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Trade and Commercial Law Assessment - Honduras - Economic ...

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TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004<br />

HONDURAS<br />

f.<br />

♦ Although transportation security has improved recently, security issues remain a major<br />

concern <strong>and</strong> significantly affect trade transaction<br />

costs because many trucks must travel<br />

in convoys, some with armed guards, <strong>and</strong> limit travel to the hours from 6 a.m. to 6 p.m.<br />

Increased costs related to security are estimated to range from $50 to $70 per container,<br />

including the cost of a guard for each vehicle <strong>and</strong> monitoring personnel to track the<br />

movement of each dray. Outside of the special unit dedicated to security, the police thus<br />

far have been unsuccessful in addressing this issue.<br />

The Director<br />

General of Intellectual Property within the Ministry of Industry <strong>and</strong> Commerce<br />

administers <strong>and</strong> oversees IPR requirements for <strong>Honduras</strong>. With the passage of the new Property<br />

<strong>Law</strong> (Ley de Propriedad or LdP), the Registry office will be incorporated into a new Instituto de<br />

Propiedad, an autonomous office independent of any ministry. According to officials involved in<br />

protecting<br />

intellectual property rights (IPR), in 2003 the office’s current staff of 21 employees<br />

process ed 186 patents, 5,638 trademarks, <strong>and</strong> 230 copyrights. Three alternatives exist for dealing<br />

with infringing<br />

articles—administrative, civil, <strong>and</strong> criminal.<br />

1) IPR Operations That Support Quality Enforcement<br />

♦ IPR officials report that Honduran law includes protection<br />

for all categories of IPR<br />

merch<strong>and</strong>ise <strong>and</strong> meets the minimum<br />

st<strong>and</strong>ards of the WTO TRIPS agreement.<br />

♦ Communications between the Registry office, judges, police, <strong>and</strong> prosecutors are<br />

conducted on an as-needed basis, <strong>and</strong> the sharing of information is without barriers.<br />

♦ <strong>Honduras</strong> has a unique provision within its copyright laws, whereby administrative<br />

penalties can be assessed. In 2003–2004 nine penalties, totaling $53,000, were imposed<br />

on cable companies for unauthorized broadcasts.<br />

♦ Political influence is minimal within<br />

the Registry office, with only the director, not the<br />

staff, rotated with each new administration. In addition, the current director was well<br />

qualified for the appointment, having an extensive background in IPR issues <strong>and</strong> law.<br />

♦<br />

Intellectual Property Rights<br />

♦ Steps have been taken to make the IPR regulatory body an autonomous department<br />

outside of any ministry. This should increase the profile <strong>and</strong> priority of the work<br />

performed, provide an increase in budget to improve technical capacity, <strong>and</strong> improve the<br />

quality of the review of initial decisions by the office (since the first level of review will<br />

be by qualified staff within the department rather than by Ministry of <strong>Trade</strong> officials who<br />

have no training in IPR issues).<br />

♦ <strong>Honduras</strong> has completed its assessment of the changes required to meet its IPR<br />

obligations under CAFTA. This includes 14 modifications to existing IPR laws <strong>and</strong><br />

becoming a signatory to five existing IPR international agreements. The government<br />

anticipates being able to complete these actions by the required deadlines.<br />

2) IPR Issues to Address<br />

The IPR Registry staff is inadequate to h<strong>and</strong>le the workload <strong>and</strong> insufficiently qualified<br />

to h<strong>and</strong>le to complexities involved. Excessive workload<br />

hampers training efforts.<br />

XI-21

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