El Salvador's New Intellectual Property Law Set to Take Effect

El Salvador has taken a significant step in reforming its intellectual property (IP) framework with the publication of a new law in *Official Gazette No. 153*. This legislation consolidates the country's existing IP regulations and will come into effect on February 15, 2025.

Compared to the previous framework established under the *Trademark and Other Distinctive Signs Law* and the earlier *Intellectual Property Law*, which has governed the field for over 30 years, this new law marks a transformative and widely welcomed change. The previous laws primarily covered copyrights, related rights, and industrial property concerning inventions, utility models, and industrial designs.

The new legislation introduces a comprehensive IP system, with several notable highlights:

Establishment of a Central Intellectual Property Institute

The law establishes the Salvadoran Intellectual Property Institute (ISPI) within the National Registry Center (CNR), streamlining IP activities under a unified framework. This institute will replace the former Intellectual Property Registry, centralizing oversight and administration.

Key Highlights of the New Law

Publications (Article 121)

Under the new framework, IP applications will be disclosed through an IP Bulletin dedicated to IP-related publications, replacing prior practices of publication in the *Official Gazette* and national newspapers. Trademark applications will be published electronically in this bulletin within four months of receiving notification of approval, upon payment of applicable fees by the applicant.

Expanded Trademark Definition (Article 107)

The definition of trademarks has been broadened to include non-traditional marks, such as taste and texture marks, reflecting a forward-thinking approach to modern IP protection.

Updated Protections and Timelines

Trademarks and Distinctive Signs

- Trade Names (Article 171)

Trade names must now be renewed every 10 years, replacing the previous unlimited protection. Registered trade names will remain valid for 10 years from the date of registration and can be renewed for successive 10-year terms. Renewal applications must demonstrate usage. Trade names registered before the new law takes effect will also be subject to the new 10-year term.

- Commercial Advertising Signs (Article 166)

Similarly, commercial advertising signs will have a 10-year term of protection, renewable with proof of use. The prior law granted unlimited protection. Signs registered before the new law's implementation will also transition to the 10-year validity period.

- Franchise Agreements (Article 140)

The new law introduces the possibility of registering franchise agreements. Additionally, license holders can register licenses for the use of registered trademarks.

- Trademark Revocation (Articles 144 & 111)

Stakeholders can now initiate proceedings to revoke a registered trademark. Previously, such actions required court intervention.

- Revocation for Becoming Generic (Article 145)

A trademark may also be revoked if it has become a generic term for the associated goods or services.

- Domain Names (Article 316)

Applications involving domain names must include documentation proving their use at the time of filing. However, submission of such documentation does not guarantee immediate approval, as applications will be subject to review to ensure they do not infringe on the rights of existing distinctive signs or company names (Article 112(e)).

Patents and Industrial Designs

- Industrial Designs (Article 249)

Protection for industrial designs has been extended from 10 years to 15 years, calculated from the filing date. Patent owners must also pay maintenance fees every five years.

- Bolar Exemption (Article 209)

The new law introduces a clear definition of the Bolar exemption, clarifying circumstances under which patent infringement claims may be contested.

- Unpatentable Inventions (Article 197(g))

Inventions already patented cannot be granted a new patent solely because they are now used for purposes different from those covered under the original patent.

Incentives for IP Protection

The legislation introduces measures to encourage IP protection through exemptions and flexibility:

- Fee Exemptions

National institutions and municipalities are exempt from official fees. Additionally, higher education institutions, individuals registered with the National Cultural Workers and Artists Registry, and small and micro-enterprises seeking IP protection will receive a 50% reduction in official fees.

Conclusion

El Salvador's newly revised legislation aims to encourage both domestic and international businesses to invest in and protect their intellectual property. By modernizing its legal framework for IP protection, the law provides applicants with a clearer and more efficient system, fostering an environment conducive to innovation and economic growth.