IP Contracts: Key legal and tax issues in Ecuador
The proper management of intangible assets not only protects business innovation, but can also offer significant tax advantages. ECIJA GPA's Intellectual Property team - Gabriela Balseca and Andrés Vásconez - has prepared a briefing note explaining why the registration of intellectual property (IP) contracts with SENADI is an indispensable requirement in Ecuador.
According to article 99 of the Organic Code of the Social Economy of Knowledge (COESCCI), any contract for the transfer, licensing or use of IP rights must be duly registered in order to be valid vis-à-vis third parties. Beyond formal compliance, this step is key to avoid tax observations and access to tax benefits for royalty payments.
The note points out that:
Lack of registration can invalidate legal effects.
Payments under unregistered contracts can be rejected by the tax authorities.
The registration is a preventive mechanism that reduces the risk of tax glosses and losses.
At ECIJA GPA we reiterate our commitment to provide specialised and updated advice on Intellectual Property, supporting our clients in the correct management and protection of their assets and tax benefits.
