OM Weekly Digest (14-07-2016)

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URUGUAY | Regulatory, Trademarks | ICSID issues arbitral award in Philip Morris vs. Oriental Republic of Uruguay case

 

On July 08 of 2016, the International Centre for Settlement of Investments Disputes (ICSID, part of World Bank Group) issued the arbitration award in favor of the State of Uruguay, in the complaint filed by the tobacco industry company Philip Morris (through its subsidiary domiciled in Switzerland).  This was the first international arbitration based on a bilateral investment treaty (BIT) against a Sovereign State for the alleged infringement of industrial property rights.

Philip Morris decided to sue Uruguay arguing the violation of the BIT signed between Switzerland and Uruguay.  Philip Morris considered that its investment (trademarks) was affected by  the Uruguayan Government decision to: (i) ban the selling of different types of presentations for the same brand of cigarettes; and (ii) the decision to order all tobacco industry companies to include sanitary warnings in 80% of front and back of cigarette boxes. The decision was based on the World Health Organization (WHO) Framework Convention on Tobacco Control.

 The final decision established that the investment of Philip Morris was not affected since: (i) there cannot exist an investment expropriation where there is sufficient business value; and (ii) the measures taken by the Uruguayan Government were not arbitrary, since they were implemented as legitimate public health measures designed to protect population and it constitutes a valid exercise of a Sovereign State regulatory powers.

We recommend reading the award (available here) as it establishes criteria evaluating the scope of public health measures, among others.

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COLOMBIA | Trademarks | “Country Hill” trademark for orange and fruit drinks obtained Well-Know Trademark status

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The Colombian Trademark Office (CTO) issued Resolution 40124 of 2016, recognizing the notoriety of “Country Hill” trademark, registered in Class 32 of Nice Classification. The decision was taken based on the  opposition filed by  Meals de Colombia S.A.S, -a company from the Nutresa business group- against the registration of “TURKEY HILL” trademark (requested by Turkey Hill L.P. to distinguish “ice cream, yogurt, diet ice cream” products in Class 30 and “lemonades and fruit drinks” in Nice 32 Class). The opposition was based on the high risk of unfair exploitation of “COUNTRY HILL” trademark.

The effects  of the declaration of notoriety of a trademark, are as follows:  (i) breaking the principle of specification (which implies analysis of trademark confusion, distinctiveness  and dilution risk,  regardless of Nice Class); (ii) breaking the principle of territoriality among Paris Convention members countries and;  (iii) trademark protection even if it has not been registered.

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COLOMBIA | Regulatory | In force Law allowing Cannabis and derivate products for medical and scientific use

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Despite the existence of Decrees (2467 of 2015 –included in the new Health Regulation Decree -780/2016- ) and Regulations (1816/2016) enabling the granting of crop and manufacturing licenses of cannabis for medical and scientific purposes -and even the granting of licenses for the manufacturing of Cannabis derivatives-, only until 6 July 2016 was issued the Law legalizing Cannabis use in Colombia for medical and scientific purposes (1787 of 2016).

The new law creates a regulatory framework allowing safe and informed Cannabis and derivate products access for medical and scientific purposes.  Among its principal aspects, it indicates that the State takes control and regulation of crop, production, manufacturing, acquisition (and inter alia) activities related to Cannabis and its derivatives.

It is important to mention that the Colombian Government –via Ministry of Health and Social Protection, among others-, will charge license applicants and owners for evaluation and monitoring services.

 

CANADA, ECUADOR, GUATEMALA, WORLD | Copyright Law | Marrakesh Treaty will enter in force

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As from 30 September 2016, the Marrakesh Treaty “to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled” will come in force, due to accessions effected by Ecuador, Guatemala and Canada during the last week of June 2016.

In Latin America, the Treaty has been ratified and/or accessed (in chronological order) by El Salvador, Uruguay, Paraguay. Argentine, Mexico, Brazil, Peru, Chile, Ecuador and Guatemala, being pending the accession and/or ratification of contracting parties like Colombia, Costa Rica, Dominican Republic and Panama.

The treaty may be consulted here.

 

14 Jul, 2016

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