Opinion ID: 681080
Heading Depth: 2
Heading Rank: 2

Heading: Argentina

Text: 22 Argentina, a civil law country, has also adopted the attributive system for trademarks. The rights in trademarks are acquired by registration, not by use. Article 4 of the Law of Trademarks and Designations, Law No. 22.362 of December 22, 1980, articulates this proposition: 23 Art. 4. Property in a trademark and the exclusivity of its use is obtained by its registration. In order to be the owner of a trademark or to exercise the right of opposition to its registry or its use, a legitimate interest of the soliciting party or the opponent is required. 24 A trademark's registration is valid for ten years. This may be renewed indefinitely for equal periods if the mark was utilized within five years prior to each expiration in the marketing of a product, the rendering of a service, or as part of designating an activity. (Art. 5) The mark lapses if not used within Argentina for five years prior to initiation of an action to nullify the mark. (Art. 26)Argentine law also protects commercial names based upon use rather than registration. Theoretically, a trademark and a commercial name are distinct concepts, but in practice there is some overlap. Articles 27 and 28 of Law 22.362 provide: 25 Art. 27. The name or sign that designates an activity, whether or not for profit, constitutes property for the purposes of this law. 26 Art. 28. Property in a commercial name is acquired by use and only in relation to the field in which it is utilized and should not be susceptible to confusion with any commercial names previously existing in the field. 27 Firms with a commercial name acquired by use may oppose registration of a trademark. 28 Trademarks may be transferred only if registered in Argentina. Article 6 of the Law of Trademarks and Commercial Names provides: 29 Art. 6. Transference of a registered mark is valid with respect to third parties, once inscribed in the National Directory of Industrial Property (Directorio Nacional de Propiedad Industrial). 30 Foreign trademarks become protected under Argentine law only after they are registered in Argentina. Argentina regards a foreign trademark registered in Argentina as a national trademark whose owner is domiciled abroad. The Argentine Law of Trademarks and Commercial Names, as well as its implementing decree, contain nothing specifically regulating trademark licensing except for Article 9, which states that when a trademark is registered in joint names, the owners must act in concert to license, transfer or renew the mark. 31 The Foreign Investment Law, Law 22.426 of March 12, 1981, imposes a registration requirement on all foreign patents and trademarks licensed to persons domiciled in Argentina. Article 1 of this statute provides: 32 All juridicial acts for consideration whose principal or secondary object is the transfer, assignment or licensing of technology or trademarks from persons domiciled abroad to individuals or public or private legal entities domiciled in Argentina, shall be included within the provisions of this law, provided that such acts have effect in Argentina. Patents and trademarks are to be registered with the National Institute of Industrial Property (Instituto Nacional de Tecnologia Industrial--INTI). 33 Article 2 of this law provides for additional registration and scrutiny by the Registry of Licenses and Transfer of Technology under the Ministry of Economy for all licensing agreements that require persons or legal entities domiciled in Argentina to make royalty payments abroad. If the license agreement is between independent parties, registration is for informational purposes only; governmental approval is not needed. Nonregistered agreements are considered valid, but payments made by the Argentine licensor are not tax deductible and the withholding tax rate is higher than it is for registered agreements. The need for prior governmental approval was relaxed by Emergency Law No. 23.687 of 1989. 34 Like Brazil, Argentina is a party to the Paris Convention. Argentine law 17.011 of November 10, 1966, ratifies the Paris Convention of 1883, and the revisions of Brussels of 1900, Washington of 1911, The Hague of 1925, London of 1934 and Lisbon of 1958. As in Brazil, the Argentine courts have provided some protection to a notorious mark registered abroad where a third party attempts to pirate by registering in Argentina.