RESTRICTEDWORLD TRADE
ORGANIZATIONIP/Q/ECU/1/Rev.1*
IP/Q2/ECU/1/Rev.1*
IP/Q3/ECU/1/Rev.1*
IP/Q4/ECU/1/Rev.1*
10 May 1999
(99-1897)
Council for Trade-Related Aspects
of Intellectual Property RightsOriginal:  Spanish
REVIEW OF LEGISLATION
ECUADOR1
Revision
The present document reproduces the introductory statement made by the delegation of
Ecuador, the questions put to it and the responses given in connection with the review of legislation
undertaken at the Council's meeting of 1-2 December 1998.2
_______________
I. INTRODUCTORY STATEMENT
In its capacity as a Member of the World Tr ade Organization, the Government of Ecuador is
convinced that it complies fully with the obligatio ns stemming from the Agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS) incl uding, naturally, those relating to enforcement.
Since 1997 the Government has been making a great effort to harmonize legislation in this
field, and consequently Ecuador now has additional legal instruments to protect intellectual property
rights.  The Political Constitution of the Republic itself recognizes and guarantees these rights
explicitly, and they are protected through such enactments as the Intellectual Property Law, the Civil
and Criminal Codes, the Code of Civil Procedure,  the Code of Criminal Procedure and the relevant
Andean Decisions, among others.
In this connection, particular mention should be made of the enactment of the new Intellectual
Property Law in May 1998, which is the result of a wide-ranging, intensive and democratic internal
debate.  The Law constitutes a genuine code for this field and deals with important matters relatinginter alia  to copyright and related rights, the various aspects of industrial property and plant varieties.
At the same time, I wish to emphasize that not only does the Intellectual Property Law
incorporate and in some cases even widen the protection afforded by the multilateral, regional and
subregional agreements, but that, in order to enhance legal certainty, and encourage intellectualcreativity, it also provides for civil, administrative and criminal penalties as well as a set of rules
governing intellectual property procedures, especially those pertaining to civil and criminal
                                                     
* The French and Spanish versions of document IP/Q4/ECU/1 contained formatting errors.  The
present revision reproduces the text of that document in the correct format.
1 As regards laws and regulations relevant to the area under review and notified by Ecuador under
Article 63.2 of the Agreement, reference is made to documents IP/N/1/ECU/1, IP/N/1/ECU/2, IP/N/1/ECU/C/1,IP/N/1/ECU/C/2, IP/N/1/ECU/C/3, IP/N/1/ECU/C/4, IP/N/1/ECU/C/5, IP/N/1/ECU/C/6, IP/N/I/ECU/I/2,
IP/N/1/ECU/I/3, IP/N/1/ECU/P/1, IP/N/1/ECU/P/2 and IP/N/6/ECU/1.
2 The minutes of this meeting have been circulated as document IP/C/M/21.IP/Q/ECU/1/Rev.1, IP /Q2/ECU/1/Rev.1,
IP/Q3/ECU/1/Rev.1, IP/Q4/ECU/1/Rev.1
Page 2
precautionary measures as well as administrative enforcement measures.  These provisions
appropriately complement those of the Codes of Civil Procedure and Criminal Procedure.
We wish to take this opportunity to express our appreciation to Members taking part in this
review, particularly those who have shown an interest in Ecuador's intellectual property legislation.
We consider that our replies to the questions addressed to us by Japan and the European
Communities, together with the notifications we submitted to the Secretariat on enforcement and on
geographical indications, will serve to amplify and largely satisfy the requirements relating to
information on Ecuador's legislation in this field.
II. REPLIES TO THE QUESTIONS POSED BY THE EUROPEAN COMMUNITIES
AND THEIR MEMBER STATES
A. COPYRIGHT AND RELATED RIGHTS
1. Please explain whether and how Ecuador provides full retroactive protection to works,
phonograms and performances from other WTO Members as required by Articles 9.1, 14.6 and70.2 of the TRIPS Agreement, each of which incorporate by reference or rely upon Article 18 of
the Berne Convention.  Please give the date to which such protection extends back with respect
to each category of subject-matter.
Book I of the Intellectual Property Law of Ecuador provides for the protection referred to in
the question.  Article 5 states that a copyright comes into being and is protected by the mere fact ofthe creation of the work, independently of its merits, purpose or mode of expression.  The moral rights
deriving therefrom may not be waived, alienated, assigned or prescribed, and are transferable upon the
death of the author in accordance with the provis ions of Article 18.  The patrimonial rights last
throughout the lifetime of the author and 70 years after the author's death.  Once the time-periods for
protection set forth in Section VII have elapsed, the works enter the public domain.  All works,performances, productions or broadcasts are covered, whatever their country of origin.  This
protection is also valid whatever the place of publication or disclosure.  The holders of related rights
may invoke, for the protection of recognized rights, all of the provisions of Book I except those whose
nature excludes such application or in respect of which Section VII contains an express provision.  As
a rule, the duration of the protection of artists' and performers' rights is 70 years starting from
1 January of the year following that of the performance or recording, whichever applies.  The
protection of the rights of producers of phonograms lasts 70 years starting from 1 January of the year
following the date on which the phonogram was first published.
According to the Intellectual Property Law, the provisions thereof apply to all works,
performances or other copyrights or related rights that came into being prior to its entry into force
provided they have not entered the public domain.  The date of entry into the public domain can bedetermined by applying the time-limits for protection established under the Law.
Recognition of copyright and related rights is not subject to registration, deposit or any other
formality.
2. Please clarify how compilations of data are protected under Ecuadorian legislation
(Article 10.2 of the TRIPS Agreement).
Article 8 of the Intellectual Property Law specifically states that copyright protection covers
all intellectual works in the literary or artistic field including,  inter alia , "compilations and databases
of all sorts".  Article 28 of the Law stipulates that computer programs are considered as literary works
and protected as such, independently of whether or not they are stored in a computer and regardless of
the form in which they are expressed, namely in man-readable form (source code) or inIP/Q/ECU/1/Rev.1, IP /Q2/ECU/1/Rev.1,
IP/Q3/ECU/1/Rev.1, IP/Q4/ECU/1/Rev.1
Page 3
machine-readable form (object code).  Moreov er, the regulations of the Andean Community, in
particular Chapter II, Article 4 and Chapter VIII, Ar ticle 23 of Decision of 351 of the Commission of
the Cartagena Agreement provide for the protection of anthologies and compilations of various works
and databases.
B. TRADEMARKS , GEOGRAPHICAL INDICATIONS AND INDUSTRIAL DESIGNS
1. Trademarks
1. Article 15.1 of the TRIPS Agreement specifies that marks can be personal names,
letters, figurative elements and combinations of colours as well as any combination of such
signs.  However, Article 194, paragraph 1 of the Intellectual Property Law only contains a
general definition of a mark.  Please explain whet her the Law is interpreted as to cover the signs
enumerated in Article 15.1 of the TRIPS Agreement.
According to Article 194 of the Intellectual Property Law, a mark shall be understood to be
"any kind of sign" that is sufficiently distinctive and capable of representation serving to distinguish
products or services in the market.  The specific exceptions to this principle are set forth in the saidLaw and do not include any of those specified in Article 15.1 of the TRIPS Agreement.  At the same
time, Article 81 of Decision 344 of the Commission of the Cartagena Agreement, an Andean decision
that is in force in Ecuador, also states that "a trademark should be understood as being any perceptible
sign capable of distinguishing in the market the products or services produced or marketed by one
person from identical or similar products or services of another person."
2. Article 21 of the TRIPS Agreement provides that the owner of a trademark shall have
the right to assign the trademark with or without the transfer of the business to which the
trademark belongs.  Please clarify where this provision is implemented in Ecuador's legislation.
Article 282 of the Intellectual Property Law stipulates that "The right to a trademark or
business name may be transferred with or without the business which it identifies."
2. Geographical indication
3. Please clarify whether and how Articles 23.2 and 23.3 of the TRIPS Agreement are
implemented in Ecuador's legislation.
The Intellectual Property Law does not contain any specific provisions for the additional
protection of wines, but prohibits the registration as marks of signs which reproduce or imitate a
domestic or foreign geographical indication with the likelihood of causing confusion in respect of the
products or services to which it applies and whose use could mislead the public as to the origin,
provenance, qualities or characteristics of the goods for which the marks are used.  Similarly, whenthe trademark consists of a geographical  name, the product may not be marketed or the service
rendered without a visible and clearly legible indication of the place of manufacture of the product or
origin of the service.
3. Industrial designs
4. Please explain how textile designs a re protected under Ecuadorian legislation
(Article 25.2 of the TRIPS Agreement).IP/Q/ECU/1/Rev.1, IP /Q2/ECU/1/Rev.1,
IP/Q3/ECU/1/Rev.1, IP/Q4/ECU/1/Rev.1
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Article 1 of the Intellectual Property Law stipulates that the State shall recognize, regulate and
guarantee intellectual property.  In this context, textile designs are protected under the provisions of
Books I and II of the said Law, firstly as works of art (Book I, Article 8(j)) and secondly, in the
framework of the protection of "industrial designs" (Book II, Chapter V, and Section III).  It should be
mentioned in this connection that  Chapter III, Article 58 of Andean Decision 344 of the Commission
of the Cartagena Agreement states that "An industrial design shall be considered to be any
combination of lines or colours or any external two-dimensional or three-dimensional form which is
incorporated in an industrial or craftsmanship product to give it a distinctive appearance without
changing the purpose or end-use of the said product, and serving as a model or pattern for its
manufacture."
C. PATENTS , LAYOUT DESIGNS (TOPOGRAPHIES ) OF INTEGRATED CIRCUITS , PROTECTION OF
UNDISCLOSED INFORMATION AND CONTROL OF ANTI -COMPETITIVE PRACTICES IN
CONTRACTUAL LICENCES
1. Patents
1. Articles 154-158 of the Intellectual Property Act describe details of conditions for the
granting of compulsory licences.  However, not all conditions, as set forth in Article 31of the
TRIPS Agreement, seem to be reflected; in particul ar, Article 31 (a), (c), (h), (I), (j), (k), (l).
Please clarify.
The conditions set forth in Article 31 of the TRIPS Agreement, including subparagraphs (a),
(c), (h), (k) and (l), are generally reflected in the provisions of Book II, Section VII of the Intellectual
Property Law (Compulsory Licensing Regime).  Subpa ragraphs (I) and (j) are covered by Article 357
of the said Law, according to which applications for judicial review may be filed either with the
Committee on Intellectual Property or with the admi nistrative courts.  Section VII of Decision 344 of
the Commission of the Cartagena Agreement also applies.
2. Please clarify how Article 32 of the TRIPS Agreement is implemented in Ecuador's
legislation.
According to Article 357 of the Intellectual Property Law, definitive administrative measures,
such as the revocation or declaration of forfeiture of a patent, are subject, inter alia , to application for
judicial review.  Such applications may be filed directly with the administrative courts, which may
suspend the implementation of the contested measure.  In practice, however, there are seldom any
applications for judicial review concerning the forfeiture of a patent, since such declarations are the
result of failure to pay the fees laid down by the Law.
3. Please explain whether and how Article 34 – reversal of burden of proof in cases of
process patents – is reflected in Ecuadorian legislation.
The last paragraph of Article 302 of the Intellectual Property Law states that where the case
relates to violation of a process patent, the burden of proof concerning the lawfulness of the processused for the manufacture of the product is on the defendant.  Similarly, Chapter I, Section VIII,
Article 51 of Decision 344 of the Commission of the Cartagena Agreement states that "In cases where
a patent whose subject-matter is a process for obtaining a new product is claimed to be infringed, it is
up to the defendant to prove that the procedure used to obtain the product is different from the
procedure protected by the provisions claimed to have been infringed."IP/Q/ECU/1/Rev.1, IP /Q2/ECU/1/Rev.1,
IP/Q3/ECU/1/Rev.1, IP/Q4/ECU/1/Rev.1
Page 5
2. Layout designs (topographies) of integrated circuits
4. Please clarify whether and how Article 37.1 – acts not requiring the authorization of the
right holder – of the TRIPS Agreement is implemented in Ecuadorian legislation.
This Article is implemented in Ecuadorian legislation through Article 181 of the Intellectual
Property Law.  The importation, distribution or sale of  integrated circuits incorporating layout designs
(topographies) unlawfully reproduced or any Article incorporating such integrated circuits are not
considered unlawful when the person carrying out or ordering such importation was unaware or had
no reasonable grounds for believing, on acquiring the integrated circuit or the Article incorporating
such integrated circuit, that it incorporated an un lawfully reproduced layout design.  This exception
ceases to apply as soon as the person referred to in subparagraph (d) of Article 181 of the Intellectual
Property Law has received from the right holder or the representative of the right holder a written
communication concerning the unlawful origin of the said incorporation, in which case he may take
possession of the object incorporating the layout design provided he pays the right holder a reasonable
royalty which, failing agreement, is established by the court.
5. Please clarify whether Ecuadorian legislation provides for non-voluntary licences and/or
for government use.  If so, what are the condi tions?  (Article 37.2 of the TRIPS Agreement).
Book II, Section VII of the Intellectual Property Law contains provisions concerning
compulsory licences.  Under Article 154, compulsory licensing is governed by public interest,
emergency or national security.  The decision to grant a compulsory licence establishes the scope or
extent thereof, specifying the period for which it is granted, the purpose of the licence and the amount
and conditions of payment of royalties, without prejudice to Article 156 of the Law.  The granting of a
licence for reasons of public interest does not diminish the holder's right to exploit the licence.
III. REPLIES TO THE QUESTIONS POSED BY JAPAN
1. Please explain which article of the Copyright Law of Ecuador provides for the
protection of works, phonograms and performances of other WTO Members and which article
provides for the exceptions or exemptions from  national treatment and most-favoured-nation
treatment as permitted in Articles 3 and 4 of the TRIPS Agreement.
Ecuador's new Intellectual Property Law, enacted by Law No. 83 of 5 May 1998 (hereinafter
called the "Intellectual Property Law") provides for the protection of works, phonograms and
performances by Ecuadorian citizens and foreigners, whether or not domiciled in the country,
pursuant to Article 5 (copyright and protection without formalities), Article 20 (exclusive rights),Articles 87-91 (performers' rights), and Ar ticles 92-96 (rights of phonogram producers).
Decision No. 351 of the Commission of the Cartagena Agreement, of 17 December 1993
(hereinafter called "Decision 351"), provides for the protection of the works, phonograms and
performances in Article 4 (protected works), Article 11 (moral rights), Article 13 (economic rights),Articles 34-36 (performers' rights), and in Articles 3 and 4 of the TRIPS Agreement.
2. Please explain whether the Copyright Law of Ecuador protects computer programs,
including programs in both source code and object code.
Article 8(k) in Section II of the Intellectual Property Law on the "Subject-Matter of
Copyright", provides copyright protection for co mputer programs.  Articles 28-32 in Section V
contain special provisions on computer programs, stating that they are considered literary works and
protected as such.  This protection is granted independently of whether or not they are stored in a
computer and regardless of the form in which they are expressed, namely in man-readable formIP/Q/ECU/1/Rev.1, IP /Q2/ECU/1/Rev.1,
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(source code) or in machine-readable form (object code), and it covers both operating and application
programs, including flow charts, plans, users' manuals, and generally those elements that determine
the structure, sequence and organization of the program.  The Law therefore fully protects all
computer programs.
3. Please explain whether the following subject matters are patentable:  (1) plants and
animals, and (2) plant and animal varieties.
Article 121 of the aforementioned Law gives patent protection to all inventions, either for
products or processes, in any field of technology provided that the invention is new – in other words,
it is not already part of the state of the art – involves an inventive step (Article 123) and is industriallyapplicable (Article 124).  Article 125(b) states that material that already exists in nature cannot be
considered an invention.  Accordingly, Chapter II, Section I, Article 126(c) of the Law expressly
excludes the following from patentability:  "Plants and animal breeds, and also essentially biological
processes for breeding plants or animals".
Article 7(c) of Decision No. 344 of the Commission of the Cartagena Agreement, of
21 October 1993 (hereinafter called "Decision 344"), states that animal breeds and species may not be
patented.
Matters that are not specifically excluded from patentability under Ecuador's current
legislation may be patented provided that they meet the conditions laid down for patentability.
4. Please explain how the obligation under Article 34.1 and 34.2 of the TRIPS Agreement
regarding the shift of the burden of proof in ci vil proceedings for patent infringement related to
a process patent is implemented.
This obligation is enforced by the last sentence of Article 302 of the Intellectual Property
Law, which states that "where the case relates to violation of a process patent, the burden of proof of
the lawfulness of the process used for the manufacture of the product shall be on the defendant".  The
aforementioned provisions of Article 34 of the TRIPS Agreement are also covered by Decision 344,
Article 51, third paragraph.
5. Please explain the remedies which the judicial authorities order regarding the
infringement of copyright and related rights, patents, industrial designs, trademarks and
lay-out designs (topographies) of integrated circuits, including injunctions, damages,
destruction or disposal of infringing goods, materials or implements for their production.
Article 308 of the Intellectual Property Law provides that, in order to prevent the
infringement or continued infringement of any of these recognized rights, judges may order
provisional or precautionary measures for the urgent protection of the said rights, in particular:
- Immediate cessation of the unlawful activity;
- suspension of the activity consisting in use, exploitation, sale, offering for sale,
importation or exportation, reproduction, communication, or distribution, as
appropriate; and
- any other measure that would prevent the continued violation of rights.An order may be issued to confiscate the income earned by means of the infringing activity,
property guaranteeing payment of indemnification, the goods or merchandise violating an intellectualIP/Q/ECU/1/Rev.1, IP /Q2/ECU/1/Rev.1,
IP/Q3/ECU/1/Rev.1, IP/Q4/ECU/1/Rev.1
Page 7
property right, and also in respect of the equi pment, apparatus and means used to commit the
infringement, and the original that served for the reproduction or communication.
Retention may be ordered in respect of moneys owed for exploitation or remuneration.A ban on leaving the country may be ordered where the defendant has no domicile or
permanent establishment in Ecuador.
Pursuant to Article 309 of the Law, immediate cessation of the unlawful activity may include
the following:
- Suspension of the infringing activity or prohibition of the infringer from resuming it,
or both;
- provisional closure of the premises or establishment, which shall be ordered where
the infringing merchandise or unlawful copies represent a substantial part of the usualbusiness of the infringer;
- withdrawal of the merchandise, unlawful copies or infringing objects from the
market, and their judicial deposit;
- disablement and, where necessary, destruction of moulds, plates, printing blocks,
instruments, negatives, plants or parts thereof and other material intended for the use
of patented inventions, the printing of marks or unauthorized reproduction or
communication, or anything used predominantly to facilitate the removal or
disablement of any technical protection or electronic information device, whose mainpurpose is acts in violation of any intellectual property rights;
- any other measure that proves necessary for the urgent protection of intellectual
property rights, given the nature and circumstances of the infringement.
The judicial authorities may order such measures when they receive a complaint, provided
that it is accompanied by evidence that allows them reasonably to presume the actual or imminentinfringement of intellectual property rights recognized by the Law.
6. Please explain whether the amount of da mages which judicial authorities order the
person who has infringed intellectual property  rights to pay the right holder is adequate
compensation for the injury the right holder ha s suffered, and what criteria and the way for
calculation are adopted in order to decide the amount for compensation.
The amount which the judges order a person who has infringed intellectual property rights to
pay is certainly adequate compensation.  Article 303 of the Law provides that indemnification for
damages shall cover losses sustained and the loss of profit caused by the infringement.  The amount of
the unrealized income is determined according to the following criteria inter alia :
- Profits that the owner would have earned if the violation had not taken place;- the profits that the infringer earned as a result of the violation;
- the price, remuneration or royalty that th e infringer would have had to pay the owner
for lawful exploitation of the infringed rights;  andIP/Q/ECU/1/Rev.1, IP /Q2/ECU/1/Rev.1,
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Page 8
- reasonable costs, including fees for professional advice and assistance incurred by the
owner in relation to the dispute.
Based on these criteria of equity, the amount of compensation to be paid by the infringer is
calculated in each particular case.
7. Please explain whether the amount of da mages which judicial authorities order the
person who has infringed intellectual proper ty rights to pay the right holder includes
investigation expenses and appropriate attorney's fee.
Article 289(g) of the Intellectual Property Law states that, where there is infringement of
rights recognized by the Law, the following may be claimed inter alia :  "the total value of procedural
costs", and Article 303(d) provides that, in cal culating how much the infringer must pay in
compensation to the owner of the right in the form  of damages, the following must be taken into
account:  "the reasonable costs, including for professional advice and assistance fees, incurred by the
owner in relation to the dispute".
8. Please describe to what extent the amount of damages has been estimated by courts
since 1 January 1996.  Please also explain whether the amount of damages was adequate
compensation for the in jury the right holder had suffered, and how such civil procedures were
consistent with Article 45 of the TRIPS Agreement.
At present, no data are available concerning the amounts estimated which the courts have
ordered infringers to pay since 1 January 1996 in the form of compensation for damage and injury
caused as a result of infringement of intellectual property rights.
Nevertheless, it should be pointed out that the judicial authorities have always based
themselves on criteria of equity (such as those contained in Article 303 of the current Law and
indicated in the reply to question 6), when ordering an infringer to pay adequate compensation to the
right holder for the injury suffered, including reasonable costs incurred by the owner in relation to the
dispute, notably fees for professional advice and assistance.
Consequently, civil proceedings have always been fully consistent with the provisions of
Article 45 of the TRIPS Agreement and continue to be so.
9. Please explain the kinds and amounts of penalties (imprisonment or fines) in criminal
cases.  Please also explain whether these penalties are consistent with Article 61 of the TRIPS
Agreement which requires provisions for a sufficient deterrent, consistently with the level ofpenalties applied for crimes of a corresponding gravity.
Article 288 of the Intellectual Property Law provides that the violation of any of the
intellectual property rights established by the Law shall give rise to the institution of civil and
administrative proceedings, without prejudice to any criminal action that may be initiated if the acthas been categorized as an offence.
Chapter III of the Intellectual Property Law concerns "Offences and Sanctions" and
Article 319 thereof states that any person who infringes recognized rights, by stocking,
manufacturing, using for commercial purposes, offering for sale, selling, importing or exporting anyof the following shall be punished with imprisonment for three months to three years and a fine of 500
to 5,000 constant value units (UVC):
(a) A product covered by an invention or utility model patent obtained within the
country;IP/Q/ECU/1/Rev.1, IP /Q2/ECU/1/Rev.1,
IP/Q3/ECU/1/Rev.1, IP/Q4/ECU/1/Rev.1
Page 9
(b) a product manufactured by means of a process covered by a patent obtained within
the country;
(c) a product embodying an industrial design registered within the country;
(d) a new plant variety registered within the country, and also its reproductive or
vegetative propagating material;
(e) a lay-out design (topography) registered within the country, a semiconductor circuit
incorporating such a lay-out design (topography) or an article incorporating such asemiconductor circuit;
(f) a product or service that uses an unregistered mark identical or similar to a
well-known mark or mark of high renown that is registered within or outside the
country;
(g) a product or service that uses an unregistered mark identical or similar to a mark
registered within the country;  and
(h) a product or service that uses an unregistered mark or geographical indication
identical or similar to a geographical indication registered within the country.
Article 320 provides that any person who infringes intellectual property rights in any of the
following ways shall be subject to the same sanction as that specified in the preceding Article:
(i) Discloses, acquires or uses trade secrets, industrial secrets or confidential
information;
(ii) uses, in connection with goods or services or business transactions, marks or
geographical indications that are not registered within the country and constitute an
imitation of well-known distinctive signs or distinctive signs of high renown that are
registered within the country or abroad and might reasonably be confused with theoriginal;  and
(iii) uses, in connection with goods or services or business transactions, marks or
geographical indications constituting an imitation of distinctive signs registered
within the country that might reasonably be confused with the original to distinguishgoods or services that could be substituted for the protected ones.
Article 321 provides that persons who, in violat ion of intellectual property rights, use trade
names in which they have not acquired rights that are identical to trade names well-known to the
public within the country or to marks registered within the country or to well-known marks or marksof high renown registered within the country or abroad shall be punished with imprisonment for
one month to two years and a fine of 250,000 constant value units, taking into account the degree of
financial prejudice.
Persons who, in violation of intellectual property rights, use distinctive appearances identical
or similar to distinctive appearances that are well-known to the public within the country shall be
subject to the same sanction.IP/Q/ECU/1/Rev.1, IP /Q2/ECU/1/Rev.1,
IP/Q3/ECU/1/Rev.1, IP/Q4/ECU/1/Rev.1
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Article 322 provides that persons who, in violation of intellectual property rights commit any
of the following acts shall be punished with imprisonment for one month to two years and a fine of
250 to 2,500 constant value units (UVC), taking into account the degree of financial prejudice caused:
(a) Manufacture, market or stock labels, seals or packages that feature marks of high
renown or well-known marks registered within the country or abroad;
(b) manufacture, market or stock labels, seals or packages that contain marks or
appellations of origin registered within the country;  and
(c) separate, remove, replace or appropriate labels, seals or packages that contain lawful
marks with a view to using them for products of different origin.
The same sanction shall be imposed on those who stock, manufacture, use for commercial
purposes, offer for sale, sell, import or export articles that contain false information on the nature,
origin, method of manufacture, quality, characteristics or suitability for use of the goods or services;or contain false information concerning awards or other distinctions.
Article 323 states that persons who stock, ma nufacture, use for commercial purposes, offer
for sale, sell, import or export counterfeit products identified by marks of high renown or well-known
marks registered within or outside the country or with marks registered within the country shall bepunished with imprisonment for three months to three years and a fine of 500 to 5,000 constant value
units (UVC), taking into account the degree of financial prejudice caused.
The sanction referred to in the preceding paragraph shall likewise be imposed on those who
fill containers identified by the mark of another person with spurious goods.
Article 324 provides that persons who, in violation of copyright or related rights, commit any
of the following acts shall be punished with imprisonment for three months to three years and a fine
of 500 to 5,000 constant value units (UVC), taking into account the degree of financial prejudice:
(a) Alter or mutilate a work, including by the removal or alteration of electronic rights
management information;
(b) register, publish, distribute, communicate or reproduce another work, wholly or in
part, as being their own;
(c) reproduce a work;(d) communicate works, videograms or phonograms to the public, either wholly or in
part;
(e) bring into the country, stock, offer for sale, sell or hire, or in any other way bring into
circulation or make available to third parties, unlawful reproductions of works;
(f) reproduce a phonogram or videogram and generally any protected work, and also the
performances, of performers, either wholly or in part, and with or without the
outward features of the original, or bring into the country, stock, distribute, offer forsale, sell or hire, or in any other way bring such unlawful reproductions into
circulation or make them available to third parties;IP/Q/ECU/1/Rev.1, IP /Q2/ECU/1/Rev.1,
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(g) bring into the country, stock, offer for sale, sell or hire, or in any other way bring into
circulation or make available to third parties reproductions of works, phonograms or
videograms in which rights management information has been altered or removed.
Article 325 states that persons who, in violation of copyright or related rights, commit any of
the following acts shall be punished with imprisonm ent for one month to two years and a fine of 250
to 2,500 constant value units (UVC), taking into account the value of the degree of the financial
prejudice caused:
(a) Reproduces a number of copies of a work greater than that authorized by the owner;
(b) bring into the country, stock, offer for sale, sell or hire, or in any other way bring into
circulation or make available to third parties, reproductions of works in numbers
exceeding those authorized by the owner;
(c) retransmit by any means the broadcasts of broadcasting organizations;
(d) bring into the country, stock, offer for sale, sell or hire, or in any other way bring into
circulation or make available to third parties, apparatus or other devices intended fordeciphering or decoding coded signals or in  any other way circumventing or disabling
technological protection measures imposed by the owner of the rights.
Article 326 provides that persons who unlawfully obstruct, fail to heed or prevent the
implementation of a provisional or precautionary judicial decision shall be punished with
imprisonment for one month to two years and a fine of 250 to 2,500 constant value units (UVC).
Article 327 states that, in addition to those prov ided for in the Criminal Code, the following
constitute aggravating circumstances:
(a) The fact of the infringer having been warned of the violation of rights;
(b) the fact of the infringing goods being a potential health hazard;
(c) the fact of the infringements being committed in respect of unpublished works.
In the light of the foregoing, we can unequivocally state that the types and amounts of the
sanctions in Ecuador's Intellectual Property Law are fully and satisfactorily consistent with Section 5,
Article 61, of the TRIPS Agreement.
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