WIPO ADR Stories: Paraguay - Mediation as a Tool to Combat Piracy and Counterfeiting of Products

Counterfeiting and piracy are global threats that affect intellectual property (IP) rights holders, consumers and economies alike. In Paraguay, these illicit activities have posed a significant challenge, particularly for markets like luxury goods and pharmaceuticals. To address this problem, Paraguay’s National Intellectual Property Office, (DINAPI) has adopted an innovative approach: mediation.

DINAPI's Mediation Service

As part of its efforts to strengthen IP protection, after pre-implementation and testing phases, DINAPI launched on July 31, 2024, the pilot plan for its mediation service. This service is delivered by a team of qualified IP mediators, who have been trained in collaboration with the WIPO Arbitration and Mediation Center (WIPO AMC). The objective is clear: to offer alternative, accessible and amicable solutions to disputes related to IP rights, including those related to counterfeiting and piracy.

Mediation services are provided at no cost, which has encouraged the adoption of this mechanism for more than 30 mediation cases processed since its operation for which agreements have been reached between the parties. Mediation procedures, known for their flexibility, allow the parties involved to design tailored solutions that respond to their particular needs, moving away from the rigidity of traditional litigation.

DINAPI-WIPO AMC Collaboration

The collaboration between DINAPI and the WIPO AMC has been key to implementing mediation as an effective tool in the fight against counterfeiting in Paraguay. Through a co-administration program, both institutions have worked together to ensure that mediation services are available, regardless of the geographical location of the parties involved.

This program facilitates the implementation of technological tools, such as videoconferencing and online case tracking, allowing parties to access mediation proceedings remotely. In addition, virtual seminars have been held to train users and promote mediation as a viable alternative to litigation.

Concrete Results: Mediation in Action

Since the implementation of DINAPI's Mediation service, the cases presented have demonstrated the effectiveness of this mechanism in dealing with IP infringement. A remarkable example involved a small Paraguayan company facing unauthorized use of its trademark in the local market. Through mediation, the company was able to resolve the dispute quickly and confidentially, avoiding the high costs and emotional wear and tear of a lengthy court process. This case exemplifies how mediation not only protects IP rights, but also promotes a fairer and more collaborative business environment.

The benefits of mediation are obvious. In addition to being a faster and cheaper process than litigation, it offers confidentiality, which encourages open communication between the parties. Mediation also encourages the preservation of commercial relationships, since solutions are based on mutual interests, rather than focusing on confrontation.

A Promising Future: Consolidating Mediation in Paraguay

With the continued support of the WIPO AMC, DINAPI has made it a priority to promote mediation in Paraguay. The objective is to consolidate this method as the main tool for the resolution of IP disputes. To achieve this, several initiatives have been launched, including training programmes for mediators, the dissemination of online mediation and the active promotion of alternative dispute resolution (ADR) methods through various means.

This collaboration has also strengthened regional cooperation. Through the WIPO AMC co-administration program, Paraguay has shared its experiences and good practices with other countries in Latin America and the Caribbean, strengthening the exchange of knowledge between IP Offices on mediation and amicable dispute resolution.

Conclusion

Paraguay's experience in using mediation as a tool to resolve counterfeiting issues demonstrates that ADR methods are powerful tools to protect IP rights and foster a fair and more balanced business environment. Thanks to the collaboration between DINAPI and the WIPO AMC, Paraguay is at the forefront of implementing innovative, effective and accessible solutions to combat piracy and counterfeiting, with positive results that benefit both large corporations and small enterprises.

This achievement would not have been possible without the support of the WIPO AMC. Thanks to their collaboration, we have solid regulations and highly trained mediators. In addition, we have integrated technologies that allow telematic hearings to be held, facilitating access to mediation from anywhere in the country.

The implementation of this service is a key step within our Institutional Strategic Plan 2024-2028. This plan, in one of its axes, establishes the consolidation of an ADR service in IP as one of our main priorities."
 Claudia L. Franco Quevedo, National Director - DINAPI

Mediation is a tool that empowers parties to resolve IP disputes in a confidential, efficient and flexible manner. For both large and smaller rights holders, going through lengthy and costly legal proceedings has a considerable impact, to the point of even jeopardizing the very continuity of the business.

With the invaluable collaboration of the WIPO AMC, we have been able to develop and implement in DINAPI a mechanism that allows the parties to resolve these disputes regardless of the city where they are, thanks to a state-of-the-art computer platform. In these processes, the parties are assisted by mediators who are specialists in the field who contribute enormously to each party's understanding of the requirements of the other, and particularly the specific scope of the IP rights at stake."
 Diego Pérez Bernal, Director General of Enforcement – DINAPI