The Trademark Law of Paraguay promulgated on August 6, 1998 introduces important changes:

1. A broader definition of trademark was introduced, which includes the concepts of trade dress.

2. Isolated colors, unlawful signs, generic, and descriptive signs are not registrable.

3. Power of Attorney to act before the Paraguay Trademark Office must be notarized, but does not require consular legalization. All other documents (i.e., assignments, change of name, merger) must be legalized.

4. The concept of "well-known" marks is recognized.

5. Term of validity of registration is ten years, and renewable every ten years. Cancellation of a mark for non-use is possible, however use in any country is use sufficient to prevent cancellation based on non-use.

6. A registration may be canceled if the mark has not been used within five years following the date of registration.

7. All licenses and assignments must be duly recorded at the Paraguay Trademark Office to be enforceable against third parties (infringers).

8. The term to file oppositions is sixty days following the publication date.

Comment

The 1998 law has a few features which are of particular interest to trademark owners. Notably, applications and registrations by those who knew or should have known the mark was owned by another are not allowed. Thus, it appears cancellation of a registration may be available where, for instance, a distributor of branded goods has registered the mark. On the other hand, the law introduces "exhaustion of rights" where goods are "lawfully introduced" by a trademark owner into any country. Thus, area distribution agreements which exclude Paraguay are likely unenforceable in Paraguay.