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BOLIVIA, COLOMBIA, ECUADOR, AND PERU

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BOLIVIA, COLOMBIA, ECUADOR, AND PERU

THE EXHAUSTION OF RIGHTS CONCEPT BY THE COURT OF JUSTICE OF THE ANDEAN COMMUNITY

According to the “exhaustion of rights” the registration of a trademark does not give the right to its owner to prevent a third party to carry out acts of commerce in respect to a product protected by such registration, if that product has been entered into commerce in any country by the owner of the registration or by another person with the consent of the holder or if economically linked to him.

 

By means of preliminary interpretation IP-368-2015 issued in July 2016, the Andean Community Court ratified the figure of industrial property “exhaustion of rights” by saying that the registration of a trademark does not give the right to its owner to prevent a third party to carry out acts of commerce in respect to a product protected by such registration, if that product has been entered into commerce in any country by the owner of the registration or by another person with the consent of the holder or if economically linked to him.

The Court thus explains that it must be ascertained whether the respective product was lawfully introduced into commerce in any country by the holder or by a third party with his consent or economically linked to him, prior to the alleged act to infringe the exclusive trademark right to confirm whether there are grounds for applying the figure of exhaustion of rights as a limit to the right to exclusive use of a distinctive sign, such as a trade name or a trademark.