Commercial Use Licenses in Ecuador

What is a commercial use license?

A commercial use license is a legal agreement by which the holder of a right (such as a trademark, software or product) authorizes a third party to use it for economic or business purposes under previously established conditions.

In Ecuador, these licenses are mainly regulated by the Organic Code of the Social Economy of Knowledge, Creativity and Innovation (COESCCI), also known as Código de Ingenios.

Licenses may be classified into different categories:

• Exclusive License: Grants the licensee the exclusive right to use the asset, excluding even the own holder.
• Non-Exclusive License: Allows the holder to grant authorizations to several third parties simultaneously.
• Compulsory License: Imposed by the State for reasons of public interest, such as ensuring access to essential medicines.
• Free License: Granted without cost, common in free or open-source software.
• Paid License: Requires payment of a fee, either fixed or through royalties.

What is the purpose of a commercial use license?

Commercial licenses allow the parties involved to obtain specific benefits:

1. For the right holder (licensor):

• Authorize third parties to use their protected asset while retaining ownership.
• Earn income through royalties without the need for direct investment.
• Expand the presence of their product or mark into other markets or sectors.
• Control how their asset is used through contractual clauses.

2. For the licensee (the party receiving the license):

• Legally use protected products, trademarks, inventions or software.
• Take advantage of already-developed assets, reducing time and costs.
• Access technology, know-how, or established marks.
• Operate with legal backing and legal certainty.

Common areas of application within intellectual property:

• Industrial Property: Trademarks, patents, industrial designs.
• Copyright: Literary works, artistic works, and computer programs.
• Technology: Software licenses, systems, and applications.
• Franchises: Business models that include authorized use of trademarks and commercial methods.

At Quevedo Ponce, we have expert attorneys in the negotiation, drafting, and reviewing of commercial use license agreements in Ecuador. We offer specialized legal advice to protect your rights as a holder or to help you legally access trademarks, patents, software, franchises, or other assets, complying with the Código de Ingenios and providing the legal support your business needs to grow securely.