On August 15, 2024, El Salvador enacted Decree No. 66, establishing a new legal framework for the protection and enforcement of intellectual property rights. This new law repeals and replaces the existing Intellectual Property Law, the Law on Trademarks and Other Distinctive Signs, and the Regulation for the Promotion and Protection of Intellectual Property. This law will take effect six months following it publication in El Salvador’s Official Gazette.

Background and Objectives of the Law

The Director of the National Center of Registry, Camilo Trigueros, commented that “[m]ore than 30 years have passed since the last intellectual property law was enacted. Therefore, it was a priority to implement legislative changes. This law aims to reactivate the economy, support Salvadorans abroad, aid micro and small businesses, and foster both investment and innovation within the country.”

The objectives of this law include —

• • establishing a comprehensive legal framework of intellectual property and industrial rights;
  • safeguarding acquisition and licensing of intellectual property rights;
  • combating unfair competition related to property rights;
  • promoting innovation to encourage creativity, inventive activity, and transfer of national and international technology; and
  • to protect intellectual knowledge so it can be a source for socio-economic welfare, balancing rights and obligations that promote sustainable development. (Art. 2.)

The new law specifies that copyright provides authors with a property right that can be enforced against third parties (art. 8), as well as moral rights of an abstract and intellectual nature (art. 9).

One commentator noted that the legislation seeks to modernize the intellectual property framework to meet digital demands, strengthen protections for local creators and entrepreneurs, and position El Salvador as an appealing destination for investment and innovation.

Another commentator observed that the law introduces tariff incentives to encourage the development of inventions, literary and artistic works, and creative industries in El Salvador, thereby contributing to the nation’s creative economy.

Establishment of the Salvadoran Institute of Intellectual Property

The new law  establishes the Salvadoran Institute of Intellectual Property, responsible for managing all matters related to intellectual property. This new institute, functioning under the National Registry Center, is empowered to mediate disputes, oversee collective management entities, and operate an information center on both national and international works. The institute’s role is further strengthened with rigorous enforcement powers and oversight measures against infringement. (Id. art. 6.)

Digital Intellectual Property Protections and Conflict Resolution

The new law addresses specific challenges posed by the digital age, setting forth rules for managing intellectual property conflicts in digital contexts. It aims to optimize the resolution processes for intellectual property disputes, enhancing the protection framework in an increasingly digital environment. It thus includes provisions for the protection of intellectual property in the digital realm, offering increased security and legal recognition for digital works. (Arts. 316-323.)

Copyright Protections and Exceptions

Decree No. 66 provides extensive protections for copyright holders, outlining the moral and economic rights of authors and extending protections beyond national borders. (Arts. 10-14.) It enumerates the types of the publications protected by copyright and sets forth limitations and exceptions, balancing the interests of copyright holders with public access rights to copyright. (Arts. 16, 42-54.)

The law mandates the deposit of copyrighted materials with the Salvadoran Institute of Intellectual Property. (Arts. 93-96.)

Industrial Property Provisions

The new law also covers industrial property, including trademarks, distinctive signs, and patents. It provides detailed guidelines on enforcement actions and penalties for violations of industrial property rights. (Arts. 107-284.) Additionally, sanctions are prescribed for industrial property infringements. (Arts. 285-315.)

Copyright Administration

In terms of copyright administration, the law introduces notable changes, including a mandated 50% discount in fees by collective management entities for accredited micro and small businesses, special exceptions to support access for individuals with disabilities, and a system for single user payments that ensures equitable distribution among all copyright holders. (Art. 101(g).)

Stephania Alvarez, Law Library of Congress
November 7, 2024

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