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      Posse Herrera Ruiz has extensive experience and specialized team of lawyers advising leading companies in the agro and forestry industries not only in transactional matters, but also in corporate, real estate and regulatory matters, projects structuring, investments and land acquisitions in this industry among others.

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ECUADOR

Legal bulletin
August 30, 2016

ECUADOR

DECISION REGARDING THE INFRINGEMENT OF DESIGNATION OF ORIGIN TEQUILA

The Ecuadorian Institute of Intellectual Property (IEPI) issued Resolution No. 1111113 of July 19, 2016, by means of which LICORERAS ASOCIADAS S.A. was sanctioned for the infringement of designation of origin TEQUILA in the name of the United Mexican States.

The ruling decided the petition for administrative protection filed by the Regulating Council of Tequila on October 31, 2014, for the alleged violation of its intellectual property rights.

IEPI’s decision was based on the following arguments:

  • Indications of empty boxes bearing the phrase “TEQUILA BLANCO COYOTE LICOR SABOR A TEQUILA” (COYOTE WHITE TEQUILA LIQUOR TEQUILA FLAVOR) were found, concluding that the product should have been sold by INDUSTRIAS LICORERAS ASOCIADAS S.A.
  • The infringer confessed to have produced, commercialized and distributed liquor with the denomination “TEQUILA”.
  • The use of the designation of origin between August 2013 and December 2014, generating sales for US $6,043 (according to the chartered accountant’s report), allowed to conclude that the rights of the United Mexican States were violated.

IEPI therefore accepted the petition for administrative protection filed by the Regulating Council of Tequila, ratified the precautionary measures issued during the inspection, banned INDUSTRIAS LICORERAS ASOCIADAS S.A. from offering goods bearing the designation of origin TEQUILA and using it in commerce, and imposed a fine for US $ 7,000.

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