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Chile

Last Verified on Tuesday 16th May 2017

    • Chile

      Novelty and inventiveness requirements in Chile are in general terms equivalent in meaning and scope to those accepted internationally.

      Novelty needs to be absolute and worldwide, and in order to determine it, examiners have access to the principal world databases, such as those of the US Patent Office, the European Patent Office (EPO) and the Japanese Patent Office. Inventiveness is carefully examined by the Patent Office according to rather strict standards. Total or partial lack of inventiveness has generally constituted the most frequent causes for rejection of new patent applications in Chile. Moreover, inventions have also to comply with industrial applicability criteria, although these need not to be demonstrated and it is sufficient that the industrial applicability may result from the specifications.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      The invention should appear non-obvious for a person skilled in the relevant technology. In order to determine compliance of this standard, applications are subject to a careful examination as to substance. Moreover, the practice of the Chilean Patent Office has evolved into requiring in addition, that new inventions are to offer "amazing and unexpected effects", although this requirement has recently been rejected by the Supreme Court of Justice (see question 29). In fact, the Supreme Court has clearly confirmed that inventive step is equivalent to non-obviousness, this is, that it should not become evident from the existing state of the art, at the date of the application, for a person skilled in that particular art and, in particular, the Supreme Court confirmed that the law does not provide for other requirements.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      In Chile the Patent Law provides for both product and process patents. In addition, the Law provides also for Utility Models and Industrial Designs.

      Patents provide a stronger protection and their granting is subject to rather strict requirements resulting, in particular, in the need to conduct an examination of the invention as to substance in order to verify compliance of any patent application with all legal requirements. They offer a protection for 20 years from the date of grant.

      Utility Models are also subject to examination, but this is frequently less strict, as far as inventiveness is concerned, as it mainly intends to ascertain the practical or real ‘utility’ of the invention. Protection for Utility Models lasts 10 years from filing.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      The duration of patent rights in Chile is 20 years from the date of filing the application.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      No, this is not necessary. In fact there is no legal provision in Chile in this respect, nor there has been any known comment or observation when an eventual invention conceived in Chile is the subject of a later Chilean patent application originating in a foreign country.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Business and computer methods are not patentable in Chile. They are expressly excluded from patentability in the Patent Law. Equally not patentable are the discoveries, scientific theories, mathematical plans, economic or financial methods, as well as purely mental activities and gambling methods.

      Methods for surgical or therapeutic treatment of human beings or animals are not patentable either, with the exception of products designed to implement such methods.

      Plants and animals are not patentable, with the exception of micro-organisms – provided, however, that they comply with all patentability requirements. Plants are the subject of a different protection, which is provided by a special law that is not administered by the Patent Office but by a unit of the Ministry of Agriculture.

      Equally not patentable are the parts of living beings such as they are found in nature, nor the biological material existing in nature, including genome or germplasm. However, processes employing one or more of the mentioned biological materials and the products directly derived from them can be the subject of patent protection, provided they fulfil the patentability criteria established by law.

      Also not patentable are the new uses or change of shapes or dimensions of known products or known objects. However, the new use of known products can be the subject of patent protection when it solves a technical problem that previously did not appear to have a solution. In these cases, however, it will be necessary to include experimental evidence in the patent application.

      Finally, inventions whose exploitation is forbidden because of the protection of public order, public behaviour, state security, morals or the environment are not patentable either.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      It is rather difficult to provide an accurate response to the current level of patent litigation in Chile.

      As for litigation arising during prosecution, it is to be noted that Chilean Patent Law provides for the possibility of filing pre-grant oppositions. In this context, therefore, most of the patent applications filed in Chile are the subject of opposition in the period immediately following publication. The same situation is reflected in the context of trademark applications.

      Another type of litigation is that, following granted appeals to the Patent Office’s decision on the application, either the patent is granted or the application rejected. These appeals may be filed either by applicant or opponent, or both, with the special Industrial Property Appeals Court. It is difficult to determine the approximate number of pending appeals since the Court does not keep a statistical record of them, although the contents of these cases can be consulted by anybody. Also in this case we can find a similar situation in the case of trademarks.

      Finally, there is litigation conducted before ordinary courts, either in the civil or criminal system, normally resulting from infringements. In this case again, there is no possibility to determine the number of pending cases because the Chilean court system does not keep nor does it publish an account of them. However, the number of lawsuits in the field of both patents and trademarks is not very large.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Remedies provided by the Chilean patent law consist both of injunctive relief and monetary damages. In the case of the former, the decision on its terms and conditions is to be taken by the court. In the case of damages, they may be calculated upon the benefits the patent holder may have lost as a result of the infringement or upon the benefits the infringer may have obtained as the result of the infringement or, finally, on the level of royalties the infringer would have had to pay had he obtained a proper licence from the patent owner.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      A new draft Industrial Property Law was submitted to Congress in April, 2013,  for discussion and it contains interesting improvements for the Chilean system related to all aspects of Industrial Property.  The new law, once approved, should constitute a major revision of the Chilean Industrial Property system.

      Different events, among others the approval by Chile of the TPP Treaty, have left pending the discussion of the new draft law, which has been promised to resume in the coming months hopefully still in 2016.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      In Chile there is no development of the doctrine of “patent exhaustion”.

      However, in practice it is recognised that once the sale of products protected by a patent is authorised, the sale made by who acquired the product does not require authorisation of the patent owner, whereby the “patent exhaustion” doctrine is recognised in practice for product patents.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Chile is not a signatory of the Madrid Protocol and according to the mood in different interested circles, it is not likely that the country will join this Agreement in the near future.

      As to the TRIPS Agreement, Chile has been a party from the very first day and this Agreement has very much become an integral part of the IP legislation. Although most of its provisions are fully incorporated into the IP law, its provisions are frequently used and cited in the context of different briefs filed in the course of prosecution of patents, trademarks and other IP titles.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Chile is not a member of the Andean Community. Although Chile was one of the original founders of the Andean Community, it left it in 1976. As to the Mercosur’s "regional trademark system", in practice it appears to be completely unknown in Chile and we have never seen it cited in the context of any trademark case, not even as a reference.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Duration of trademark rights in Chile is 10 years with the possibility of renewing indefinitely at the expiration of each term.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      The use of the registered trademark symbols are mandatory though no direct sanction exists in the case of no use. However, lack of said symbols will make impossible the use of criminal actions in case of infringement. There has been some discussion about the effect of these provisions and there might be a possibility that they may be amended or even eliminated in the new Draft Law which discussion is to start soon.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      The trademark system can be considered particularly successful and trademark owners do not actually appear to face any particular problem. On the contrary, obtaining registration in Chile is fairly easy, with a reasonable cost, and defence of rights can be certainly considered on the side of owners of rights.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Lack of record does not affect the licensing contract as such, nor its effects between the parties. However, lack of record will not permit to use the registered trademark against third parties. The most serious effect of this is the impossibility to complain against infringement.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      The Chilean government has devoted important efforts in the last 10 years for improving the Industrial Property system, at the legal, judicial and administrative levels. Part of this effort has been directly addressed to the combat of counterfeiting. Hence, the last major legislation amendments have included special provisions in this respect and they have been accompanied by an improvement in the structure of the office in charge of the administration of the Industrial Property system as well as in the special IP Appeals Court. In addition, a recent modification – or rather, the starting of a brand new system to deal with general criminal actions, including a new prosecution and court system – has resulted in a clear improvement of judicial actions in this field, which has directly benefited the IP system. Finally, the government created a special unit in the civil police specifically devoted to intellectual property to assist the judiciary in the prosecution and investigation of IP crimes. Moreover, Customs have been particularly careful in watching possible counterfeit when admitting goods at the borders and active in the prosecution of infringement. All these measures have evidently resulted in a better awareness, at the national level of the importance of the IP system and, what is more important, a better awareness and knowledge in the judiciary about the need for decisions and measures that may contribute to a better implementation of the law.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      No. However in some cases such use could constitute an infringement of a registered trademark likely to be prosecuted. As far as ‘use’ is concerned, it is necessary to point out that use of registered trademarks is not mandatory in Chile. Thus use, or especially non-use, cannot constitute the basis for any legal action.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      None. The Chilean trademark can be considered as particularly successful resulting from a good legal system and correct administration. Chile has, by comparison, a very high number of registrations and the majority of them belong to local applicants.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      A good pre-registration search should certainly assist in avoiding unnecessary problems and/or facing oppositions from third parties or official observations from the authority in the process of prosecution.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Yes. Chilean law has always permitted multi-class trademark applications.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Trademark law does provide for the possibility of opposition in a term of 30 days after publication. This term cannot be the subject of extension. An important number of trademark applications are normally the subject of opposition. Pre-grant opposition is also provided for in the case of patents and a good number of applications are the subject of opposition. Competitors normally keep an eye on the filing of both trademark and patent applications when published in order to file oppositions if such new applications are likely to somehow affect their business activities.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      In order to adjust Chilean legislation with international treaties signed by Chile, there is a procedure before the Chilean Civil Courts that can be initiated by any owner of industrial or intellectual property rights who believes that certain goods that are seeking to get into Chile infringe their rights.

      This procedure allows the owner of industrial or intellectual property rights, to request the court to suspend the dispatch of goods that allegedly involve a possible infringement of their rights. In order to present this complaint before the Civil Court it is necessary that the applicant meets certain requirements established by law, such us prove ownership of the claimed right, indicate the action which intends to interpose, etc.

      Once the complaint has been submitted, the court could accede to the request without further process or request a warranty. The courts’ decision is can be changed only by an Appeal before the same court.

      Decreed the measure, this has a duration of 10 working days (its duration can be extended by the court) since the importer, owner or consignee of the goods and the applicant of the measure are notify of it and, for compliance, the administrator of the customs office where the goods are located must be notify.

      In the same term of 10 days, the applicant of the measure must pursue the action corresponding to the violation and request that the maintenance of the measure remains.

      It is also possible that customs authorities suspend the dispatch of goods for five days when the simple examination of it evidence that they are counterfeit trademark goods or goods that infringe copyright.

      The Customs Office must inform this situation to the owner of the trademark or copyright, in order to exercise the rights protected by law in their favour.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      The Chilean Legislation does not contain specific rules regarding licence agreements related to the use of rights of a trademark,

      The only specific provision in our Chilean Law is found in the Industrial Property Law where the need to register this kind of agreements is established in order to make the agreement effective against third parties. For the registration of these agreements in the Chilean Industrial Property Institute it is necessary pay an official fee. The lack of this registration does not affect the validity of the licence agreement, but it will not be enforceable against third parties.

      However, in Chile there are no special rules on licensing contracts.

      In consequence, general commercial and civil rules will apply. Among them, it is necessary to cite especially article 1545 that provides for the "parties will have autonomy" in case of contracts. The text of the article states:

      "Any contract validly executed is law for the executors of same, and cannot be invalidated if not by their mutual consent or by legal causes" (Chilean Civil Code, Article 1545).

      In view of this lack of ‘law on licensing’, the provisions established by the parties in the contract will be essential to establish the terms of the licence agreement. In addition, unless that any of the provisions were to be considered against Chilean Public Policy, the contract as drafted by the parties should be valid and enforceable in Chile.

      Finally, there are certain matters which is convenient to regulate expressly in the contract, such as the duration of the licence (which must be related to the time duration of the trademark registration), territory in which the licence is granted (if it has been granted to use the trademark in the entire country or in one or more specific regions), determinatives whether the licence is exclusive or not, etc. Also, it should be noted that in Chile parallel imports are allowed, so the licence cannot contain a clause restricting it.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      As stated above, the absence in Chile of provisions that expressly rule the licence agreement, imply that the scope of the licensee indemnification may be determined and freely established by the parties in the contract.

      Nevertheless, considering that every provision of the contract must be in harmony with Chilean Public Policy and Law Principles, any indemnification established by the License Agreement must follow a proportionality criterion according to the value of what that is being offset, since at the time of the enforcement of the contract or enforce damages before the Chilean courts, they will assess the proportionality of the stated amounts, and if they consider that these amounts are harmful to some of the parties, they are entitled to modify them in order to restore the balance between the benefits determined for each party.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Chilean Law does not contain specific rules regarding the franchise agreement so, like the licence agreement, it is regulated by the stipulations of the parties.

      In these circumstances, a licence agreement of a trademark shall be deemed a franchise arrangement according to the stipulations of the contract determinate by the parties.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Between the parties, there are only general limitations gives by the Chilean Public Policy and General Law Principles, in addition to the condition or limitation set by the parties in the contract.

      Additionally, against third parties there is the registration requirement in the Chilean Industrial Property Institute that we have reviewed in question Nº 27. Without this record the license agreement is not effective against third parties

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      In Chile there are no special regulations that contemplate the situation in which a trademark is legally deemed “abandoned”. In these circumstances, once the trademark registration is granted, the protection given by the Chilean law is absolute and there is no obligation of use of the trademark for the owner. The trademark owner has all the protection granted by Chilean Law even when he does not effectively use the trademark.

      The only case included in the Chilean Industrial Property Law in which abandonment of a trademark is found relates to trademark applications. In this case, during the prosecution of a trademark application, if the applicant does not pay the official fees on time or does not comply with formal requirements requested by the Trademark Office, the Authority could declare abandoned the trademark application.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Copyright registration is always recommended because it greatly facilitates possible judicial actions. In fact, although Chile is a member of the Berne Convention and therefore registration is not legally necessary. In practical terms it will always be easier to prove a right protected by copyright when it has been registered and this will reflect in a more efficient judicial action.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      The duration of copyright protection in Chile is the life of the author plus 70 years.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      In Chile there is no development of the "first sale" doctrine.

      However, in practice it is recognised that once the sale of products protected by copyright is authorised, the sale made by whoever acquired the product does not require authorisation of the copyright owner, whereby the first sale doctrine is recognised in practice for copyright expressed in products, such as a CD containing music.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Normally, copyright infringement results mostly from the simple copying of books or other writings and sometimes it had been found in the incorporation of characters or situations to plays or TV stories. Also it is often found in the music field and more frequently on software.

      In all infringements contributory infringement will also be punished according to the general criminal law, which will sanction all involved even if the degree of responsibility of each might be different.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Criminal sanctions for intellectual property infringement are all economic fines of amounts that can be fixed by the court, depending of the case, between rather extensive ranges.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Only in the field of domain names alternative is dispute resolution used and broadly so. In fact, because of the structure of IP legislation it would be difficult to use ADR for solving other IP disputes.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Two major pieces of legislation are actually being discussed and both contain important new features that should improve, clarify and strengthen the Chilean IP system. One of these initiatives is a new Draft Industrial Property Law, which will constitute a major revision of the present Law No 19.039, enacted in 1991 and revised in 2005, 2007 and 2012. This draft has been discussed by several interested circles and was submitted to Congress in April 2013 (see question 10), being still pending of discussion.

      The second set of provisions is contained in a Draft Law filed for Congress discussion at the end of January 2012 and mainly designed for improving the protection of data filed for obtaining marketing approval of pharmaceutical patents. This matter has been the subject of important improvements over recent years and it is likely to be further improved once the new law is approved. In fact, the new Draft Law on the matter is designed to improve data as well as patent protection by formally instituting “linkage”, which should permit patent owners to react against misuse of their patents or information contained therein, in the process of obtaining market authorisation for pharmaceutical products. The draft law also strengthens the possibility of requesting and obtaining judicial injunctions in these cases, which are rather difficult to obtain with the actual legal provisions.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Four recent decisions of the Supreme Court of Justice in the field of Industrial Property are worth mentioning.

      Patents

      The Supreme Court of Justice, hearing an annulment case, recently issued a decision revoking prior decisions of the Patent Office and of the special IP Appeals Court, ordering the granting of a patent which had been denied on the basis of lack of inventive step of the invention. In fact, both the Patent Office and the Appeals Court had considered that applicant had failed to demonstrate during the examination as to substance – as it had been requested by the examiner – that the claimed invention could produce "amazing and unexpected results" for the solving of a particular technical problem. The Supreme Court ruled that this request was illegal since the Patent Law considered compliance with the inventive step patentability requirement was satisfactory by demonstrating that invention was non-obvious for a person skilled in the art related to the technology covered by the invention. Hence, the request of the two lower courts was illegal since it went beyond what the Patent Law actually required. Therefore the two decisions were revoked and the Patent Office was ordered to grant the patent subject of the application.

      Trademarks

      • The Supreme Court of Justice declared in a recent decision, the full of applicability of Article 6 bis of the Paris Convention, to a case about non application of the statute of limitations for prosecuting trademark infringements based on registrations obtained in bad faith. It is a lengthy decision with most interesting considerations about the presence of bad faith and the elements constituting it in registration of trademarks, therefore offering and interesting orientation for future cases.
      • The Supreme Court of Justice, in another recent decision, elaborated on the elements constituting "distinctiveness" of a particular trademark and ruled on the rejection of an application for registration based on the lack of said elements.
      • The Supreme Court of Justice has also recently issued a most interesting decision on the elements that should constitute notoriety of a foreign-registered trademark used as a basis for opposition of a local application. In this particular case, the Supreme Court revoked prior decisions of the Trademark Office and of the Appeals Court which had ignored evidence submitted by one of the parties to prove notoriety and well-known character of their trademark, although such characteristics had been obtained abroad and not in Chile.

      The four decisions above prove an interesting and rather new involvement of the Supreme Court of Justice on IP matters and a correct understanding of the problems involved in relation to existing national legal provisions and, interestingly enough, also of international treaties and foreign practice. The latter appears to be not only an interesting new approach to IP matters but it also constitutes a guarantee for a branch of law that has an important foreign component in its structure but, in particular, in its practical implementation.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      The only formality expressly required by Chilean Law is the registration of this kind of agreements in the Chilean Industrial Property Institute to be enforceable against third parties.

      However, in order to facilitate the demonstration of the existence of the agreement, it is advisable to notarise licence agreements and, if the agreement originates from abroad, to legalise it with the consul of Chile in the foreign country and then in the Chilean Ministry of Foreign Affairs.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Law No. 19.628 expressly forbids the use of personal information without owner’s authority in any form.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      No, but protection of all data has been improving (see question 41), in particular in the pharmaceutical field.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      No, there are no legal provisions in Chile in relation to this matter.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      As mentioned in question 44 above, there is a law that specifically forbids the use, in any form, of personal data without the owner’s consent.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      There is no restriction provided such exportation of personal data is done having previously obtained the owner’s consent.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      The primary regulatory authority is the National Industrial Property Office, although the National Health Institute has also responsibility in certain aspects of data protection.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      A few guidelines in this respect can be found in Law No. 19.628 (August 28, 1999) on Protection of Personal Data.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      The recent Law No. 20.241 (19 January 2012) on Research and Development provides for the following incentives:

      • 35 per cent tax credit on the amount invested in R&D, when duly certified by the National Production Development Corporation.
      • The remaining 65 per cent can be considered as "expenses" necessary to produce the income, regardless of the company’s business activity.
      • Despite the above, the minimum amount to be certified as R&D activity has to exceed US$8,500 approximately and the maximum amount for the 35 per cent tax credit is US$1,272,000 approximately.

      Chilean law does not allow reductions and/or exemptions on the basis of international tax treaties. Moreover, Chilean law does not provide for any distinction between different IP titles for tax purposes.

      Finally, there are no specific tax measures in Chile to combat base erosion.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      In Chile there are no legal provisions to deal with the circumstances described in the question. Licensing provisions are quite liberal, but there are no provisions that deal with abusive conducts, and the licensor is absolutely free to deny a licence without justifying such decision.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

    • Chile

      Chilean legislation does not contain rules especially regulating the effects of bankruptcy in relation to licences granted in respect of intellectual property rights.

      Consequently, the effects that bankruptcy of either part on the license agreement may have are defined by the same parties.

      Thus, the parties can agree as grounds for termination of the license agreement that some of them (any) are declared bankrupt. This clause does not contravene the law or the Chilean public policy, so it is fully valid and enforceable.

      The effects of termination must also be determined by the parties, who must determine whether the termination finishes with all the effects of the same or any of them remains.

      However, it must be noted that there are certain rules that cannot be modified by the will of the parties; for example, according to the Chilean Bankruptcy Law, parties cannot set a preference in the contract for the payment of their claims, as this is a matter regulated by law. Furthermore, intellectual property rights are an asset as part of the mass of goods to be made in a bankruptcy proceeding, in order to pay the debts that the bankrupt party has.

      Answer contributed by Marino Porzio from Porzio, Ríos, García

      Last verified on Tuesday 16th May 2017

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