusive assignment will be non-transferable and the transferee will not be able to grant licenses to third parties.

In the absence of express stipulation, the assignment will be considered non-exclusive.

Article 169.-Nullity of the transfer of the property rights on works created in the future.- Without prejudice to the requirements regarding the works created under the relationship of labor dependency, the assignment of the property rights on the works is null can be created in the future, unless they are clearly determined in the contract at least as regards their

It is equally void of any stipulations by which the author undertakes not to create any work in the future.

Article 170.-Exclusive license of copyright.- Con Article 167 of the exclusive licence of copyright confi gives the licensee the exclusive right to exploit the work, which is enforceable against third parties and against the author himself within the scope of the assignment.

In the non-exclusive license, the author shall retain the power to exploit the work or to authorize its exploitation to third parties.

Unless otherwise stipulated, the license, exclusive or otherwise, will be non-transferable and the licensee may not grant sublicenses to third parties.

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

Without prejudice to the rules on consumer protection, trade practices restrictive of free competition and unfair competition, the purchase of copies of works

which are marketed together with the corresponding license will involve the acquirer's consent to the terms of such licenses.

Article 171.

Obligation of exploitation granted.-

all contracts in which the author is directly or indirectly received by the author participation in the benefits of the exploitation carried out in the work, including, without the need for express provision, the obligation to put all the necessary means for the effectiveness of the exploitation granted, according to the nature of the work and the uses in force in the professional, industrial or commercial activity of which it is

Article 172.-Dissemination of works in charge of publication through newspapers, magazines or other means.- Notwithstanding the foregoing provisions, the natural or legal person who has commissioned articles newspaper, works, photographs, grafi cos or other works amenable to publication through newspapers, magazines or other means of public dissemination, has the right to publish such works by means of dissemination provided for in the order, thus to authorise or prohibit the use of works by similar or equivalent means to the of its original publication. The author's rights to exploit the work in different broadcast media remain safe, provided that it is done in good faith and does not prejudice the normal exploitation of the work.

If such works were carried out under work dependency, the author shall retain the right to perform the independent edition in the form of a collection.

The provisions of this Article may be modified by agreement between the parties.

edit contracts

Article 173.-Edit Contract.- Edit Contract is that by the which the author or his or her right holder authorizes another person called an editor to reproduce and distribute the work for account and risk of it, in the agreed conditions.

Article 174.-Prior notice of a published work to the new publisher of a works.- If the author has previously concluded an edition contract on the same work with a third party, or if it has been published by a third party with his or her authorization or knowledge, he/she must make these circumstances known to the publisher before the conclusion of the contract. Failure to do so will respond to the damages that I will cause.

Article 175.-Prohibition of the conclusion of a new contract.- During the term of the contract and subject to the territorial scope stipulated, except for the contrary or consent of the publisher, the author will not be able to celebrate new

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edit contract on the same work with a third party, or reproduce and distribute it or authorize its reproduction or distribution to third parties.

Article 176.-Prohibition of publishing the modified work each.-The publisher may not publish the work with abbreviations, additions, deletions or any other modifications, without the consent of the author.

Article 177.-Right to publish the modified work each.- The author will retain the right to do his work corrections, amendments, additions or improvements it deems appropriate before the printing starts.

When the modifications make the edition more onerous, the author will be exempt from the expenses that for that reason are caused to the publisher, unless otherwise agreed.

If the modifications involve fundamental changes in the content or form of the work and these are not accepted by the publisher, it will be considered a withdrawal of the work, the author must compensate for the damages and damages to be caused to the publisher and to third parties.

The provisions of this Article shall be apply also to reprints that are made of the work during the term of the contract.

Article 178.-Fixing of the price of the work.- In the absence of express stipulation, the publisher shall be entitled to the sale price. of each copy.

Article 179.-Use of unsold copies.- If, at the expiration or termination of the edit contract, the publisher will retain unsold copies of the work, the author may purchase them at cost plus ten per percent. This right may be exercised within thirty days from the expiration or termination, after which the publisher may continue to sell the copies under the same conditions as stipulated in the contract.

Article 180.-Termination of the edit contract.- The edit contract will terminate after the deadline stipulated for its duration, or when the edition is exhausted.

Article 181.-Obligation of who edits a work.- Everyone who edits a work in the national territory is obliged to consign in visible place, in all the copies, at least the following indications:

1. The title of the work and the name of the author or his pseudonym, or the expression that the work is anonymous;

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

3. The reference to the reservation of rights or the indication of the type of license under which the work is published;

4. The year and record of copyright;

5. The name and address of the editor and printer;

6. The place and date of the print;

7. The edition number; and,

8. The bar code with the International Standard Number for Books (ISBN).

Article 182.-Number of copies made by the editor.- The publisher may not publish a greater number of copies than the author's agreement and, if it does, it must pay the author for the greatest number of copies effectively published, without prejudice to the compensation to be paid.

Article 183.-Settlement of copies of a work.- Unless a different time limit is stipulated, the publisher shall be obliged to settle and pay semi-annually to the author or who represents you the amounts that correspond to you for remuneration. In any event, the author or whoever represents him shall have the right to examine, at any time, the premises, records and proof of sale of those who edit, distribute or sell the work and which relate to the subject matter of the contract. Publishers, distributors and sellers must carry and retain such documents.

Article 184.-Editor's or insolvency of the publisher.- The publisher's bankruptcy or insolvency does not result in the termination of the contract, except for the failure to the printing of the work has begun. The rights of the bankrupt publisher may not be transferred if the author or the dissemination of his work is prejudiced.

Article 185.-Of the contracts for the editing of musical works.- The above provisions shall apply to contracts for the editing of musical works, except that they are incompatible with the nature of the exploitation of the work.

Article 186.-Inclusion of the work in phonograms.- Unless otherwise agreed, the publisher or the sub-editors or licensees, as appropriate, they shall be entitled to authorise or prohibit the inclusion of the work in phonograms, their synchronisation with advertising, its public communication, or any other form of exploitation similar to those authorised by the publishing contract, without prejudice to the rights of the author and the obligation to pay the remuneration in his favour agreed in the contract.

Article 187.-Rights of the editor.- Unless otherwise agreed, the publisher has legitimisation, regardless of the author's or his or her right, to pursue violations of copyright that affect to the faculties that you have been authorized to.

Fourth of the contracts inclusion of phonografi ca

Article 188.-Contract for inclusion phonografi ca.-The inclusion contract phonografi ca " is the one in which the author of a musical work or his or her right, the publisher or the collective management company corresponding, entitles a phonogram producer to record or set up a work to reproduce it on a phonographic disc, a band

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magnetic, a digital media or any other device or similar mechanism, with reproduction and distribution fi nes.

Except in The authorization of 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 shall be directly proportional to the value of the copies sold.

Unless a different time limit is stipulated, the Producer shall be obliged to liquidate and pay semi-annually to the author or to the author of the amounts corresponding to him by way of economic participation. In any event, the author or the representative shall have the right to examine, at any time, the premises, records and proof of sale of the producer and relate to the subject matter of the contract. The producer must keep and maintain these documents.

Article 190.-Minimum data to be entered in the material of phonograms.- The producers of phonograms must record 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, of the works that make up the phonogram and, of the author of the version, when it is;

2. The names of the interpreters. The orchestral or choral assemblies shall be mentioned by name or by the name of their director, as the case may be;

3. Where appropriate, the reference to the reservation of rights by means of the symbol (P) (the letter P entered within a circle) followed by the year of the first publication;

4. The social reason for the phonografi producer or the mark that identifies it; and,

5. In the phonogram, the order number of the dump must be printed.

The indications that due to lack of appropriate place are not possible to be entered on the labels of the copies, they will be printed on the envelope, cover or attached leaflet.

Article 191.-Fixing of the price of the work.- The provision contained in Article 189 will be applicable, in the relevant, to the literary work which is used as the text of a musical work or as a declamation or reading for

Article 192.-Contract of representation

-

is the one by which the author or his/her right holder authorizes a natural or legal person the right to represent or execute

publicly a literary, dramatic, musical, drama-musical, pantomimical or choreographic work, in the agreed conditions.

These contracts must be held for a given time or for a specified number of representations or executions

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

In the contract, the time limit within which the sole or first representation of the work must be carried out must be determined. Unless otherwise agreed, the period shall be one year from the date of the contract or, where appropriate, since the author has placed the agent in a position to perform the representation.

The provisions relating to the contract of representation are applicable to other forms of public communication, in whatever case.

Article 193.-Percentage of the author's participation by function not determined in the contract.- When the author's participation has not been determined At least ten percent of the total value of the entries will be of each function and twenty percent of the premiere function.

Unless otherwise agreed, in case of free access shows, the percentage indicated in the previous paragraph will be applied to the total value of the potential collection it would have been obtained if the show had not had such a character.

Unless a different period of time is stipulated, the agent shall be obliged to settle and pay semi-annually to the author or to whom he represents semi-annually the quantities which he correspond by concept of remuneration. In any event, the author or the representative shall have the right to examine, at any time, the facilities and records of the agent and relate to the subject matter of the contract. The agent must carry and retain these documents.

Article 194.-Penality to the employer who does not comply with his or her obligation to pay the author.- If the agent ceases to pay the economic participation corresponding to the author, the authority the competent national, at the request of the author or representing him, order the suspension of the representations of the work or the immediate retention of the proceeds of the collection.

In case the same agent represents other works of different authors, the authority will have the immediate retention of the surplus quantities of the collection after the satisfaction of the copyright of said works, to cover the total of the sum due to the default author. In any event, the author shall have the right to terminate the contract and to withdraw the work of the agent, as well as to exercise the other actions to which it has taken place.

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Article 195.-Termination of the representation contract.- The agent may terminate the contract, losing the advances that has done the author, if the work is no longer represented by public rejection during the first three functions, or by chance or force majeure.

Paragraph 6 Of the broadcast contracts

Article 196.- Broadcast contract.- This is the one by which the author or his/her rightholder authorizes the broadcast of the work to a broadcasting organization.

These provisions shall also apply, in whatever case, to transmissions made by wire, cable, optical fibre, or other similar procedure.

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

For the transmission of a work to or abroad it shall be required for the express authorization of the author or his right-holder, except for the transmission of a work by digital or other means that naturally involve the possibility of Internet or cross-border transmissions which, unless otherwise agreed, carry the authorization for transmission to or from the outside

audiovisual works contracts

Article 198.-Audiovisual works contracts.- It is the one by which the author, or his or her rights holders, or the corresponding management companies, authorize a person to reproduce, distribute and to publicly communicate an audiovisual work, on behalf and at the risk of this person, in the agreed conditions. In the absence of a contract of audiovisual works, they are presumed to be transferred in favor of the producer, the property rights as provided for in Art. 154 of this Code.

Article 199.-Prohibition of distribution of an audiovisual work.-No the distribution or public communication of the audiovisual work may be negotiated if the author, artists, performers, or his or her rights holders, or the corresponding collective management companies, have not previously been held, fully guarantee the payment of the rights that it corresponds to.

Of the advertising contracts

Article 200.-Advertising contracts.- They are those which aim to exploit works with advertising or to identify advertisements or propaganda through any means of advertising. dissemination.

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

The contract must specify the material support in which the work will be reproduced, in the case of the right of reproduction, as well as the number of copies which shall include the use of the strap if applicable. Each additional tiling will require an express agreement.

The provisions relating to the contracts for editing, including phonografi, and audiovisual works are applicable to these contracts, as appropriate.

Section VII Of Limitations and exceptions to rights

heritage

Duration First paragraph

Article 201.-Duration of the property rights.- The duration of the protection of rights The property comprises the entire life of the author and seventy years after his death.

ownership of the rights corresponds to a legal person, the term of protection referred to in the previous paragraph will be counted from the publication or publication of the work. If the work has not been disclosed or published within the period of seventy years from its completion, the period of protection referred to in the preceding paragraph shall be counted from the performance of the work.

Article 202.-Duration of the property rights in the post-uma work.- In the case of posthumous works, the period of seventy years will be counted from the death of the author.

Article 203.-Duration of the property rights of the anonymous or pseudonima.- anonymous or pseudonymous work will have a protection of seventy years after the work has been lawfully made accessible to the public. However, if the author of an anonymous or pseudonymous work reveals his or her identity during the time of protection or, where the pseudonym adopted by the author leaves no doubt about his identity, the term of protection shall be that provided for in the article. 201.

If the identity of the author of the work disclosed under a pseudonym is not known, it will be considered anonymous. Otherwise, the provisions of the previous article will be available.

Article 204.-Duration of the property rights in works carried out in collaboration.- For the works in collaboration, the term of protection indicated in the 201 will run since the death of the last co-author.

Article 205.-Duration of the property rights in collective works.- If a collective work is to be given to

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knowing by parties, the protection period shall be based on the disclosure or publication of each supplement, part or volume.

Article 206.- Duration of the property rights in audiovisual works.- For audiovisual works, the term of protection shall be seventy years from the date of the publication of the work, or, if such a fact does not occur within a period of at least Fifty years from the realization of the work.

Article 207.-Duration of the rights The term of protection shall be seventy years from the date of completion, disclosure or publication, whichever is the later, in the case of works art. For the works of applied arts, the term of protection shall be seventy years from the realization, disclosure or publication of the work, whichever is later.

Article 208.-Duration of the property rights in works of communities, peoples, or nationalities.- For the case of works of communities, peoples or nationalities to which the Constitution recognizes collective rights, in which no individual authorship can be determined, the term of protection shall be Seventy years from the registration of such work with the competent national authority in intellectual property, which will be the subject of other requirements, that the application will have the collective consent of the communities, peoples or nationalities.

Article 209.-Computer of the term of protection of a the term of protection shall be counted from the date of the death of the author or of the performance, disclosure or publication of the work, as appropriate. Where no such date is known, the term of protection shall be counted from the first of January of the year following that of the author's death or that of the execution, disclosure or publication of the work, as appropriate.

Article 210.- Completion of the deadlines for the protection of a work.- term of protection provided for in this paragraph shall be completed, the works shall pass to the public domain and, consequently, may be used freely by any person, respecting the paternity of the work.

Second Paragraph Of Limitations and Exceptions

Article 211.-Fair use.- It shall not constitute a violation of the property rights of the use or exploitation of a protected work or benefit, in the cases established in the following article, as long as they do not attack the normal exploitation of the protected work or provision and do not cause injury to the legitimate interests of the holder or rightholders. In order to determine whether the use of the work or benefit is in accordance with the provisions of this article, it will take into account the provisions of this Code and the International Treaties of which Ecuador is a party. In addition, at least the following factors should be considered:

1. The objectives and nature of the use;

2. The nature of the work;

3. The amount and importance of the part used in relation to the work as a whole, if any;

4. The effect of the use on the current and potential market value of the 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 foregoing article, in accordance with the nature of the work, the international instruments of which Ecuador is a party and the principles of this Code, shall not constitute a violation of the rights of the holder of rights, those cases determined in this article, provided that they do not infringe upon the normal exploitation of the works and do not cause injury to the legitimate interests of the rightholders or rightholders. In this regard, the following acts do not require the authorisation of the rights holder or are subject to any remuneration:

1. The inclusion in a work of short fragments of works other than a written, sound or audiovisual nature, of a plastic, photographic or similar nature, provided that they are already disclosed, that their inclusion is carried out in (a) the title of the appointment or for its analysis, commentary or critical judgment, with teaching or research purposes, to the extent justified by each of the following, and provided that the source and the name of the author are indicated, and that in no case constitutes a covert exploitation of the work.

Regular collections made in the form of reviews or Press magazine will have the consideration of appointments;

2. The use of a work in the course of public administration, the legislature, or the administration of justice;

3. The exhibition, execution, interpretation and public communication of works at acts In the event of the participation of the participants in the event, it is necessary to ensure that the participation of the participants in the event is free of charge and that the participants do not receive a specific remuneration for their intervention. It is understood by official acts that they are organized with the presence of several authorities (civil, ecclesiastical or military) and that they have a specific protocol for their development;

4. The reproduction, translation, distribution and public communication with information of articles, comments, photographs, illustrations and similar works on current events and of collective interest, provided the source is mentioned and the name of the author, if the original indicates it, and the reservation of rights has not been recorded at source;

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5. Reproduction, translation, and public communication with information from conferences, speeches, and similar works released in assemblies, public meetings or public debates on matters of general interest;

6. The reproduction, adaptation, distribution and public communication with information of the news of the day or of various events that have the character of simple journalistic information, disseminated by any means or procedure, provided their origin is indicated;

7. Reproduction, adaptation, distribution or public communication with scientific or educational purposes and to ensure access to persons with disabilities from architectural works, photo (a) of fine arts, of applied art or of other similar kinds, which are permanently located in places open to the public, by means of photography, painting, drawing, fi lmation or any other technique or similar procedure, provided that the name of the author of the original work, if known, and the place where it is finds;

8. The reproduction and public communication with information of seen or heard in the course of current events by means of photography, cinematography or by broadcasting or public transmission in a wired or wired form wireless;

9. The individual reproduction of a work by a library, file, or museum, when the respective copy is in the collection of the library, file or museum, and such reproduction is performed with the following fi nes:

a. Preserve the copy and replace it in case of loss, destruction or inuse;

b. Deliver to another library or file the copy reproduced for loan purposes to the users of this library or file. The library or file receiving the copy may in turn make a copy of it if necessary for the preservation of the copy and the copy is intended for use by its users; or,

c. Replace, in the permanent collection of another library or file, a copy that has been misplaced, destroyed, or unused.

A library or file can additionally perform the following acts:

i. The reproduction of fragments of works that are in their collection, at the request of a user of the library or file exclusively for their personal use;

ii. The electronic reproduction and public communication of works from its collection to be consulted free of charge and simultaneously up to

by a reasonable number of users, only in networks terminals of the respective institution or for users of that institution under its control, under conditions that guarantee that electronic copies of such reproductions cannot be made;

iii. The translation of works originally written in foreign language and legitimately acquired when, when the time limit of three years from the first publication or one year in the case of periodicals, their translation into Spanish, other languages of intercultural relation and the languages of the respective territories, has not been published in the country by the holder of the right;

iv. The translation must be performed with research or study (s) users of such libraries or files, and may only be reproduced in partial quotes in the publications resulting from such translations;

v. temporary to library or file users, or to other libraries or files, to the works protected by copyright or related rights protected by related rights that are incorporated in a digital or other intangible medium, that are within their collections;

vi. The reproduction and the supply of a copy of the works protected by copyright or protected subject matter to another library or file, or to other libraries or archives wherever they are located, or according to any other exception that allows the receiving file or library to make such a copy;

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 the exclusive use of people with disabilities;

viii. Text mining. Libraries or archives and their officials shall be exempt from liability for acts performed by their users as long as they act in good faith and have reasonable grounds to believe that the work protected by copyright or the the benefit protected by related rights has been used in the framework permitted by the limitations and exceptions provided for in this paragraph or in a manner which is not restricted by the rights to the work or the provision, or the capability is in the public domain or under a license that permits its use;

10. The loan the public in an individual way of an audiovisual work by a video library or other collection of audiovisual works, when the respective copy is in the repertoire of the video library or collection;

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11. The performance by a broadcaster and by its own teams and for use in their own broadcasts broadcast, of ephemeral recordings of a work on which they have the right to broadcast it. The broadcaster shall be obliged to destroy such recording within five years, except in the case of recordings with a special historical or cultural value that merit its preservation;

12. The performance of a transmission or retransmission by a broadcaster of a work originally broadcast by it, provided that such retransmission or public transmission is simultaneous with the original broadcasting and that the work is broadcast or broadcast publicly without alterations;

13. The satire, pastiche or parody of a published work, provided that it conforms to the rules of these genres, as long as it does not imply the risk of confusion with this, nor does it cause harm to the work or to the reputation of the author or the artist performer, as the case may be. In no case shall this use constitute a covert exploitation of the work.

14. The annotation and registration, including by means of non-audiovisual technical means, with personal use of lessons and lectures given in universities, polytechnic schools, technical and technological higher institutes, schools, schools, education and training centres in general, and other educational institutions, by those to whom such lessons and lectures directed. Such records and records may not be subject to any marketing or public use without authorization from the rightholder;

15. Reproduction with teaching purposes or for the carrying out of examinations in educational institutions of articles lawfully published in periodicals or periodic collections, or short fragments or extracts of works lawfully published, or works isolated plastic, provided that such use is not the object of sale or other transaction for consideration.

The works referred to in the foregoing paragraph may be used in the course of study or in-person learning processes, semi-presential, dual, online and at a distance, provided that it is exclusively intended for students of the respective classes.

16. In the case of orphan works, or which are not lawfully available in national trade for a period exceeding one year from their first publication, and while remaining in that quality or circumstances, the educational institutions may use in their entirety the works to which the two previous incisors are referred to, provided that the use of such works is required by the appropriate educational authority;

17. The representation, execution and public communication of a work in the course of the activities of a teaching institution by the staff and students of such an institution, provided that it is not charged for such an act and the public is composed primarily of the staff and students of the institution or parents or guardians of students and other persons directly linked to the activities of the institution;

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

19. The use of software with demonstration purposes to the clientele in commercial establishments where equipment or computer programs are exposed or sold or repaired, provided that it is carried out in the local or section of the

20. Establishment intended for such objects and in conditions that prevent their diffusion to the outside;

20. The use of works of plastic arts with fi nes exclusively to announce the public exhibition or sale of the same;

21. The public exhibition of works of art or their reproductions made with the dissemination of the culture, provided that the entrance is not charged or there is a direct economic benefit to the organizer;

22. execution and communication of musical or audiovisual works within the establishments of public health and education systems; social rehabilitation centres, provided that it is intended for the inmates of such establishments and that those who are found in these institutions are not affected by a specific payment in favour of manages those institutions for accessing that interpretation, execution, or communication;

23. The provisional reproduction of a work which, in such a way as to be temporary or ancillary, forms an integral and essential part of a technological process and has as its sole purpose the lawful transmission of a network between third parties by a third party. intermediary, and which in no case has an independent economic signifi;

24. The reference or link of online sites, or other similar legal activities, as well as the reproduction and storage necessary for the process of operation of a search engine of the Internet as long as this does not imply violation of protected content;

25. The public communication and reproduction of texts, drawings, fi guras and other content of an application or registration of industrial property or application or certifi cado de obtentor by means of databases open to the public provided that, in the case of requests, these have a public character;

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26. Public communication of works carried out in establishments open to the public owned by micro-entrepreneurs, small business owners or skilled craftsmen, through a single home appliance whose main activity does not involve (a) such public communication is indispensable or the use of such communication is not intended. For the purposes of this type of communication, the related rights that exist on the benefits involved are understood to be understood;

27. Public communication of works carried out in public transport units that are not intended for tourist or entertainment activities;

28. The execution or public communication of works with educational and -profit. You will not be able to use this exception:

a. Non- private entities with non-profits considered to be micro-enterprises;

b. Private non-profit entities that have ties to a private entity with a profit; and,

c. Foreign non-profit entities; and,

29. Non-profit entities recognised by the State or receiving financial support from the State and providing education, educational training, adapted reading or access to information to persons with disabilities may, from those works that have been legally acquired, reproduced, distributed and made available to the public, in formats accessible to persons with disabilities. Access to such works will include the possibility of representing and implementing them publicly, with the fi n that they can be accessible to people with disabilities.

Persons with disabilities or those who act on their behalf, may carry out the the same activities detailed in the previous paragraph of those works that have been legally acquired for their personal use.

30. Public communication, transmission and retransmission by a broadcaster community, as long as it conforms to the provisions of the relevant regulations.

understands that there is a financial gain provided that a direct or indirect economic benefit is generated for the person who uses the work or for a third party that facilitates the use of the work; in this case, the general rules on authorization of use or exploitation of works by third parties provided for in this Code.

The provisions of this article will also apply for benefits. Under no circumstances may the limitations and exceptions described in this Article be applied when the work is used with religious purposes or political proselytism. These will also not constitute fair use of it.

Article 213.-Other acts understood.- The limitations and exceptions noted in this Paragraph will include, not only the rights expressly mentioned, but also those rights. which, by the nature and the nature of the limitation or exception, are understood as well understood. Thus, in all cases in which the reproduction of a work is authorized, the translation of the work will be understood when it is originally written in foreign language. Thus, in cases where reproduction of a work is permitted, the distribution of copies of the work shall also be understood to the extent that it is justified by the authorised act of reproduction.

In all of these cases, observe the provisions of the international treaties of which Ecuador is a party.

Article 214.-Works or benefits called orphan.- It is understood by orphan works or benefits those whose copyright or rights are in force in accordance with the terms of protection laid down in this Code, but whose are not identified or are not identified, their location has not been possible.

Who intends to use orphan works or benefits shall execute all reasonable steps and steps to the identification of the holder of the (a) the right of the competent national authority in the field of intellectual property rights.

Where the legitimate holder or his right holder appears and duly takes such quality, he may exercise the actions provided for in that Code.

Article 215.-Of the advertising works.- It will not be applicable to the works the obligation to indicate the names of the author and the performers. Nor will it be mandatory to mention the name of the author in the advertising photographs.

Article 216.-Of the limitations and exceptions.- The limitations and exceptions set forth in this Paragraph will also apply to the

VIII of the compulsory licenses

Article 217.-Of the granting of compulsory licenses.- The national competent authority in the field of Intellectual rights may confer compulsory licences on exclusive rights of a holder, constituted on literary or artistic, musical or audiovisual works in the following cases:

1. Where such practices have been declared by the competent authority in the field of market power control as contrary to free competition, in particular where they constitute an abuse of the dominant position on the market by the holder of the copyright or related rights;

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2. When the holder of a musical work has granted the authorization for the interpretation or recording to a person and there is no possibility that another authorization may be obtained for new interpretation or recording by a third party. The application of this mandatory license does not apply when there is an express refusal of authorization from the holder;

3. When a literary or artistic work is not translated into Spanish, one of the official languages of intercultural relation or the official languages in the respective territories and such translation is not available in the national market;

4. When a literary or artistic work is not available on the national market and has elapsed since its publication in any form: three years in the works of scientific or technological content; five years in the works of content general; and, seven years in the works such as novels, poetics and art books; and,

5. Where an audiovisual work, video-programme or other audiovisual works is not available or accessible on the national market and has elapsed one year since its dissemination in any medium or format.

Article 218.- (a) national authority responsible for intellectual property may grant compulsory licences for the national territory in a non-exclusive manner in cases and for the purposes of the application of the laws of the Member States. types of works listed in Article 217. Such licences shall be non-transferable except where it is transferred as part of the undertaking or its intangible asset which permits its exploitation, the transfer in writing and registration with the national competent authority in intellectual rights.

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

may be revoked, subject to the legitimate interests of the licensee, at the reasoned request of the rights holder, or of the office if the circumstances that gave rise to it have disappeared.

Article 219.-Payment of economic participation when there is a compulsory license.- The holder of the rights of a work which is the subject of a compulsory licence, it shall be entitled to receive a payment for the effective use of that work, which shall be paid by the national competent authority in the field of intellectual rights as provided for in the respective regulation.

if the holder refuses to receive the payment or the payment cannot be made, this value may be consigned

to its representative or to the collective management company of the gender of the work or benefit.

Article 220.-Impossibility of other measures.- The person who has applied for the award of a compulsory license on a literary or artistic work may not be subject to other administrative or judicial measures, in respect of that work, than the payment of a fair compensation which is determined by the national competent authority for such purposes intellectual property in accordance with the procedure applicable to compulsory licences, in the As the person who performs the reproduction and distribution, complies with the special conditions and requirements that the respective regulations point out.

CHAPTER IV OF THE RELATED RIGHTS

section I General precepts

Article 221.-Of the protection of the related rights.- The protection of the related rights shall not in any way affect the protection of the copyright, nor shall it be construed as a violation of that protection. In the case of a confl, it will always be at the best of the author's favor.

Article 222.-Financial provisions to the related rights.- With respect to the related rights referred to in this Chapter, they shall apply, in the absence of a provision expresses, the other provisions of this Title.

Section II Of Artists, Interpreters or Performers

Paragafo First Moral Law

Article 223.-Recognition and Concession of Moral Rights.- Regardless of the property rights and even after their transfer, the performers shall enjoy, in respect of their interpretations and executions, the right to be identified as such, unless the omission is determined by the way in which the interpretation or execution is used. They shall also enjoy the right to object to any distortion, mutilation or other modification of their interpretation or execution, which causes damage to their honor or reputation.

To the death of the artist, performer or performer, the exercise of these rights shall be the responsibility of their successors for the duration of the property rights.

An artist, performer or performer is understood to be the person who represents, sings, reads, recites, interprets or executes in any way work.

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Second Property Rights Paragraph

Article 224. Exclusive Rights.- The performers will enjoy the exclusive right to authorize, as regards their interpretations or executions:

1. Broadcasting and communication to the public of their non-financial interpretations or runs, and;

2. The final assessment of their execution or non interpretations.

However, performers may not object to the public communication of their non-financial interpretation or execution when they themselves constitute a

The performers, in relation to their interpretations or executions, shall enjoy the exclusive right to authorize or prohibit:

1. The direct or indirect reproduction by any means or procedure;

2. The distribution, which includes the commercial rental to the public of the original and copies thereof; and,

3. The making available to the public, either by thread or by wireless means, in such a way that members of the public can access them from the place and at the time each of them chooses.

When the artist performs or the applicant has given his consent for the purposes of his interpretation or execution in the audiovisual field, the audiovisual producer shall be presumed to have transferred the exclusive rights of reproduction, unless proof to the contrary, distribution and provision provided for in this Code.

Article 225.-Rights of equitable remuneration.- The performers shall enjoy the right to a fair and single remuneration for the direct or indirect use for broadcasting and any other form of public communication of the interpretations and (i

remuneration established in accordance with the preceding subparagraph shall be shared in an equitable manner between the producers of phonograms; and the artists, performers or performers whose renditions and executions are located at phonograms.

performers shall enjoy the right to a fair remuneration for broadcasting and any other form of public communication of the interpretations and executions in the audiovisual field.

Regardless of the cession of exclusive rights provided for in this Code, it is recognized in favor of the performers that they are unrenountable,

rights of equitable remuneration for the making available and the lease of their interpretations, executed executions in audiovisual fi jations.

rights set out in this article, shall be of compulsory collective management.

For the collection corresponding to the copyright and related rights set out in this Code, taking into account their gender, it may be possible to use the Single-window mode.

Article 226.-Of the collective rights of artists, performers or performers.- Artists, performers or performers who participate collectively in the same execution shall designate a representative for the exercise of the rights recognised in this Section. In the absence of such designation, they shall be represented by the director of the group who has participated in the execution.

If there is no group director, any interested party may require the national competent authority for the rights of the group. Intellectual property designated by a member of the group as representative for these purposes. The distribution will be determined by the national authority responsible for intellectual rights.

Article 227.-Protection of the rights of artists, performers and performers.- The duration of the protection of the rights of performers shall be seventy years, counted from the first of January of the year following that in which the interpretation or execution took place, or of their fi jation, as the case may be.

Section III phonogram producers

Article 228.-Of the rights of producers of phonograms.- Phonogram producers have the exclusive right to prevent third parties from performing without their consent any of the following acts:

1. The direct or indirect reproduction of their phonograms, by any media or procedure;

2. Public communication with or without phonogram thread;

3. The import of illicit phonogram reproductions;

4. The distribution to the public of phonograms; and,

5. The making available to the public of their phonograms either by wire or by wireless means in such a way that members of the public can access it from the place and in the time each of them chooses.

Article 229.-From exhaustion of the right.- Notwithstanding the foregoing article, the holder shall not have the right to prevent a third party from making the distribution in respect of a phonogram, after it had been introduced into the trade of any country.

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

Article 230.-Of the licenses granted by the phonogram producer.- The exclusive licences granted by the producer of phonograms must specify the rights for which the exercise is authorizes the licensee. Unless otherwise agreed, the licensee shall have legitimacy, regardless of that of the licensor, to pursue violations of rights that affect the privileges granted to him.

Article 231.- the rights protected by phonogram producers.- The duration of the protection of the rights of the phonogram producer shall be seventy years from the first day of January of the year following that in which the phonogram was published. If such publication does not occur within seventy years after the phonogram has been released, the deadline will be counted from the time of the release.

Section IV of the broadcasting organizations

Article 232.-Of the rights of broadcasting organisations.- Broadcasting organisations have the exclusive right to prevent third parties from performing without their consent any of the following acts:

1. The retransmission of their emissions, by any means or procedure;

2. The fi jation and reproduction of its emissions; and,

3. The communication to the public of their emissions when they are carried out in places accessible to the public through the payment of an admission right.

Article 233.-From the production of broadcast signals.- The issue referred to in the The invention also relates to the production of signal-carrying signals to a broadcasting satellite, as well as to the diffusion to the public by an entity that emits or disseminates other broadcasts, received through any of the

Article 234.-From the decoding of broadcast signals.- Without the authorization of the respective broadcasting organisation, the decoding of satellite signals carrying programmes which are protected by technological protection measures, their receipt with a profit or their profit shall not be lawful. dissemination, nor the import, distribution, sale, lease or offer to the public of devices or systems that do not have a legitimate use other than the decoding of such signals.

Article 235.-Of the protection of organisms broadcasting.- For the purpose of the enjoyment and exercise of the rights set out in this Section, a Similar protection, as appropriate, to stations

of broadcasting organizations that transmit programs to the public by means of wire, cable, optical fibre, or other similar procedure.

Article 236.- rights of broadcasting organisations.- The duration of the protection of the rights of broadcasting organisations shall be 50 years from the first of January of the year following that in which the issue was issued.

Section V Other Rights

Article 237.-Protection of Rights third parties.- Whoever carries out a mere photograph or other purpose obtained by a similar procedure, which does not have the character of a photographic work, shall enjoy the exclusive right to prevent third parties from performing without their consent reproduction, distribution or public communication of mere photography or fi jation, in the same terms as the authors of photographic works. This right will last five years from the first of January of the year following that of its realization, disclosure or publication, as appropriate.

CHAPTER V OF THE MANAGEMENT SOCIETIES

COLLECTIVE

Article 238.-Of collective management companies.- They are collective management societies, non-profit legal entities whose social object is the collective management of copyright or related rights, or both.

Section I of the obligations and attributions

general collective management societies

Article 239.-Management of management companies.- The authorized collective management companies shall be required to administer the rights that are confi to them and shall be legitimized to exercise them in accordance with this Book and in the terms provided for in its own statutes, in the mandates given to them and in the contracts they have concluded with foreign entities, as the case may be.

(a) the loss of the shares corresponding to the recovery of the shares of the management company; collective shall enjoy presumption of representation for the collection of the values for the property rights derived from the copyright and related rights.

For the exercise of the enforcement actions established in the present Code, collective management companies shall contribute to the process copies of their statutes and the authorization to act as a management entity, as well as to credit the quality of representatives, presidents or proxies of the holder of the rights to name of who appears in the respective process or procedure.

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Article 240.-Of the collective management companies ' partners.- Collective management companies shall have the obligation to admit as a partner to any rights holder. The status of the Management Company must prescribe the conditions for admission as members of the rightholders who so request and credit the quality of such rights.

Article 241.-Of the law.-The filing of the holders of copyright or rights related to a collective management company shall be voluntary.

The representation conferred on collective management companies in accordance with this Chapter shall not prejudice the right of the holders to directly exercise the rights recognized in this Title.

Section II the approval and monitoring of societies

collective management

First paragraph of general requirements for constitution

and operating authorization

Article 242.-Of the approval of the statutes of the collecting societies.- The statutes of the collective management companies shall be approved by the national authority responsible for intellectual property rights, which shall also authorize their operation. In addition, such companies shall be subject to the monitoring, control and intervention of the said authority.

Article 243.-Requirements.- They are general requirements for the formation of collective management societies:

1. That the status of the requesting entity meets the requirements set forth in this Chapter;

2. That they have a minimum of fifty partners that are Ecuadorian holders of the rights to be managed; and,

3. That they have sufficient resources to perform the efforts and activities that are required to complete the process of operating authorization as an applicant collective management company.

Article 244.-Of the authorization - They are general requirements for operating authorization for collective management societies:

1. That it is properly constituted;

2. That of the data provided and the information collected by the national authority responsible for intellectual property rights, it is apparent that the applicant entity brings together the sufi resources to ensure the administration of the rights whose management will be entrusted to you;

3. To prove to represent a quantitatively significant repertoire of the works or other protected capabilities to be administered;

4. To demonstrate that you are able to perform collective management abroad; and,

5. That you have all the manuals and internal procedures in accordance with the best practices and recommendations of the national intellectual rights authority.

Second paragraph of the statutes of the

collective management

Article 245.-Of the Staff Regulations.- Without prejudice to the other applicable legal provisions and the regulation, the management company statute shall, in special, prescribe the following:

1. From partners:

a. The requirement that only holders of origin or derivatives of the rights administered may be members.;

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

c. The means to credit the quality of copyright or related rights holders;

d. The way the collection is distributed;

e. The criteria for the allocation of social and pre-visionary benefits

. The rights and duties of the partners and their disciplinary arrangements and, in particular, the rights of information and voting rights for the election of the governing and representation bodies. The vote will be democratic and secret. All partners shall have the right to participate in the election of the authorities of the company, in accordance with the conditions laid down in the Rules of Procedure; and,

g. Regardless of the categories of partners existing in a collective management company, all partners shall have the right to participate in decisions to be taken in assembly, for which the technological means may be used. necessary to facilitate such participation.

2. Of governance and representation bodies:

a. The governing and representation bodies of the society and their respective powers, as well as the rules concerning the convening, installation, operation and adoption of decisions of the bodies of the collegiate nature.

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The governing bodies shall be the General Assembly, the Board of Directors and the Monitoring Committee. The formation of the Board of Directors and the Monitoring Committee will ensure the implementation of gender inclusion policies.

b. The requirement that only members of the Board of Directors or of the Monitoring Committee may be members who have a residence in the country, in the case of natural persons or who have a proxy in the country in the case of legal persons in accordance with Article 98 of this Code, who have generated during the 12 months preceding the election a collection equivalent to the minimum that the management company establishes, with the approval of the authority competent in the field of intellectual rights, determine and have not been subject to criminal sanctions, civil or administrative evidence of a lack of probity in relation to the administration, management and exercise of functions within a management company or related entities.

Members of the Board of Directors may not be simultaneously members of the Monitoring Committee. They will be charged for up to four years and may be re-elected for an additional period.

c. The General Assembly, composed of all members of the society, is the supreme governing body and its powers shall be:

i. Know the annual budget and its funding;

ii. Know the annual economic and management report;

iii. Know the rate regulations;

iv. Know the distribution procedures;

v. Know the fundamentals used by the Board of Directors and approved by the Monitoring Board to make the percentages of the collection destined for administrative costs and social benefits within the legal limits;

vi. Choose the members of the Board of Directors and the Monitoring Committee;

vii. Resolve the expulsion and suspension of a partner; and,

viii. All others who decide their partners by resolution in the Assembly.

d. The Board of Directors whose competencies will be:

i. Direct and manage the collective management company;

ii. Report on its management in each General Assembly;

iii. Grant general and special powers and revoke them when relevant;

iv. Set the remuneration that corresponds to the President and Director General according to the budget to be presented to the Assembly;

v. Set the rates prior to review of the Monitoring Committee; and,

vi. The others to be established in this Code, the respective regulations and the status of the collective management company.

e. The Monitoring Board whose competencies will be:

i. Review and submit observations to the maximum amounts that can be assigned by the Board of Directors for the compensation and remuneration of the Director General and administrators of the company;

ii. Review and submit observations to the annual budget and its funding;

iii. Review and submit observations to the annual economic and management report;

iv. Review and submit observations to the tariff regulations;

v. Review and submit observations to the distribution procedures; and,

vi. Review and submit observations on the criteria for determining the percentages of the collection destined for administrative costs and social benefits within the legal limits.

3. From assets and balances:

a. The initial heritage and expected resources;

b. The destination of the equity or the resulting net asset, in the entity's settlement assumptions, shall be subject to approval by the intellectual rights authority;

c. The requirement to submit the balance sheet and the accounting documentation to the examination of an external auditor appointed by the competent authority on intellectual property rights chosen by the collective management company at its expense, and the obligation to put that

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examination at the disposal of the partners, and must also forward a copy of the same to that authority within five days of completion, without prejudice the examination and report corresponding to the internal monitoring bodies, in accordance with the statutes; and,

d. The prohibition for the collective management company to conclude contracts with the members of the governing bodies and the representation, as well as with the spouse, survivor or relatives within the fourth grade of consanguinity and second of the rights of such members, with the exception of the administration contracts and all those conventions that link a partner or managed to the society for the representation of their rights.

prohibition will apply for hiring with legal persons in which any such person is a representative, official or partner.

Third paragraph of the destination of collections

Article 246.-Of the the allocation of administrative expenditure of collective management companies.- The General Assembly be required to establish annually the percentage allocated to administrative expenditure and management costs, which shall not exceed thirty percent of the total collection.

A percentage not greater than ten percent of the proceeds must be invested in training projects and/or promotion of the creative activity of the partners, which must be approved by the General Assembly of the management organisation.

The percentage to be used for welfare benefits and (a) the price of the pre-viewing period may not be greater than 10 or less than five per cent of the proceeds, as established by the General Assembly. In the event that the partners are legal persons, such values should be added to the percentage of promotion of creative activity.

Exceptionally, after the opinion of the monitoring and authorization committee of the competent national authority in the field of intellectual rights, the percentage corresponding to administrative expenditure and management costs may be up to thirty-five percent, in decrease of the amount allocated to the promotion of creative activities of the partners. Where the percentage of administrative expenditure and management costs is less than 30 percent of total revenue, the remainder shall be added to the percentage of the distribution.

At least fifty percent of the total revenue shall be collected. (a) to be compulsorily distributed among the various rightholders, in proportion to the actual exploitation of the works, interpretations or executions, emissions or phonograms, as the case may be.

collective management companies which conform to the issue of this Code, to the percentage of Administrative expenditure and management costs, during the first three years, may be added to the percentage of welfare and pension benefits and the percentage allocated to projects to promote creative activity.

Article 247.-From the legal capacity of the collecting societies.-In order to have effects vis-à-vis third parties, the collecting societies are obliged to register, before the national competent authority in matters of rights intellectual property, the appointment of the members of their management bodies as well as the instruments to establish representations made by foreign associations or organizations, the mandates conferred in their favor by the partners or in favor of third parties for the recovery of the remuneration for the property rights and their respective repertoires.

Fourth paragraph of the obligations of the members of the organs

of government and representation

Article 248.-Of the obligations of the Board of Directors, the Monitoring Committee and the Director General.- The members of the Board of Directors, the Monitoring Committee and the Director General, time to take up his posts and every two years, they shall submit to the national competent authority on intellectual rights a sworn statement that they are not included in any of the incompatibilities established in this case. Chapter along with a sworn statement of goods and rents.

Fifth paragraph of post-authorization obligations

operating

Article 249.-Of the obligations of the companies collective management.- Without prejudice to other obligations laid down in its statutes, the collective management societies must once authorized:

1. Publish, at least annually, in a journal of broad national circulation, the balance sheet and the statements of results; and,

2. Forward to its partners, at least semi-annually, full and detailed information of all activities related to the exercise of their rights.

Rate Sixth Paragraph

Article 250.-From the creation of a database.- Collective management companies shall keep up to date a public access database with clear and accurate information of the works, interpretations

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or executions, broadcasts or phonograms whose copyright or related rights they manage, as well as the persons who are their associates and represented National and foreign, with indication of:

1. The singularity of each of the works, interpretations or executions, emissions or phonograms that represents respect to each holder or represented;

2. each type of user and user category;

3. The uses reported for each work;

4. The methods applied for the distribution; and

5. Additionally, the collective management company will permanently make available to the partners physical or electronic form: the annual budget, the regulations internal, management reports, and partner sharing.

This information should be available to the public at both the collective management companies ' online sites and the registered office.

Article 251.- tariffs.- Collective management companies shall establish reasonable, fair and fair rates proportional to the use of the works, interpretations or executions, emissions or phonograms included in their respective repertoires.

The tariffs established shall be subject to the authorization of the national competent authority in the field of of intellectual rights, which will first seek or request the factual and technical background that the Justifi quen, as well as to the fulfilment of the formal requirements established in this Code, the respective regulations and the statutes of the society. Once authorised, the fees shall be published in the Ofi cial Register and in a national wide circulation journal at the disposal of the national intellectual rights authority.

The national competent authority in intellectual rights, verifi face that tariffs establish a special and differentiated regime, for transmissions of community media, in consideration of criteria such as coverage and population density.

Article 252.-From the conclusion of contracts.- Collective management companies may enter into contracts with associations or associations of users setting rates for use in particular. Any interested party may qualify for these fees if it so requests in writing from the relevant management entity.

Settlement and Distribution Seventh Paragraph

of collections

Article 253.- Collective management societies by gender of work.- If there are two or more collective management societies by gender of work,

constitute a single collecting entity, whose social object is exclusively the collection of property rights on behalf of the constituent companies. If management companies do not agree on the training, organisation and representation of a collecting entity, their designation and conformation shall be the responsibility of the national intellectual rights authority.

Case, the single collecting entity referred to in the preceding paragraph shall be constituted with the authorization of the national competent authority on intellectual rights.

The collection costs of the single collecting entity will be imputed to the costs of administration of the respective societies of management represented.

Article 254.-From the distribution of collections.- At the time of the distribution of the collections, the collecting societies must supply information that is sufficient to enable the partner to understand the form by means of which proceeded to the respective liquidation. The provision of information shall be individual for each partner by means of the format which, for the purpose, authorizes the competent national authority on intellectual rights to each collective management company.

Article 255.-Of the type - collections must be effectively liquidated, distributed and paid by the collecting societies to the holders of the corresponding rights at the latest within the six-month period following their perception by the respective company. Except for cases where the national authority responsible for intellectual property rights authorizes a different time period after approval by the General Assembly.

The exact dates of payments to the partners must be reported annually. to the national intellectual rights authority and to the partners at the latest within the first quarter of each year.

Article 256.-Fines for unauthorized use.- Who exploits a work, interpretation or execution, issue or phonogram in violation of this Title shall pay, in the form of compensation, a Fifty percent surcharge on the tariff, calculated for all the time when, knowing the need to obtain authorization from the holder of the rights, has carried out the exploitation. The payment of this surcharge shall be made without prejudice to the payment of the amounts due by the holding.

The foregoing paragraph shall also apply to collective management companies in the event that they have granted licenses on works, interpretations or executions, broadcasts or phonograms which do not represent, and must in any case guarantee to the licensee the use and enjoyment of the corresponding rights.

The action to demand the payment of this article shall be prescribed for two years from the date of the act which gave rise to it.

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Article 257.-Of the obligation to keep register the broadcasting, television or cable organizations.- All the agencies broadcasting, television or cable and in general those who communicate to the public works, interpretations or executions, emissions or protected phonograms, with commercial purposes and which make a detailed selection of the materials which communicate directly to the public, they must carry catalogues, registers or monthly plans in which they are register by order of dissemination, the title of the works disseminated and the name of the authors or holders of the copyright and related rights that correspond and are of their knowledge. Such catalogues, registers or plans shall be forwarded to each of the collecting societies and to the single entity collecting the rights for public communication for the purposes set out in this Chapter.

of collective management shall grant receipts or constances that account for the receipt of the catalogues, records or plans referred to in this Article.

Eighth paragraph of the fi scalization, intervention and sanction

Article 258.-Inspection and monitoring visits.- The national authority competent in the field of intellectual rights may, from the request of an interested party, carry out inspection and monitoring visits to verify the proper functioning of the collective management companies and to carry out summaries or investigations in cases of violations of the rules governing them.

In any case, from the official office or at the request of an interested party, the national authority competent in the matter of intellectual rights may carry out (i) research, and action on a collective management company, if it does not comply with the rules which rules. The intervention will cover all areas of society. Produced the intervention, acts and contracts must be authorized by the national competent authority in matters of intellectual rights for their validity.

The intervention may be decreed by the competent national authority in intellectual rights, subject to an investigation and by a duly motivated administrative act, as a precautionary measure prior to or during the substantiation of an investigation or summary against a collective management company. For these purposes, the national authority responsible for intellectual property rights shall designate an official of that authority or another person who reviews the appropriate technical conditions for the exercise of the function. The intervention will last until the summary or investigation is concluded. In cases where the competent national authority has jurisdiction over intellectual rights, the intervention may be decreed, as a measure to ensure compliance with the penalties imposed on the management company for infringements of the law. rules governing, and until such time as subsane is.

Article 259.-Sanctions on management companies.- If the collective management company does not comply with the provisions of this Code, the respective regulations

or its Statutes, observing the procedure in the previous article; and I shall not subsanare the non-compliance, within the time limit set by the competent national authority, may impose, in relation to the seriousness of the infringement or the reoffending, one of the penalties set out in this Article.

Sanctions shall be imposed considering the following criteria, the seriousness of the non-compliance and non-compliance with the rules set out in this Code and other applicable rules: and, having incurred the fact for the first time or in a repeat manner.

The penalty for the most serious misconduct will be imposed. If they are all equally serious, the maximum penalty will be imposed.

The sanctions are as follows:

1. Written assembly;

2. Fine;

3. Suspension of the operating authorization for up to six months; and,

4. Revocation of the operating authorization.

When a collective management company has been sanctioned it must communicate to its Member States shall make such a penalty public in the manner determined by the respective regulation, and the national competent authority in the field of intellectual rights shall make such a penalty public. In the event of non-compliance with this provision, the national intellectual rights authority may sanction it with the fine that the regulation determines.

In cases where the infringements are the result of The collective management company must repeat against the respective officials for the damage caused by the damage caused by the damage caused by the damage caused by the damage caused by the damage caused by the damage caused by the damage caused by the damage caused by the damage. of fine under this article.

Article 260.-Determination of non-compliance or failure to comply.- The national intellectual rights authority may, at the request of an interested party, carry out inspections or proceedings to determine the non-compliance or non-compliance with the rules of this Code and other rules applicable to the operation of the Collective Management Societies, by the administrators, the Board of Directors and the Monitoring Committee. In the event that responsibilities are established on the part of the national intellectual rights authority, the Collective Management Company will have to impose the following sanctions:

1. written;

2. Multa, and;

3. Removal from office.

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These sanctions shall be imposed without prejudice to the actions that correspond to what is established by common law.

Article 261.-Effects of the suspension of a collective management company.- If the suspension of the operating authorisation is decreed, the management company shall retain its legal personality solely for the purpose of remedying the non-compliance. If the company does not fail to comply within a maximum of six months of the suspension of the suspension, the national authority responsible for intellectual property rights shall revoke the authorization to operate the company. in this case, the settlement of the company shall be carried out and the immediate return of whatever is appropriate between the partners, in equal parts.

Without prejudice to the foregoing, in all cases of suspension of the operating authorisation, the company may, under the control of the national competent authority in matters of rights intellectual, to collect the property rights of the authors represented by the company.

The proceeds of the collection shall be deposited in a separate account in the name of the national competent authority intellectual and will be immediately returned to the society once the resolution is issued for which the suspension is left without effect.

Article 262.-Access to mediation.- An association, guild or representative group of formally constituted users, whose representation is duly accredited, may request the mediation of the national competent authority in the field of intellectual rights, where it considers that the tariffs established and authorised to a management company for collective management of copyright or related rights, comply with the budgets set forth in this Code, in the specific case that is claimed.

INDUSTRIAL PROPERTY TITLE III

CHAPTER I OF THE PRIORITY CLAIM

Article 263.-Of The priority.- The first application for a patent grant or utility model, or registration of industrial or brand design, validly filed with a national, regional or international authority with which Ecuador is bound by a treaty establishing a right of priority analogous to that established by the This Chapter shall confer upon the applicant or his right-holder a right of priority to apply for a patent or registration in respect of the same subject in Ecuador. 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 submitted to the national authority. competent in the field of intellectual rights, provided that a prior right of priority had not been invoked in that application. In such a case, the filing of the subsequent application invoking the right of priority will involve the abandonment of the previous application with respect to the subject matter that was common to both.

It is recognized that it gives rise to the right of priority all validly admitted application for processing.

For the benefit of the right of priority, the application that invokes it must be submitted within the following unextendable deadlines from the date of filing of the application priority is invoked:

1. Twelve months for patent grant requests invention and utility models; and,

2. Six months for trademark and industrial design registration requests.

Article 264.-Of the requirements to invoke the right of priority.- For the purposes of provided for in the previous Article, a declaration must be submitted with the relevant documentation, in which the priority of the previous application is invoked, indicating the date of its submission, the offi ce to which it was presented and its number.

The relevant statement and documentation shall be submitted, jointly or separately, with the request or, at the latest, within the following unextendable deadlines from the filing date of the application whose priority is invoked:

1. For the invention or utility model grant applications: sixteen months; and,

2. In the case of applications for registration of industrial or brand design: nine months.

Also, a copy of the application must be submitted, the priority of which is invoked by the authority which issued it and a certificate of the date of presentation of that request issued by the same authority.

For the purposes of the right of priority, no further formalities will be required as provided for in this article.

Article 265.-Loss of priority.- Failure to comply with the time limits or the presentation of the documents referred to in the Articles

CHAPTER II OF THE PATENTS

Article 266.-Of the patents of invention.- The patent system constitutes a tool for promoting development. Industry and technology and for the achievement of good living.

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Section I Of Protection Requirements

Article 267.-Of Protected Matter.- A patent shall be granted for any invention, it is a product or a procedure, in all fields of technology, whenever it is new, has an inventive level and is susceptible to industrial application.

It is not considered a matter that is protected from traditional knowledge.

Article 268.-They are not considered inventions.- They will not be considered inventions:

1. Discoveries, scientific principles and theories and mathematical methods;

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

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

4. The polymorphs, metabolites, pure shapes, particle size and isomers;

5. The uses and any new or new use of a known substance or use of a known procedure or machine or apparatus;

6. The genetic resources that contain biological diversity and agro-biodiversity, as such;

7. Literary and artistic works or any other protected by copyright;

8. Plans, rules and methods for the exercise of intellectual activities, games or economic-commercial activities;

9. Software or logical support, as such; and,

10. The ways to present information.

Article 269.-Of novelty.- An invention will be considered new when it is not included in the state of the art.

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

Only for the purpose of the determination of novelty, will also be considered within the state of the art, the content of a patent application pending before the

national intellectual rights authority, whose date of filing or priority was before the date of filing or priority of the application for the patent the patent under examination, provided that such content is included in the application for a previous date when the time limit laid down in Article 289 is published or has elapsed.

Article 270.-Non-disclosure of patentability.- For the purposes of determining patentability, disclosure shall not be taken into account in the year preceding the filing date of the application or within the of the year preceding the priority date, if it had been invoked, provided that such disclosure had come from:

1. The inventor or his or her right holder;

2. A competent national office that in contravention of the rule governing the matter, publishes the content of the patent application filed by the inventor or his or her right holder;

3. A third party, including public officials or state agencies, which would have obtained the information directly or indirectly from the inventor or his successor;

4. An order of authority;

5. An obvious abuse in front of the inventor or his right-holder; and,

6. Of the fact that the applicant or his or her rightholder had exhibited the invention in (i) the following: (i) the following: (i) the following: (i) the following: (i) the following: (i) the following: (i) the following: In this case, the person concerned must record, at the time of filing, a declaration stating that the invention has actually been displayed and present the corresponding certificate.

Article 271. - invention is considered to have an inventive level if, for a person of the office normally versed in the relevant technical matter, that invention would not have been obvious or derived in an obvious way from the State of the art and in addition constitutes a technical contribution to the field.

The invention relates to an expert or group of experts with a qualified rating derived from studies and experience in the technical area of the invention.

Article 272. industrial.- An invention is considered to be susceptible of industrial application when its object could be produced or used in any productive activity, including services.

Article 273.-Inventions not patentable: The following will not be patentable:

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1. Inventions whose commercial exploitation must necessarily be prevented in order to protect public order or morality, including to protect health or the life of humans or animals or to preserve plants or to prevent serious damage to the environment or ecosystem. For these purposes, the commercial exploitation of an invention shall not be considered to be contrary to public order or morality, for the sole existence of a legal or administrative provision prohibiting or regulating such exploitation;

2. The diagnostic, therapeutic and surgical methods for the treatment of people or animals;

3. Plants and animals, as well as essentially biological procedures for obtaining plants or animals other than non-biological or microbiological procedures;

4. The product of polymorphs, metabolites, pure forms, particle size and isomers that have not been investigated in Ecuador; and,

5. The product of genetic resources containing biological diversity and agro-biodiversity that have not been investigated in Ecuador.

For the purposes of the numeral 1, they will not be patentable, among others:

a. Human cloning procedures;

b. The human body and its genetic identity;

c. The use of human embryos with industrial or commercial applications and,

d. Procedures for the modification of the genetic identity of animals when they cause suffering without any substantial medical benefit being obtained for the human being or animals.

Article 274.-Products or procedures not subject to a second patent.- The products or procedures already patented, included in the state of the art, in accordance with Article 269, shall not be the subject of a new patent, for the simple reason of their use other than the original patent originally understood.

Section II of the headlines

Article 275.-Of the patent holder.- The right to acquire the right through a patent belongs to the inventor. This faculty is transferable by act between living and transmissible by cause of death.

Patent holders may be natural or legal persons.

If several persons have jointly made an invention, the right of the patent it is common to all of them or their successors. The inventor

or co-inventor who has not contributed an inventive activity, such as, for example, who has been limited to assisting in the execution of the invention, shall not be considered to be an inventor.

If several persons make the same invention, independently of each other, the patent shall be granted to the patent that submits the first application or which invokes the oldest date priority, or its right-holder.

Article 276.-Distribution of ownership, benefits of the inventions and royalties made in educational and research centres.- inventions made in the course of research or academic activities in higher education institutions or public research institutes, the ownership and distribution of benefits derived from the exploitation of the patent shall be be negotiated between these and the inventors involved, such as: teachers, researchers or students. However, the latter may not correspond to the latter a percentage of less than 40% of the value on the ownership of the patent, so the inventors shall receive the royalties generated from their exploitation. The holders, after agreement, may license or transfer their rights.

The patent may be licensed or transferred to a third party as long as the consent of the co-holders is counted, if no agreement is reached, the national authority The patent may be applied for as a whole or on behalf of all, for any of its purposes, as provided for in this Code.

co-operators, notwithstanding the costs related to the protection and enforcement, as well as the acts and contracts following the application or grant of the patent, shall be borne by the institutions of higher education or the public research institutes.

Article 277.-Of the ownership developed in compliance with a contract.- For cases not included in the previous article, the right to acquire the right by means of a patent on an invention developed in the performance of a contract belongs to the principal or the employer, except This is not the case. However, it may not be up to the inventors a percentage less than twenty-five per cent of the value on the ownership of the patent, so the inventors will receive the royalties generated from their exploitation. The holders, after agreement, may license or transfer their rights.

When a contract of employment does not require the employee to exercise his own inventive activity, but make an invention using the resources or information confi The employer will be entitled to the employee, but the employer will have the right to enjoy a non-exclusive, non-transferable and free license of the patent.

When a work contract does not require the employee to exercise of an inventive activity, and the invention is carried out without the use of resources or The employer's personal information shall be the responsibility of the employee.

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When an employee or commissioner has not directly participated in the inventive process, the entitlement will be solely for the persons who intervened in such a process.

Article 278.-Inventor's Paternity Law.- The inventor shall have the right to be mentioned as such in the patent or may also object to this mention.

Section III patent application

Article 279.-From the patent application.- The application for obtain a patent of invention shall be filed with the national competent authority in respect of intellectual rights according to the content, requirements and other rules provided for in the regulation.

Article 280.-Description of the patent.- The description must be sufficiently clear and complete to enable a person trained in the relevant technical field to carry it out without requiring undue experimentation. The description will indicate the title of the invention and include the following information:

1. The technological sector to which the invention is intended or applied

. The previous technology known to the applicant that was useful for the understanding and examination of the invention, and the references to the documents and previous publications relating to such technology;

3. A description of the invention in terms that allow understanding of the technical problem and the solution provided by the invention, exposing the differences and eventual advantages over the previous technology;

4. A review of the drawings, when the there is;

5. A description of the best way known to the applicant to execute or implement the invention, using examples and references to the drawings, if they are relevant;

6. An indication of the manner in which the invention satisfies the condition of being susceptible to industrial application, if this is not evident from the description or nature of the invention; and,

7. An indication that the applicant was in possession of the invention to the filing date of the application.

Article 281.-Deposit of biological material.- When the invention is intended for biological material, which cannot be properly detailed in the description, the material must be deposited in a depository institution authorized by the competent national authority in intellectual rights, in accordance with the respective regulations.

The deposit must be made no later than the date of filing of the application or, where applicable, at the date of filing of the application whose priority is invoked.

The repositories made to an authority will be valid international recognition under the Budapest Treaty on the International Recognition of the Deposit of Microorganisms to the Purposes of the Patent Procedure, 1977, or to another institution recognized by the national authority competent in the field of intellectual rights for these purposes. In such cases, the description shall indicate the name and address of the deposit institution, the date of deposit and the deposit number attributed by such institution.

The deposit of the biological material shall only be valid for the purposes of the the granting of a patent if it is carried out under conditions which allow any interested person to obtain samples of that material at the latest from the date of the expiry of the period laid down in Article 289 of this Code.

Article 282.-Of the patent and the disclosure of origin.- According to the provisions of the treaties of which the Ecuador is a party, this Code and its respective regulations, in the event that the object of a patent application involves the use of genetic resources and the associated traditional knowledge, the applicant you must report:

1. The country where those resources or the associated traditional knowledge were obtained; and,

2. The source, including details of the entity, if any, from which those resources were obtained associated traditional resources or knowledge.

You must also attach a copy of a certified compliance with the legislation of access to genetic resources or the associated traditional knowledge internationally recognized. If an internationally recognised compliance certificate is not applicable in the supplier country, the applicant shall provide relevant information as to compliance with the prior informed consent and access and the fair and equitable participation in the benefits, as required by the national legislation of the country that provides the genetic resources and/or the associated traditional knowledge, which is the country of origin of those resources or a country that has acquired the genetic resources or the traditional knowledge associated in accordance with the Convention on Biological Diversity and the other international treaties of which Ecuador is a party.

Article 283.-Of the claims.- The claims defended the matter that is to be protected by the patent. They must be clear and concise, and fully supported in the description.

The claims may be independent or dependent. It shall be independent when it defends the matter which is to be protected without reference to another claim

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previous. It will be dependent when it defends the matter which is intended to be protected by reference to a previous claim. A claim that was referred to was two or more earlier claims will be considered a multiple dependent claim.

In the case of claims on a group of chemical-pharmaceutical products, the application must provide sufi information on tests and experiments carried out to enable the reproduction of each embodiment of the invention, unless the description presents evidence that the same result shall be obtained if it is replaced any element in the group claimed.

Item 284.-From Summary.- The summary shall consist of a summary of the technical disclosure contained in the patent application. If the invention consists of a pharmaceutical product, it must be indicated its international generic name, when it is known to the date of the application.

The summary will serve only for technical information and will have no effect to interpret the scope of the protection conferred by the patent.

Article 285.-Of the invention unit.- The patent application may only comprise an invention or group of related inventions such that A single inventive concept.

Article 286.-Sanctions by falsehood or omission deliberate.- The falsehood, deliberate omission, deliberate obscurity, or deliberate complication of the information in the application or the description of the invention, which prevents or difi cults the competent national authority in the the intellectual property rights to carry out the examination of the application for a patent, to mislead it in the examination of the application of the patent or not to allow it to be carried out or to carry out its reproduction, it will be causal of rejection of the same or of nullity absolute of the granted patent, without prejudice to the claim for damages of any the third party concerned.

Article 287.-Modifications of the application.-From the request of the party or at the request of a party may be modified, the application at any time of the procedure until before the national competent authority in matter of Intellectual rights issue an administrative resolution in the first instance. The modification may not imply a change of the object of the invention or an extension of the protection which would correspond to the disclosure contained in the initial application.

Similarly, the correction of any errors may be requested material.

Similarly, the applicant may split or merge a patent application or convert it into a utility model, if applicable.

Article 288.-Remission.- The corresponding regulation will establish the requirements, deadlines and procedures, between

others, for the examination of the application, its publication, the presentation of oppositions, and the grant or refusal of the application.

Article 289.-Of the public nature of the file.- Translate eighteen months from the date of filing of the application or when it was Case from the date of priority which has been invoked, the file shall be public in nature and may be consulted by third parties, and the national authority responsible for intellectual rights shall order the publication of the application in the Means of dissemination. The publication shall include the first claim and, if applicable, an extract of the required information.

Notwithstanding the foregoing paragraph, the applicant may request that the application be published at any time the examination of the form has been completed. In such a case, the national intellectual rights authority shall order its publication.

Article 290.-Of the reserved character of the file.- While the publication is not carried out or the deadline has elapsed referred to in the previous article, the file shall be reserved and may only be consulted by third parties with the consent of the applicant. This provision will also apply in case of abandonment of the application prior to publication.

Notwithstanding the foregoing paragraph, anyone who proves that the applicant for a patent has sought to assert against him the rights derived from the application, you may consult the file before publication even without the consent of the applicant.

Section V Of Rights and Limitations

Article 291.-Duration of the registration of a patent.- The term of the patent shall be 20 years, from the date of the filing of the application. It will be held by filing date:

1. For the case of national applications, the filing date of the request is certified each by the national intellectual rights authority.

2. For the case of international applications, the date of filing of the international application; or,

3. For requests that claim priority under some other treaty, the filing date of the application whose priority is claimed.

There will be no additional or additional protection, under any kind of title or modality, which extends the time limit stated in this article.

Article 292.-Scope of protection.- The scope of the protection conferred by the patent will be determined by the tenor of the claims. The description, drawings

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or plans, biological material and any other item deposited with the national intellectual rights authority serve to interpret the claims.

Article 293.-Rights of the holder of a patent.- The patent confi ere to its holder the right to prevent third parties from performing without their consent any of the following acts:

1. When the patent claims a product:

a. Manufacture the product;

b. Offer for sale, sell or use the product; or import it for any of these fi nes; and,

2. When the patent claims a procedure:

a. Use the procedure; or,

b. Run any of the acts listed in numeral 1 with respect to a product obtained directly through the procedure.

Article 294.-Limitations to the right of the holder of a patent.- The holder of a patent may not be entitled to exercise the right prescribed in the previous article in any of the following cases:

1. Acts performed in the private and non-commercial scale;

2. Acts performed with experimentation on the subject the patented invention;

3. Acts performed with teaching or research scientific or academic research;

4. Acts referred to in Article 5ter of the Paris Convention for Industrial Property;

5. When the patent protects a biological material, capable of reproducing, use it as an initial basis for obtaining a new viable material, except that such a procurement requires the repeated use of the patented entity; and,

6. Acts related to the testing, use, manufacture or sale of a patented invention with the sole purpose of generating and presenting information required for the approval of the manufacture, use or sale of any product, including products pharmaceutical and agricultural chemicals, in Ecuador or in another country, as well as, for the production of products destined for sale after the date of expiration of the patent.

Article 295.-From exhaustion of the right.- The patent does not confer the right to prevent a third party from carrying out acts of trade in respect of a protected product by the patent, after that product has been introduced into the trade of any country with the consent of the holder, of a licensee, of a person economically linked to the holder or the licensee, or of any other person

the purposes of the preceding paragraph, two persons shall be understood to be economically linked when one is able to exercise directly or indirectly on the other, a decisive infraction in respect of the exploitation of the patent or when a third party can exercise such information on both persons.

the patent shall protect biological material capable of being reproduced, the patent shall not extend to the biological material obtained by reproduction, multiplication or propagation of the material introduced in the trade according to the first paragraph, provided that the reproduction, multiplication, or propagation is necessary to use the material according to the purposes for which it was introduced into the trade and that the material derived from such use is not used for propagation or propagation purposes.

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 be enforced against a third person who, in good faith and before the date of priority or submission of the application for which the patent was granted, has already found using or exploiting the invention, or has made effective or serious preparations to do so.

In such a case, that person shall have the right to initiate or to continue the use or exploitation of the invention, but this the right may only be transferred or transferred together with the establishment or undertaking in which it was making such use or exploitation.

Article 297.-Of the transfer.- A granted patent or grant application may be transferred by act between the living or the succession.

the national authority competent in the field of intellectual property rights any transfer, in respect of a granted patent or an application for a grant. Such legal businesses shall be refined and shall have effect from their registration with the national intellectual property authority.

For the purposes of registration, the transfer shall be recorded in writing.

Any interested person may request the registration of a transfer.

Article 298.-Licensing.- A patent granted or a grant application may be licensed to one or more third parties for the exploitation of the respective invention.

You must register with the National competent authority in the field of intellectual rights shall have any licence to exploit a patent granted or an application for granting and shall have effect from its registration with the national competent authority in intellectual rights.

Any interested person may request the registration of a license.

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In case there is any change from the name or address of the patent holder during the term of the license, the holder of the registration must apply to the national competent authority for intellectual property rights.

Otherwise, any notification made in accordance with the data in the register shall be deemed to be valid.

sub-licenses will require express permission from the rights holder.

Article 299.- Registration of transfer or licence contracts.- The national authority responsible for intellectual property rights shall not enter into the contracts through which it is transferred or is granted licence for the exploitation of patents which do not comply with the provisions of the Common System of Treatment for Foreign Capital and on Marks, Patents, Licenses and Royalties, or which do not comply with Community or national provisions on restrictive business practices of free competition or unfair competition. Otherwise, in whatever case, the provisions of the Organic Law on Regulation and Control of Market Power will be in place and the penalties provided for in it will apply.

Section VI Of the subsequent acts

concession

Article 300.-Modifications to the Registry.-The owner of a patent must register with the competent national authority on intellectual rights any change in the name, address, address or other data of the holder, or of his representative or proxy. Otherwise, any notification made in accordance with the data that will be recorded in the register will be deemed valid.

Article 301.-Of the reforms to the claims.- The holder of a patent may ask the authority national competent in the field of intellectual property rights which is modified to limit the scope of one or more of the claims. Similarly, you may ask for the correction of any material error in the patent.

Section VII of the waiver

Article 302.-Of the waiver.- The holder of a patent may waive one or more claims of the patent or patent in its entirety, by means of a declaration addressed to the national authority competent in the field of intellectual property rights. The waiver will take effect from the date of receipt of the respective declaration.

Section VIII of the nullity of the patent

Article 303.-Absolute nullity of the patent.- The national competent authority in the field of rights

intellectuals, of office or at the request of any person who accredit legitimate interest, and at any time, shall declare the absolute nullity of a patent, in the following cases:

1. If the object of the patent does not constitute an invention;

2. If the patent had been granted for an unpatentable invention;

3. If the invention does not comply with the patentability requirements;

4. If the patent does not disclose the invention in a way;

5. If the claims included in the patent were not entirely supported in the description;

6. If the granted patent contained a broader disclosure than in the initial application and would result in an extension of the protection;

7. If the case had not been filed, if the access contract had not been submitted, products or procedures the patent of which is requested have been obtained or developed from genetic resources or from their derived products from which Ecuador is a country of origin;

8. If this is the case, if the copy of the document certifying the license or authorization of use of the traditional knowledge of the indigenous, Afro-American or local communities of Ecuador or the member countries of the Andean Community, when the products or processes whose protection is requested have been obtained or developed from such knowledge of which Ecuador or any of the member countries of the Andean Community is a country of origin;

9. If the patent has been granted in violation of article 282;

10. If the patent has been granted in violation of article 286;

11. If the absolute nullity causes provided for in the law for administrative acts were committed; and,

12. If the patent has been granted with any other violation of the law that has substantially induced its grant.

When the causals indicated above will only affect one of the claims or parts of a vindication, nullity shall be declared only with respect to such claims or to such parties to the claim, as appropriate.

The patent, claim or that part of a claim that was declared null shall be null and void from the date of filing of the patent application.

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Article 304.-Of the relative nullity.- The administrative acts affected by vices that will not result in the production of the absolute nullity, of in accordance with the preceding Article, they shall be affected by relative nullity. In such cases, the national intellectual rights authority may declare such an annulment within the following five years from the date of the grant of the patent

Article 305.- (a) national authority responsible for intellectual property rights may annul a patent where it has been granted to the person who was not entitled to obtain it. The action for annulment may only be initiated by the person to whom the right to obtain the patent belongs. This action shall be prescribed at five years from the date of the grant of the patent or two years from the date on which the person to whom that right belongs had knowledge of the exploitation of the invention in the country, The term expires first.

Article 306.-Notifi cation and presentation of arguments and evidence.-In cases of nullity, the parties are notified to make use of the arguments and present the evidence they consider convenient.

When necessary to resolve the nullity of a patent, the holder may be asked to of the patent that presents one or more of the documents referred to in Article 300 relating to the patent object of the procedure.

Article 307.-Pleas for the presentation of arguments and evidence.- The arguments and evidence to which the The following Article shall be submitted within two months of the notification of the notification. Before the expiry of the period, either party may request an extension for an additional two months.

Due to the time limits to which this article is referred, the national authority responsible for intellectual property rights decide on the nullity of the patent, which would notify the parties by resolution.

Article 308.-Damage and damages.- The preceding actions will not affect those that could be caused by damages.

Article 309.-Patent expiration and grace period.- To maintain the patent or, in its (a) the application for a patent pending the payment of the annual fees to be paid by the national authority responsible for intellectual property rights. Annuities may be paid in advance.

The due date of each annuity shall be the last day of the month in which the application was filed, pursuant to Article 291. Two or more annual fees may be paid in advance.

An annual fee may be paid within a grace period of six months from the start date of the corresponding annual period, jointly paying the established surcharge. During the grace period, the patent or patent application will remain in full force.

The failure to pay an annual fee pursuant to this article will result in full entitlement to the patent or patent application.

Mandatory License Scheme Section X

Article 310.-Granting of compulsory license for lack of use.- Expired three years from the grant of the patent or four years from the date of the from the request for the same, whichever is greater, the national competent authority in the field of intellectual rights, at the request of any interested party, will grant a compulsory license mainly for the industrial production of the product covered by the patent or the integral use of the patented process, only if at the time of its the patent has not been the subject of exploitation, or if it has been suspended for more than one year.

The non-exploitation of the object of the patent in the Ecuadorian territory shall be understood as a lack of use due to lack of manufacture or incomplete manufacture of the product, or even the lack of integral use of the patented process together with the distribution and marketing of the results obtained, in a way that is sufficient to meet the market demand.

The compulsory license will not be granted if the patent holder justifies his inaction by imposed restrictions by laws or regulations, or reasons of force majeure or fortuitous case.

Article 311.-Notifi cation and scope of the compulsory license.- The granting of the compulsory licenses to which the previous article is referred, shall proceed prior notice to the holder of the patent, so that within the next 60 days he

national authority responsible for intellectual rights shall establish the scope or extent of the licence, specifying in particular the period for which it is granted, the period for which it is granted, the the purpose of the licence, the amount and the conditions of the economic compensation. This compensation must be appropriate, depending on the circumstances of each case, considering in particular the economic value of the authorization.

Article 312.-Modification of conditions of compulsory licenses.- On request of the holder of the patent or the licensee, the conditions of the compulsory licences may be amended by the national authority competent for intellectual property rights where it is justified by new facts and, in particular, where the patent holder grants another licence under more favourable conditions than the

Article 313.-Obligations of the licensee.- The licensee shall be required to exploit the invention within three years from the date of the granting of the license, except cases of inaction for reasons

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fortuitous case or force majeure, duly justified, during which the concession period in favor of the licensee will be suspended.

In case The national authority responsible for intellectual rights shall revoke the compulsory license at the request of the patent holder.

Article 314.-Declaratory and scope of the compulsory license granted for reasons of public interest.- Prior declaratory by executive decree or ministerial resolution of the existence of public interest, emergency or national security reasons and, only as long as these reasons remain, the State may, at any time and without the need for prior negotiation with the owner of the patent, have public use non-commercial of a patented invention by a government entity or a contractor, or subject the patent to a compulsory license. The national authority responsible for intellectual rights shall grant the licenses that are requested, without prejudice to the rights of the owner of the patent to be remunerated as provided for in this Section. The holder of the patent shall be notified when it is reasonably possible.

The decision to grant the compulsory licence shall establish the extent or extent of the licence, specifying in particular the period for which it is granted, the the license, the amount and the conditions of payment of the 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 undermine the right of the owner of the patent to continue to exploit it.

Article 315.-Compulsory license for practices anticompetitive.-From office or at the request of a party, national authority competent in the field of intellectual rights shall grant compulsory licences when they present practices which have been declared by the competent national authority in (a) the protection of competition as contrary to the relevant rules, in particular where they constitute an abuse of the dominant position on the market by the owner of the patent.

In such cases, to determine the amount of the remuneration in benefit of the owner of the patent, account shall be taken of the need for correct anti-competitive practices.

Article 316.-Mandatory license for dependency.- The national intellectual rights authority will grant license at any time, if requested by the holder of a second patent whose exploitation necessarily requires the use of a first patent. This licence shall be subject, without prejudice to Article 319, to the following:

1. The invention claimed in the second patent must be an important technical advance of considerable economic importance with the invention claimed in the first patent;

2. The holder of the first patent shall be entitled to a cross-license on reasonable terms to exploit the invention claimed in the second patent; and,

3. The license of the first patent may not be transferred without the transfer of the second patent.

Article 317.-Mandatory license for the holder of a plant variety.- When the breeder of a plant variety cannot exploit a (a) the right of access to the patent in question may be required for the purpose of exploiting the variety which is the subject of such a certificate.

In this case, the patent may be case, the patent holder shall be entitled to a reciprocal compulsory licence to use the protected variety as soon as necessary to exploit the patented invention.

The compulsory license granted may only be transferred with the certificate or patent whose exploitation requires the license.

Article 318.- Compulsory license for lack of agreement.- Grant of compulsory license for lack of agreement.-For the case provided for in Article 276, the national competent authority on intellectual rights, at the request of the legitimate interested, will grant a compulsory license mainly for the industrial production of the patent or the full use of the patented procedure, if at the time of the petition the patent co-holders have not agreed to the terms and conditions of a voluntary license.

The application for a license The compulsory licence shall not be granted if the licence is not granted if the applicant for the licence does not justify the application of the patent or a year from his application.

The compulsory licence shall not be granted if the licence applicant does not have applied for the granting of a voluntary licence, which has not been granted for lack of agreement between the

Article 319.-Conditions for the granting of compulsory licenses.-

granting of compulsory licenses. and the non-commercial public use regulated in this Section will be subject to the following:

1. Where a compulsory licence is applied for under Articles 310, 316 and 317, the potential licensee must prove that he has sought to obtain the authorisation of the holder of the rights in reasonable commercial terms and conditions, and attempts have not been answered or have been negatively, within a period of not less than four months from the formal request in which such terms and conditions have been included in a sufficient manner to permit

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to the patent holder form criteria. In cases of national emergency, or in other circumstances of extreme urgency, or in cases of non-commercial public use, the holder of the intellectual property right was notified as soon as reasonably practicable;

2. The compulsory licence shall not be exclusive and sub-licences may not be granted. It may be transferred only to the part of the undertaking or to its intangible asset which permits its industrial exploitation, the transfer of which must be recorded in writing and be registered with the competent authority in the field of intellectual property rights;

3. The compulsory licence shall be granted mainly for the supply of the internal market, except in the case of the export of pharmaceutical products in accordance with the decision of the World Trade Organisation of 30 August 2003 or the rule that replaces it, or except in the case of practices which have been declared by the competent authority in the field of defence of competition as contrary to the relevant rules;

4. The licensee must acknowledge in benefit of the holder a suitable remuneration in the circumstances of each case, taking into account the economic value of the licence or non-commercial public use, without prejudice to the provisions of the Article 315. In the absence of agreement between the parties, after the end of thirty days of notification each decision of the competent authority in matters of intellectual rights to the holder of the patent on the granting of the license or the public use commercial, the remuneration will be determined by that authority;

5. The compulsory licence may be revoked, subject to the appropriate protection of persons who have received authorisation for the use of the patent, at the reasoned request of the patent holder, if the circumstances which gave rise to the patent and they are not likely to come up again. The competent authorities shall have the power to examine, upon request, if such circumstances continue to exist;

6. The scope and duration of the compulsory licence shall be limited in the light of the requirements for which would be granted; and,

7. in the case of patents which protect semiconductor technology, the compulsory licence shall be authorized only for non-commercial public use or for the purpose of remedying or rectifying a practice declared by the competent authority in respect of

Article 320.-Impeachment of the compulsory license.- The challenge of the compulsory license or the non-commercial public use granted in accordance with this Section shall not prevent the exploitation or exercise any infl

in the terms and deadlines that they are running. Their interposition shall not prevent the patent holder from perceiving, in the meantime, the economic compensation determined by the competent national authority on intellectual rights, in the unclaimed party.

CHAPTER III OF THE UTILITY MODELS

Article 321.-Subject to be protected under utility model.- A utility model patent will be granted in any new form, confi gulation or arrangement of elements of some artifact, tool, instrument, mechanism or other object or any of its parts, which allows for a better or different operation, use or manufacture of the object that incorporates it or provides you with any utility, advantage or technical effect that you previously did not have.

Article 322.-Non-protected subject matter under utility model.- Procedures may not be patented as utility models, nor do the materials excluded from protection as patents of invention.

Neither utility models, sculptures, architectural works, paintings, engravings, prints, or any other object of a purely aesthetic character.

Article 323.-Changing the mode of the patent application.- The applicant for a utility model patent may request that his application be converted into a patent application for invention or industrial design registration, provided that the subject matter of the initial application is allows.

Article 324.-Provisions applicable to utility model patents.- The provisions on patents of invention are applicable to the utility model patents, except as provided for in the (a) the terms and time limits for processing, which will be reduced by half according to the provides for the relevant regulation. Notwithstanding the foregoing, the time limit laid down in Article 289 shall be twelve months.

Article 325.-Term of protection of utility models.- The term of protection of utility models shall be ten years from the date of the date of submission of the application for the patent in accordance with Article 291.

CHAPTER IV OF LAYOUT SCHEMAS

INTEGRATED CIRCUITS

Section I Of Protection Requirements

Article 326.-Originality of a Plot Schema.- A layout scheme will be protected when it is original. A layout scheme will be considered original when

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results from the intellectual effort of its creator and is not current among the creators of layout schemes and the integrated circuit manufacturers in the time of its creation.

A layout scheme that consists of a combination of elements or interconnections that are current, will only be protected if the combination, as a whole, meets the conditions mentioned in the previous.

Headlines Section II

Article 327.-Entitlement.-The The right to acquire a right through the registration of an integrated circuit layout scheme corresponds to its designer. This faculty may be transferred by act between the living or the succession.

In the event that the scheme has been designed by two or more persons together, the right to registration shall be common to them.

Article 328.- Distribution of ownership and benefits of integrated circuit layout schemes developed in educational and research centres.- Article 276 of this Code shall apply when the scheme has been designed in the course of the investigations or activities mentioned in that article.

Article 329.- ownership of the integrated circuit layout scheme developed in the performance of a contract.- Article 277 of this Code shall apply where the scheme is designed to comply with a contract of work or in the framework of a contract. employment relationship.

Request Section III

Article 330.-Presentation Deadline.- In case the layout scheme has been commercially exploited anywhere in the world, the registration request must be be submitted within a period of two years from the date of the first holding commercial of the scheme. If the request will be filed after that deadline, the record will be denied.

Section IV Of The Request Processing

Article 331.-Of the registration procedure.- The application to acquire the right over a the integrated circuit layout scheme shall be submitted to the national competent authority on intellectual rights in accordance with the content, requirements and other rules laid down in the Regulation. Similarly, the requirements, deadlines and procedures shall be established for, inter alia, the examination of the application, its publication, the presentation of objections and the granting or refusal of the application in the relevant regulation.

Section V Of Rights and Limitations

Article 332.-Length of layout-layout protection.- Protection over a registered layout scheme will last ten years from the most old of the following dates:

1. The date the first commercial exploitation was performed anywhere in the world; or,

2. The date on which the application for registration was filed.

The protection of a registered layout scheme shall in any event expire when a period of fifteen years has been defeated since the last day of the year in which the scheme was created.

Article 333.-Protection Independence.- Protection over a registered layout scheme will be applied regardless of whether the integrated circuit incorporating the registered layout scheme is embedded in an article and regardless of whether the layout scheme has been incorporated into an integrated circuit.

Article 334.-Rights of the holder of a registration.- The acquisition of an integrated circuit layout scheme confi ere to its holder the right to prevent third parties who do not have their consent to carry out any of the following acts with commercial purposes:

1. Play, by incorporation in an integrated circuit or otherwise, the protected layout scheme, in its entirety or a part of it that meets the condition of originality according to article 326;

2. Import, sell, or distribute the schema in any way protected layout, or an integrated circuit that incorporates that schema; or,

3. Import, sell, or distribute in any way an item in which the protected integrated circuit is incorporated, only to the extent that it is

Article 335.-Scope of protection.-The exercise conferred by the acquisition only applies to the layout scheme itself, and does not include any idea, algorithm, concept, process, system, technique or information coded or incorporated into the scheme layout.

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 carried out in the private sector and with non commercial financial services;

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2. Acts performed with evaluation, analysis, or experimentation;

3. Acts carried out exclusively with teaching or scientific or scientific or academic research; and,

4. Acts referred to in Article 5to. of the Paris Convention for the Protection of Industrial Property.

Article 337.-The exhaustion of the right.- The acquisition of a layout-design shall not confer the right to prevent a third party from carrying out acts of trade in respect of of protected layout schemes, of integrated circuits incorporating them or of articles containing such integrated circuits after they have been introduced into the trade of any country.

Article 338.-Second scheme of layout created by evaluation.- The record holder of a first layout schema may not prevent a third party from performing industrial or commercial exploitation acts relating to a second layout scheme created by a third party by means of the assessment or analysis of the first protected layout scheme, provided that the second layout scheme thus created meets the condition of originality according to Article 326. Nor shall it be able to prevent such acts from integrated circuits incorporating the second layout design thus created, or from articles incorporating such integrated circuits.

Article 339.-Independent creation.- the holder of the registration of a layout-design shall not be able to prevent a third party from carrying out the acts referred to in Article 334 in respect of another original layout scheme independently created by a third party, even if it is identical.

Article 340.-Non-infringement of rights.- No infringement of rights on a a layout-design recorded for the performance of any of the acts referred to in Article 334 in respect of an integrated circuit incorporating an illicitly reproduced layout-design, or an article containing such an integrated circuit, when the person who shall carry out or order those acts demonstrates that, when acquiring the integrated circuit or the article incorporating such an integrated circuit, he did not know that the layout-design had been unlawfully reproduced. From the moment when the person receives notice of the ilicitude of the layout-design, he may continue to carry out those acts in respect of the products which he still has in existence or which he has requested from before, but, at the request of the holder of the registration, must pay him a compensation equivalent to a reasonable royalty based on which it would correspond to pay for a contractual license.

Article 341.-Application and procedure concerning the applications for registration and to the integrated circuit layout schema records.- It shall be applicable to the Record applications of integrated circuit layout schemes and integrated circuit layout records records as provided for in Articles 297 to 299 of this Code.

Section VI of registration nullity

Article 342.-Absolute nullity.- The national authority competent in the field of intellectual property rights, of office or at the request of a party that establishes a legitimate interest, and at any time, shall declare the absolute nullity of a registration of layout schema, in the following cases:

1. The object of the record does not constitute a layout schema;

2. The register does not comply with the protection requirements provided for in Article 326;

3. The registration has been granted for a layout-design presented after the expiry of the period referred to in Article 330; and,

4. The grounds for absolute nullity for in the national legislation for administrative acts were established.

Where the causes indicated above will only affect a part of the registered layout scheme, the nullity will be declare only in respect of such a party, keeping the register in force for the other parties, provided that they as a whole comply with the requirement of originality provided for in Article 326.

Article 343.-Procedure for declaring the plotting system registration nullity.- As for the nullity of a layout-schema record, Articles 304 to 307 of this Code will apply.

Section VII Of The licensing

Article 344.-Mandatory licenses.- For lack of exploitation or for reasons of public interest, in particular national emergency, public health or national security, or to remedy any practice anticompetitive, the national authority competent in the field of intellectual rights may, request from a competent person or national competent authority, to have at any time:

1. That a registered layout scheme is used or operated by an entity or by a state entity or by one or more public or private law persons designated for this purpose; or,

2. That such a layout scheme shall be open to the grant of one or more compulsory licences, in which case the national authority responsible for intellectual rights may grant such a licence to the person requesting it, subject to conditions.

They shall be applicable to the granting of a compulsory licence in respect of a layout-design for the conditions laid down for the granting of compulsory licences in respect of patents of invention, relevant.

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CHAPTER V OF INDUSTRIAL DESIGNS

Section I Of Protection Requirements

Article 345.-Protected Matter.- consider as an industrial design the particular appearance of a product resulting from any meeting of lines or combination of colours, or of any two-dimensional or three-dimensional external form, line, contour, confidence, texture or material, without changing the destination or the fi nality of that product.

Article 346.- Protection requirements.-An industrial design is acquired whenever it is new.

An industrial design will not be considered new if, before the date of the application or the validly invoked priority date, it would have been made accessible to the public at any place or time, by its description, use, marketing or by any other means.

An industrial design shall not be considered new by the mere fact that it presents secondary differences in respect of previous achievements or because it was in another class of products other than those realizations.

Article 347.-Non-protected matter.- They will not be recordable:

1. Industrial designs whose commercial exploitation must necessarily be prevented in order to protect morality or public order. For these purposes, the commercial exploitation of an industrial design shall not be deemed to be contrary to morality or public order, for the sole existence of a legal or administrative provision prohibiting or regulating such exploitation;

2. Industrial designs whose appearance was essentially dictated by technical considerations or by performing a technical function, which does not incorporate any arbitrary input from the designer;

3. industrial consisting solely in a form whose exact reproduction is necessary to enable the product incorporating the design to be mechanically mounted or connected to another product of which it is a part. This prohibition shall not apply in respect of products in which the design radiuses in a manner intended to permit the assembly or multiple connection of the products or their connection within a modular system; and,

4. Industry that contain signs, symbols, fi guras, characters, among others, that constitute the expression of the traditional culture or knowledge of indigenous, African American or local communities.

Section II of the headlines

Article 348.-Entitlement.- The right to acquire an industrial design belongs to the designer. This right may be transferred by act between the living or the succession.

The holders of the register may be natural or legal persons.

If several persons jointly made an industrial design, the right to registration

if several persons did the same industrial design, independently of each other, the acquisition will be granted to that or its right-holder who first submits the relevant application or who invoke the oldest date priority.

Article 349.-Of the industrial designs created in institutions of higher education and educational institutions- Article 276 of this Code shall apply where the design has been carried out in the course of the investigations or activities mentioned in that

article.

Article 350.-Industrial design performed in compliance with a contract.- Article 277 of this Code shall apply when the design has been made in compliance with a contract of work or in the framework of a relationship job.

Section III Of The Registration Request

Item 351.-Del registration procedure.- The application for an industrial design shall be submitted to the national competent authority in the field of intellectual rights in accordance with the content, requirements and other rules laid down in the regulation. Similarly, the requirements, deadlines and procedures for, inter alia, the examination of the application, its publication, the presentation of oppositions and the granting or refusal of the application in the Code shall be laid down in the regulation of this Code.

Section IV Of Rights and Limitations

Article 352.-Industrial Design Record Duration.- The registration of an industrial design will last ten years, counted from the date of submission of the application. It will be due by date:

1. For the case of national applications, the date of submission of the application certified each by the national authority competent for intellectual rights; or,

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2. For applications claiming priority under some treaty, the filing date of the application whose priority is claimed.

Article 353.-Right of the holder of an industrial design.- The acquisition of a industrial design shall confer on its holder the right to prevent third parties who do not have their consent to manufacture, sell or import goods that incorporate or reproduce the industrial design with commercial purposes.

confer the right to act against third parties who manufacture, sell or import with a product whose design only presents secondary differences with respect to the protected design or whose appearance is similar.

Article 354.-Scope of exercise.-The exercise conferred by the registration of an industrial design shall not be extended to design elements or features dictated essentially by technical considerations or by the performance of a technical function, which do not incorporate any arbitrary input from the designer.

The exercise conferred by the registration of an industrial design shall not include those elements or characteristics whose exact reproduction is necessary to enable the product incorporating the design to be mechanically mounted or connected to another product of which it is a part. This limitation shall not apply to products in which the design is in a manner intended to permit the assembly or multiple connection of the products, or their 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 from carrying out acts of trade in respect of a product incorporating or reproducing that design, after that product has been entered into the trade of any country with the consent of the holder, of a licensee, of a person economically linked to the holder or licensee, or to any other person authorised to do so.

For the purposes of the preceding paragraph, two persons shall be understood to be economically related when a person is able to exercise direct or indirectly on the other a decisive infl with respect to the exploitation of the industrial design, or when a third party can exercise such an interest on both persons.

Section V of the nullity of the register

Article 356.-Absolute nullity.- The national authority responsible for intellectual property rights, of the office or at the request of a party that has legitimate interest, and at any time, shall declare the absolute nullity of an industrial design record, in the following cases:

1. The object of the registry does not constitute an industrial design;

2. The industrial design does not meet the protection requirements;

3. The record would have been granted for an excluded subject of protection as an industrial design; and,

4. The grounds for absolute nullity for in the national legislation for administrative acts were established.

Article 357.-Procedure applicable to nullity.- Regarding the nullity of an industrial design register, Articles 304 to 307 of this Code will apply.

Section VI Remission

Article 358.-Provisions applicable to industrial designs.- The provisions of the industrial designs shall apply to industrial designs. items 270, 287, 294 numerals 1,2, 3 and 4, 297, 298, 299 and 300 of this Code.

CHAPTER VI OF THE MARCAS

Section I Of Protection Requirements

Article 359.-Trademark Registration.- Any sign that is eligible to distinguish products or services on the market shall be understood by trademark. Signs that are susceptible to representation may be registered as marks.

The nature of the product or service to which a mark is to be applied shall in no case be an obstacle to its registration.

marks, among others, the following signs or media:

1. Words or combination of words;

2. Images, fi guras, symbols, graphics, logos, monograms, portraits, tags, emblems and shields;

3. Sounds, smells, and flavors;

4. The letters and numbers;

5. A color delimited by a shape or color combination;

6. The shape of the products, their packaging or wraps;

7. The reliefs and textures noticeable by the sense of touch;

8. Animations, gestures, and motion sequences;

9. Holograms; and,

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10. Any combination of the signs or means indicated in the preceding paragraphs.

Marks that identify institutions in the public sector must reflect the cognitive and cultural identity of the country or locality as appropriate, in accordance with the provisions of the relevant Regulation. The decision to change these marks must be made by means of a reasoned decision of the highest authority, in the case of decentralized autonomous governments, it will be necessary to have the approval of the respective Council.

cognitive and cultural of the country or locality should consider among other things the colors of the flags, shields, national or local emblems as appropriate.

Article 360.-Absolute prohibitions to the registration of mark.- They will not be able to registering as marks signs that:

1. Cannot constitute a mark according to the first paragraph of the previous article;

2. Lack of distinctiveness;

3. consist exclusively of the usual forms of the products or their packaging, or in forms or features imposed by the nature or function of the said product or service;

4. Consist exclusively of forms or other elements that give a functional or technical advantage to the product or service to which they apply;

5. consist exclusively of a sign or indication which may serve in trade to describe the quality, quantity, destination, value, geographical origin, time of production or other data, characteristics or information of the products or services for which such a sign or indication is to be used, including any laudatory expressions referring to those products or services;

6. Consist exclusively of a sign or indication that is the generic or technical name of the product or service concerned;

7. Consist exclusively or have become a common or usual designation of the product or service concerned in the language or the language of the country;

8. consist of an isolated color, without it being delimited by a specific form;

9. They may be misleading to the commercial media or to the public, in particular on the geographical origin, the nature, the way the manufacture, characteristics, qualities or suitability for use of the products or services concerned;

10. reproduce, imitate or contain a protected designation of origin for the same products or for different products, where their use may

cause a risk of confusion or association with the name; or Unfair exploitation of its notoriety;

11. Contain a protected designation of origin for wines and spirits;

12. Reproduce or imitate, without permission of the competent authorities, either as trademarks or as elements of the said marks, the name, the Arms, flags and emblems of the States and all imitation from the heraldic point of view, as well as the coats of arms, flags and other emblems, acronyms or denominations of any international organization. However, these signs may be recorded when they do not lead to confusion about the existence of a link between the applicant and the state or organisation concerned;

13. Reproduce or imitate, without permission from the authorities competent, either as marks or as elements of the trade marks, signs, seals or trade marks of control or guarantee adopted by the States where their use may cause a risk of confusion or association;

14. Repeat or mimic the name of the State, local governments, or their official symbols, as well as the names, acronyms and official symbols of the institutions, bodies and public entities, or any signs constituting a country mark, unless their registration is requested by the competent authority;

15. reproduce or imitate signs of compliance with technical standards, unless your registration is requested by the country's competent national standards and standards body;

16. Reproduce legal tender coins or notes on the territory of the country, or any country, securities and other business documents, stamps, stamps, stamps or general fi species;

17. contain the name of a protected plant variety in the country or abroad, if the sign is intended for products or services relating to that variety or its use may cause confusion or association with the variety;

18. Be contrary to law, morality, public order or good manners; or,

19. Contain the denomination of a protected traditional specialty protected.

The signs mentioned in numerals 2, 5, 7, and 8 that are not intrinsically capable of distinguishing the relevant products or services may be be registered as a trade mark when they have acquired distinctive aptitude for the purpose of their constant use in the country in order to identify the products or services of the applicant or his or her deceased in accordance with the provisions of the respective regulation.

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Also, the usual three-dimensional forms of product packaging, which have acquired distinctive fitness for the purpose of their constant use in the country to identify such products, in accordance with the provisions of the respective regulations, may be registered as a mark, as long as they do not constitute forms imposed by the nature of the product; they are necessary to obtain a result technical; or, the form brings a substantial value to the product.

Article 361.- Relative Prohibitions.- Nor may they be registered as marks that affect the rights of third parties, such as those signs that:

1. Be identical or similar to a mark previously applied for registration or registration for the same products or services, or for goods or services in respect of which the use of the mark may cause a risk of confusion or association;

2. Be identical or resemble a protected trade name, or, if applicable, a label or teach, provided that under the circumstances, its use may cause a risk of confusion or association;

3. Be identical or similar to a trade slogan requested or registered, provided that under the circumstances, their use may cause a risk of confusion or association;

4. Be identical or similar to a distinguishing sign of a third party, provided that the circumstances in which they are used may cause a risk of confusion or association, where the applicant is or has been a representative, a distributor or a person expressly authorized by the holder of the protected sign at home or abroad;

5. Constitute a reproduction, imitation, translation, transliteration or transcription, total or partial, of a distinctive sign known to be known, whatever products or services to which the sign applies, when its use is liable to cause a risk of confusion or association with that third party or with its products or services; an unfair use of the prestige of the sign; or the dilution of its distinctive strength or its commercial or advertising value;

6. consist of a sign which affects the identity or prestige of legal persons with or without profit, or natural persons, in particular, in the name, surname, fi rma, title, hypocoristic, pseudonym, image, portrait or caricature of a person other than the applicant or identified by the relevant sector of the public as a person other than the applicant, unless the consent of that person or his heirs is credited;

7. consist of a sign that infringes the right of industrial property or the copyright of a third party, unless it mediates the consent of the third party;

8. consist of the names of the indigenous, African-American or local peoples, nationalities and communities, or the names, words, letters, characters or signs

used to distinguish their products, services or the form of process them, or which constitute the expression of their culture or practice or the name of their traditional knowledge, unless the application is submitted by the community itself or with its express consent; and,

9. Consist, include or reproduce medals, prizes, diplomas, or other awards, except for those who grant them.

Article 362.-Request for bad faith.- When the national intellectual rights authority has prima facie evidence to enable him to infer that a registration has been requested in bad faith or to perpetrate, facilitate or consolidate an act of unfair competition, may refuse such registration.

Article 363.-Of the registration procedure.- The application for registration of a mark shall be filed with the national authority competent in the field of intellectual rights in accordance with the content, requirements and other rules provided for in the relevant regulation. Similarly, the regulation shall establish the requirements, deadlines and procedures, for, inter alia, the examination of the application, its publication, the presentation of oppositions and the grant or refusal of the application.

Section II of the rights and limitations

Article 364.-Right to the exclusive use of a trademark.- The right to the exclusive use of a trademark shall be acquired by registration with the national authority competent in the field of intellectual rights.

The mark must be used as it was registered. Only variations on items that do not alter the flag character of the registered sign will be allowed.

Article 365.-Duration of the record of a mark.- The acquisition of a mark will last ten years from the date of their award and may be renewed for successive periods of ten years.

Article 366.-Renewal of trademark registration.- The holder of the registration, or who has a legitimate interest, shall request the renewal of the registration with the National competent authority on intellectual property rights within six months prior to the expiry of the registration. However, both the holder of the registration and the person who has legitimate interest shall enjoy a grace period of six months from the date of expiry of the registration in order to apply for renewal. During the period referred to, the trademark registration shall remain in full force.

For renewal, proof of use of the mark shall not be required. The filing of the respective application will be sufficient and the renewal will be granted without further processing, on the same terms of the original registration. However, the holder may reduce or limit the products or services indicated in the original registration.

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Article 367.-Rights conferred by the trademark registration. -The acquisition of the mark confi ere to its holder the right to prevent third parties perform without their consent any of the following acts:

1. Apply or place the mark or an identical or similar distinctive sign on products for which the trade mark has been registered; on products linked to the services for which it has been registered; or on packaging, wrapping, packaging or conditioning of such products;

2. Delete or modify the mark with commercial purposes, after it has been applied or placed on the products for which the trade mark has been registered; on the goods linked to the services for which it has been registered; or on the packaging, wrapping, packaging or conditioning of such products;

3. Make labels, packaging, wrappers, packaging or other materials that reproduce or contain the brand, as well as market or hold such materials;

4. Use in trade a sign identical or similar to the mark with respect to any goods or services, when such use could cause confusion or a risk of association with the holder of the registration. For the use of an identical sign for identical goods or services, there is a presumption that there is a risk of confusion;

5. Use in trade an identical or similar sign to a brand known to be known about any products or services, where this may cause the owner of the register to be unfairly damaged or unfair on the grounds of dilution of the distinctive strength or of the trade or advertising value of the trade mark, or because of unfair use the prestige of the brand or its owner; and,

6. Use an identical or similar sign publicly a well known brand, even for non-commercial purposes, when this could cause a dilution of the distinctive strength or commercial or advertising value of the brand, or an unfair advantage of its prestige.

Article 368.- Use of a sign in the trade by a third party.- For the purposes of the items 4, 5 and 6 of the previous article, they shall constitute use of a sign in the trade by a third party, among others, the following acts:

1. Introduce into the trade, sell, offer for sale or distribute products or services with that sign;

2. Import, export, store, or transport products with that sign; or,

3. Employ the sign in advertising, publications, commercial documents or written or oral communications, regardless of the means of communication used and without prejudice to the rules on advertising that are applicable.

Article 369.-Use of the mark by third parties for information purposes.- Whenever it is done in good faith and does not constitute use trade mark title, third parties may, without the consent of the registered trade mark holder, use their own name, address or pseudonym on trade; a geographical name, or any other indication of the species, quality, quantity, destination, value, place of origin or time of production of its products or the provision of its services or other characteristics of its products; provided that such use is limited to purposes of identification or information and is not capable of inducing to the public to error about the provenance of the products or services.

Article 370.-Use of mark for advertisement.- The registration of the trademark shall not confer on its holder the right to prohibit a third party from using the trademark to advertise, including in comparative advertising, to offer for sale or to indicate the existence or availability of products or services which are legitimately marked; or, to indicate the compatibility or suitability of spare parts or accessories which may be used for the products of the registered trade mark; provided that in both cases such use is in good faith, the purpose of information to the public for sale and not liable to mislead or confusion about the origin

Article 371.-The exhaustion of the right.- The registration of a mark shall not confer the right to prevent a third party from carrying out acts of trade in respect of a product protected by that registration, after that product had been introduced into the trade of any country.

Article 372.-Prohibition of marketing of products and services identified with the foreign brand.- When in a member country of the Paris Convention, TRIPS or with which Ecuador has some kind of agreement on property industrial, registered an identical or similar mark to a registered one in the country but in the name of a different holder, in order to distinguish the same products or services, the marketing in the country of the goods or services is prohibited identified with the foreign trade mark, unless the trade mark holders enter into agreements allowing such marketing.

If such agreements are reached, the parties must assume the necessary obligations to avoid the confusion of the public with regard to the origin of the goods or services concerned, including on the identification of the origin of the products or services in question with outstanding characters and proportional to the information for the consumer. These agreements must respect the public interest and the rules on trade practices that restrict free competition and unfair competition. In addition, they shall be registered with the national intellectual rights authority.

In any event, the importation of a product or service in the situation described in the first paragraph of this paragraph shall not be prohibited. Article, where the mark is not being used in the country, as provided in the article

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380, unless the holder of such trademark demonstrates to the competent national authority on intellectual rights, that the use of the mark is due to justified reasons.

Article 373.-Obligation to indicate the place of manufacture of the product or service.- When the mark consists of a geograpi name, the product may not be placed on the market or the service shall be provided in a visible and clearly legible manner, the place of manufacture of the product or origin of the service.

Article 374.-Transfer of record of the mark.- A trademark registration or a registration application is transferable by act between live and transmissible by cause of death, with or without the company to the which belongs.

You must register with the national competent authority on intellectual property rights and shall have effects from your registration with the national intellectual rights authority.

A effects of the registration, the transfer must be recorded in writing.

Any person You may request the registration of a transfer. However, the competent national authority may refuse such registration if the transfer carries a risk of confusion or association.

Article 375.-License for the exploitation of the mark.- A trademark registration or a registration application for registration may be licensed to one or more third parties for the exploitation of the respective mark.

You must register with the national competent authority in the field of intellectual rights and shall have effects on from its registration with the national authority responsible for intellectual property rights.

Any interested person may apply for the registration of a license.

Article 376.-Enrollment of transfer or license agreements.- The national intellectual rights authority shall not register the contracts through which a licence is granted for the exploitation of marks which do not comply with the provisions of the Common System of Treatment for Foreign Capital and on Marks, Patents, Licenses and Royalties; or which do not comply with Community or national provisions on commercial practices restrictive of free competition and unfair competition. Otherwise, in any case, the provisions of the Organic Law on the Regulation and Control of Market Power will apply and the penalties provided for in the Law will apply.

Sublicenses will require express authorization from the rights holder.

Article 377-Modifications to the register.-The owner of a registered trademark must ask the national competent authority for intellectual rights that is

to register any change in the name, address or other details of the holder, his representative or proxy. Otherwise, any notifi cation performed according to the data that the fi guren on the record will be deemed valid.

Section III of the cancellation of the record

Article 378.-From the cancellation of registration of a mark by lack of use.- The registration of a trade mark shall be cancelled at the request of any person concerned where, without reason of the fact that the mark is not justified, the mark has not been used by its holder, by its licensee or by another person authorised to do so, during the three consecutive years preceding the date on which the cancellation action is initiated. The cancellation of a registration for lack of use of the mark may also be requested as a defence in an opposition procedure filed on the basis of the unused mark.

Notwithstanding the provisions of the preceding paragraph, the registration may not be initiated Cancellation action before three years after the date of notification of the resolution that sets the procedure for registration of the respective mark in the administrative route.

Article 379.-Cases of force majeure or fortuitous case.- The record may not be cancelled when the holder demonstrates that the lack of use is

Article 380.-Brand use characteristics.

Article 380.-Characteristics of the use of the mark.- It is understood that a mark is in use when the products or services which it distinguishes have been placed on the market or are available on the market under that mark, in the quantity and in the manner which it normally corresponds, taking into account the nature of the products or services and the modalities under which market marketing is carried out.

Subject to the provisions in the preceding paragraph, a mark shall also be deemed to be in use, in the following cases:

a) Where genuine products with the registered trade mark have been introduced and distributed on the market, by persons other than holder of the record; and,

b) When you exclusively distinguish products that are exported from the country, as set out in the preceding paragraph.

Article 381.-Use of the mark that difi was the way it was registered.- The use of a mark in such a way that difi was the way it was registered only as far as elements that do not alter their distinctive character, will not cause the registration to be cancelled for lack of use, nor will it diminish the protection that corresponds to the mark.

Article 382.-Tests to identify the use of the mark.- The load of proof of the use of the mark shall correspond to the holder of the registration.

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The use of the mark may be demonstrated, inter alia, by commercial invoices, accounting documents or audit certificates demonstrating the regularity and the quantity of the marketing of goods or services identified with the mark.

Article 383.-Reduction or limitation of the list of goods or services included in the registration of the mark.- When the lack of use of a mark will only affect one or some of the products or services for which it is registered the mark, a reduction or limitation of the list of the goods or services included in the registration of the mark will be ordered, eliminating those in respect of which the mark has not been used, for which the the identity or similarity of the products or services.

Article 384.-Right of preference to submit a trademark application.- The person who obtains a favorable resolution shall have preferential right to the registration. This right may be invoked from the filing of the cancellation request, and up to the three months following the date on which the cancellation resolution is placed on the administrative path.

Article 385.- Cancellation by generality.- The registration of a trade mark shall be cancelled or the limitation of its scope, of its scope, or at the request of a person concerned, shall be made available, where the holder has caused or tolerated it to become a common sign or generic to identify or designate one or more of the products or services for which it is registered.

It is understood that a mark has become a common or generic sign when in the commercial media and for the public the mark has lost its distinctive character as an indication of the business origin of the product or service to which it applies. For these purposes, the following facts must be present in relation to this mark:

1. The need for competitors to use the sign to be able to develop their activities because there is no other name or sign appropriate to designate or identify in the trade to the respective product or service;

2. The widespread use of the brand by the public and in the commercial media as a common or generic sign of the respective product or service; and,

3. The lack of knowledge or recognition by the public that the brand signifi ca a particular business source.

Article 386.-Cancellation action procedure.- Received a cancellation request, notified for the registered trademark holder so that, within the period of sixty days from the date of the notification, he shall, if he considers it appropriate, assert his arguments or present evidence.

The term to which it was referred shall be expired. ere this article, it will be decided on the cancellation or not of the registration of the mark by duly motivated resolution.

Section IV of the waiver of registration

Article 387.-Renunciation of the trademark registration.- The holder of a trademark registration may resign at any time, in whole or in part, to its rights to registration. If the waiver is total, the registration shall be cancelled. Where the waiver is partial, the registration shall be limited to the products or services on which the waiver is not to be seen.

The waiver shall not be accepted if on the mark there are liens or rights entered in favor of third parties, except that there is express consent of the holders of such rights.

The waiver will only take effect from its registration with the national authority responsible for intellectual rights.

Article 388.-Annulment of the brand acquisition.- The national intellectual rights authority of the European or upon request from a party that accredits legitimate interest, and at any time, shall declare the absolute nullity of the acquisition of a mark in the following cases:

1. When the acquisition was granted based on false data or documents that were essential for its concession;

2. When the acquisition was granted in contravention of the provisions of Article 359, first paragraph, or Article 360 of this Code;

3. Where the absolute nullity causes provided for in the rule for administrative acts were committed; or,

4. When the acquisition has been granted with any other violation of the law that has substantially induced its concession.

Article 389.-Causals of nullity of the acquisition of the mark.- The competent national authority in the field of intellectual rights, of business or at the request of a person concerned, shall declare the relative nullity of the registration of a mark in the following cases:

1. When the acquisition was granted in violation of Article 361;

2. When the acquisition would have been effected in bad faith; or,

3. When the acquisition would have been carried out to perpetrate, facilitate or consolidate an act of unfair competition.

This action will be prescribed at five years from now. the date of grant of the registration.

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Article 390.-Impediment To Declare Trademark Nullity.- You may not declare the registration of a mark by causes that would have ceased to be applicable to the time to resolve the nullity.

Article 391.-Partial nullity.- When a causal of nullity only affects one or some of the products or services for which the mark was registered, nullity shall be declared only for those goods or services, and shall be removed from the register of the brand.

Article 392.-Procedure of the action for nullity.- In cases of nullity, the parties are notified to make the arguments and present the evidence that they deem appropriate.

The arguments and evidence (a) to be referred to in the preceding subparagraph shall be submitted within two months of the notification. Before the expiry of the period, either party may request an extension for an additional two months.

Due to the time limits to which this article is referred, the national authority responsible for intellectual property rights decide on the nullity of the mark, which would not be the subject of the parties by resolution.

Article 393.-Independence of the actions for damages.- The preceding actions will not affect those that may correspond to damages.

Section VI Of Registration Expiration

Item 394.- Expiration of trademark registration.-The registration of the mark shall expire in full if the holder or who has legitimate interest does not request renewal within the legal term, including the grace period of agreement, with the Article 366.

CHAPTER VII OF TRADE SLOGANS

Article 395.-Defi nition.-Commercial slogan is understood the word, phrase or legend used as a complement to a brand.

Article 396-Acquisition of slogans - slogans that do not contain allusions to similar products or brands or expressions that may harm such products or brands may be acquired.

Article 397.-Content of the application for registration of slogans (a) without prejudice to other requirements as laid down in the Regulation, the application for registration of a commercial slogan must specify the trademark registration or the trademark application to which the slogan complements.

Article 398.-Of the transfer or license.- The transfer or license of a registration of a commercial slogan or a registration application must be carried out in conjunction with the trademark registration or the application for registration of a mark in process to which the slogan complements.

Article 399.-Vigency of the registration.- The validity of the acquisition of a commercial slogan shall be subject to the validity of the registration mark to the which the motto complements.

Article 400.-Evidence for the use of commercial motto.- They shall be applicable to commercial slogans, as appropriate, the provisions of Chapter VI of this Title.

As for the proof of use of a commercial slogan, such use must be demonstrated in conjunction with that of the mark to which the slogan complements. Evidence of the use of a commercial slogan may include, in addition to those referred to in Article 382, any other evidence demonstrating its use in advertising or on the market.

CHAPTER VIII OF THE COLLECTIVE MARKS

Article 401.-Defi nition.-Collective mark shall mean any sign that is suitable for distinguishing the origin or any other common characteristic of products or services belonging to two or more persons or companies and that the use under the control of a holder.

Article 402.-Of the trademark holders the associations of producers, manufacturers, traders, service providers, organizations or groups of people, cooperatives and other organizations that make up the popular and solidarity economy, legally established, will be able to acquire collective marks to distinguish the products or services of their members from the market.

Article 403.-Requirements and procedure for the acquisition of a collective mark.- The application for the acquisition of a trademark shall be submitted to the national competent authority in the field of rights intellectual according to the content, requirements and other rules that the corresponding regulation has.

Similarly, the regulation will establish the requirements, deadlines and procedures, for among others, the examination of the application, its publication, presentation of oppositions and the grant or refusal of the application.

Article 404.-Collective transfer or license.- The registration of a collective mark or an application for registration may be the purpose of transfer or licence in accordance with the provisions of the internal rules of the association, organization, group, cooperative or organization.

In any case, its use will be reserved for the members of the association, organization, group, cooperative or organization. Sub-licenses cannot be granted.

All transfer, authorization of use or license to a collective mark granted or a request for granting and to have effects shall be registered with the competent national authority in respect of intellectual rights. from their registration with the national intellectual rights authority.

Article 405.-Application.-Swere applicable to the collective marks, in whatever relevant, the provisions of Chapter VI of this Title.

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CHAPTER IX

OF THE CERTIFICATION MARKS

Article 406.-Defi nition.-Mark of certifi cation a sign intended to be applied to products or services whose quality, origin or other characteristic has been certified each by the owner of the brand.

Article 407.- Headlines.- May be the holder of a mark of certification by a company or institution, private or public 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 certificate of certification, the rules of use of the mark must be accompanied. Without prejudice to other requirements laid down in the relevant Regulation, those rules shall indicate the products or services which may be the subject of certification by the holder, and shall provide the characteristics guaranteed by the presence of the mark, and describe the manner in which the control of such characteristics will be exercised before and after the use of the mark is authorized.

The rules of use shall be entered together with the mark, as shall all of its amendments. Such registration shall be made before the national authority responsible for intellectual property rights. The lack of registration will cause the modification to not take effect against third parties.

Article 409.-Authorization of a certificate of certification.- Without prejudice to Community or national provisions on commercial practices The holder of a certificate of certification may authorize its use to any person whose product or service complies with the conditions laid down in the rules of use of the mark.

The mark of certification may not be used in relation to products or services produced, rendered or marketed by the brand owner himself.

Article 410.-Application.- The provisions of Chapter VI of this Title shall apply to the certification marks, in whatever appropriate form.

Section I of the country mark

Article 411.-Defi nition.-Country mark shall be understood the sign intended to distinguish, promote and position the cultural, socio-economic, political, biodiversity, image, reputation and other values of the country.

Article 412.-Country mark declaration.- The country mark declaration shall be made by executive decree and remain in force in time, until the same is changed.

Prior to issuing the executive decree will be required of the favorable report of the national competent authority on intellectual rights, who should verify that no third party rights are affected.

Article 413.-Use of the country mark.- The sign that this Chapter deals with shall be State-owned, the processes of

licensing, authorization of use, declaratory, request, dissemination, training, use and observance, shall be exercised through the organ

Article 414.-Applicable Regulations.-

provisions of Chapter VI of this Title shall be applicable to the country mark, as applicable, to the country mark, as appropriate, the corresponding regulation.

By way of derogation from the foregoing paragraph, the national authority responsible for intellectual property rights shall record the signs of which this Chapter deals in an independent register. Without authorization from the competent body referred to in Article 413, no person may use such signs.

CHAPTER X OF TRADE NAME

Article 415.-Defi nition.-Commercial name be understood any sign that is suitable for identifying a person or business establishment in the exercise of its economic activity and distinguishing it from other persons engaged in the same or similar activities.

A person or establishment mercantile may have more than one trade name. They may constitute a trade name, inter alia, a social name, social reason or other designation entered in a register of commercial persons or companies.

The trade names are independent of the names or reasons

Article 416.

declarative registration of the trade name.-The exclusive right on a commercial name will be acquired for its first use in commerce, public, continuous, in good faith and provided that it does not violate duly constituted priority rights in the country and shall terminate when the use of the trade name ceases or cease the activities of the person or commercial establishment using it.

The holder of the trade name may register with the competent national authority in respect of intellectual rights, the register shall be declarative. The right to the exclusive use of a trade name shall only be acquired in the terms provided for in the foregoing paragraph.

In any event where the exclusive right to a trade name is claimed or intended to be recognized, it shall be prove its public use, continuous and in good faith, at least within six months prior to that claim or claim. Proof of use shall correspond to the holder of the trade name. For the purposes set out in this paragraph, if the holder is not party to the respective procedure, he is notified of the face of the office.

Article 417.-Renunciation to the register: The holder of a trade name registration may give up his or her rights to registration. The waiver of registration of the trade name shall take effect upon application to the competent national office.

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Article 418.-Non-protected signs or registrables of the trade name.- You will not be protected or registered as a trade name. a sign that is understood in any of the following cases:

1. Cannot constitute a business name according to the first paragraph of article 415;

2. When it is identical or resembles a distinctive sign of a third party, provided the circumstances, its use may cause a risk of confusion or association;

3. When it consists of a sign that infringes the right of industrial property or the right of the author of a third party, unless it mediates the consent of the third party;

4. When its use is liable to cause confusion or deception in the media or in the public about the identity, nature, activities, trade or any other aspect of the person who uses it;

5. When their use is liable to cause confusion or deception in the commercial media or in the public about the business provenance, origin or other characteristics of the products or services that the person produces or markets; and,

6. When it consists, in whole or in part, in a sign contrary to the law, to morality, to public order or to good manners.

Article 419.-Broadcast.- The corresponding regulation will establish the requirements, deadlines and procedures, inter alia, for the examination of the application, its publication, the presentation of oppositions, and the granting or refusal of the application. The registration procedure for a business name will be the one set for trademark registration.

Article 420.-Trade name registration Vigency.- The registration of a business name will last ten years from the beginning of the year. of the date of its concession and may be renewed, after proof of use, for successive periods of ten years.

Article 421.-Rights of the holder.- The holder of a trade name may prevent any third party from using in trade a identical or similar distinguishing sign, where this could cause a risk of confusion or association with such a trade name or with its activities.

In the case of commercial names found to be notorious, the holder may prevent any third party from using an identical or similar distinctive sign in the trade when it may cause him or her to harm unfair economic or commercial, due to a dilution of the distinctive force or the commercial or advertising value of the name, or because of the unfair use of the prestige of the name or the owner.

Article 422.-Transfer of trade name.- The transfer of a trade name may only be effected together with that of the company in which the identified activity will be developed each by the trade name.

Article 423.-Application.- They shall be applicable to the trade names, in whatever case, the provisions Chapter VI of this Title.

CHAPTER XI OF THE LABELS OR ENSENAS

Article 424.-Defi nition.-Label or teaches any sign that is eligible to distinguish a trade establishment.

Article 425.-Label or teach protection and record.- The protection and registration of the labels or ensenas will be governed by the provisions regarding trade names.

Section I Of Distinctive Appearances

Article 426.-Defi nition.-Distinctive appearance means any set of colors, Characteristic forms, presentations, structures and designs of a trade establishment or a product on the market, provided that they are suitable for distinguishing in the presentation of services or the sale of products.

Article 427.-Acquisition and exercise of distinctive appearances.- Distinctive appearances shall be acquired and exercised in the same way as trademarks, provided that they have acquired a distinctive aptitude on the Ecuadorian market, in accordance with the respective regulations, or are inherently distinctive.

CHAPTER XII Of the designations of origin

Section I Of the protection requirements

Article 428.-Defi nition.-Designation of origin means the geograpi mark constituted by the the name of a country, a region or a particular place, or constituted by a (a) a designation which, without being that of a country, a region or a particular place, is referred to a given geographical area, used to designate a product originating from them, when a given quality, reputation or other characteristic of the product is exclusively or essentially imputable to the geografi co in which it is produced, extracted or made, including natural and human factors.

In the case of homonymous designations of origin, the protection shall be granted to each. The Regulation shall lay down the conditions for differentiating the homonymous indications or designations concerned from each other, taking into account the need to ensure that the products concerned receive equal treatment and the consumers are not misled.

Article 429.-Non-protected signs.- They cannot be declared as designations of origin for those that:

1. Do not conform to the previous article's definition;

2. Be contrary to law, morals, public order or good manners;

3. may mislead the public about the geographical origin, nature, mode of manufacture, or the quality, reputation or other characteristics of the respective products;

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4. Be common or generic indications to distinguish the product in question, when considered as such by subject matter connoisseurs. or by the general public in the Ecuadorian territory;

5. They would have been requested or registered in good faith as trademarks before the designation of origin was protected in the country of origin; and,

6. with wine-growing products, they would have been the usual name for a variety of grapes existing in the Ecuadorian territory as at 1 January 1995.

Section II Of The Protection Statement

Article 430.-Of the declaration.- A designation of origin shall be protected from the declaration that the national competent authority on the matter has issued. intellectual.

Article 431.-Of the legitimate interest.- The declaration of protection of a designation of origin shall be made of, or at the request of, those who prove to have a legitimate interest, understood by such natural persons or legal entities directly involved in the production, extraction or processing of the the product or products intended to be designated by the designation of origin, as well as to the associations incorporated by those persons. The public authorities of the central or autonomous decentralised administration will also be considered to be interested, in the case of designations of origin of their respective constituencies.

Article 432.-Remission.- Corresponding Regulation shall lay down the requirements of the application. Admitted to processing, the procedure provided for the registration of marks will be applied, in whatever case.

Article 433.-Vigence of the declaration of protection of a designation of origin.- The validity of the declaration of protection of a designation of origin shall be determined by the subsistence of the conditions which gave rise to it, in the opinion of the national authority responsible for intellectual property rights. The term of validity may be terminated if such conditions have not been maintained. Without prejudice to the remedies to which such a resolution may occur, the persons concerned may request the declaration of protection again when they consider that the conditions for their protection have been restored.

Article 434.-Modificationof the declaration of protection.- The declaration of protection may be modified at any time in accordance with the provisions of this Code and the corresponding regulation. The modification will be subject to the procedure for the protection declaration, as appropriate.

Section III Of Use Authorization

Article 435.-Of the authorization.-People who are directly engaged in the extraction, production

or production of the products designated by a protected designation of origin and carry out such activity within the geographical area determined in the respective declaration of protection, may request the National competent authority in the field of intellectual rights, authorisation to use the designation of origin. The authorization of use may also be granted by public or private entities representing the beneficiaries of the designations of origin, in accordance with the provisions of the regulations issued for the purpose.

When the National competent authority in the field of intellectual rights considers it appropriate for the examination of the application, may require information or documents from persons, associations or authorities, as appropriate.

Article 436.- Referral.- The corresponding regulation shall lay down the requirements of the application. The procedure provided for in this procedure will be applied.

Article 437.-Vigency of the authorization of use.- The authorization of use of a protected designation of origin will last for ten years renewed for equal periods indefi nida.

The provisions of Chapter VI of this Title relating to the renewal and expiry of the registration of the registration of the registration of the registration of the registration of the registration of the registration of the marks.

Article 438.-Cancellation of use authorization.- The national authority competent in the field of intellectual property rights, or at the request of a party, shall cancel the authorisation of use where the designation of origin is used in trade in a manner which does not correspond to the respective declaration of protection.

The provisions of Chapter VI of this Title relating to the cancellation of the trademark registration shall apply to the cancellation of the use authorization, in whatever case,.

Article 439.-Nullity of the authorization to use use.- The national authority responsible for intellectual rights shall declare, of on request of a party, the nullity of the authorization of use of a designation of origin if it has been granted in violation of the rules of this Chapter.

They will be applicable to the nullity of the authorization of use, in what is relevant, the provisions of Chapter VI of this Title relating to the nullity of trademark registration.

Section IV Of Rights and Limitations

Article 440.-Use Reserve.- The use of a denomination of protected origin in relation to the products designated by it is reserved exclusively for producers, manufacturers and craftsmen who have their production, extraction or processing establishments in the geographical area designated by that name.

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Only producers, manufacturers, or artisans authorized to use a protected designation of origin may use the "DESIGNATION OF ORIGIN".

The provisions of Articles 367 to 372 shall apply to protected designations of origin, in whatever case.

Article 441.-Operating authorization.-The competent national office may authorize the operation as a grouping of beneficiaries or legal entities to those organizations, whatever their legal form or associative and provided that they are legally recognised, that they so request and that they comply with the requirements laid down in the relevant regulation.

Public or private entities representing the beneficiaries of the names of origin, or those designated for that purpose, shall have the mechanisms to permit a effective control of the use of protected designations of origin.

Article 442.-Prohibition of use.- The use of a protected designation of origin by persons other than those mentioned in the Article 440 (1), first subparagraph, where such use may cause a risk of confusion as to the origin of the products.

Article 443.-Designation of origin of wines and spirits.- The use of a protected designation of origin which identifies which wines or spirits for products of that genus which is not originating in the place designated by the designation of origin, even where the true origin of the product is indicated or the designation of origin is used, translated or accompanied by expressions such as 'genus', 'class', "type", "style", "imitation" or similar.

Article 444.-Limitations to rights.- The protection set out in this Section shall not extend to the continued and similar use of a particular designation of origin of another a country which identifies wines or spirits in relation to products or services, when that designation of origin would have been used in the country continuously for those same products or services or other claims for ten years at least before April 15, 1994, or in good faith, before that date.

Section V Of the protection recognition

Article 445. -Denominations of origin of other countries.- Dealing with protected designations of origin in countries other than those mentioned in the previous article, the competent national authority in the field of intellectual rights, the protection of such names may be recognised; provided that this is provided for in an international agreement in force for Ecuador.

For the purposes of the foregoing paragraph, the designations of origin which are not protected or which have ceased to be protected in their country of origin shall not be protected.

Article 446.-Subsistence of Protection.- Protected designations of origin as provided for in this Chapter shall not be considered as common or generic for distinguish the product they designate, while such protection is in the case of Ecuador or the country of source.

CHAPTER XIII OF TRADITIONAL SPECIALTIES

GUARANTEED

Article 447.-Defi nition.-Traditional Guaranteed Specialty (TSG), to the identification of the product type agricultural or food which has specific characteristics because it has been produced from raw materials or traditional ingredients, or has a composition, production or production or traditional or artisanal processing corresponding to the traditional cultural identity applicable to that product or food.

Protection as a traditional speciality guaranteed grants the right to incorporate in the labelling or in any other type of advertising that promotes the product the indication "Traditional Speciality Guaranteed" or its acronym 'TSG'.

Article 448.-Characteristics of a traditional speciality guaranteed.- The characteristics of a traditional speciality guaranteed constitute the element or set of elements by which the agricultural product or foodstuff is identifi which clearly distinguishes from other similar ones, which belong to the same category. These differential characteristics are due to the use of the traditional raw materials, composition, production or production processes, not linked to a delimited geographical area.

Cannot be registered as a traditional specialty guaranteed an agricultural product or foodstuff whose specific characteristics are limited to its origin or geographical origin only.

Article 449.-Non-protected signs.- They may not be declared as a traditional speciality guaranteed ones that:

1. Do not conform to article 447 of this legal body; and,

2. In relation to agricultural products, they would have been previously registered as a plant variety.

Article 450.-From the application for registration.- The application for a traditional speciality guaranteed will be made to

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request from a producer group or manufacturers, understanding for such groups that they are directly engaged in the composition, production or processing of the product intended to be protected as a traditional speciality guaranteed.

A group may only submit a registration application for the agricultural or food products it produces or obtains.

Article 451.-Of the specification for the application for traditional speciality guaranteed .-Any agricultural product or foodstuff which seeks registration as a traditional speciality guaranteed (TSG) must be subject to the specification of the producer group or applicant manufacturers. This must be presented in conjunction with the other requirements laid down by the Regulation.

Article 452.-Content of the Statement of Conditions.- The specification of the traditional speciality guaranteed will contain at least the following items:

1. The name of the traditional speciality guaranteed.

To be registered, the name must:

a. Be specific to yourself;

b. express the specific characteristics of the agricultural product or the food product;

c. be traditional and conform to national provisions or be consecrated by usage.

The name cannot be registered as:

a. was only for general character requirements used for a set of agricultural or food products;

b. be misleading, or reference an obvious feature of the product that does not correspond to the specification.

2. Description of the agricultural product or foodstuff that includes its main physical, chemical, microbiological or organoleptic characteristics.

3. Description of the composition, processing, or production method to be followed by the producers, including.

4. Description of the nature and characteristics of the raw material or ingredients used.

5. Description of the method of processing the agricultural product or food.

6. A description of the key elements that are given by the product specific characteristics and, where applicable, the referent used.

7. Description of the key elements that demonstrate the traditional character of the product.

8. Description of the minimum requirements and the procedures for controlling and regulating the specific characteristics of the product.

Article 453.-Procedure.- The procedure for processing the application will be the same as for the geographic indications, with the provisos that the respective regulation establishes.

Article 454.-Claim for the misuse of the Guaranteed Traditional Specialty.- Any interested person may (a) to bring an alert to the respective product group and manufacturers of the (TSG), who must take the necessary steps to ensure the identity of the Guaranteed Traditional Specialty or the deception to the consumer.

CHAPTER XIV OF THE INDICATIONS

FROM PROVENANCE

Article 455.-Defi nition.-A name, expression, image, or sign that designates or evades a particular country, region, location, or place will be understood as

456.-Restrictions on use.- indication of provenance may not be used in trade in relation to a product or service, where it is false or misleading with regard to its origin or where its use may mislead the public as to the origin, provenance, quality or any other characteristic of the product or service.

For the purposes of the The above paragraph shall also constitute use of an indication of origin in the trade that is made in the advertising and in any commercial documentation relating to the sale, exhibition or offering of products or services.

Article 457.-Disclosure of origin.- Every person may indicate his or her name or address on the products which it places on the market, even if they come from a different country, region, locality or place, provided that the name or address is accompanied by the precise indication, in the case of the country, of the country, region, location or place of manufacture or production of the products or other sufi indication to avoid any error about the true origin of the products.

Article 458.-Of the procedure.- The procedure for processing the application shall be the same as for the geographical indications, with the exception to set the respective regulations.

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CHAPTER XV OF THE WELL-KNOWN DISTINCTIVE SIGNS

Section I

Of The Protection Requirements

Article 459.-Defi nition.-Distinctive sign known to be known as such in the country or in any member country of the Paris Convention, TRIPS, or with which the Ecuador maintains treaties in the field of industrial property by the relevant sector, regardless of the way or the means by the what would have been known.

Article 460.-Factors.- To determine the notoriety of a distinctive sign, the following factors will be taken into consideration:

1. The degree of their knowledge among relevant sector members within the country;

2. The length, breadth and extent of your use, within or outside the country;

3. The duration, extent and extent of his or her promotion, within or outside the country, including advertising and presentation at fairs, exhibitions or other events of the products or services, the establishment or the activity to which applies;

4. The value of any investment made to promote it, or to promote the products or services, or the establishment or activity to which it applies;

5. The sales and revenue figures of the titular company in respect of the sign whose notoriety is alleged in the country;

6. The degree of inherent or acquired distinctiveness of the sign;

7. The accounting value of the sign as an enterprise asset;

8. The volume of orders from people interested in obtaining a franchise or license from the sign in the country;

9. The existence of the "signature" activities of manufacturing, purchasing, or storage by the sign holder in the country;

10. The aspects of international trade; and,

11. The existence and age of any registration or application for registration of the distinguishing sign in the country.

Article 461.-Special factors.- The declaration of notoriety shall not be denied to a sign by the fact that:

1. You are not registered or pending registration at home or abroad;

2. It would not have been used or is not being used to distinguish products or services, or to identify establishments or activities in the country; and,

3. Do not be known to be known abroad.

Article 462.-Relevant sectors.-To declare the notoriety of a distinctive sign will be considered as relevant sectors of reference, among others, the following:

1. The actual or potential consumers of the type of products or services to which it applies; or,

2. Business circles acting in turns relating to the type of products, services, establishment or activity to which it applies.

For the purposes of the declaration of notoriety of a sign, it is sufficient to be known within any of the sectors referred to in the preceding literals.

Article 463.-Declaratory procedure.- The holder of the distinguishing sign shall ask the national competent authority for intellectual property rights on the recognition of the visibility of the distinguishing sign.

The application must accompany the evidence that it considers relevant to demonstrate the reputation of the same, in accordance with the factors set out in the preceding article; it must also accompany the voucher for payment of the respective fee.

The order and the evidence presented by the the party shall be valued by the national intellectual rights authority to issue the respective decision or statement.

The application for a declaration of notoriety may also be made within any administrative procedure which is being brought before the competent national authority in the matter of intellectual rights, provided that the effect is expressly stated, the factors detailed in this code are considered, the payment of the respective fee is accompanied and the procedure of declaratory is observed in the relevant provided in this article.

In the case of ordinary administrative resources, the notoriety may be known if the same has been alleged in the contested decision.

Section II Rights and Limitations

Article 464.-Protection scope.- A well-known flag declared known to be protected against their use and registration not authorized under this Chapter, without prejudice to the other provisions of this Title which were applicable and of the rules for protection against unfair competition.

There shall be no such protection against distinctive signs which have been used or registered, or whose application for registration has been lodged before the

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the distinctive sign declared known to be known has reached such character in the country, except for cases where the distinguishing sign was used or registered, or whose application for registration has been filed in bad faith.

Article 465.-Rights of the holder of the distinguishing sign.- The holder of a distinctive sign declared known to be known shall have the right to prevent any third party, without its consent, the use of the sign, in whole or in an essential part, or a reproduction, imitation, translation, transliteration or transcription of the same, liable to create confusion, in relation to identical or similar products, services, establishments or activities to which it applies.

the right to prevent any third party without his consent, the use of the sign, in whole or in an essential part, or of a reproduction, imitation, translation, transliteration or transcription of the sign, even in respect of products, services, establishments or activities other than those covered by the signed sign known, if such use could cause any of the following effects:

1. Risk of confusion or association with the holder of the sign, or with its products, services, establishments or activities;

2. Unfair economic or commercial damage to the sign holder 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 the name of the sign.

Use may be made through any means of communication, including electronic means.

Article 466.-Application.- They shall be applicable to the signs flags declared known to be known to be 367 to 371 of this Title.

Article 467.-Good faith.- When resolving an action concerning the unauthorized use of a well-known distinctive sign, it shall be taken into account the good or bad faith of the parties to the adoption and use of that sign.

Article 468.-Prescription of the action for the unauthorized use of the distinguishing sign.- The action against an unauthorized use of a distinctive sign declared known to be known shall be prescribed at five years from the date on which the holder of the sign was aware of such use, unless it was initiated in bad faith, in which case it will not prescribe the action.

Article 469.-Cancellation or modification of a domain name.- When a distinctive sign is declared known to have been improperly registered in the country as part of a domain name or a e-mail address by an unauthorized third party, at the request of the holder of that sign, the national authority responsible for intellectual rights shall order, be to the body before which the name is entered or

address or to who has made such registration, cancellation or modification of the registration of the domain name or e-mail address, or his transfer in favor of the holder of the sign, provided that the use of that name or address is may have any of the effects referred to in Article 465.

Article 470.-Cancellation of registration of a mark for notoriety.- Without prejudice to the provisions on nullity or other provisions on the cancellation of a trademark registration, the national competent authority intellectual rights shall cancel the registration of a mark, at the request of the legitimate holder, when it is identical or similar to one which was declared known to be known in accordance with the law in force at the time of application of the record.

VEGETABLE STOCK IV TITLE

Section I Of protection requirements

Article 471.-Protected matter.- The protection provided for in this Title extends to varieties belonging to all genera and plant species as long as their cultivation, possession or use is not prohibited for reasons of human, animal or plant health, food sovereignty, food security and environmental safety.

Species protection is not granted:

a) In the wild, natural or native;

b) That result from a mere discovery, except for the mutations, as long as natural mutation steps, selection and registration processes are followed. In any case, they must comply with the requirements of distinctiveness, homogeneity and stability; and,

c) In which there is or implies a process of plant improvement derived from the simple long-term symbiotic relationship between the

this is the case, for the protection by right of breeder, the protection of the biological and genetic patrimony of the country will be observed, for which prior to the submission of the application for the right of breeder the corresponding access permissions must have been obtained, which will be presented together with the application.

Article 472.-Requirements for acquisition.- The right of breeder shall be granted to the person who has created a plant variety, when it is new, distinct, homogeneous and stable, and would have been assigned a name that constitutes its generic designation.

For these purposes, it is understood by the creation of a plant variety, the result of a new variety through the application of scientific methods through techniques

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conventional and non-conventional plant breeding; and, to the empirical method based on the experimentation and observation performed by the farmers to obtain improved varieties and better adapted to their local reality, such as those obtained by natural mutations, provided that the requirements set out in the previous article are met. In both cases always applied to the heritable improvement of plants that allow to differentiate it from any other.

This difference will be established by the expression of at least one character that is expressed in agronomic form, same as the differentiate from any other known variety and that being reproduced, multiplied or propagated, maintains the essential characteristics that are of its own.

Article 473.-Genetically modified organisms.- When a application for the law of the breeder for a variety within the scope and the limits of the existing rules on genetically modified organisms, the national authority responsible for intellectual property rights shall inform the competent national bodies of the application submitted, so as to inform

Article 474.-Novage.- A variety shall be considered new when the propagating or propagating material of the variety, or a product of its harvest, has not been sold or delivered to a third party, by the breeder or his right-holder with his consent, for the purposes of exploitation

The novelty is lost in the following cases:

1. If the holding in the country has begun at least one year before the filing date of the application or the priority claimed; or,

2. If the holding in any other country has begun for at least four years or, in the case of trees and vines, at least six years before the date of filing of the application or the priority claimed.

Article 475.- Preservation of novelty.- The novelty is not lost by the sale or delivery of the material of the variety to a third party when such acts:

1. Be the result of an unlawful act or an abuse committed to the detriment of the breeder or his Entitled;

2. Be part of an agreement to transfer the right to the variety, provided that this does not imply that the material of the variety is delivered to a third party with commercial exploitation purposes;

3. Be part of an agreement under which a third increase, on behalf of the breeder, the stocks of propagating or propagating material, provided that the stocks multiplied are kept under the control of the breeder or his (a) that the stocks are not used to produce another variety commercially;

4. They are part of an agreement between the breeder and a third party according to which he conducted field, laboratory or small-scale procedure tests to evaluate the variety;

5. Have as their object the harvest material of the variety that would have been obtained as a secondary product or surplus of the activities mentioned in numerals 3 and 4 of this article, provided that the product is sold or delivered without identifying; or,

6. Be performed in compliance with a legal obligation, in particular, for environmental safety or the registration of the variety in a commercial register of varieties admitted for marketing.

Article 476.- Distinction.- A variety shall be considered distinct if it is clearly distinct from any other whose existence is known to be known, to the filing date of the application or to the claimed priority.

In particular, the presentation in any country of an application for the granting of the right of breeder or for the registration of the variety in a commercial register of cultivars shall make known such variety from that date, if such act would lead to the granting of the right or the registration of the variety, as the case may be.

the existence of another variety may be established by reference to a variety of references, such as the exploitation of the variety already in progress, the registration of the variety in a variety register maintained by a legal professional association; and technically recognized, or the presence of the variety in a reference collection.

Article 477.- Homogeneity.- A variety shall be considered homogeneous if it is sufficiently uniform in its essential and discriminatory characters in the case of varieties obtained by conventional methods.

variety shall be considered homogeneous if it is sufficiently uniform in its relevant and discriminatory characters, in such cases a certain percentage of plants outside the plot may be proposed as laid down in the

In both cases the cases will always be taken into account foreseeable variations according to their form of reproduction, multiplication or propagation, respectively.

Article 478.-Stability.- A variety shall be considered stable if its essential and discriminatory characters are maintained. unaltered from generation to generation and to the end of each particular cycle of reproduction, multiplication or propagation.

Article 479.-Generic name.- The variety subject to an Obtentor's right, shall be designated with a name intended to be its generic designation.

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No right relating to the designation registered as a denomination of the variety shall impede the free use of this denomination in relation to the variety, even after the expiration of the breeder certificate.

The name of the variety shall be indicated in the application for the law of the breeder. If that name does not comply with the conditions laid down, the applicant shall be required to propose another name. As long as those conditions are not met, the Right of Obtentor will not be granted.

A variety may only be the subject of an application for Obtentor Law in Ecuador under the same name used for that variety in other countries. Member of the International Union for the Protection of Vegetable Varieties (UPOV). However, if the inconvenience or impossibility of using that denomination in Ecuador is found to exist for any prior right or other legal impediment, the applicant will be required to propose another denomination.

Who will import or In the country, or export from the country, the material of a protected variety in Ecuador shall be obliged to use the denomination of the variety, even after the expiration of the right of breeder on that variety.

When the material of a protected variety is offered for sale or marketed in the country, it may be to use together with the name of the variety a trade mark, trade name or geographical indication. In any case, the variety denomination must be easily recognizable.

The requirements to be met by the generic name will be set in the corresponding regulation.

Section II of the headlines

Article 480.-Headlines.- The Right of the Breeder belongs to the breeder of the variety. This right is transferable by act between living and transmissible by cause of death.

The holders of the Right of Obtentor may be natural or legal persons.

If several persons have jointly created a variety, the right

Article 481.

Article 481.- Obtentions in educational and research centers.- Article 276 of this Code shall apply where the variety has been obtained in the course of the investigations or activities mentioned in that article.

Article 482.- Obligations developed pursuant to a contract.- Article 277 of this Code shall apply where the variety has been obtained in the performance of a contract of work or in the framework of an employment relationship.

Section III application

Article 483.-Right of priority.- The first application for the protection of a variety validly presented in a member country of the International Union for the Protection of Vegetable Varieties -UPOV-, in a country Member of the Andean Community or in another country granting reciprocal treatment to applications coming from the Member States of the Andean Community shall confer on the applicant or his right-holder a right of priority for the period of 12 months to submit his application for protection for the same variety in Ecuador. This period shall be counted from the date of filing of the first application.

For the purposes of the foregoing paragraph, the applicant shall claim in the application the priority of the first application, indicating the date, the number and the filing-in-office of that first application as well as the indication of the relevant legal instrument.

Section IV of the application procedure

Article 484.-Of the registration procedure.- The application for the acquisition of a plant variety shall be submitted to the competent national authority in intellectual rights in accordance with the content, requirements and other rules laid down in the Regulation. In the same way, the requirements, deadlines and procedures shall be established for, inter alia, the examination of the application, its publication, the presentation of oppositions and the granting or refusal of the application in the relevant regulation.

Section V Of Rights and Limitations

Article 485.-Vigency of the right of breeder.- Once granted the breeder's right shall be eighteen years for the case of varieties of vines and forest, fruit and ornamental trees, including their grafts, and fifteen years for the other varieties, counted from the date of granting of the certificate.

For those varieties that have not yet been marketed in the country, the term of duration of the breeder's right, initially recorded in the country of origin, will last for the missing time to complete the period of validity of the first registration of that country.

Article 486.-Obligations of the breeder.- During the period of validity of the Law of Obtentor, its holder will have the obligation of maintain and, where necessary, replenish the material of the variety which is the subject of their certificate.

Article 487. -Rights of the holder.- The right of obtentor confi ere to its holder the right to prevent third parties from performing without their consent any of the following acts in respect of the material of

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reproduction, propagation, or multiplication of the protected ornamental variety:

1. Production, playback, multiplication, or propagation;

2. Preparing with playback, multiplication, or propagation fi nes;

3. Offer for sale, sale or any other act involving the placing on the market of propagating, propagating or propagating material;

4. Export or import; and,

5. Possession for any of the purposes mentioned in the preceding numerals.

I also confi ere the right to prevent the acts indicated in the previous literals from the whole plants and parts of plants, obtained by the use not authorised from the reproduction material or multiplication of the protected variety, unless the holder has reasonably been able to exercise his exclusive right in relation to such propagating or propagating material.

confi ere the right to prevent the commercial use of plants or parts of plants such as propagating material in order to produce ornamental plants or parts of ornamental plants

Article 488.-Effect of the right granted to the breeder.- The right granted to the breeder shall have the effect of subjecting his prior authorization the following acts:

1. Production with commercial fi nes;

2. The put up for sale; and,

3. The marketing of propagating material or vegetative propagation, in its capacity as such, of the variety.

I also conformed the right to prevent the acts indicated in previous numerals from the product of the harvest, including whole plants and parts of plants, obtained by the unauthorised use of the production material of the protected variety, unless the holder has reasonably been able to exercise his exclusive right in relation to that material reproduction or multiplication.

Article 489.-Exceptions.- Do not injure rights of the holder of an Obtentor's right to reserve, reproduce, multiply or sow the product obtained from the cultivation of the protected variety, or of a variety essentially derived from it, when such acts shall be carried out:

1. For its own use;

2. To sell or exchange, non-profit that product as raw material or food; and,

3. In the context of ancestral farming practices or in a traditional community agricultural area, including to sell or exchange, non-profit seeds or other material of that variety.

The exception of this article is the commercial use of propagating, reproducing or propagating material, including whole plants and parts thereof, of fruit, ornamental and forestry species.

Article 490.-Limitations to the right of the breeder.- The right of Obtentor does not confer on its holder the right to prevent third parties from carrying out following acts with respect to the protected variety:

1. Acts performed in the private and non-fi business scope;

2. Acts performed with experimentation fi nes;

3. Acts performed with teaching or research scientific or academic research; and,

4. Acts carried out with the aim of obtaining a new variety;

Use by farmers with multiplication fi nes or for exchange with other farmers for the purpose of seed multiplication or other material (a) the spread which farmers have obtained from the planting of the protected variety or from the exchange with other farmers, provided that such multiplication shall not be extended to production with commercial purposes. Such exchange shall be made in compliance with the rules, laws and regulations for the mobilization of plant material.

Article 491.-Other limitations on the right of the breeder.- The holder of a breeder's right may not be entitled to to prevent the use by farmers of multiplication or for the exchange with other farmers for the purpose of seed multiplication or other propagating material which the farmers have obtained from the planting of the protected variety or of the exchange with other farmers, provided that multiplication or exchange does not extend to the trademark or trade name of its holder. Such exchange shall be made in accordance with customary rules, laws and regulations for the mobilisation of plant material.

Article 492.-The exhaustion of the right.- The certificate of breeder does not confi the right to prevent a third party from performing acts in respect of the material of its variety or a variety provided for in Article 487, or material derived from such material, after such material has been introduced into the trade of any country with the consent of the holder, of a licensee, of an economically linked to the holder or licensee, or any other person authorised to do so, unless such acts:

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1. Involve a new reproduction or multiplication of the variety to produce material intended to be marketed as reproduction or multiplication material; or,

2. Involve an export of the material of the variety, which allows it to be reproduced, to a country that does not protect the varieties of the genus or the species to which the variety belongs, unless the exported material is intended for consumption.

A This Article shall mean that two persons are economically bound when one is able to exercise directly or indirectly on the other, a decisive rate in respect of the holding of the variety or where a third party may exercise such information on both persons.

Article 493.-Transfer or license The application for the Right of Breeder.- An Obtentor Law or a pending application may be the subject of transfer or license for the exploitation of the variety.

Any transfer, authorization of use or license of a right of Plant breeder or an application in the process of being granted shall be written and registered with the competent authority in the field of intellectual rights and shall be perfected and shall have effect from its registration.

Any Person concerned may request the registration of a transfer or license.

Article 494.-Enrollment of transfer or license agreements.- The intellectual rights authority shall not enter into the contracts through which a breeder certificate or a pending application is the subject of a transfer or licence for the holding of the variety where such contracts do not comply with the provisions of the Common System of Treatment for Foreign Capital and on Marks, Patents, Licenses and Royalties, or comply with Community or national provisions on restrictive commercial practices in the free competition or unfair competition. Otherwise, in any case, the provisions of the Organic Law on the Regulation and Control of Market Power will apply and the penalties provided for in the Law will apply.

Sublicenses will require express authorization from the rights holder.

In any case, the value of the royalties established in the contracts must be proportional to the use of the plant variety whose rights are in force.

Article 495.- registration.-The holder of the of Obtentor must register with the competent authority in the field of intellectual rights any change in the name, address, address or other data of the owner, his representative or proxy. Any notifi cation performed according to the data that fi guren in the registry will be deemed valid.

Section VI Of Cancellation

Article 496.-Of cancellation.- The national competent authority on the subject of rights The intellectual property shall declare, at any time, at any time, the cancellation of the Law of Obtentor in the following cases:

1. When it is established that the protected variety is no longer compliant with the conditions of homogeneity and stability;

2. When the breeder fails to submit the necessary information and documents showing the maintenance of the conditions referred to in the preceding number or does not make the replacement of the protected variety material in the form and time-limits required by the national intellectual rights authority; and,

3. Where the name initially assigned to the variety has been declared inadmissible after the granting of the right of the breeder and the holder of the certificate does not comply with a new appropriate name within the

Section VII Of Resignation

Article 497.-Renunciation to the Law.- The holder of an Obtentor's right may resign, in any event, in any event. time, to their rights by declaration addressed to the national authority competent in the field of intellectual rights. The waiver will take effect from its filing date.

Article 498.-Nullity of the Right of Obtentor.- The national competent authority in the field of intellectual rights, of the office or at the request of a person concerned, in any moment, declare the nullity of an Obtentor's Right, in the following cases:

1. If the variety object of the Obtentor Law did not meet the requirements of novelty, distinction, stability and homogeneity at the time of the award of the certificate,

2. If it had been granted in favor of who was not entitled to it;

3. If the copy of the access contract has not been submitted, where the variety has been obtained or developed from genetic resources or from its derived products from which Ecuador or any of the Member States of the Community Andina is a country of origin;

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4. If the grounds for nullity provided for in the law for administrative acts were established; or,

5. If it had been granted with any other violation of the law that has substantially induced its grant or has been obtained based on data, information, or false or false documents.

Section VIII of the Expiration

Article 499.-Payment for maintenance of the right and expiration.- To maintain current the Right of the Breeder, the Corresponding annual fees, case to the contrary will expire in full right.

Payment must be completed within the first four months of each year. Two or more annual fees may be paid in advance, specifically noting the consecutive years which are paying for maintenance.

An annual fee may be paid within a grace period of six months from the date of payment. maturity of the period provided for in the previous subparagraph, together with the established surcharge. During the grace period, the Obtentor's right will remain in full force.

The failure to pay an annual fee under this article will be fully entitled to expiration.

Section IX of the compulsory licensing scheme

Article 500.-Of the declaratory of free availability.- Prior declaration by executive decree or ministerial resolution of the existence of reasons for: (1) public interest, (2) of emergency; or (3) national security, the national intellectual property authority may declare a variety protected by the law of the free availability of the law, on the basis of a fair compensation for the holder.

The national intellectual rights authority shall determine the amount of the compensation, after hearing the parties and the expert report, on the basis of the extent of the exploitation of the variety subject to the license.

Article 501.-Exploitation of the variety of free availability.- For the duration of the declaration of free availability, the national authority responsible for intellectual property rights shall permit the exploitation of the variety to interested persons offering technical guarantees

Article 502.-Vigency of the declaration of variety of free availability.- The declaration of free availability shall remain in force for as long as the causes remain. motivated.

Article 503.-From mandatory licenses for practices anticompetitive.-From an official or at the request of , the national authority competent in the field of intellectual rights shall grant compulsory licences when they present practices which have been declared by the competent national authority in (a) the protection of competition as contrary to the relevant rules, in particular where they constitute an abuse of the dominant position on the market by the holder of the breeder certificate.

In such cases, determine the amount of the remuneration in benefit of the certificate holder, shall be The need to correct anticompetitive practices.

Article 504.-Compulsory license for the holder of a patent.- When the holder of a patent of invention cannot commercially exploit the invention without use a variety protected by a breeder certificate, may apply for a compulsory license on that variety to the extent that it is necessary to exploit that invention.

In this case, the holder of the breeder certificate shall be entitled to a reciprocal compulsory licence to use the patented invention as soon as required to exploit the protected variety.

The mandatory license to be granted may only be transferred with the patent or certificate whose exploitation requires the license.

Article 505.-Remission.- applicable to the mandatory licenses provided for in this article, as appropriate, the provisions of Section X of Chapter II of Title III of this Code.

TITLE V OF OTHER RELATED modalities

WITH LA INTELLECTUAL PROPERTY

Item 506.-Undisclosed information.- The Undisclosed information enjoys an effective protection against its disclosure to third parties and to unfair practices.

Article 507. Marketing authorization.- To approve the placing on the market of pharmaceutical or chemical agricultural products containing new chemical entities, it will be required, among others, for any information leading to the demonstration of safety and (a) of the same, such as test data, studies or documents on chemical physical identity and pharmacokinetics or bioequivalence, health records or their equivalent obtained abroad, or any other evidence that to ensure the safety and safety of the product intended to be marketed.

Article 508.-Test Data.- The test or other unreleased data on safety and efficiency of pharmaceutical products and agricultural chemicals is protected, in accordance with the provisions of Art. 27.

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7 of the Organic Law of Market Power Control, when the information contained in the data complies with the following conditions:

a) Sea secret in the sense that it is not, as a body or in the confidence and precise meeting of its components, generally known or easily accessible to persons introduced in the circles in which the type of information is normally used in question;

b) Have a commercial value for being secret; and

c) object of reasonable measures, in the circumstances, to keep it secret, taken by the person who legitimately controls it.

Article 509.-Exclude test data.- When the competent authority requires as a condition to approve the placing on the market of pharmaceutical or agricultural chemicals containing new chemical entities, the presentation of test data or other undisclosed safety and safety information, the preparation of which involves an effort considerable, will be granted a five-year period of exclusivity from the date of marketing approval for pharmaceutical products, and ten years for agricultural chemicals.

For the purposes of this article, it will be considered a new chemical entity that has not previously been approved in Ecuador for its products. use in a pharmaceutical or agricultural chemical product.

In the event that the competent authority does not require the submission of test data or other information not disclosed on safety and safety in order to approve the placing on the market of products pharmaceutical or agricultural chemicals containing new chemical entities, protection granted in accordance with the previous Article. The submission of test data shall not be required where safety and efficiency can be demonstrated with any other information.

Article 510.-Access to Undisclosed Information.- The national competent authority in the field of Intellectual rights at the request of a party may authorize a third party to access undisclosed information, including that information contained in test data, for reasons of public interest, national or extreme emergency situations urgency.

The authorization will remain in effect for the duration of the circumstances The reasons for their issue shall also include the payment of reasonable compensation. The information shall be used in the terms, purposes and conditions provided for in the respective authorization.

The authorized person shall ensure that the information is kept in reserve for which it shall establish the necessary mechanisms. The liability shall be maintained even after the validity of the authorization of access to the undisclosed information is completed.

The provisions of this preceding article shall not apply to the provisions of Article 88 of this Code.

TITLE VI OF KNOWLEDGE

TRADITIONAL

Article 511.-Traditional knowledge.- They are all collective knowledge, such as practices, methods, experiences, capabilities, signs and own symbols of peoples, nationalities and communities forming part of their acquis cultural and have been developed, updated and transmitted from generation to generation. They are traditional knowledge, among others, the ancestral and local knowledge, the intangible component associated with genetic resources and traditional cultural expressions.

These traditional knowledge can refer to ecological, climatic, agricultural, medicinal, artistic, artisanal, fishing, hunting, among others, which have been developed from the close relationship of human beings with territory and nature.

Recognition and the protection of collective rights over the intangible component and the Traditional cultural expressions will be complementary to the rules on access to genetic resources, cultural heritage, and related ones. The spirit of exercising these rights is to preserve and perpetuate the traditional knowledge of communities, peoples, nationalities and communes, seeking to expand and protect them from illegitimate commercial appropriation.

Article 512.-The recognition of traditional knowledge.- In accordance with the Constitution of the Republic and in the International Treaties of which Ecuador is a party, the collective rights of the the legitimate holders of their traditional knowledge. These rights are imprescriptible, inalienable and unembargable and form part of the cultural identity of their rightful holders.

The protection of this knowledge will be done according to their own customs, institutions and practices. cultural, the Constitution and the International Treaties that govern the matter, contributing to the strengthening of their traditional internal structures. Under this form of protection, the legitimate holders have, among others, the right to maintain, promote, manage, enrich, protect, control, innovate and develop their traditional knowledge according to their uses, practices, customs, institutions and traditions, as well as to prevent or stop access, use and misuse of these knowledge.

Recognition of rights to traditional knowledge includes the expression of their culture or practice, as well as as the capacity to appoint traditional knowledge and that this denomination is maintain in any derived products which may be generated by it, with the aim of allowing traceability to its origin. This

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ability to name your knowledge also implies the ability to oppose the registration of names of peoples and nationalities by third parties, who must be required to have the prior, free and informed consent of their legitimate holders, within which a fair and equitable distribution of monetary benefits will be established and not

Collective rights to traditional knowledge are susceptible of the relevant enforcement measures before the competent national authority on intellectual rights in accordance with the provisions of this Code, its regulations and other applicable rules.

rights to persons belonging to communities, peoples and nationalities on equality and equity of conditions and without gender discrimination.

Article 513.-Legitimate holders of traditional knowledge.- For purposes This Code shall mean legitimate holders of the communities, peoples, indigenous nationalities, the Afro-Ecuadorian people, the montubian people and the legally recognized communes that inhabit the national territory.

Article 514.-Legal person cannot be the holder of traditional knowledge.- no legal person may be subject to rights in traditional knowledge. This implies that never a legal person can have the quality of legitimate holder of a traditional knowledge.

In cases where access to a genetic resource is authorized or consent is granted for access to a traditional knowledge in favour of a legal person, this does not confer rights of possession on traditional knowledge or on the genetic resource but only the authorization to make use of it in the terms indicated in the authorization or in the contract as the case may be.

Article 515.-State subrogation.- The State is not the holder of rights on traditional knowledge, however in cases in which the legitimate holders do not exercise their rights of their own will, the State through the Secretariat of Higher Education Science, Technology and Innovation, exceptionally with the aim of protecting, managing and preserving traditional knowledge, will subrogate its right to grant consent and agree on the distribution of benefits.

these cases will be aimed at strengthening traditional knowledge.

Article 516.-From shared traditional knowledge.- The protection of shared traditional knowledge between communes, communities, peoples and nationalities settled in the same geographical area is recognized as all their legitimate holders, who must seek joint management of such knowledge.

In such cases, those who wish to access knowledge must seek the consent of the communities that they have identified as legitimate holders. The applicant must make his best efforts in the search and identification of the legitimate holders.

Once the consent has been granted and the access contract has been registered, the appearance of new legitimate holders unknown to the time of access, shall not affect the contract signed.

Each legitimate holder may freely exercise his collective rights without prejudice to the exercise of these rights by other legitimate holders. This implies that in cases where there are several legitimate groups having the same knowledge, the consent granted and the benefits received by one of them do not prevent another of the legitimate groups from granting their consent. consent to a third person. This also does not generate the right in favor of the legitimate group possessing that it would not have been consulted initially, to claim benefits from those who have obtained the consent and access to the knowledge initially.

The legitimate Holders who have not been consulted have the right to grant consent and to enter into access contracts with new investigators. No legitimate group holder will be able to exercise exclusive rights to a traditional knowledge that is shared among various human groups

Article 517.-Collective knowledge of an individual.- In those cases where a Traditional knowledge, because of the extinction of the human group that was guarding it, will fall on an individual, it will be considered its rightful holder and as such it will be able to exercise all the rights that correspond to it; as long as it can to prove that knowledge was made collectively.

Article 518.-Of the inhabitants in areas other than their original territories.- The persons or groups belonging to communities, peoples or nationalities and who are outside the territory of origin or habitual permanence shall maintain their collective rights, provided that the legitimate holders are not harmed.

Article 519.-Of the legitimate transfrontier holders.-It shall not affect the exercise of the collective rights recognized in this Code, the fact that the knowledge traditional are cross-border.

Article 520.-Right of free determination.- It is recognized the power and exercise in making decisions about traditional knowledge to the legitimate holders according to their free determination and their own forms of coexistence, social organization, institutions, generation and exercise of authority.

Article 521.-Of the protection.-It is recognized as collective patrimony of the indigenous peoples and nationalities, montubian people, Afro-Ecuadorians, peasant communities and communes, among others, the following traditional knowledge:

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a) Therapeutic methods for the prevention, treatment and cure of diseases in an ancestral way;

b) Knowledge of combinations of natural biological extracts for the preparation of traditional medicine;

c) Knowledge on natural biological compounds for the production of food, dietary, colouring, cosmetics and derivatives similar;

d) Knowledge about natural products and compositions that contain them for agricultural use as well as for hunting, fishing and other subsistence activities;

e) Knowledge on Mechanisms and practice of sowing, harvesting, maintenance and harvesting of seeds, among other practices

f) Fortangial forms of traditional cultural expressions such as: clothing, artwork, drawings, designs, painting, sculpture, pottery, ebanisteria, jewelry, cesteria, fabrics and tapestries, handicrafts, works traditional architectural, musical and tillage instruments, hunting and ancestral fishing; and,

g) The intangible forms of traditional cultural expressions such as: myths or legends, symbols, dances, traditional games, traditional songs and interpretations, indigenous names and ritual ceremonies, whether or not they are on a support of any kind.

In general, all traditional knowledge is protected, which conforms to the definition of the present code, and therefore expresses the genuineness of the (i) the Community's own practices of the communities, peoples and nationalities, both of which are oral as written, its historical, cosmological and cultural tradition

Article 522.-Form of Protection.- The effective and positive protection of traditional knowledge against access, use or misuse is guaranteed. unauthorised third parties, expressed in the prevention, monitoring and sanction mechanisms that are generated in the regulation to be issued for the purpose. Recognition of the collective rights of legitimate holders of their traditional knowledge is not subject to any formality or registration for the purpose of guaranteeing their protection, validity and exercise, since it is based on the legitimacy of the community scope.

Strengthening local capacity building mechanisms on the collective right of traditional knowledge for their revitalization, promotion and protection will be promoted.

Article 523.- Voluntary deposit of traditional knowledge.- Legitimate holders will be able to make a deposit of their traditional knowledge to the competent national authority on intellectual property rights.

This deposit may be of a confidential nature and restricted to the public at the request of the legitimate holders. The aim of this deposit will be to avoid unlawful appropriation of this cognitive acquis, as well as a means of verification for the recognition of collective rights on traditional knowledge which may be infringed. in any request for intellectual property rights. The repository of traditional knowledge does not grant the depositary any authorization to grant use and access to third parties without the express authorization of the legitimate holders and holders of such traditional and prior knowledge. compliance with the relevant standard.

Prior to the granting of intellectual property rights, the national competent authority in the matter shall verify the information referred to in the preceding paragraph for the purpose of avoid misappropriation of traditional knowledge.

Without prejudice to the This article will be able to compile traditional knowledge that has been previously made public.

The deposit information, as well as the one referred to in the previous paragraph, will be part of the National System of Information on Traditional Science, Technology, Innovation and Knowledge.

Article 524.-From the custody of traditional knowledge at community level.- The State will recognize and grant technical resources and (a) economic, prior to application by the legitimate holders, for the development of Community registers of traditional knowledge to be managed and guarded by the communities themselves, under the responsibility of their competent authorities.

Article 525.-Access, use and use of undue use.- The exercise of rights collectives on traditional knowledge are exclusive to their legitimate holders and, through the enforcement measures provided for in this Code and more applicable rules, may prevent access, use or misuse by third parties not authorized.

Article 526.-Traditional knowledge and its dissemination: The traditional knowledge is disseminated when such knowledge and its information have come out of the cultural field of communities, peoples and nationalities, and are deposited in high-diffusion publications or in ex situ collections in ethnobotany centers, or have been orally and informally released to the point where they have become the state of art, obtained with or without free consent, prior to and informed of communes, communities, peoples and nationalities.

However of the provision The State recognizes the right of legitimate holders to such traditional knowledge, which includes the right to a fair and equitable participation in the benefit of the beneficiaries through mutually agreed terms with the respective

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custodians and their users, without prejudice to them being protected by classic intellectual property regimes. The State will establish the most appropriate mechanisms to make compliance with this provision effective by protecting the right of communities, peoples and nationalities.

Article 527.-State support for initiatives of the legitimate holders.- In respect of the right of self-determination and culturally appropriate development of the legitimate holders, the State shall promote and support the strengthening of its capacities and initiatives for the generation and maintenance of their traditional knowledge, and, if necessary, research, and development cientifi co and technology obtained from such knowledge, recognizing their intellectual rights. For this purpose it will allocate the necessary technical and financial resources.

Article 528.-Use of traditional knowledge by the legitimate holders.- The State recognizes the right of communities, peoples and

State will generate incentives for communities, peoples, and nationalities to strengthen their own initiatives in the field of cultural coexistence. research, development and innovation; respecting their right to self-determination.

Article 529.-Applications for access, use and use of traditional knowledge.- Applications for access, use and use of traditional knowledge must have prior, free and informed consent of its rightful holders, within which a fair and equitable distribution of the monetary and non-monetary benefits will be established. This is without prejudice to the rights that correspond to the State when it comes to genetic resources, according to the Constitution and the Law.

Article 530.-Free, prior and informed consent.- Legitimate holders in accordance with their customary rules, and legitimate and legally constituted institutions of representation, through participatory mechanisms, have the exclusive right to authorize a third party in a free, express and informed manner access, use or use of their traditional knowledge, through their prior, free and informed consent. Prior to obtaining the consent, the data subject shall provide sufficient information regarding the purposes, risks, implications, possible uses and future applications of knowledge, providing conditions for a fair and equitable distribution of the benefits obtained from such knowledge. The Secretariat of Higher Education, Science, Technology and Innovation will be able to offer, at the request of a party, advice in the negotiation processes between the communities and the stakeholders.

The interested party must commit to respect the rights collective, and, if necessary, to maintain confidence in relation to information, materials, experiences,

methods, instruments and other tangible or intangible elements related to traditional knowledge. In the same way, the dialogue of knowledge and the implementation of culturally appropriate methods will be respected as fundamental elements of this consent.

For cases in which the request for prior, free and informed consent be viewed on an intangible component associated with genetic resources, the users concerned shall present a plan detailing the access, use and use of these components, to the Secretariat of Higher Education, Science, Technology and Innovation, as a governing body in the field of traditional knowledge, in accordance with what

The free, prior and informed consent and the fair and equitable sharing of monetary and non-monetary benefits will be prescribed by the regulation dictated to the effect, which must be considered between others to the authorities, institutions and traditional decision-making modes of communities, peoples and nationalities, as well as to ensure in the participation of decisions, an intergenerational and gender perspective.

Article 531.-From the concession or refusal.- The concession and refusal of the legitimate holder for authorising the access, use or use of their traditional knowledge must be registered with the national competent authority in the field of intellectual rights, in order to enable it to carry out the relevant control over the decision of the legitimate holder.

At the request of a party, the Secretariat of Higher Education, Science, Technology, and Innovation may attend the negotiations that are carried out for the granting of prior consent, and will advise the legitimate holders during the same.

Article 532.-Contract.- Once the The interested party has the prior consent, free and informed, a written contract must be signed, in Spanish language and, if necessary, simultaneously in the mother tongue of the legitimate holders.

In the case of the language is not liable to be registered in writing, the contract will be held in Spanish as a language of cultural interrelation.

In such a contract the terms and conditions on the use, access or use of the traditional knowledge, among which the motivation must be relevant in terms of the scope and potential international effects to be obtained; the fair and equitable distribution of monetary and non-monetary benefits, including the sustainability and sustainability of knowledge

533.-From the registration of contracts.-

contracts to which the previous article is referred shall be entered in the national competent authority in the field of rights

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intellectuals, who will approve them once they have the favorable criteria of the Secretariat of Higher Education, Science, Technology and Innovation, and of the relevant entities in relation to the scope of their powers and shall have effects from their registration with the national intellectual rights authority.

Prior to registration, the national competent authority in (a) intellectual rights, in particular, shall ensure and verify the existence of the prior, free and informed consent, a fair and equitable benefit to the legitimate holders of traditional knowledge, as well as to monitor compliance with national and international regulations.

the national authority competent in the field of intellectual rights considers that the contract does not contain the provisions of the preceding paragraphs or that it would cause injury to the legitimate holders, and shall forward to them its observations and suggestions to be taken in whole or in part and to be modified or ratify that the

Article 534.-Dispute settlement.- In the event of any discrepancies or concerns regarding agreements arising out of a contract of access, use or exploitation of traditional knowledge, these will be resolved.

Article 535.-Sanctions.-

Article 535.-Sanctions.- Access, use or misuse, in whole or in part, of knowledge The Commission will be responsible for the implementation of sanctions and measures, for the cessation of acts of

i)

national authority responsible for intellectual property rights, as well as for the purpose of the infringement or at the request of a party, may take the measures it deems necessary for the purposes of prevent or cease acts of infringement on collective rights over traditional knowledge.

Free, prior and informed consent and the fair and equitable sharing of monetary and non-monetary benefits shall be prescribed by a a regulation dictated for the purpose, which must be considered among others by the authorities, traditional decision-making institutions and modes of communities, peoples and nationalities. As well as ensuring in the participation of decisions an intergenerational and gender perspective.

Article 536.-From the Advisory Council.- For everything related to this title, the Advisory Council of Knowledge is created Traditional as a space for the participation of peoples and nationalities, which will be formed by a representative of the indigenous nationalities, a representative of the Afro-Ecuadorian peoples, a representative of the montubian peoples and a representative of the institutions of higher education. As to how it works, it will be in accordance with the respective regulations.

Its role will be to provide advice to the actors involved in this chapter.

Article 537.-From the management of knowledge the Ministry of Higher Education, Science, Technology and Innovation, will allocate the necessary funds for the management and protection of traditional knowledge.

The management of traditional knowledge includes: research, technological development, revitalisation, promotion and protection, as well as the prevention of loss and misuse of such knowledge.

For the purpose, the competent authority shall issue a protocol for the access, use and use of traditional knowledge of compulsory compliance for system institutions and actors.

OBSERVANCE TITLE VII

CHAPTER I GENERAL PRINCIPLES

Article 538.-Confl icto of competencies.-In the judicial processes or procedures administrative in which they keep identity of persons, objects and rights In the event of a dispute between the Commission and the Court of Justice, the Court of Justice or the Court of Justice of the European Union, the Court of Justice or the Court of Justice of the European Union, processing until the primeval cause is resolved, regardless of the authority and path in which they were initiated.

For those processes in which they keep each other's identity of persons, objects and rights intellectual property and are being processed between authorities belonging to the same body, administrative or judicial authority, the higher authority will be the one to know the cause and the subordinate authority must submit the file for the accumulation of cars.

The authorities will refer to the confl ictos presented at its headquarters, and it will be the responsibility of the parties to make known to the relevant authority the existence of the pending litigation or the existing jurisdiction confl in accordance with this article.

Article 539.- the observance 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. Of the Positive Observance.- The violation of the intellectual rights established in this Code, will give rise to the exercise of judicial and administrative actions.

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In exceptional circumstances, without prejudice to the substantiation or outcome of the main action, in application of the principle of proportionality and at the request of a party may order the lifting or suspension of precautionary measures.

Article 541.-Of The Negative Observance.- The competent judge and the national competent authority in matters of rights The intellectual property, at the request of the party, will exercise inspection, monitoring and sanction functions to prevent and repress the abusive exercise of intellectual property rights, as well as ensuring the lawfulness of acts in respect of the intellectual property rights of third parties and the effective and full exercise of the limitations and exceptions of these rights.

Without prejudice to the foregoing paragraph, the competent judge and the national authority competent in the field of intellectual rights may, at the request of a party and in the exercise of a negative observance, be able to guarantee protection effective rights and the dissemination of knowledge.

In circumstances exceptional, without prejudice to the substantiation or outcome of the main action, in application of the principle of proportionality and at the request of a party may order the lifting or suspension of precautionary measures.

Article 542.-Shares of co-holders.- In the event of the co-ownership of a right, any of the co-holders may initiate the actions of which this Title is dealt with without the need for the consent of the other co-holders, unless otherwise provided legal or agreement to the contrary.

Article 543.-Reconvention.- On the Administrative procedures and in the judicial processes of observance in the field of Intellectual Property is admissible the related counterclaim, which will be resolved in resolution or judgment, as appropriate. The counterclaim will be made at the time of the filing of the respective response.

If the case is, within the counterclaim the action may be requested, among others, the nullity of the right that served as the basis for the interposition of the action, as well as the cancellation, vindication, expiration and other security applicable to the different modalities of the intellectual property regulated in this Code.

The counterclaim in judicial center will observe the procedure provided for in the norm process general.

In administrative headquarters, the process of this action will be the set out in Title VII, Chapter III, Section II of the present regulatory body.

Article 544.-Presumption of copyright.- Except proof to the contrary, for the author of a protected work to be admitted as such it is sufficient that his name or pseudonym, or any other denomination that leaves no doubt about its identity, consists of the work in the usual way.

Article 545.- Protection of business secrets.- In any process or diligence involving secrets business, the respective authority must take all necessary measures to protect such secrets. Only the competent authority and the designated experts shall have access to the information, codes or other elements, and only as soon as it is indispensable for the practice of the diligence in question.

All those who do with the above paragraph have access to such secrets will be obliged to keep absolute reservation and will be subject to the actions that this Code and other laws prescribe for the protection of the business secrets.

In any case, the competent authority may refrain from ordering one of the parties to the process to disclose business secrets, when, in the opinion of that authority, disclosure is impertinent to the process ' s.

Article 546.-Investment in the burden of proof in patent procedures.- In cases where (a) a patent infringement of which the object is a procedure for obtaining a product, it shall be for the defendant in question to prove that the procedure which he has used to obtain the product is different from the procedure protected by the patent for which the infringement is alleged. For these purposes, unless proof to the contrary, any identical product produced without the consent of the patent holder is presumed to have been obtained by the patented procedure, if:

1. The product obtained with the patented procedure is new; or,

2. There is a substantial possibility that the identical product has been manufactured by the procedure and the patent holder cannot establish by reasonable efforts what the procedure actually used has been.

In the presentation of evidence to the contrary, the legitimate interests of the defendant or denounced as to the protection of their business secrets shall be taken into account.

CHAPTER II OF THE COURT PROCESSES IN THE FIELD

INTELLECTUAL PROPERTY

Section I General Principles at Judicial Headquarters

Article 547.-Of the judicial proceedings.-The exercise of enforcement in judicial headquarters provided for in the previous chapter shall be processed in summary proceedings in accordance with the requirements of the General Organic Code of Processes.

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Article 548.-Verifi cation of Information.-The competent judicial authority shall require the national competent authority in matters of rights intellectual property, information regarding the existence, validity or national recognition of the intellectual property rights of the actor or the action to form his/her criterion by issuing preventive providences or giving judgment.

Article 549.-Competition in the field of intellectual property.- The knowledge of the processes of This Chapter (of the judicial processes 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 shall also be competent to hear such proceedings, the judges of the place where the offence was committed or where the effects of the infringement are advised.

The administrative acts of the National Competent Authority in respect of Intellectual rights are subject to impeachment in the administrative litigation jurisdiction, for which it will not be necessary to exhaust the administrative route. The other actions will be dealt with in the civil or criminal jurisdiction in accordance with the jurisdiction provided for in the legal order.

Section II Positive Observance

Article 550.-Action for Infringement.-The holder of the an intellectual property right recognised in the country or other person entitled to the effect may take legal action against any person who infringes them. It may also act against persons executing acts which have been imminence of an infringement.

Article 551.-Request for interim measures.- compliance with the General Process Standard.

Section III Negative Observance

Article 552.-licit use.- Any person may initiate proceedings before the competent court to determine the lawfulness of his or her acts, previous, current or future. This action shall be subject to the intellectual property rights of a third party, with the exception of distinguishing signs.

For the purposes of the foregoing paragraph, this action may be initiated without prejudice to the action by the received or not received by the owner of the right or a third party, in respect of an alleged violation of an intellectual property right.

The judge must notify the holder or proxy of the intellectual property rights recognised in the country, according to the information registered with the national competent authority in

Article 553.Of the abuse of the right.- The competent judge shall exercise, at the request of a party, functions of inspection, monitoring and punishment to prevent and repress the abusive exercise of the rights of the intellectual property, provided that the action does not pursue the safeguarding of the general interest or the welfare of consumers.

The suspension may be ordered, within the scope of its respective jurisdiction, of the precautionary measures, as well as any other action taken by a third party at the request of the holder or party concerned.

CHAPTER III OF ADMINISTRATIVE PROCEDURES

IN SUBJECT MATTER OF INTELLECTUAL PROPERTY

Section I General Principles on Administrative Headquarters

Article 554.-From administrative actions.- In accordance with the provisions of this Title, the holder of a protected right or other person entitled to the effect may take administrative action against any person who infringes the relevant rights. It may also act against persons who execute acts that have been the imminence of an infringement.

The criminal actions to be carried out shall be exercised in accordance with the relevant legislation.

Article 555.- Preparatory proceedings.- Prior to the initiation of a procedure of enforcement with the competent national authority in the field of intellectual property, any person may request the adoption of any of the preparatory steps provided for in the general process standard.

Article 556.- experts in administrative processes.- In the administrative processes, the experts will be appointed from among the enrollees of the payroll to be provided by the Council of the Judicature, only in the case of no accredited experts before the Council of the Judicature, the national authority responsible for intellectual rights, may appoint a professional who has the appropriate expertise in the field concerned, in accordance with the provisions of the regulations issued for the effect.

Article 557.-Competition in the field of intellectual property.- The knowledge of the processes of this Chapter corresponds to the national authority competent for intellectual property rights.

Article 558.-Procedure in the field of intellectual property.- the procedure laid down in this Chapter, the relevant regulation and, subsidiary-mind the general rules on administrative procedures.

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Positive Observance Section II

Administrative Tutor Section I

Article 559.-Of the guardianship national authority responsible for intellectual rights shall exercise, or at the request of a party, inspection, monitoring and sanction functions to prevent and repress property rights violations. intellectual.

Article 560.-Measures ordered by the property authority intellectual.- The national intellectual rights authority may order the adoption of one or more of the following measures:

1. Inspection;

2. Information requirement including the ability to order the filing of documents or objects that are under the control or possession of the alleged infringer;

3. Sanction of infringement of intellectual property rights; and,

4. The other preventive providences provided for in the general process standard.

Article 561.-Fianza or other sufi surety.-You may require the actor, subject to the circumstances, to constitute a financial guarantee or other sufi to protect the defendant and prevent abuse. The corresponding regulation will determine the conditions to be met by the guarantee, the amount of which must be proportional to the possible economic, commercial and social impact generated by the measure, in accordance with the respective regulations.

Requests for precautionary measures will be reserved and must be qualified within forty-eight hours of receipt.

Article 562.-Of the inspections.- The inspections will be carried out for check the alleged infringement of intellectual property rights.

Al the time of the due diligence, the alleged infringer is notified of the administrative act by which the practice of the diligence is ordered and, if the application of the affected party is applicable, as a requirement for its validity and execution.

National competent authority in the field of intellectual rights shall ask the judge for authorization and intervention for the purpose, or the servants of the national competent authority in the field of intellectual rights, to carry out may include the breach of securities.

The authorization indicated in the paragraph must be conferred by the competent judge of the jurisdiction in which the actions referred to in the previous paragraph are to be carried out, even if it is not the address of the investigated or reported, within the 24-hour period.

Article 563.-Grant of precautionary measures at the beginning of the process.- The measures will be ordered to the knowledge of the action, provided that the person who asks for proof of its legitimization to act, the existence of the right infringed and provide evidence to reasonably presume the commission of the accused offence or its imminence.

Article 564.-Perios in the practice of inspections.- For the practice of inspections, the concurrency of experts may be ordered and, in such a case, its opinion shall be recorded in the corresponding record if it can be issued in the same or in the written report which is present within the time limit given to it for the purpose. The expert report may be used for the enforcement of the precautionary measures.

The administrative authority, of the office or at the request of a party, may order the expert to attend a hearing to report orally on the questions

565.-Provision of precautionary measures.-

accordance with the nature of the infringement, one or more persons may be ordered and practiced. of the following precautionary measures:

1. The immediate cessation of acts that constitute the alleged violation;

2. The removal of the commercial circuits from the products resulting from the alleged infringement, including packaging, packaging, labels, printed or advertising material or other materials, as well as the main materials and media serve to commit the alleged violation;

3. The suspension of public communication of protected content in digital media, ordered to the offender or broker;

4. The suspension of the web portal services for an alleged violation of intellectual property rights, ordered to the infringer or intermediary;

5. The suspension of the import or export of the products, materials or media referred to in the previous numeral, which was immediately notified to the customs authority;

6. The temporary closure of the establishment of the alleged infringer where necessary to prevent the continuation or repetition of the alleged infringement; and,

7. If any of the measures described in the preceding numerals are sufficient, any other reasonable measure intended to cease may be requested.

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the infringement, weighing the legitimate interests of the owner of the intellectual property right and those of the alleged infringer. This measure shall apply if the interests of third parties are not affected.

When the precautionary measures given assume the apprehension of products, the national authority competent for intellectual rights shall be empowered to require the collaboration of one of the depositaries of the judicial function, of those who are on the payroll that the Council of the Judiciary will provide.

The judicial depository will move the goods to the place to be determined, apprehended under his responsibility. Additionally, you will have the right to charge the stock for the expenses incurred for transportation, preservation, custody, display, and administration of the goods under your responsibility.

In case the action is prevalent in the process administrative, will be entitled to claim reimbursement of the costs of the judicial depository, as part of the amount of compensation for damages that you can claim for the corresponding path.

Article 566.-Application of the measures measures shall apply on the products resulting from the the alleged infringement and the materials or means used primarily to commit it.

For the purpose of dealing with an alleged infringement of copyright or related rights, the precautionary measures shall not apply in respect of the acquired copy of the good faith and for the exclusive personal use.

The administrative authority may take any action necessary for the application of the precautionary measures, which shall be of a provisional nature, and shall be subject to change, revocation or confi rmation as provided for in Article 568.

Article 567.-Requirement for information.- Where the infringement of intellectual property rights is presumed or the imminence of such an infringement, the national authority competent for intellectual rights may require to be provided with any information that allows the existence or otherwise of such an infringement or its imminence to be established.

The information shall be delivered within 15 days of the date of the notification. The failure to respond to the information requirement will be a sign against the alleged offender.

Article 568.-Right to the defence and the term of evidence.- The alleged infringer may present his/her arguments (a) the right to be heard, to be heard, and if necessary, to request a hearing, within a period of 15 days from the date of notification of the administrative act ordering the inspection or the request for information.

The administrative authority will analyse whether or not the hearing will be relevant to the the elements of conviction that you possess within the procedure to issue the resolution, as set forth in the respective regulations.

Article 569.-Reasoned Resolution.- Overdue the test term or the hearing referred to in the preceding article, as the case may be, the national authority competent in the field of intellectual rights shall issue a reasoned decision.

If it is determined that infringement of intellectual property rights existed, shall sanction the offender with the closure of the establishment from three to seven days or with one A fine of between one comma five basic wages, one hundred and forty-two basic salaries, one with the nature of the infringement and the criteria which the corresponding regulation establishes for the purpose. In the same resolution, the adoption of any of the measures provided for in this Section may be made available, or if those measures which have been ordered on a provisional basis are to be adopted.

The same resolution shall establish the destination of the goods or products which have been removed from the commercial circuits in accordance with the relevant Regulation. The national authority responsible for intellectual rights shall apply the penalties provided for in this Title when it is aware and resolves on matters of unfair competition.

Article 570.-Compensation for damages recall of precautionary measures.- In cases where the precautionary measures are revoked or have no effect on account of the applicant, or in cases where it is subsequently determined that there was no infringement or imminence of infringement of an intellectual property right, the part against which the process was initiated The administrative authority may request the actor, the payment of damages and damages as well as the costs of the proceedings.

The precautionary measures issued by the administrative authority shall not lapse due to the lack of an interposition of a

Article 571.-Compensation for infringement of intellectual property rights.- In the case of the use of intellectual property rights, without the authorization of the holder, by the State or a third party authorised by the State, the competent judicial authority or the national competent authority in intellectual rights, may restrict the actions or remedies against such use, the payment of compensation, the amount of which shall be established by the body that adopted the measure.

Natural persons or legal entities governed by private law, may only benefit from this derogation where the use has been made on the basis of a relationship of any kind with the State or any of its institutions.

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Article 572.-Stance in compliance with acts.- The national intellectual rights authority impose equal penalties on the one set out in Article 569 to which it is entitled to obstruct or limit compliance with the acts, measures or inspections laid down by that authority, or not to send the required information within the term granted.

Article 573.- The organizer of a public show where public communication of works or services protected by copyright is to be carried out, it shall obtain the authorisation or licence from the rightholders or their representatives.

Under the relevant regulation, for the granting of such authorization or license the parties shall carry out an exchange of information, in particular as regards the possible works communicated, with the purpose of determining the administration and the validity of the rights.

Event authorization will be required when:

1. Public communication of works is not a means for the number of assistants, the value of the entry, the costs of the organisation, the value of the work, the interpreters and the performers or any information which can be clearly defined by the event size;

2. The holder is the organizer of the event and only works whose rights belong to it are interpreted; and,

3. Where the holder is not a member of any copyright management company.

The national authority responsible for intellectual property rights may carry out the preparatory measures provided for in the General Organic Code of Processes, as applicable, for verifi car:

1. The transparency and veracity of the information presented by the organizer, the rights holder or representative; and,

2. The existence of the authorization by the holder of the rights or representative.

Article 574.-Auxiliary of the Public Force.- The National Police is obliged to provide to the servers of the national competent authority in intellectual rights issues the assistance they request for the performance of their duties.

Section II of Border Measures

Article 575.-From the application of border measures.- The holder of a registration of a trademark or copyright that has sufficient evidence to assume that the import or export of goods

which damages their right to their mark or their copyright, may ask the national competent authority for intellectual rights to suspend that customs operation.

Once application for border measures, the competent customs authority shall suspend the operation of import or export of the products in question, until the national competent authority on the matter of rights intellectuals resolve the order.

Also, when the competent national authority in intellectual property rights are aware of an import or export of goods that damage the right to the mark or the copyright, may order the suspension of the customs operation, of office.

Article 576.- Of the procedure.- The actions of measures at the border shall be filed with the competent national authority in matters of intellectual rights according to the content, requirements, deadlines, procedure and other rules provided for in the regulation

Article 577.-Import or import information (i who requests that measures be taken at the border, must provide the national competent authority with intellectual rights with the necessary information and a sufficiently detailed and precise description of the 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 entrance or exit of goods from the country, will provide the service of information relating to the import or export of goods.

Article 578.-Fianza.- The national intellectual rights authority, in order to provide for precautionary measures, may require the filing of financial guarantees or guarantees to protect the importer or exporter and to prevent

Article 579.-Inspection of merchandise.-

Article 579.-Inspection of merchandise.-

For the purpose of substantiating your claims, the owner of the intellectual property right may apply directly to the authority national customs competent authority to inspect the goods to be imported or exported, without prejudice to any measures necessary for the protection of confidential information.

Article 580.-Of the measures on the frontier of goods which damage the right of author or with counterfeit mark each.- When measures are imposed at the border at the request of a party with respect to the import or export of pirated goods which injures the law of Author or merchandise with

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counterfeit mark each, these will be carried out only upon the submission of sufi evidence as well as a detailed relationship of the alleged infringement. The national authority responsible for intellectual property rights, in order to provide for precautionary measures, may require the filing of a financial guarantee or guarantee to protect the importer or exporter and prevent any abuse of rights. Measures at the frontier may not be carried out in respect of imports or exports which do not have a commercial scale and those which are not commercial or which are not of a commercial character or which are part of the personal luggage of travellers or they are sent in small consignments.

Article 581.-Sanction.- When the national authority competent in the matter of intellectual rights will determine by means of a reasoned resolution that there was an infringement of the property rights intellectual, will sanction the infringer with a fine of between one comma five basic wages unifi In the case of the Commission, the Court of the Court of the Court of the European Court of the European Court of the European Court of In the same resolution, the adoption of any of the precautionary measures provided for in this Section may be made available, or if any of the measures ordered on a provisional basis are to be taken.

Article 582.-Expiration of measures at the border.- After ten working days from the date of notification of the suspension of the customs operation without the claimant having initiated the main action or without the competent national authority having extended the suspension, the measure will be lifted and the goods will be released from the retained goods.

will consider this requirement to be met by the initiation of an administrative guardianship, civil action or criminal proceedings, at the choice of the action.

Article 583.-Exclusions.- provisions of this Chapter the small quantities of goods which are not commercial in character and are part of the personal luggage of the passengers or are sent in small consignments.

Paragraph III Indue Use of Rights of Intellectual Property in

the Internet

Article 584.-Of The Action.- The owner of a trademark or other intellectual property right may initiate an action of administrative guardianship, if, a third party, without the consent of the owner, tries in bad faith to take advantage of the intellectual property right and records, markets, or uses a domain name that at the time of the domain name record: a) has been identical or similar to a trademark or other intellectual property right recognized in the country; or, b) is capable of causing dilution with a brand known to be known in the country.

You may also be entitled to initiate this action, the natural person whose name or pseudonym is identified by the relevant sector of the public as a person other than the owner of the domain name, unless the consent of that person or his heirs is credited;

Article 585.-Factors to consider the intent of bad faith.- To determine if a person has a bad faith intention described in the previous article, the national intellectual rights authority will consider among others, the following factors:

1. The intention of the person who registered the domain to divert consumers from the trademark holder to an accessible site under the domain name, which could harm the good reputation of the brand, either with commercial purposes or with the intention to overshadow or disparage the brand; or, with the intention of taking advantage of another recognised intellectual property right in the country or the image of a third party;

2. The offer of the person who registered the domain of leasing, transferring, selling, or giving the domain name to the owner of the trademark or to the natural person whose name or pseudonym is identified by the relevant sector of the public, in exchange for a benefit economic or material, without having used, or intended to use the domain name to offer in good faith its products or services, or that its conduct indicates such intent; and,

3. The provision of material and false or misleading contact information when requesting the registration of the domain name, or that its conduct indicates such intent.

Article 586.-Factors to consider the legitimate use of the name of the domain name domain.- To determine whether a person has used the domain name legitimately, the national intellectual rights authority will consider the following factors among others:

1. If the domain name has a trademark or other intellectual property right included in the domain name;

2. If the domain name consists of the business name, social reason, name, or pseudonym of who registered the domain; and,

3. The prior use by who registered the domain name in relation to the offer of good faith of the products or services it offers or for purposes of identification or information and is not capable of inducing the public to error on the

Article 587.-Sanction.- When the national authority responsible for intellectual rights considers that registration, marketing, or use of a domain name under this paragraph was made bad faith to take advantage of the trademark of a property right

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intellectual of a third party, you may order the owner of the domain name record and/or the supplier where the domain name is located hosted or registered and/or any other domain name authority, cancellation or transfer to the copyright holder, of the domain name in question.

Article 588.-Competition.- The national authority competent in the field of intellectual rights may be able to substantiate this type of protection action administrative, if who registered the domain name, the hosting service provider, the domain name registration, or any other authority or entity that has registered the domain name in question, is domiciled in the country.

Section III Negative Observance

Single Section of the Use and Abuse of Law

Article 589.-licit use.- Any person may enter before the competent national authority in the field of intellectual rights, an action to know about the lawfulness of their acts, previous, current or future. This action shall be subject to the intellectual property rights of a third party, with the exception of distinguishing signs.

For the purposes of the foregoing paragraph, this action may be initiated without prejudice to the action by the received or not received by the owner of the right or a third party, in respect of an alleged violation of an intellectual property right.

Article 590.-Of the abuse of the right.- The national competent authority in matters of intellectual rights, shall exercise or at the request of a party, inspection functions, monitoring and sanctioning 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 the welfare of the consumers.

The suspension may be ordered, within the scope of their respective jurisdiction, of the precautionary measures, as well as of any other action taken by third parties at the request of the holder or interested party.

Article 591.-Of the notification.-The authority National competent in the field of intellectual property rights shall notify the holder or the intellectual property rights recognised in the country in accordance with the information registered with the national competent authority in respect of the rights of the person in question and in accordance with the provisions of this Code; and, if necessary licensees or other interested persons.

Article 592.-Of the answer.- The action, within a period of fifteen working days from the date of the notification, shall reply to the action. In the

response, the defendant may recognize the actor for the infringement of his or her intellectual property rights; if the actor is rearranged, the procedure of this action shall be the one established in Article 543 of the present

Article 593.

From the test and hearing term.- After the response, the national authority responsible for intellectual rights will order the opening of the test term. of fifteen days.

During that term, either party may request to be called hearing, in which they may submit their pleadings. The hearing will be held after the trial term is expired.

Article 594.-Reasoned Resolution.- Expiration of the test term or the hearing referred to in the preceding article, as appropriate, the authority

Article 595.-Compensation for damages.-

this type of procedure, the holder of the property rights shall not be admissible. (i) the right to pay damages and the costs of the proceedings against of the action.

TITLE VIII OF THE VINDICATORIA ACTION

CHAPTER ONLY CLAIM ACTION AT HEADQUARTERS

JUDICIAL

Article 596.-Of the action vindicatoria before judicial authority.- When a mark, a patent, a breeder's certificate, an industrial design register or an integrated circuit layout scheme would have been requested or obtained by the person who had no right to obtain it, or to the detriment of another person who also had the right, the person concerned may start before the competent judicial authority, the claims to be recognized as an applicant or holder; or, as a co-applicant or co-owner of the right.

This action may be exercised without prejudice to the other actions provided for in this Code.

The action vindicatoria will be processed in ordinary procedure, in accordance with the general rule of processes.

TITLE IX OF THE RESOURCES

Article 597.-Of the resources.- The resolutions or administrative acts issued by the Competent authority in the field of intellectual rights shall be subject to impeachment as the administrative resources

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and legal proceedings provided for in the legal order. The resources shall be granted in the suspensory and return effects at administrative headquarters.

In the case of administrative acts issued in respect of the resolution of compulsory licenses and negative enforcement actions, the resources in administrative headquarters shall have no suspensory effect.

In administrative headquarters the resources shall be processed before a specialized collegiate body that shall be part of the national authority competent in the field of intellectual rights, powers and organisation of this body shall be made in accordance with the provisions of the respective

BOOK IV OF FINANCING AND INCENTIVES

TO ACTORS IN THE NATIONAL SCIENCE, TECHNOLOGY,

INNOVATION AND ANCESTRAL KNOWLEDGE

TITLE I COMMON PROVISIONS ABOUT

FINANCING AND INCENTIVES

Article 598.-From fostering the social economy of knowledge, creativity and innovation.- The Ecuadorian State will encourage the financial, tax and administrative authorities of the actors of the National System of Science, Technology, Innovation and Ancestral Knowledge, 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 encourage interaction between academia and the public, private, mixed, popular and supportive, cooperative, associative and community sectors, with the aim of creating an ecosystem where responsible research, technological development, social innovation and creativity are generated, promoting the effective use of resources, both human and financial.

Article 599.-From sources of financing.-The source of funding for the National System of Science, Technology, Innovation and Ancestral Knowledge System, will come from the resources of the General Budget of the State, generated by the different System actors, as well as other sources of funding.

Article 600.-Defi nition and incentive classes.-The incentives are mechanisms or instruments of motivation to generate changes in the system. behaviour of the actors of the National System of Science, Technology, Innovation and Sabres Ancestral for the fulfillment of its fi nes. Within the framework of this Code, incentives are classified as: financial, administrative and tax purposes.

Article 601.-Benefits of the incentives provided for in this Code. The financial, tax or administrative incentives provided for in this Code or in other related rules may benefit from the actors of the National System of Science, Technology, Innovation and Ancestral Knowledge, as appropriate, duly accredited or registered by the competent authorities, including the institutions of higher education, in the appropriate cases.

TITLE II OF THE FUNDING TO THE ACTORS OF THE NATIONAL SCIENCE SYSTEM,

TECHNOLOGY, INNOVATION AND ANCESTRAL KNOWLEDGE

Article 602.-From pre-allocation for the social economy of knowledge, creativity and innovation.-To ensure the financing of the activities related to the System the pre-allocation for the National System is created Of Science, Technology, Innovation and Ancestral Knowledge, with the following resources:

1. The non-reimbursable contribution equal to one percent of the amount of the payment to the contractors for the services for the exploration and exploitation of hydrocarbons, from the beginning of the operating period, after deduction of the participation labor and income tax;

2. The non-refundable contribution equivalent to one percent of the revenue from the services provided by the telecommunications operators in accordance with Article 92 of the Organic Telecommunications Law;

3. 50% of the contribution corresponding to one percent of the payment plans to the Ecuadorian Social Security Institute that were transferred to the IECE, constant in the first general provision of the Organic Code Monetary and Financial; and,

4. The values collected by the taxation of private higher education institutions when the Internal Revenue Service has verifed that they have not complied with the requirements laid down in the Law to be exonerated from the payment of taxes.

The contributions mentioned in this article do not represent new tax burdens.

The resources mentioned in the numeral 2 of this article will finance, among others, investment projects prioritized under the Law, for the development and deployment of equipment, infrastructure, networks for connectivity, telecommunications; and, in general, information and communication technologies.

The pre-allocation for the National System of Science, Technology, Innovation and Ancestral Knowledge, in each financial year will be equivalent at least to zero point fifty

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and five percent of the previous year's Gross Domestic Product. If the sources of financing provided for in this Article are insuffent to cover the amount indicated above, the public financial institution shall allocate the difference from the investment expenditure of the general budget of the State, through investment projects prioritized under the Law.

The Economic Policy Council, in the event of a balance of payments crisis, may reasonably decrease this pre-allocation.

Article 603.-From the distribution of the resources that make up the pre-allocation.- The Secretariat of Higher Education, Science, Technology and Innovation, in coordination with the competent public institutions, will establish the technical criteria and the mechanisms for allocating the resources that make up the pre-allocation referred to in the previous Article, in accordance with the rules governing the issue, taking into account the criteria and principles laid down in this Article Code for the generation of knowledge, creations protected by property intellectual and protection of traditional knowledge and ancestral knowledge.

TITLE III OF INCENTIVES

CHAPTER I OF INCENTIVES FOR

STRENGTHENING HUMAN TALENT

Section I

Financial incentives

Article 604.-Financial incentives for strengthening human talent.- The Ecuadorian State will create programs and projects focused on the financing of training and training of human talent and academic mobility of researchers. For this fi n will count, among others, with the following mechanisms:

1. Scholarships;

2. Educational credit; and,

3. Economic aid;

Article 605.-Preferential lines of credit for strengthening human talent.- The Monetary and Financial Policy and Regulatory Board will compulsorily establish credit lines, under conditions For the strengthening of human talent through public and private banking.

For the establishment and regulation of these lines of credit, the Monetary and Financial Policy and Regulatory Board should coordinate with the Secretary of Higher Education, Science, Technology and Innovation.

Article 606.- Programmes of financing for artistic and cultural development and promotion.- The Ministry of Culture in charge of Culture in coordination with the Secretariat of Higher Education, Science, Technology and Innovation, will formulate fi nancing for the development and promotion of artistic and cultural activities that contribute to the strengthening of the social economy of knowledge.

Section II Administrative incentives for the

strengthening human talent

Article 607.-Licenses or commissions services to public sector servants and servants engaged in academic or training activities.- The Ecuadorian State shall guarantee the granting of licenses or commissions of services with or without remuneration to the server or server (i) a study of higher education or training. The services licences or commissions shall apply during the time of study.

The Human Talent Management Unit of each institution shall determine in a reasoned manner the relevance of the study or training programme and whether the

Article 608.-National Program of Recognition of Academic Excellence.-

Secretariat of Higher Education, Science, Technology and Innovation, will formulate the National Program of Acknowledges to Academic Excellence, which will be aimed at encourage high academic performance of students at different levels of training.

Article 609.-Academic excellence as a criterion for evaluation in public merit and opposition competitions and in programmes of In the case of the European Commission, the European Commission has published a number of proposals for the implementation of the programme for the European Community in the field of education and training in the field of education and . have been creditors to a recognition of the Programme referred to in the previous Article.

Article 610.-Additional score in public procurement processes.- Natural and legal persons, suppliers of the State, who carry out expenses for the fourth level training of their Ecuadorian personnel or entities Recipients in dual-training academic programs, hiring scholarship recipients for at least one year, or performing higher education internships, will receive additional scores in the hiring processes set forth in the Law. Organic National Public Procurement System.

Article 611.-Incentives migration for professionals.- Through the regulation issued by the Human Mobility Authority, in coordination with the

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Secretariat of Higher Education, Science, Technology and Innovation, an abbreviated procedure will be established for the granting of labor authorizations and migration for foreign persons not based in the country, who wish to carry out work, scientific and academic mobility activities, having a professional qualification, at least a master's degree, or their equivalent, and relevant experience in areas of knowledge.

People living abroad will be able to participate in the competitions of merit and opposition for the entrance to the career of the researcher cientifi co and of the university research professor, from the country of residence. Institutions of higher education and national scientific research must have the necessary mechanisms to comply with this provision.

Article 612.-Incentives for the public purchase of works or services national.- On public procurement, priority must be given to products and services incorporating the national works or services specified in book III, Title II of this Code.

Section III Tax Incentives for strengthening

of human talent

Article 613.-Of the tax incentives.- The tax incentives for human talent are:

1. Deduction of one hundred per cent (100%) additional for the calculation of the taxable income tax base, for the securities intended for compensation to students in dual training and for higher education grants awarded by the the taxable persons. The maximum amount of additional deduction will be established by the tax administration in coordination with the Secretariat of Higher Education, Science, Technology and Innovation; and,

2. Deduction of one hundred per cent (100%) additional for the calculation of the taxable income tax base, of the costs incurred by way of salary of the tutors appointed for the dual training, by the taxable persons. The maximum amount of additional deduction will be up to the value corresponding to three comma five single-fi basic remunerations per guardian.

CHAPTER II OF INCENTIVES FOR RESEARCH

RESPONSIBLE

Section I Financial Incentives

Article 614.-Programs or development projects for research.- The Secretariat of Higher Education, Science, Technology and Innovation and other relevant public institutions

create and manage funding programmes or projects for people natural or legal or private legal entities, for the implementation of responsible research and technological development projects, in accordance with national needs and plans. These funds are not reimbursable.

Interdisciplinarity as well as transdisciplinarity, when applicable, and the production and management of knowledge in the network, will be factors evaluated by the institution for the allocation of eligible funds. Similarly, for the financing of those lines for scientific research projects, the importance of research must be considered according to the parameters to be established in the corresponding regulation.

When the result of the responsible research programmes or projects is obtained by obtaining products or services which are not susceptible to protection through the national intellectual property regime, the State may finance the protection of the same abroad.

The other criteria, mechanisms, areas and These are to be established by the Secretariat of Higher Education, Science, Technology and Innovation through the relevant regulations and bases, applicable for each funding program.

For those products or services resulting from research projects financed by the State, which are susceptible to protection under the patent system of invention, utility model or the registration of the layout, plant variety and design The State will be responsible for ten percent of its economic benefits. exploitation.

Section II Tax incentives for research

responsible

Article 615.-Tax incentives.- The tax incentives for responsible research are:

1. Percentage reduction of the income tax rate, when the taxable persons reinvest their profits in projects or programmes of scientific research responsible or technological development accredited by the Education Secretariat Superior, Science, Technology and Innovation, this applies only to the reinvested amount. In the case of the actors operating in a city of knowledge, the reduction will be ten percent; for the actors operating in other spaces of knowledge, the reduction will be eight percent; and, for the other actors, it will be six percent. percent;

2. Exoneration of the payment of income tax for taxable persons who are duly accredited to the Secretary of Higher Education,

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Science, Technology and Innovation, and conduct exclusive scientific research activities responsible for or technological development of In the case of the United States of America, the United States and the United States

America and the United States of America and the United States of America and the United States of America, the United States and the United States of America and the United States America,

United States and the United States of America. import of equipment and inputs to be used in the development of programmes, projects and Scientific research activities. The categories of exonerated goods will be determined by the Secretary of Higher Education, Science, Technology and Innovation.

Section III Administrative incentives for

responsible research

Article 616.-Preferential rate in telecommunications services.- The public institutions responsible for regulating the rates of telecommunications services, will establish in the spaces of knowledge generation tariffs preferential arrangements for the system's actors to carry out such activities spaces. For this fi n, the entity that regulates the rates of telecommunications services, will issue the corresponding regulation.

Article 617.-National Program of Acknowledges to Scientific Research Responsible.-The Secretariat for Higher Education, Science, Technology and Innovation, through the corresponding regulation, will formulate the National Program of Recognition to Scientific Research Responsible through awards, distinctions, and other recognitions which will aim to encourage research and technological development linked to increased productivity, productive diversification and the satisfaction of needs.

In the processes of categorization of researchers and programs of financing to the activities of the social economy of knowledge, creativity and innovation, an additional score will be given to those researchers or researchers who prove to have been creditors to a recognition of the Program mentioned in the previous paragraph.

III INCENTIVES FOR SOCIAL INNOVATION

SECTION I FINANCIAL INCENTIVES for social inoovation

Article 618.-Innovation promotion programs or projects.- The Secretariat of Higher Education, Science, Technology and Innovation and other competent public institutions will create and manage programmes or

projects, the beneficiaries of which shall be natural or public or private natural persons or legal persons, and whose aim is to promote or encourage total or partial financing of social innovation, in accordance with the needs and national planning.

The criteria, mechanisms, areas and areas to be funded will be established by the Secretariat of Higher Education, Science, Technology and Innovation through the relevant regulations and bases, applicable for each funding program.

Additionally, the Policy and Regulatory Board Monetary and Financial will establish lines of credit and other financial instruments for the financing of innovation.

Article 619.-From fostering to the formation of networks.- Public higher education institutions public research institutes will be able to transfer resources to In the case of research, research and innovation, research and innovation projects will be the subject of research, research and development, and research or innovation projects. The Secretariat of Higher Education, Science, Technology and Innovation will establish the instruments and procedures to ensure the joint work that exists between them through the corresponding Regulation.

For the evaluation of institutions of higher education, CEAACES should incorporate as one of the criteria, the constitution and the functioning of academic, research or innovation networks.

Article 620.-Capital financing programmes seed.- The Ecuadorian State will create programs of financing seed capital for the development of social innovation. The actors in the public, private, mixed, popular and supportive, cooperative, associative and community sectors may benefit from this funding.

The resources of these financial programs given their nature are high. loss possibilities which can be achieved up to all the investments made and must be considered as such by the regulatory and control entities.

The realisation of investments or donations with resources belonging to these programmes, not to modify the legal nature of the financial actors of the fi nancing, even if the participation of the seed capital funds is greater than fifty percent of the total amount invested or of the shares or units of the same.

If as a result of the program or project for the promotion of social innovation is launched an innovative entrepreneurship that will produce economic gains, the State will participate between 5% and 10% of the ownership and economic benefits of said

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entrepreneurship. The temporality and the way in which such participation of the State of the innovative enterprises that produce economic gains will be realized will be regulated according to the regulation that the Secretariat of Higher Education, Science, Technology and Innovation.

These resources will be used for the financing of new social innovation programs to ensure sustainability over time, in accordance with the regulations that the Secretariat of Higher Education, Science, Technology and Innovation dictates for the effect.

Article 621.-Funding programmes the Ecuadorian State will create programs of financing through risk capital for the development of social innovation, as well as it will be able to contribute in funds already existing, public or private, with this same fi n. The actors of the public, private, mixed, popular and supportive, cooperative, associative and community sectors may benefit from this funding.

The resources of these financial programs given their nature are high. the possibility of losses which can be achieved up to all the investments made and must be regarded as such by the regulatory and supervisory bodies. The implementation of investments or donations with resources belonging to these programmes will not change the legal nature of the financial actors of the financing, even if the participation of the seed capital funds is higher than the Fifty percent of the total amount invested or the shares/units of the same.

Article 622.-Regulation of financial incentives for social innovation.- The Secretariat of Higher Education, Science, Technology and Innovation and other public bodies, within the scope of their powers, will be issued technical and legal instruments establishing the appropriate conditions for the effective use of the resources provided for the purpose of financial incentives for social innovation, while respecting the rights of investors and innovators.

The benefit projects of these incentives must be accredited by the system's governing body, as determined in the respective regulations issued by the system.

Section II of the tax incentives for the innovation

social

Article 623.-Tax incentives.- Tax incentives for social innovation are:

1. Exoneration of the payment of the income tax advance, for taxable persons, who introduce innovative goods and services to the market.

This exemption shall apply during the first two financial periods not received Tax revenue.

The exemption from the income tax advance shall be only on the percentage of the expenses incurred by the taxable person in the process that produced the innovative good and provided that the undertaking has originated in an accredited incubator. This process will be established under the rules issued by the Secretary of Higher Education, Science, Technology and Innovation.

2. Exoneration of income tax on income earned by taxable persons who carry out exclusive activities of free digital technology that includes Ecuadorian aggregate value when the taxable person has registered to the respective license as set forth in this Code.

The taxable persons may benefit from this exemption for a maximum period of five years.

3. Exoneration of taxes on foreign trade in the import of equipment and inputs to be used in the development of innovative enterprises in accredited innovation spaces.

The respective regulations will support the parameters necessary for the application of this incentive.

Section III of the administrative incentives

for social innovation

Article 624.-Accreditation of the National System of Science, Technology, Innovation and Ancestral Knowledge for the issuance of marketable securities in the market - Secretariat of Higher Education, Science, Technology and Innovation, will issue a certificate for the System's actors to carry out social innovation activities, to participate as an issuer and to obtain financial financing in accordance with the the regulations provided for in the Law on the Market of Securities, through simplified mechanisms.

For the realization of this accreditation the Secretariat of Higher Education, Science, Technology and Innovation will have the collaboration of the Superintendence of Companies and Securities and other public and private institutions specialized as determined by the regulation to be issued by the said entity.

The certificate issued by the Secretariat of Higher Education, Science, Technology and Innovation will be considered as a requirement for authorization.

Article 625.-Issue of Securities.-

actors of the National System of Science, Technology, Innovation and Ancestral Knowledge activities of social innovation, for the constitution or increase of capital of companies anonymous, may do so by public subscription of shares through public offering on the stock market, as provided by the Companies Act and the Securities Market Act.

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In the case of small and medium-sized enterprises and organizations of the popular and solidarity economy, they will be able to participate through the segment REB stock market.

The debt securities issued by the National System of Science, Technology, Innovation and Ancestral Knowledge System actors that carry out social innovation activities can count on the guarantee of venture capital funds.

Article 626.-Simplifi health record for new products.-The governing body in health regulations will issue a simplified health registration process, which will allow initial sales of a new product before performing industrial production processes.

Article 627.-Score In addition to public procurement processes for entrepreneurs.- The enterprises that have been born of an accredited innovation space and that are providers of the State will receive additional scores in the procurement processes established in the Organic Law of the National Public Procurement System.

TITLE IV OF THE MONITORING AND TRANSPARENCY OF THE INCENTIVES ASSIGNED TO THE SYSTEM

NATIONAL OF SCIENCE, TECHNOLOGY, INNOVATION AND ANCESTRAL KNOWLEDGE

Article 628.-The monitoring and evaluation of tax incentives.- The assessment of compliance with the obligations assumed by the beneficiaries of the incentives, will be carried out by the Secretariat of Higher Education, Science, Technology and Innovation.

The competent tax and customs authorities, must send annually and semi-annually, in the cases it applies, to the Secretariat of Higher Education, Science, Technology and Innovation, a list of all the taxable persons who have applied to the incentives, in order for the institution to draw up a registered with this information.

The Secretary of Higher Education, Science, Technology and Innovation, together with the competent tax and customs authorities, in the cases it applies, may carry out checks to verify compliance with the criteria to be used in the application of the incentive. The relevant regulation shall set out the parameters for the implementation of this assessment. Any type of control should be later, agile and timely.

If the public benefit does not meet the established budgets to access the incentives, the Secretariat of Higher Education, Science, Technology and Innovation will analyze the (a) the seriousness of the non-compliance identified, shall initiate the adoption of the relevant procedures for the implementation of the relevant actions, without prejudice to the exercise of the powers of the competent tax and customs authorities.

GENERAL PROVISIONS

FIRST.- For the application The provisions of this Code will address the provisions of Article 425 of the Constitution of the Republic as well as international treaties signed by Ecuador.

SECOND.- The provisions laid down in this Code Code relating to intellectual property shall be applied in any way contrary to or contrary to the commitments made by Ecuador in the decisions of the Andean Community, in its status as a member country.

THIRD.- (a) public research institutes, universities with research and research, research and development, public enterprises whose main activity is related to scientific research, there will be incubators of technological base enterprises and technology transfer centers, according to the regulation that the Education Secretariat Superior, Science, Technology and Innovation dictate for the effect. The accredited transfer centers will have the same tax exemptions and deductions from those entities to which they are attached

FOURTH.-The scientific research projects that implemented by the entities of scientific research of the public sector, in terms of its prioritization, will be authorized exclusively by the Secretariat of Higher Education, Science, Technology and Innovation, without omitting the opinion of priority of public investment issued by the National Secretariat for Planning and Development. The technical statement of the Secretariat for Higher Education, Science, Technology and Innovation is binding for the issuance of the opinion. The annual investment plan of the public research institutes, as well as its restructuring, will have to be endorsed by the Secretariat of Higher Education, Science, Technology and Innovation.

institutions of higher education, where scientific research projects are funded from own resources, including the financial resources generated by the institutions, grants, internal and external credits, and come from non-reimbursable cooperation and from pre-allocations of income, will not be subject to First of this provision, nor will they need any authorization from any institution.

In accordance with Articles 355 and 357 of the Constitution of the Republic of Ecuador, Articles 80 and 163 of the Organic Code of Planning and Public Finance, and Articles 40, 41, 42 and 46 of the Monetary and Financial Organic Code, all generating actors and knowledge managers of a public nature and public institutions of the Higher Education System must apply for the creation of collecting accounts in the correspondent institutions of the Central Bank of Ecuador for the revenue generated by self-management of the Institution, and the creation of own current accounts in the Central Bank of Ecuador for the management of resources from self-management, external credits,

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Internal credits and international cooperation, the same as they will accumulate balances. The resources of these accounts may not be reorganized or intended for other purposes by the Ministry in charge of public finances. In the case of technological technical institutes, the application for the creation of collecting accounts and current accounts will be carried out only by the Secretariat of Higher Education, Science, Technology and Innovation, as well as its management. The application of this rule will observe the principle of gratuitousness of higher education established in the Constitution of the Republic and developed in the Organic Law of Higher Education.

The resources for self-management that are obtained by the productive activity of educational establishments constituted in educational units of production, can be managed through the collection accounts and the current accounts in the Central Bank of Ecuador, managed respectively by the national educational authority.

The collecting accounts and (a) the current financial institutions will be managed in accordance with the regulations issued by the governing body of public finances.

QUINTA.- The public research institutes cientifi, according to the corresponding budgetary availability, (a) to be employed by trainees who have made theses or research projects in such institutes. The Secretariat of Higher Education, Science, Technology and Innovation will establish the requirements and mechanisms of incorporation.

SIXTH.- The Regional Advisory Committees for the Planning of Higher Education, provided for in the Article 194 of the Organic Law of Higher Education, will function as a single collegiate body with the Regional Advisory Committees of the Planning of Higher Education, Science, Technology, Innovation and Ancestral Knowledge, therefore the Secondary legislation applicable shall be amended to comply with this provision.

SEVENTH.- Technology transfer centers created by higher education institutions will have guidance towards strengthening their sponsoring institution through innovation, technological development and other related activities. These centres, by decision of the higher academic body or the highest authority, as the case may be, may have administrative and financial autonomy.

Technology transfer centres of universities and schools polytechnics must transfer to the institution of higher education which constituted them, at the end of each financial year, all profits, surpluses or benefits obtained by their activities.

The tangible and intangible assets which manage or manage a technology transfer centre will be owned by the university or polytechnic school that constituted it, who will be able to dispose of them according to the institutional needs.

EIGHTH.- In the application of the rules of this Code, the principle of responsible autonomy will be observed and respected

NINTH.-

the present Code is referred to the international of which Ecuador is a party, it will be understood that all instruments are the instruments of the signed and raticted by Ecuador, especially those relating to human rights and human rights intellectual property.

DECIMAL.- In the formation of the National Advisory Committee on the Social Economy of Knowledge, Creativity, Innovation and Ancestral Knowledge as well as the Regional Advisory Committees of Planifi " Higher Education, Science, Technology, Innovation and Ancestral Knowledge, must ensure the participation of communities, peoples and nationalities.

TENTH first.-The State will progressively establish policies and strategies for the repatriation of the genetic heritage of Ecuador improperly appropriate for third parties, and will aim to achieve reparation for people who have been subjected to scientific experimentation through practices that violate human rights.

TENTH SECOND.- The codes of ethics and Bioethics issued or issued in the country must be coupled with the principles established in the Code of National Ethics.

The rules governing bioethics codes will be maintained in force in so far as they do not contradict this Code.

TENTH THIRD.- The Secretary of Higher Education, Science, Technology and Innovation provide the necessary technical support for the conformation and fulfillment of the authority of the instance for the assurance of ethics in the investigation at national level.

TENTH FOURTH.- public entities, subject to the protection of intellectual property rights, shall not be subject to the system of administration, use, management and control of public sector goods and stocks, with such entities being entrusted with the right use, maintenance and operation of the same, in accordance with the provisions

TENTH FIFTH.-

The National Institute of Statistics and Censuses will become the public research institute responsible for statistics and census studies.

DECIMAL Sixth.- The public companies whose object it allows, will be responsible for the acquisitions 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 goods whose sale and marketing is restricted by law or by provision of competent authority, and which are necessary for the activities of the competent authority.

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TENTH SEVENTH.- Natural or legal persons, national or foreign, holders of an intellectual property right, are obliged to exhaust all instances within the Ecuadorian jurisdiction, in relation to the acts and contracts it holds or subscribe to; and in respect of the resolution of disputes concerning the interpretation, application and execution of measures adopted by the regulatory and supervisory bodies, and on the enforcement of rights and obligations arising from the application of this Code or an international treaty.

TENTH EIGHTH.- If the infringement action will be in respect of a patent the object of which is a procedure for obtaining a product, it shall be for the defendant. prove that the procedure used to obtain the product is different from the procedure protected by the patent whose infringement is acknowledged. For these purposes, unless proof to the contrary, any identical product produced without the consent of the patent holder, is presumed to have been obtained by the patented procedure, if:

1. The product obtained with the Patented procedure is new; and,

2. There is a substantial possibility that the identical product has been manufactured by the procedure and the patent holder cannot establish by reasonable efforts which has been the procedure effectively used.

In the test presentation in contrary, the legitimate interests of the defendant in the protection of their business secrets will be taken into account.

TENTH NINTH.- Industrial property rights, plant variety rights and property rights derived from the copyright and related rights are deemed to be movable property exclusively for the establishment of levies on them. However, the prohibition to dispose of such rights may be decreed subject to the provisions of the Civil Code, General Organic Code of Processes, as well as its embargo and auction or sale in public auction.

20TH.- The balances The budget of the Member States of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament Next, if there is a commitment to be paid within the framework of the provisions of the Articles 116, 117 and 121 of the Organic Code of Planning and Public Finance, this value will be reintegrated to the corresponding university or polytechnic school by the Ministry of Finance with the purpose of fulfilling the obligations acquired.

Budget balances committed to the non-accrual committed value shall be understood.

The balances of the budgetary resources that do not correspond to an outstanding commitment shall be part of an allocation, the which will form a fund

for universities and public polytechnic schools, to fi -investment projects aimed at improving the quality of the higher education system. The resources generated by self-management, internal and external credits and those from international cooperation will not be part of this allocation, which will be reintegrated into the corresponding university or polytechnic school by the Ministry of Finance.

Budget resource balances shall be understood as the differential between the amount of the code and the amount committed.

For this purpose, at the beginning of each year the Ministry of Finance shall inform the Ministry of Finance Higher Education, Science, Technology and Innovation and the National Secretariat of Planifi (i) the amount of committed budget balances and balances of budgetary resources by discriminating against the source of the resources.

The Executive Function, through the competent body, will deliver to the institutions of higher education within the first half of the year corresponding to the resources assigned to them by way of the Reliquidation of Value Added Tax and Income Tax as allocations to the FOPEDEUPO, as well as budgetary balances that are must be reintegrated.

The background determined in the second paragraph of this article is As provided for in this Code and the corresponding regulation, the same shall be assigned in a sub-account of the National Treasury Single Account.

21ST.-Public institutions shall carry out a random control of their ex post assets to purchase, to verify that they do not suffer from programmed obsolescence.

For the purpose of applying this standard the set of techniques will be understood as programmed obsolescence which a manufacturer, importer or distributor of goods, in the creation or through the modified

public authorities responsible for public procurement in coordination with INEN will regulate the application of this

.

In cases where the existence of planned obsolescence is determined, suppliers of such goods will be prevented from contracting with the State on a permanent basis, without prejudice to civil liability and sanctions. administrative and criminal proceedings to which it has taken place in application of the Organic Law of Defence of the Consumer, the Organic Law of Control of the Market Power and the Penal Integral Organic Code, respectively.

The effects mentioned in the previous paragraph will be generated, when it is established, through the corresponding organs, that the Planned obsolescence in trade between individuals.

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TWENTIETH SECOND.- The State, through the Sectoral Ministry responsible for Culture, will establish programs for promotion, promotion, financing and dissemination of artistic production in accordance with the principles of this Code and other applicable laws, giving priority to independent and non-commercial production.

TWENTIETH THIRD.- Natural or legal persons in private law who receive public resources under the financial incentives provided for in the This code should be used with the aim of strengthening the social economy of knowledge, creativity and innovation. Their recruitment must observe the principles of science, efficiency, quality, technological validity, fair treatment, transparency, publicity, evaluation and planning, but they will not be subject to the rules and procedures applicable to the National Public Procurement System.

TWENTIETH FOURTH.- Public institutions will have to recycle their electronic waste through the services provided by companies that have the technical capacity in accordance with the rules laid down for this scheme.

Economic resources they are generated from the recycling of the electronic waste of public institutions, they must be destined for the financing of research projects in science, technology and innovation.

TWENTIETH FIFTH.- Investment contracts signed under the Organic Code of Production, Trade and Investment, will have to incorporate in the technology transfer as a parameter of application of the incentives established in the Law for the productive investment new.

TWENTIETH SIXTH.- Public entities and natural or legal persons private persons who have documents, genetic data, banks or files of personal data and reports on persons or on their property, will make available to the public through an information portal or web page the following Information and resources:

a) The rights that assist you with respect to the protection of your personal data, including the right to know the use made of such information, your fi nality, the origin and destination, and the time of validity of the file or database; and your rights to request the rectifying, deletion or cancellation of your data personal;

b) Detail of institutional policies and procedures for the protection of personal data privacy; and,

c) Online processing service of data queries and claims personal.

TWENTIETH SEVENTH.- Without prejudice to the exceptions provided for in law, the processing of personal data that includes such actions as the collection, systematization and storage of personal data, will require the prior and informed consent of the holder.

The authorisation of the holder shall not be required where the treatment is developed by a public institution and has a statistical or scientific nature; health or safety protection; or is carried out as part of a public policy of constitutional rights recognised. In this case, the measures leading to the removal of the identity of the holders must be taken. The DINARDAP may request that the personal data banks held by a private legal person be delivered to the DINARDAP with the purpose of complying with this Article.

They shall not be subject to the requirements of this Article:

a) The databases or files held in an exclusively personal or domestic scope;

b) The databases and files of journalistic information and other editorial content; and,

c) The bases that contain data that may be used for the privacy of persons such as those who disclose the political orientation, religious convictions or fi losofi cas, membership of political or social organizations.

TWENTIETH EIGHTH.-In order to strengthen national capacities for technology transfer, the work In the course of the courses or academic programs taught by higher education institutions, they may consist in the reproduction or in the search for a second use of patents.

TWENTIETH NINTH.- For the use of the State funds for the financing of risk capital, funds shall be provided Investment and financial investment collectives that may invest in and out of the stock market or contribute to existing funds, in accordance with the Securities Market Act.

30TH.- The institutions of the sector The public will be awarded a compulsory commission of services with remuneration to the public servants of the race who are accepted to pursue fourth-level academic programs at the Institute of Higher National Studies. Such remuneration services commission shall be granted for as long as the institution of higher education certifies that over the duration of the regular academic program.

30TH FIRST.- The institution of the National System of Science, Technology, Innovation and Ancestral Knowledge as well as other public entities that are part of the system, will progressively propose to decrease and eliminate the duplication of unnecessary requirements and activities, with the (i) the fact that the citizen is able to have access to an agile and efficient way of services public.

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Likewise, you must ensure that the programs and projects to be created to access the benefits set forth in this Code, thus as the other administrative procedures established in this legal instrument, are executed under the principles of simplicity, economics, legality, speed, presumption of veracity, responsibility for information, privacy of the information personnel, transparency, privilege of subsequent controls, informalism, principle

30TH SECOND.

Secretariat of Higher Education, Science, Technology and Innovation, will continue to maintain the academic, financial and administrative rectory of the institutes and (i) the provision of the quotas to be reported by these institutions in the National System of Admission and Level of all technical and technological careers. which are registered in the database of the Higher Education Council with status.

THIRTIETH THIRD.- Exceptionally, the related parties established in the literals (a) and (b) of Article 161 of the Organic Law of Higher Education may hold positions of legal representatives, directors, managers, managers, senior executives or senior positions or similar hierarchy of legal persons created by higher education institutions whose purpose is responsible research, technological development, innovation social, habitat of innovative enterprises, incubation of innovative enterprises o acceleration of innovative enterprises.

30TH FOURTH.- The Board of Higher Education has defended a percentage of the FOPEDEUPO which will be used for the financing of postgraduate scholarships in public higher education institutions. country, duly accredited, provided that the free of charge is guaranteed in the undergraduate.

These funds will be accredited in the corresponding accounts of each institution by the governing body of the public funds on the basis of the awarded scholarships by the governing body of the government's scholarship policy, depending on the cost per program per student established by the Secretariat of Higher Education, Science, Technology and Innovation.

The public resources of the percentage indicated in the first subparagraph, which during the financial year are not used, shall be allocated to the Undergraduate nancing in higher education institutions.

TRANSIENT provisions

FIRST.- Until the Secretary of Higher Education, Science, Technology and Innovation issues the respective standard for the certification of receiving entities for dual training, such training may continue running without the need for this certificate.

SECOND.-The professional qualification of the professional qualifications will be implemented progressively, according to the deadlines established by the competent authority.

THIRD.- The Ecuadorian Institute of Intellectual Property, as well as all the institutionality created by the Law on Intellectual Property, published in the Supplement to the Register Ofi cial No. 426 of December 28, 2006, will exist until it is established by the corresponding Executive Decree, the new authority National competent in the field of intellectual rights, responsible for the regulation, management and control of intellectual and traditional knowledge, belonging to the Executive Function and attached to the Secretariat of Education Superior, Science, Technology and Innovation, within a time limit that may not exceed 90 days counted from the time of this Code.

Likewise, all the provisions and functions attributed in this Code to the new national authority In the field of intellectual rights, until its formation, they will continue to be exercised by the Ecuadorian Intellectual Property Institute, through the various organs that make up it.

Regarding procedures that are being substantiated under the Law on Intellectual Property, they will follow the procedure and terms set out in that Act. However, those procedures that begin to be substantiated from the validity and promulgation of this Code shall be performed in accordance with the rules established in this legal body, in which it is not normally found, the Law on Intellectual Property and other regulations, while issuing the respective regulations.

The new national authority responsible for intellectual rights, which will be the successor in law of the Institute Ecuadorian Intellectual Property, assuming the patrimony, budget, rights and obligations including employment, in accordance with the arrangements applicable to each case.

In order to comply with this provision, within two years, the national authority responsible for intellectual rights shall carry out a the process of evaluation, selection and rationalisation of human talent, so that, in the light of the new structure, unnecessary posts may be removed or that the existing perfi will be in line with the institutional needs; compliance with the provisions laid down in the Public Service Organic Law, implementing regulation, Labour Code, General Regulation to this code and other current regulations.

The holder of the national competent authority in the field of rights is empowered, in accordance with the legal system (a) the intellectual property of the intellectual property of the national authority responsible for the management of the national authority responsible for intellectual property rights

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FOURTH.- Technology Transfer Centers created by recognized universities, polytechnic schools, higher institutes, and technology legally, which are currently operating, must be registered or accredited in accordance with the rules and deadlines established by the Secretariat of Higher Education, Science, Technology and Innovation.

issue the regulations governing the Transfer Centres, the same will be kept under the provisions contained in the Law of Centres for Transfer and Development of Technologies, published in the Supplement to the Register Ofi cial 319 of 16 November 1999.

QUINTA.- The obligation of public and private universities and polytechnic schools to make available free and free access to the academic community wireless Internet access throughout the area of their venues and extensions, as well as the decentralised autonomous governments which are required to make available free and free access to wireless Internet access in public spaces of mass competition for leisure and entertainment must be progressively fulfilled. within one year of the promulgation of this Code, which may be extended by a only for a year, for duly justified causes by the applicant, for which the Secretary of Higher Education, Science, Technology and Innovation will issue the respective resolution.

SIXTH.-All records of qualifications professional qualifications will become part of the public register of professional qualifications which for the effect will maintain the competent public authority.

SEVENTH.- The intervention polygon of the City of Knowledge "Yachay" will be made up of the declared public utilities for the effect and considered in the city's master plan.

The Directory of the YACHAY EP Public Enterprise will approve the City of Knowledge Master Plan.

EIGHTH.- The Executive Directors of each Public Institute Investigation, shall be within five years from the time of the present regulatory body, to comply with the requirements set out in Article 25 of this Code.

NINTH.- The procedures established in respect of the accreditation, categorisation, career, registration and registration of the scientific researcher who is they will be in execution, they will be valid in all that they do not oppose this Code and the regulations issued by the Secretary of Higher Education, Science, Technology and Innovation.

DECIMAL.- In the maximum period of six months counted from the entry into force of this Code, public institutions, institutions of higher education, public and private, public research institutes and institutes, which have information concerning

traditional knowledge in your files, will refer all relevant documentation to the Secretary of Higher Education, Science, Technology and Innovation, in order to consolidate and register the same as within the National System of Science, Technology, Innovation and Traditional Knowledge Information.

DECIMAL FIRST.- The Secretariat of Higher Education, Science, Technology and Innovation and the National Environmental Authority, within three hundred and sixty-five days, will harmonize the protocols for granting authorizations for access to biological, genetic resources and their derived products.

TENTH SECOND.- Any right of validly acquired distinctive signs consisting in the name of the indigenous, African-American or local peoples, nationalities and communities, or the names, words, letters, characters or signs used for distinguishing their products, services or the way they are processed, or which constitute the expression of their culture or practice or the name of their traditional knowledge, shall be governed by the provisions in force at the date of their granting, as the previous national legislation.

TENTH THIRD.-Required institutions The use of free software shall, within 180 days, design a migration plan in accordance with the criteria laid down in Article 145. Such institutions shall have a period of up to five years for their execution.

TENTH FOURTH.- Any intellectual property right validly granted under national law prior to this code shall be governed by the laws of the provisions in force on the date of their granting, except in respect of the term of validity, in which case the pre-existing intellectual property rights shall conform to the provisions of this code.

Regarding the use, enjoyment, obligations, licences, renewals and extensions shall apply the rules contained in this Code.

For the case of pending procedures, this Code will govern in the stages that have not yet been fulfilled to the date of its entry into force.

TENTH QUIN.- Until the Secretary of Higher Education, Science, Technology and Innovation will implement the process of accreditation of scientific researchers, scientific research entities, as well as public or private entities carrying out business incubation activities. innovators, acceleration and habitat for innovative companies and technology transfer, will be able to participate In obtaining the incentives set out in Book IV of this Code.

The Secretariat of Higher Education, Science, Technology and Innovation will establish the transitional requirements for obtaining such incentives. In case a

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natural or legal person has obtained incentives and is subsequently not accredited by the Secretary of Higher Education, Science, Technology and Innovation, you should not return any of the incentives granted, however you will not be able to participate in obtaining incentives until you meet the accreditation requirement.

TENTH SIXTH.- Until the Secretary of Higher Education, Science, Technology and Innovation implements the process of accreditation, the accreditation carried out by the Board of Evaluation, Assurance and Accreditation of Higher Education will be valid for universities and polytechnic schools for the application of the incentives contemplated in the present Code.

TENTH SEVENTH.- The pre-assignment for the National System of Science, Technology, Innovation and Ancestral Knowledge will govern from the fifth year of the current Code. During this period the Central Government will gradually comply with its financing.

TENTH EIGHTH.- The entity charged with establishing the tariffs, within one hundred and eighty days will issue the relevant rules to make the exemption of taxes on foreign trade in the importation of equipment and inputs to be used in the development of scientific research projects

TENTH NINTH.- As of the validity of this Code, the 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 the purpose, once the present Organic Code has been issued, the University of the Arts will present the respective files of creation of each seat to the Board of Higher Education, fulfilling the provisions of the Regulation of Creation of Headquarters, Extensions and Academic Units of the Universities and Polytechnic Schools.

The process of certification of technologies will continue to be carried out by such Public Higher Conservatories, until the Board of Higher Education issues the resolution of the creation of the University of the Arts headquarters.

Once the Council of Higher Education issues the approval of the creation of the venues, the University of the Arts will assume the offer of quotas of the current technological careers of the Public Conservatories until in those races it is approved of its redesign as a bachelor's degree from the Board of Higher Education.

The academic staff and the administrative public servants who were providing their services with appointment to the Higher Conservatories of Music and Arts will pass on to be part of the University of the Arts, retaining all the rights established in the law, provided that they comply with the requirements laid down in the Organic Law of Higher Education and Organic Law of the Public Service, and other applicable regulations according to

corresponds. A period of three years shall be granted from the entry into force of this Code for the academic staff of appointment to obtain the title of fourth level, as established by the Organic Law of Higher Education and the Organic Law of the Public Service.

The servers under the contract modality of occasional services that were working in the Superior Conservatories of Music and Arts, will be able to become part of the University of the Arts according to the institutional needs and interests.

The heritage of the Higher Conservatories of Music and Arts, will become part of the heritage of the University of the Arts.

In any case, the heritage, teachers and administrative staff of the Conservatories: National Music of the City of Quito, J ose Maria Rodriguez of the city of Cuenca, and Bustamante Celi of the city of Loja on their average level will maintain their current legal regime.

In the evaluation processes of the University of the Arts, in the first five years of operation, CEAACES should not consider their extensions referred to in the preceding paragraph, the time limit may be extended by the CEAACES by a

20TH.- The Board of Higher Education will establish the mechanisms to ensure the continuity of studies of people who have started careers in the Conservatories that will pass to be part of the University of the Arts prior to the validity of this Code, it will also establish a plan of transition from technological technical to the third level.

TWENTIETH FIRST.- The governing body of the National System Public Procurement, in coordination with the Secretariat of Higher Education, Science, Technology and Innovation, will issue relevant resolutions to set the recommended rating parameters for the implementation of additional point incentives in public procurement processes.

20TH SECOND.- The Executive Function will have a period of one hundred and eighty days for the issuance of the General Regulation of this Code. In addition, the implementing regulations must be issued within three hundred and sixty-five days, which may be extended for an equal period and for one time only.

TWENTIETH THIRD.- For compliance with the provision Article 124 of the Organic Law of Higher Education (Codifi cada), concerning the responsibility of providing to those who graduate from any of the races or programs the domain of a language other than the mother, is granted to the higher technical, technological, pedagogical, arts and conservatory institutes the period of five years from the date of validity of this Code. This provision may be applied in a progressive manner to the effective implementation of that provision.

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REFORM PROVISIONS

FIRST.-Reform in the Internal Tax Regime Organic Law, the following:

1.1.- A continuation of Article 9 (20), incorporate the following numbers:

"21) The income earned by the taxable persons duly accredited to the Secretariat of Higher Education, Science, Technology and Innovation, which carry out exclusive activities of scientific research responsible in a manner In the case of the United States of America, the United States and the United States have made a substantial increase in the amount of the funds allocated to them.

1.2.- Replace Article 10, the phrase " (...) Deductions.-In general, for the purpose of determining the taxable base subject to this tax, the expenses incurred for the purpose of obtaining, maintaining and improving the Ecuadorian source income that is not exempt (...) ", as follows:

"(...) Deductions.- In general, for the purpose of determining the taxable amount subject to this tax, the expenses and investments that are made with the tax will be deducted. purpose of obtaining, maintaining and improving the income of Ecuadorian sources that are not exempt (...) "

1.3.- Following Article 10 (18), incorporate the following numerals:

"19) An additional one hundred percent will be deducted for the calculation of the taxable income tax base, the values intended for the compensation of students in dual training and for education grants, by taxable persons duly accredited by the competent authorities registered with the Secretariat of Higher Education, Science, Technology and Innovation, as receiving entities according to the case. The regulation will lay down the technical and formal parameters, which must be met in order to access this additional deduction. (553.1)

20) An additional one hundred per cent shall be deducted for the calculation of the taxable income tax base, the values for salaries, wages and salaries in general; social benefits; and participation of workers in the utilities, which are carried out to the tutors designated for dual training, by the taxable persons duly accredited by the competent authorities registered with the Secretary of Education Superior, Science, Technology and Innovation, as receiving entities according to the case. The regulation will lay down the technical and formal parameters, which must be met in order to access this additional deduction. "

1.4.- Following Article 37 add the following article:

" Article 37.1.-Reduction of income tax rate for responsible and sustainable economic development of science, technology and innovation.- The taxable persons reinvesting their profits, in Ecuador, in projects or programs of scientific research responsible or technological development accredited by the Secretariat of Higher Education, Science, Technology and Innovation will have a percentage reduction of ten per cent when they operate in a territory of knowledge, eight percent when it is in other spaces of knowledge and six percent for the other actors. This applies only to the reinvested amount, under the conditions laid down in the regulation to this Code. "

1.5.- Following the literal (o) of Article 41, add the following letter:

p) Exoneration of the payment of the income tax advance, for taxable persons, that introduce innovative goods to the market in processes duly accredited by the Secretariat of Higher Education, Science, Technology and Innovation from accredited incubators. This incentive will apply only during the first two financial periods in which they do not receive taxed income.

1.6.- Following Article 9.3, incorporate the following:

9.4.-Exoneration of income tax of the income obtained by taxable persons who carry out exclusive activities of any free digital technology that includes Ecuadorian aggregate value, provided that the taxable person has registered the respective license as established in this Code.

The taxable persons may benefit from this exemption for a maximum period of five years. The respective regulations defend the parameters necessary for the application of this incentive.

SECOND.- Reform in the Organic Code of Production, Trade and Investments, the following:

2.1.- (m) of Article 125 of the Organic Code of Production, Trade and Investments, add the following:

"n) Equipment and elements to be used exclusively in the development of research or social innovation projects, by natural or legal persons, private or mixed, cooperative, associative or community, national or foreign nationals who are duly accredited to the Secretariat of Higher Education, Science, Technology and Innovation.

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The same benefit applies to natural and legal persons making donations of these imported goods to researchers, institutes of research, technological development centres, and passive subjects dedicated exclusively to social innovation activities, recognised by the Secretariat for Higher Education, Science, Technology and Innovation. "

2.2.- Substitute in Article 46, the phrase "... with the exemption from the payment of duties of foreign goods entering these zones, for the fulfillment of authorized processes ...", by the following:

" (...) with exemption from payment of taxes on foreign trade except fees for customs services, foreign goods entering such areas, for compliance with authorised processes (...) "

2.3.- Article 43 of the Organic Code of Production, Trade and Investments:

"Except for this prohibition to the administrators and operators of the special economic development zones of the technological type, in the case of public sector entities."

2.4.- Substitute the literal c) of the Article 54 by the following:

" (...) Authorize the creation and monitoring of the development of specialized infrastructure in this field, such as: development centers MSMEs and others that is required to promote, facilitate and promote the productive development of these enterprises in accordance with the relevant laws of each sector; "

2.5.- Add the following General Disposition:

" EIGHTH.- The governing body of the telecommunications and information society policies will be responsible for defending economic activities related to the information and communications technologies, software applied among others to be subject to the incentives present in this Code, as specified in the number two point two of the second provision of the Organic Code of the Social Economy of Knowledge, Creativity of Innovation. "

THIRD.- Reform in the Organic Law of the National Public Procurement System, the following:

3.1.- Following the 8 of Article 1, add the following paragraph:

" Excluded from this law, the contracting of services and acquisition of goods by the actors of the National System of Science, Technology, Innovation and Ancestral Knowledge, duly

accredited, which have been acquired with resources from public risk capital funds or public seed capital. '

FOURTH.- Reform in the Territorial Organization, Autonomy, and Decentralization Organic Code:

4.1.- Undo the literal f) in article 32.

4.2.- Following the literal m) of Article 42 of the Organic Code of Territorial Organization, Autonomy and Decentralization, add the following literal:

"n) Determine the research policies and innovation in the knowledge, development and transfer of technologies needed for provincial development, in the framework of the national plan. "

QUINTA.- Reform where you say: "Ecuadorian Institute of Intellectual Property" by "Secretary of Higher Education, Science, Technology and Innovation", in the formation of collegiate bodies established in the current norms.

SIXTH.- Reform in the Organic Law of Higher Education, the following:

6.1.- Replace in the Organic Law of Higher Education where you say Law on Intellectual Property, for the following:

" (...) Organic Social Economy of Knowledge, Creativity and Innovation (...) "

6.2.- Replace item 117, by the following:

"Art. 117.- Typologia of universities and polytechnic schools.-The universities and polytechnic schools will be classified according to the scope of the academic activities they perform, being that the same may be institutions of teaching with research or teaching institutions. Depending on the typology, it will be established which types of careers or programs each of these institutions will be able to offer, without prejudice to the fact that only the universities of teaching with research will be able to offer academic degrees of PhD or their equivalent. ".

6.3.-Add to article 65, the following :

" In the case of technical, technological, pedagogical, arts and conservatory institutes, created by a polytechnic university or school, to the be a academic unit of such higher education institutions, their governing authorities shall be appointed by the highest academic body or by the rector of the polytechnic university or university to which they belong, as set the respective status."

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6.4.- Replace the text of Article 124 with the following:

"Article 124.- Values and Rights Training.-It is the responsibility of the institutions of higher education to provide to those who graduate from any of the careers or programs, the effective knowledge of their duties and citizens ' rights and of the socioeconomic, cultural and ecological reality of the country; the domain of a language other than the mother tongue and the effective management of computer tools. "

6.5.- Replace the text of the general provision sixth by the following:

Sixth.-Higher education institutions may have offices and extensions only in those provinces in which they do not exist. public academic offer or in those provinces in which, according to the needs of the country and in a motivated manner, the Council of Higher Education regulates it. "

6.6.-Replace the text in Article 36 with the following:

"Art. 36.-Allocation of resources for publications, scholarships for teachers or teachers and research.- Public and private universities and polytechnic schools will make compulsory allocation in their budgets to implement Research projects, acquire technological infrastructure, publish in high impact indexed journals, grant doctoral scholarships to their teachers and pay for patents.

At universities and polytechnic teaching schools this allocation shall be at least 6% and in the case of research at least 10% of their budgets. "

6.7.- Replace the text in item 77 with the following:

"Art. 77.-Grants and financial assistance.- The institutions of higher education shall establish full scholarship programmes or their equivalent in economic aid which support in their schooling at least 10% of the number of regular students, in any of the levels of education of higher education.

It will be beneficial for those who do not have sufi economic resources, regular students with high average and academic distinction, high performance athletes which represent the country in international events, provided they demonstrate levels of academic performance regulated by each institution and the disabled. "

6.8.- Replace the text of the second paragraph of Article 70 with the following:

" Teachers or teachers, teachers, researchers or researchers, laboratory technicians, teaching assistants and others

Designations of use in public institutions of higher education are public servants subject to their own regime which will be covered by the Career and Escalation Regulations of the Professor and Investigator of the System of Higher education, which will establish the rules governing income, promotion, stability, evaluation, improvement, remuneration scales, institutional strengthening, retirement and cessation. The provisions of the Labour Code shall be observed in the institutions of higher education. "

6.9.- Replace the text of Article 174 (k) literal with the following:

" k) Grant certificates of institutional accreditation as well as programs and careers, to higher education institutions and units (a) academic qualifications which have met all the conditions required for this purpose. The validity of this certificate shall be at least three years. '

6.10.- Replace the number 9 in Article 109 by the following:

9. For the creation of universities or public polytechnic schools, the certification of the Ministry of Economy and Finance for the creation of the corresponding budget item to guarantee its financing.

6.11.-Replace the final item of article 148 by the following text:

" The modalities and the amount of the participation shall be established for each institution of the System of Higher Education in accordance with the provisions established in the Organic Code of the Social Economy of Knowledge, Creativity and Innovation and in the exercise of its responsible autonomy. "

6.12.- Replace the text in Article 95 with the following:

"Art. 95.-Accreditation.- Accreditation is a validation by the Board of Evaluation, Accreditation and Assurance of Quality of Higher Education, to certify the quality of higher education institutions, of a career or educational program, based on a prior evaluation.

Accreditation is the product of a rigorous assessment of the compliance with international standards, standards and quality criteria, to careers, programs, The Council of Ministers will be responsible for the implementation of the Evaluation, Accreditation and Assurance of Quality of Higher Education.

The procedure includes a self-assessment of the institution itself, as well as an external evaluation by a team of expert peers, who in turn they must be accredited periodically.

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The Board of Evaluation, Accreditation and Quality Assurance of Higher Education is the body responsible for securing the quality of higher education, its decisions in this field require all the organizations and institutions that make up the Higher Education System of Ecuador.

The validity of the accreditation will be at least three years.

6.13.- Replace the first paragraph of item 26 with the following:

" For use Funds which do not come from the State, the universities and private polytechnic schools shall be subject to the respective internal regulations approved by the higher academic collegiate body and their control shall be subject to the mechanisms established by the the Board of Higher Education. "

6.14.-Add to the end of the first paragraph of Article 27 the following:

" Additionally the private higher education institutions will provide the information required by the Internal Revenue Service, in the field of of its powers, in accordance with the conditions and requirements established by this entity.

The Board of Higher Education and the Internal Revenue Service shall carry out a coordinated work to ensure compliance with the prohibition "profit in the institutions of higher education".

6.15.- Replace article 34 with the following:

"Art. 34.-Indebtedness of higher education institutions.- Public higher education institutions can contract public debt by complying with the provisions of the Constitution and the corresponding Law. Debt can only be used for investment programs and projects, for infrastructure and equipment, with quality improvement criteria.

Private higher education institutions can contract public or private debt in compliance with the provisions of the constitution and the relevant law. "

6.16.-Add to the end of the second paragraph of Article 39 the following:

" Related parties, as set out in Article 161 of this Law, may not hold positions of legal representatives, directors, managers, administrators, senior executives or senior positions or similar hierarchy in the legal entities created, nor may they be holders of the social capital or the own funds of the legal persons created.

Proven non-compliance of this provision, the Board of Higher Education may apply one or more of the "."

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..........................................................................

institutional heritage. The Board of Higher Education will verify its strict compliance.

Proven non-compliance with this provision, the Board of Higher Education, may apply one or more of the penalties provided for in Article 161 of this Law.

The sanction does not exempt the institution of higher education from the obligation to allocate surpluses to increase its institutional patrimony. "

6.18- Replace Article 161 by the following:

"Art. 161.-Prohibition of profit.- The institutions of the higher education system shall not have a financial profit as provided for in the Constitution of the Republic of Ecuador; this character shall be guaranteed and assured by the Board of Higher Education.

Institutions of higher education may not engage in contracts, agreements or transactions with legal persons domiciled, incorporated or located in the legal havens or jurisdictions with lower taxation, with the exception of directly related to the higher education financial institutions set out in this Law.

Additionally, higher education institutions will not be able to perform acts, contracts, conventions, or related party operations.

Related parts will be considered:

a) The promoters, rector or rector, vice-chancellor or vice-chancellor, academic authorities, director or chief financial officer or positions of senior or similar hierarchy.

b) Integrants of the higher academic collegiate body.

c) The spouses, those who maintain union in fact or relatives within the fourth degree of consanguinity or second degree of the persons referred to in the preceding numerals.

d) Legal persons, national or foreign, in which the persons referred to in the preceding literals are, directly or indirectly, legal representatives, founders, associate members, directors, managers, administrators, top executives, or top or similar hierarchy.

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e) Legal persons, national or foreign, in which the persons referred to in the literals a, b and c, directly or indirectly, are holders of at least twenty-five percent (25%) of equity or equity capital.

Proven non-compliance, the Board of Higher Education, considering the amount of contracts, agreements or transactions, may apply one or more of the following: the following sanctions, in proportion to the infringement, to the institutions which violate or Against these prohibitions:

1. Economic penalty of up to ten percent (10%) of the institution's annual income.

2. Suspension of the delivery of public resources.

3. Loss of tax exemptions and benefits for a period of five years.

In such cases the Board of Higher Education may provide that the institution will decrease or not increase the duties, fees and fees up to for a period of five years.

Without prejudice to the penalties laid down in the preceding numerals, the Board of Higher Education may apply one or more of the following penalties, in proportion to the infringement, to persons natural established in the literals a and b of this article that do not comply with these prohibitions:

1. An economic fine of up to ten percent (10%) of the amount of contracts, agreements, or transactions.

2. Immediate removal from office.

3. Disabling up to ten (10) years to pursue public office, membership of the higher academic collegiate body, authority in the higher education system, and to promote the creation of an institution of higher education.

values collected by way of economic fine will be used for the award of higher education scholarships for students of limited economic resources, through the governing body of the national government's scholarship policy. "

6.19.- Add the following literal w) of article 169, the following literal:

x) Fisicalize, monitor, control, investigate, and normalize the compliance of the profit prohibition in the institutions higher education and sanction the institutions and those who violate or violate this prohibition, without prejudice to the powers and powers of the other State agencies. "

6.20.- Include the following General Disposition:

"TENTH SECOND.- The highest monthly remuneration of the firstauthorities of the particular higher education institutions shall be regulated by the Council of Higher education on the basis of the financial remuneration for the academic staff at level 1 and the minimum remuneration established for other employees of the institution.

The first authorities, as well as the staff academic, and the servers and workers hired under dependency ratio, must The first authorities of the institutions of higher education and the members of the higher academic collegiate body shall be required to be in charge of social security for all the securities received for their services.

to submit, at the beginning and the end of their management, a sworn statement in respect of their assets and their participation in national or foreign legal persons, in accordance with the requirements laid down by the Board of Higher Education, The contrary shall apply to the penalty provided for in Art. 204 of this Law. "

6.21.- Include the following Transient Disposition:

"TWENTIETH.- The particular higher education institutions and their authorities must comply with the obligations laid down in the provisions (a) the reform of Articles 39 and 161 within a period of one year from the date of its publication in the Official Register. '

6.22.-Add article 97 to the following text:

" The accreditation of institutions, careers or programs that are academically classified or obtain a category that does not comply with the guidelines, criteria, and standards of international quality, may be revoked by the Board of Evaluation, Accreditation and Assurance of Quality of Higher Education. "

6.23.- Include the following General Disposition:

"TENTH THIRD.- The Board of Higher Education will establish regulation to ensure higher education trajectories that allow for the proper transition and (a) transit from the higher technical or technological level, to the third and fourth level, as well as between the different institutions of higher education. "

6.24.- Include the following General Disposition:

"TENTH FOURTH.- The Board of Higher Education shall regulate the transfers made by higher education institutions by subscription or Membership of international networks. "

SEVENTH.- Reform in the Real Estate Brokers Act, the following:

112- Friday, December 9, 2016 Supplement-Ofi cial Registration No. 899

7.1.- Article 3 literal c) the phrase " and obtain the corresponding certificate from the Ministry of Education, according to the ".

7.2.-Repeal Article 9.

EIGHTH.- Reform in the Public Service Organic Law, the following:

8.1.- Replace item 28 literal (b), by the following text:

"b) With subject to institutional needs and interests, subject to the authorisation of the appointing authority, to carry out regular post-graduate studies in higher education institutions for the duration of the academic programme, provided that the server or server has served at least two years of service in the institution where works;"

8.2.-Add after the item 65 to the next indent:

" During the califing of merit and oppositions contests, an additional score will be given to the applicants who demonstrate have been creditors to a recognition within the National Program of Recognition of Academic Excellence ".

8.3.- Replace article 84, by the following:

". 84.-Teaching career.- The teaching staff at all levels and modalities will enjoy stability, updating, continuing training, pedagogical and academic improvement, will receive a fair remuneration according to the professionalization, performance and academic merit. They will be subject to the Teaching Career and the Magisterium Law. As well as the professors and researchers of the universities that will be governed by the Law of Higher Education, according to the provisions of Article 355 of the Constitution. "

8.4.-Replace the last paragraph of Article 30 with the following text:

" For meetings, conferences, internships, and observation visits abroad or in the country, which will benefit the Public Administration, Commission of services for up to two years, after favourable opinion of the unit of administration of the human talent, provided that the server or server has completed a year of service in the institution where it works. This benefit may also be granted for the carrying out of regular post-graduate studies for the duration of the study programme.

Once the service commission has been completed, the server or server must provide its services. services for public administration for a period of not less than that of the duration of the secondment. "

NINTH.- Reform in the Organic Law of Regulation and Control of Market Power, the following:

9.1.- Replace the rule d) to know and resolve on the violation of business secrets established in the Article 27 number 7 of the Organic Law on Regulation and Control of Market Power, as follows:

d) The activity relating to the approval of the placing on the market of products of any nature by a competent public authority in The execution of its legal mandate does not imply an unfair commercial use

DECIMAL.- Reform in the Organic Law of Intercultural Education, the following:

10.1.- Agreguese after the fourth general arrangement the following:

"TENTH FIFTH.- The Technical Craft Colleges PCEI, and the Educational Unit In the case of small-scale training, they will be able to offer the level of complementary technical-productive baccalaureate, according to the standards and curricula advocated by the National Educational Authority. They may receive baccalaureate baccalaureate baccalauréat unifi cado tecnical and constitute educational units of production. '

10.2.- Agreguese after the general disposition tenth fifth the following:

"TENTH SIXTH.- Students who have completed their educational training in the" Technical Productive Baccalaureate " modality and 'Artistic baccalaureate' shall be certified by the national system of professional qualifications in accordance with the national system of professional qualifications. '

10.3.-Add the following text to the seventh general provision the following text:

Until the National Education System has the sufficient number of teachers in the areas of aesthetic and artistic training, they will be able to To enter the public educational career, in the corresponding category, the Baccalaureate students who accredit experience in artistic teaching at the level of Basic Education, Baccalaureate, Conservatory or Artistic Institutes. They will be able to exercise their teaching in any educational center of the country, urban or rural, and will be extended an interim appointment for six years, in which period they will have to obtain a professional teaching degree. The provisional appointment will be revoked for the Baccaleres who do not obtain their professional title in this period.

The State will establish agreements with higher education institutions to facilitate their professionalization. "

TENTH FIRST.- Reform in the General Organic Code of Processes, the following:

Friday, December 9, 2016-113Registration Ofi cial Nº 899-Supplement

11.1.- Add the following article 133 below:

"Article (...).- Preventive Providencies in the field of intellectual property.-In order to prevent the infringement of intellectual property rights from occurring or continue, or to prevent goods from entering commercial circuits, including imported goods, or to preserve the relevant evidence related to the alleged infringement, the civil judge to request from party and prior favourable report of the competent authority on Intellectual Property, may arrange for the adoption of the following preventive providences:

a) The immediate cessation of the activity that constitutes the alleged violation, which will comprise:

1. The suspension of the offending activity or the prohibition against the offender to resume it, or both;

2. The provisional closure of the premises or establishment, which will necessarily be issued when the infringing goods or illicit copies constitute a substantial part of the habitual trade of the infringer;

3. The withdrawal of trade in goods, illicit 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) Abduction or retention; the same as may be ordered on goods to ensure payment of compensation, on products or goods that violate rights of intellectual property, as well as equipment, apparatus and means used for commit the infringement and on the original copies that have served for the reproduction or communication.

The main complaint for this type of action, shall be initiated before the competent Civil Judge by summary procedure, according to the to the provisions of this Code.

TENTH SECOND.- Reform the laws of creation of the University of Experimental Research Yachay, Regional Amazonian University Ikiam, National University of Education UNAE, University of the Arts.

12.1.- Substitute the Sixth Transitional Provision, constant in all these laws, by the following text:

SIXTH.- This institution of higher education will participate in the distribution of the Permanent Fund of University and Polytechnic Development (FOPEDEUPO). The Board of Higher Education defi nira a formula of transitional distribution of resources adjusted to the level of development of this University.

TENTH THIRD.- Reform in all legal and regulatory provisions "Law of Intellectual Property" for "Organic Code of the Social Economy of Knowledge, Creativity and Innovation".

TENTH FOURTH.- Reform the Organic Law of the Special Regime of the Province of the Galapagos.

14.1. Add the following General Disposition:

TENTH SIXTH.-From the year 2017 financial year, the Council of Government of the Special Regime of the province of Galapagos will allocate annually up to five percent of the resources it receives for the rate of income and conservation of the protected natural areas, for the financing of projects and responsible research programs within the province of Galapagos. "

REPEAL provisions

FIRST.-Repeal the Intellectual Property Law, published in the Supplement to the Ofi cial Nro Register. 426 of 28 December 2006 and all the reform provisions incorporated into the same.

SECOND.- Other provisions of equal or lower hierarchy that object to the provisions of this Code, are hereby repealed, as well as other provisions of the same or lower hierarchy.

THIRD. paragraph concerning the disclosure and resolution of the violation of business secrets of the Article 27a of the Organic Law on Regulation and Control of Market Power.

FOURTH.- Deroguese the Law of the Centers for Transfer and Development of Technologies, published in the Supplement to the Register Ofi cial 319 of 16 of November 1999.

FINAL DISPOSITION

ONLY.- The Present Code shall enter into force from its publication in the Ofi cial Register.

Given and subscribed to at the Headquarters of the National Assembly, located in the Metropolitan District of Quito, at the twenty-nine days of November of the two thousand sixteen.

f.) GABRIELA RIVADENEIRA BURBANO, President.

f.) DRA. LIBYA RIVAS ORDONEZ, General Secretariat.