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WEEKLY NEWS - AUGUST 27, 2008

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This article is part of MIP Week, a weekly email newsletter written by the editors of Managing IP magazine. Take a one week trial to Managing IP and find many more related articles.

Andean IP changes allow Peru to sign US FTA

Erin Kelechava, New York

The four-member Andean Community of Nations has voted 3-1 to approve changes to its IP regime, in a move that will allow Peru to pass its own IP law

Colombia, Ecuador, and Peru supported the modifications in the vote on August 14, while Bolivia opposed them.

The new law, Andean Community Decision 689, amends Andean Community Decision 486, which forms the basis for the IP regime in the member nations.

The most important provisions in Decision 689 include allowing each member country to reinstate priority rights for an extended term; to pass legislation limiting patentee rights; and to require that patent applicants provide greater clarity in their applications.

In a broader sense, Decision 689 is designed to give Peru greater freedom to pass its own IP law.

Peru will be able to use the opportunity provided by Decision 689 to ensure that its copyright and patent laws are strengthened and will more closely resemble US IP laws.

The amendments are a necessary step towards Peru's implementation of a new free trade agreement (FTA) with the United States.

After the US approved the FTA legislation last December, Peru has struggled to convince fellow Andean Community members Bolivia and Ecuador to approve the changes required to finalise the bilateral agreement.

The Andean Community has had its share of conflict from its inception, and the latest amendments to the IP law were no exception.

Peru was so emphatic about its approval that the country threatened to withdraw from the sub-regional organisation if the group could not reach a consensus, arguing that the last country opposed to the new rules, Bolivia, was rejecting the changes for political reasons.

Bolivia claimed that the new measures will inhibit regional integration, and that the laws will allow multinational pharmaceutical companies to patent the traditional knowledge of indigenous people.

After supporting Bolivia's position in the first round of voting, Ecuador eventually sided with Peru and Colombia to pass the new rules. This reversal was surprising given Ecuador's strong opposition to free trade agreements.

The controversy surrounding Decision 689 is still not over. Bolivia will reportedly be asking the Andean Court of Justice, the judicial body for resolving disputes between the member countries, to intervene and declare the August 14 vote invalid.

In addition, the Bolivian government is considering lodging a complaint with the president of the Andean Community in order to discipline the secretary general for violating the organisation's statutes with respect to the voting process.



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