692. The delegation of Peru would like to thank the proponents for bringing this important topic to the debate of the TRIPS Council. This time I would like to present the following:
a. MSMEs and intellectual property in Peru - general overview;
b. Initiatives developed by INDECOPI in favour of MSMES:
i. inventions and new technologies
ii. distinctive signs
c. COVID-19 crisis - INDECOPI's MSMES reactivation strategy
MSMEs and intellectual property in Peru - general overview
693. In Peru, MSMEs represent 99.5% of the formal companies of which 87.6% are dedicated to commerce and services, and the rest of them (around 12.4%) to productive activities (including manufacturing, construction, agriculture, mining, and fishing).
694. Moreover, MSMEs embody around 60% of the economically active population. However, high rates of informality are the main problem on this sector, since 48.4% of Peruvian MSMEs are not enlisted/registered under the Peruvian Tax Administration Office (SUNAT).
695. Here we can observe how MSMEs activities can be linked to the different IP tools.
696. One of the biggest issues in Peru is precisely the unawareness of IP tools importance and benefits such as:
a. market domain position;
b. enforcement against copies;
c. more attractive for investors and shareholders; and
d. more business opportunities.
Initiatives developed by INDECOPI in favour of MSMES
697. The National Institute for the Defense of Competition and the Protection of Intellectual Property (INDECOPI) is the Peruvian Authority in charge of the correct function of the market. Its scope of protection includes Intellectual Property, Consumer's Protection, Unfair Competition, Bureaucratic Barriers, Dumping and Bankruptcy.
698. Regarding Intellectual Property, the Peruvian system is formed by three Directorates Distinctive Signs, Inventions and New Technologies, and Copyright), their correspondent contentious commissions and an Intellectual Property Court.
699. In markets like Peru's, MSMEs must resort to innovation, differentiation or IP to compete in better conditions. It must be noted that sectors linked to innovation are usually agriculture, farming metallurgy and farming, manufacture, basic services, construction, ICTs and technological services.
700. There are some rules that we consider important for the correct management of IP portfolios among SMEs:
a. IP as a strategic asset;
b. Asset Protection;
c. IP Information;
d. Asset safeguard;
e. IP management; and
f. IP access.
Inventions and new technologies
701. The Inventions and New Technologies Directorate has been designing and implementing an integral package that seeks to raise awareness among Peruvian companies about the importance and value of the use of IP for the protection of innovations, as well as the strengthen of business management in order to increase their competitiveness.
702. This package includes:
a. IP ROUTE: its purpose is to develop and provide each participating company with a work plan to optimize the use and management of intellectual property within the company's organization, based on its structure, capacity and the type of business that it operates. It is primarily focused on sectors with a greater patenting capacity.
b. PATENTA EMPRESA: Initiative aimed to evaluate patent viability of innovations developed by Peruvian companies and to provide free technical support for the filing application.
703. The Annual recognition for the commercialization of Patents is a yearly award given to the most outstanding success stories of a patented Peruvian invention that has also been commercialized in the market. In this way, the successful experience can serve as an inspiration for other inventors.
704. The value of patent information for MSMEs: content development targeted to the Peruvian companies in order to facilitate their understanding of different aspects of intellectual property.
705. Protect your designs: initiative developed to promote the protection of aesthetic aspects of products, and to provide virtual assistance for the filing application.
706. Webinars and training programme: programme developed to educate and raise awareness about the most relevant issues related to patents and other industrial property elements. The programme is available free of charge to entrepreneurship centres, business incubators, chambers of commerce and all business institutions in Lima and other regions.
707. The Distinctive Signs Directorate has focused its efforts on developing and strengthening the existing digital tools to promote the use and protection of IP:
708. Through this tool, users can search for the correct classification of products or services for typical Peruvian terms, under the Nice classification. Up to date PERUANIZADO has included 1257 new Peruvian terms to its database.
IP Electronic Gazette
709. Through this service, INDECOPI automatically publishes trademark and patent applications that has passed formal examination. It is free of charge (generating USD 9.8 million in safes up to date) and allows procedures to be faster (for trademarks, an average of 35 working days).
"Busca tu marca" ("Find your brand")
710. Free of charge search tool, BUSCA TU MARCA allows users to online check by themselves if the sign they want to register is identical or alike to a previously registered trademark.
Online Trademark Renewal
711. This tool allows users to renew a registered trademark automatically on a fully digitized platform, in addition to obtaining a discount on the renewal fee.
712. The Distinctive Signs Directorate have performed several activities (such as webinars, interviews, and campaigns) to communicate the importance of the use of trademarks to protect entrepreneurs' assets.
713. Additionally, INDECOPI has launched the campaign #YoProtejoMiMarca (#IProtectMyBrand) which goal is precisely to show, through successful entrepreneur experiences, the importance of trademark protection.
714. Its main slogan is: "Do not put your dreams at risk, protect the most valuable asset of your company, your brand".
715. As you can see promotion measures taken by the Distinctive Signs Directorate allowed INDECOPI to communicate its message to more than 17000 entrepreneurs. Consequently, and despite the current pandemic situation, the trademark application ratio has increased from 7566 applications in the first trimester to more than 12000 on the third trimester of the present year.
Increase on the number of trademark applications during 2020
716. In April, due to the government measures taken to face COVID-19, the number of trademark applications decreased to less than 1200 applications (64% less than April 2019), then after the start of the promotion measures adopted by the Distinctive Signs Directorate, the number of applications gradually increased, overcoming the applications filed during July, August and September 2019. During September 2020, we reached the number of 4523 applications (32% more than in 2019).
Collective marks programme
717. Given the nature of collective marks, the programme seeks to develop associative and technical capacities of MSMEs through the use of this intellectual property tool.
718. Therefore, the programme includes the implementation and development of four aspects:
a. Training: Up to date, more than 4700 trainees.
b. Technical Assistance on the filing on applications: which includes goods/services Classification, formal requirement review, Trademark searches, assessment on registration viability, among others.
c. Free of charges: Achieving more than USD 700,000 on savings for more than 30000 families.
d. Fast Track system, which allowed collective trademarks to be granted on an average of 38 working days.
719. The Collective marks programme also includes different digital products such as: QR CODES (consumers can access to important commercial information of the trademark owner such as product history, contact information, among others)
720. Collective marks interactive map: A catalogue including the registered collective marks by regions.
Certification marks programme
721. Another important measure recently implemented by the Distinctive Signs Directorate is the Certification Marks Programme for the economic reactivation of MSMEs.
722. According to our legislation, a certification mark shall be understood to be a sign intended to be applied to goods or services of which the quality or other characteristics have been certified by the owner of the mark.
723. In this scenario, through the registration and use of certification marks, the programme seeks to generate economic benefits in favour of:
a. Authorized MSMEs: who increase their sales due to the use of an IP tool that guarantees quality standards and/or compliance with health regulations.
b. Consumers: who increase their confidence in the acquisition of products and services in the market, because they precisely meet the conditions previously described.
724. Its TARGET:
a. Productive/service guilds ; and
b. Regional/local governments.
725. This programme includes:
b. Technical Assistance on the filing of applications; and
c. Fast Track system.
726. The Copyright Directorate has implemented the following services to promote the use and respect of IP rights:
727. Catalogue of Public Domain Works which currently includes 1061 texts available.
Fight against piracy in the digital environment:
728. INDECOPI has performed an intense work against digital piracy, for example recently suspended the domain of six websites which performed unauthorized broadcast of phonograms.
729. It is important to mention that in Peru the fight against piracy and counterfeiting is based on a triple approach:
a. Preventive Approach: We seek to develop and consolidate a culture of respect for IP rights among citizens, also raising awareness among the citizenship.
b. Persuasive Approach: Incentives for compliance with intellectual property rules.
c. Reactive approach: Actions for the control and sanction of acts that violate IP rights.
COVID-19 crisis - INDECOPI'S MSMEs reactivation strategy
730. The economic consequences in Peru due to COVID-19 has been devastating. According to the World Bank Organization, Peruvian GDP will decrease 12% on 2020. Also, six million jobs have been lost between April and June 2020.
731. To contribute with the economic reactivation of MSMEs, INDECOPI is implementing a work plan to strengthen their competitiveness.
732. The work plan includes the participation and cooperation of three areas for the economic reactivation: consumer's protection, bureaucratic barriers and intellectual property.
733. With joint actions, the authorities in charge seeks to: build capacities, promote the use of different IP tools, ensure quality in service, facilitate market access, and generate an adequate environment for innovation.