Volume 6, Number 4, Page 2

Paraguay Reaches an Antipiracy Agreement with the United States

By Alejandro Guanes-Mersan

In November 1998, the US Government and the Paraguayan Government concluded a comprehensive bilateral intellectual property agreement containing specific short and long term obligations to strengthen Paraguayan enforcement procedures and laws.

The Memorandum of Understanding (MOU) and the Enforcement Action Plan (EAP) impose obligations on the Paraguayan Government relating to measures to be taken in a wide range of fields, including the scope of the law; educational and training campaigns, criminal penalties, patent law, and bilateral consultation and cooperation measures.

Under the MOU the government will keep a special anti-piracy police that will primarily participate in searches of warehouses, centers of production and distribution and retailers located in areas of illegal activity. Counterfeit products will be removed from commerce and destroyed whenever proved to be pirated products. The law will be amended in order to qualify infringement of copyright as publicly prosecutable. A new patent law, consistent with the TRIPS Agreement will be promulgated this year. Finally, Paraguay and the U.S. have agreed to maintain reciprocal and periodical consultations and that the U.S. will provide technical support to Paraguay.

According to the EAP a “Special Enforcement Period” was instituted to implement the so-called “Red Channel System” which is intended to trace commonly known pirated products with the cooperation of customs service officials and qualified intellectual property experts. All imports of allegedly pirated products will be subject to rigorous customs inspections and double verification proceedings. Another significant development is the appointment of both specialized Intellectual Property Prosecutors and Judges with exclusive jurisdiction over such cases.

The National Council of Intellectual Property (a networked organization created by Presidential decree) will have the responsibility of ensuring compliance with obligations assumed as a result of the above Agreements.

Special attention will be given to securing sufficient economic and administrative resources for the operations stipulated by the agreements and the coordination of bilateral or regional policies with trading partners whose citizens have been connected with illegal activities. A final effort, is the development of an educational campaign for both the general public and the authorities that are assigned for executing the terms of the anti-piracy agreements and are at the end responsible for the attainment of them. n

Alejandro Guanes-Mersan, Attorney and LL.M candidate, is an Associate with Estudio Mersan, Abogados, a law firm established in Asuncion, Paraguay.