In the business world, a trademark is an invaluable asset. It represents the public identity, quality, and reputation of a company. To protect this valuable intellectual property, many countries have industrial property agencies that offer trademark registration and renewal services. In Peru, the National Institute for the Defense of Competition and Protection of Intellectual Property (INDECOPI) is the entity responsible for this critical process. This article explores the importance of trademark renewal services at INDECOPI and analyzes real cases where the failure to renew a trademark had significant consequences.

The Importance of Trademark Registration and Renewal

1. Legal ProtectionRegistering a trademark with INDECOPI grants a company the exclusive right to use that trademark within its specific industry or product category. This provides robust legal protection against unfair competition and trademark infringement by third parties.
2. Brand ValueA strong trademark can have considerable market value. Properly registering and renewing the trademark can increase its value and attract investors or buyers interested in acquiring the company.
3. Reputation BuildingA properly registered and renewed trademark helps build a solid reputation in the market. Consumers tend to trust recognized and established brands, which can lead to increased customer loyalty and long-term customer retention.
4. Protection Against ImitationRegistering and renewing a trademark also protects against imitation. Without a registered trademark, other companies may attempt to copy a company’s name or logo to capitalize on its success and confuse consumers.

The Trademark Renewal Service at INDECOPI

In Peru, INDECOPI is the entity responsible for the protection of intellectual property, including registered trademarks. The trademark renewal service at INDECOPI is essential to ensure that registered trademarks remain valid and protected. Here are some key aspects of the trademark renewal service at INDECOPI:

1. Renewal PeriodicityThe initial registration of a trademark with INDECOPI is valid for ten years. After this period, the trademark must be renewed to maintain its validity and protection. Subsequent renewals are also conducted at ten-year intervals.
2. Renewal ProcessThe trademark renewal process at INDECOPI involves submitting a renewal application within six months prior to the expiration of the ten-year period. This requires the submission of documentation and payment of the corresponding fees.
3. Importance of Timely RenewalFailing to renew a trademark on time can have serious consequences. If a trademark is not renewed before the expiration of its ten-year period, it may lose its validity and become vulnerable to infringement by third parties.

Real Cases of Consequences of Failing to Renew a Trademark

Below, we analyze two real cases of Peruvian companies that failed to renew their trademarks on time and the consequences they faced:

1. Case “La Joya”In the jewelry sector in Lima, a family business called “La Joya” had built a solid reputation over decades. The company had registered its trademark with INDECOPI and had been operating under the same name for more than 30 years. However, when the time came to renew the trademark, the company failed to do so due to administrative issues.A local competitor seized the opportunity and registered the name “La Joya” as their trademark. This allowed the competitor to open a store in the same neighborhood with the identical name. Customers, confused by the new location, began shopping at the competitor’s store, resulting in significant revenue loss for the original “La Joya” company. The company had to change its name and logo, which entailed losing the valuable reputation they had built over decades.
2. Case “Rico Sabor”Another illustrative case is that of the food brand “Rico Sabor.” This company had a strong presence in the canned food market in Peru and had registered its trademark with INDECOPI. However, when it came time to renew the trademark, the company failed to do so due to financial issues.A few months after the “Rico Sabor” trademark lost its protection, imitation products with a very similar name and label design appeared on the market. Consumers, accustomed to buying “Rico Sabor” products, began purchasing the imitation products without realizing the difference. This resulted in a significant decline in sales and reputation for the original “Rico Sabor” company.

Conclusions

The trademark renewal service at INDECOPI plays a crucial role in protecting and maintaining registered trademarks in Peru. The importance of timely trademark renewal lies in preserving business identity, reputation, and market competitiveness. The real cases of “La Joya” and “Rico Sabor” illustrate the severe consequences that can arise when a company fails to renew its trademark on time, including the loss of customers, sales, and reputation. Ultimately, trademark renewal is an essential investment to ensure the continuity and long-term success of any business.