Paraguay has been long known as a gateway for pirated goods to neighbouring countries such as Brazil and Argentina.
According to a 2007 report issued by the office of the United States Trade Representative (USTR), "the International Intellectual Property Association (IIPA) estimated that losses to industry in Paraguay’s domestic market due to the piracy of copyrighted material such as movies, music, books, and entertainment and business software, totaled $137.3 million in 2005".
Many pirated goods are exported across the country’s borders.
In 1998, Paraguay was designated a Priority Foreign Country under the Special 301 provisions of the Trade Act of 1974, which allows the USTR to investigate the trade practices of other countries. Since then, a Memorandum of Understanding (MOU) has governed the protection of US intellectual property in Paraguay, and the country has been closely monitored to ensure that it is complying with the terms of the MOU. However, many IP owners report that enforcement has remained a problem.
The new system will allow IP owners to register their marks in the Paraguayan Customs Office’s computer system, named Sofia. When registered merchandise is identified in the hands of someone other than the registered owner, Customs officials will be able to notify the owner and confiscate the pirated goods.
"It’s very significant," Hugo Berkemeyer of Berkemeyer Attorneys and Counselors in Asuncion, Paraguay told Managing IP.
"This will be a very good thing. Before, there was no good recourse [for IP owners seeking to stop counterfeit goods]. You had to file a criminal [complaint] and it was very expensive. This will give the title holder control over what’s coming into the country."
Berkemeyer said that the cost for registering marks under the new system is about $300 or $400.
The 15-day window for registering existing rights is set to expire on January 31, but Berkemeyer said that an extension or re-opening of that period at a later date is expected to be announced within the next few days.
