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At-a-glance: Servicio Autónomo de la Propiedad Intelectual (SAPI) Centro Simón Bolívar, Edificio Norte, Piso 4, El Silencio, Caracas, Venezuela Apto Postal 1844 – Cód Postal 1010, Caracas, Venezuela Tel: +58 212 481 6478 / 484 2907, Fax: +58 212 4... [more]

The outcome of the general elections in October 2012 did not bring about the change many IP practitioners had hoped for, since Hugo Chávez was re-elected president. Chavez's death in March this year leaves the future uncertain, but for now Venezuela remains an unattractive destination for foreign investment and not a proponent of free trade.

While the country's economy grew at a pace of 5.5% in 2012, many economists do not believe that it is sustainable, since much of the growth was fuelled by campaign spending. The absence of a free market economy and an unfriendly environment for foreign investment do not contribute to a better IP system, while weak IP protection discourages foreign companies from establishing operations in the country. The Industrial Property Act of 1955 is still in effect and still outdated. "One needs to get pretty creative when applying for patents because there are many things the law, as it stands, does not foresee," one partner remarks.

"There isn't much patent litigation going on in Venezuela, primarily because no one trusts the courts and because it's hard to get patents enforced," says another partner. "During the past 10 years, maybe four or five patent cases have gone to court."

A slow court system, as well as judges inexperienced in IP matters, is another serious drawback in Venezuela's IP framework. "So, sometimes they [judges] are slow to make a ruling not because they don't want to but because they are 'clueless'," the same person notes.

Venezuela is also not a member of the Madrid Protocol and IP experts do not foresee the country joining the international trade mark system in the near future.

However, as of July 2012, Venezuela became a full member of Mercosur, the South American trade bloc – six years after having signed the agreement. The primary purpose of the trade bloc is to promote free trade and economic integration among the member states. Within that context, Venezuela will have to adapt the necessary legislative framework to fulfil its commitments as a member. Perhaps over the next four years – the grace period allowed Peru to make necessary adjustments – the IP market will also benefit as a result. Other Mercosur member countries are Argentina, Brazil, Paraguay and Uruguay.