Intellectual Property as a Strategy for Business Development

Abstract

The objective of this research is to examine the role of intellectual property (IP) in fostering business development, particularly focusing on patent management in Ecuador and its alignment with international standards. The study employs a comparative analysis of Ecuadorian legislation against the framework established by the World Intellectual Property Organization (WIPO) to identify challenges and opportunities within the national IP system. Key methods include reviewing existing legal texts, interviewing stakeholders, and analyzing patent registration processes. The findings indicate that while Ecuador has made significant strides in harmonizing its IP laws with international treaties, such as the Patent Cooperation Treaty (PCT) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), considerable barriers remain, particularly related to bureaucratic inefficiencies and a lack of technical resources in key institutions like the National Service of Intellectual Rights (SENADI). The conclusions highlight the need for enhanced efficiency and implementation of IP regulations to stimulate sustained innovation growth, attract national and foreign investments, and, ultimately, strengthen Ecuador’s competitiveness in a global economy. This research contributes to the understanding of how effective IP management can serve as a vital tool for economic development and innovation.

1. Introduction

The business world is evolving rapidly; the constant changes in the market and the demands and requirements of consumers make companies seek innovations and improvements that promote economic and social development that can benefit both organizations and consumers.

In the present day, it is no longer enough just to produce and launch new products or services to the market; more innovations and studies are required to support the acceptance and success of new inventions.

The confidence that companies can secure their assets more effectively and profitably (Rodríguez-García and Agüero-Miñano 2015; Naghavi and Strozzi 2015) is such that innovative activity is essential for the creation of new technologies that can generate broad business benefits and be at the forefront of new changes (CEPAL 2022), achieving potential economic and sustainable returns for organizations over time.

Companies are oriented in the search for recognition and prestige, and they raise their productivity, competitiveness, and growth; therefore, the management of intellectual property has become a key element for the fulfillment of business objectives and in gaining a solid position in the current competitive conditions. The increase in patent protection promotes greater economic development (WIPO 2017b; Sweet and Maggio 2015).

Intellectual property can be considered as a protection alternative that allows attacking and defending against competitors in the face of the different strategies and actions they undertake (Rodriguez Quintana et al. 2023; Rodríguez-García and Agüero-Miñano 2015). With the advances in technologies and innovations, intellectual property rights have become highly recognized as the major enforcement tool to protect different knowledge activities (Christopoulou et al. 2021).

Intellectual property rights act as a catalyst for innovation and the emergence of new ventures by facilitating the identification, protection, and management of intellectual assets. Moreover, they foster the dissemination of techniques and the strategic control of such assets, making them a key driver for sustainable development (Cao et al. 2023). To maximize the generation of knowledge and innovations, it is essential to implement appropriate incentives that enable organizations to overcome challenges such as high costs, uncertainty, and the difficulties associated with research development and its outcomes. These incentives not only ensure a return on investments made but also stimulate the undertaking of new risks, promoting future projects with high-impact potential (Amankwah-Amoah and Medase 2023).

In developed countries, the intellectual property services industry presents a greater development, fostering a market mechanism through which the production of high-quality products has been facilitated, where innovators have taken advantage of the value of intellectual property through different strategic means linked to the use and management of patents (Xiang et al. 2023).

A comprehensive intellectual vision is needed, with effective management in the stages of creation, application, protection, and management of intellectual property (Fernández-Ribas 2010). Patents have been created with the purpose of recognizing and rewarding the work of inventors by obtaining commercially successful technologies, where the world can learn about these inventions and make use of them (WIPO 2017b).

Innovation also represents an essential factor in making the management of intellectual property viable; the Organization for Economic Cooperation and Development (OECD) defines it as the introduction of a new or significantly improved product (good or service) or process or the introduction of a new marketing or organizational method applied to business practices, work organization, or external relations (Žigić et al. 2023).

In the current day, it is necessary for companies to be able to properly manage their resources, technology, and research with the aim of building potential competitive advantages, taking into consideration their characteristics and values to generate interaction, combination, and transformation among their components, which in turn will allow them to obtain superior organizational performance (Bravo Martinez and Sánchez Gómez 2022).

Based on this context, the objective of this study is to carry out a comparative analysis between the legal context in Ecuador and internationally, in order to know the particularities required for patenting management.

1.1. Importance of Intellectual Property

In today’s dynamic markets, companies face significant challenges in building strong competitive advantages and staying relevant in an environment of oversupply, where the supply of products and services significantly exceeds demand. This oversupply is largely composed of minimally differentiated goods and services, which presents a series of problems for organizations (WIPO 2004).

In this context, the protection of intellectual property rights has gained particular importance. Intellectual property rights play a crucial role in accelerating market growth and creating opportunities for differentiation, enabling companies to stand out in a saturated market.

There is broad consensus among researchers on the need to optimally manage intellectual property rights. Minimum levels of protection are essential to sustain innovation and its long-term growth, while excessive levels could hinder the development of innovation. Thus, it is necessary to strike a balance in the use and management of these rights (Gangopadhyay and Mondal 2012; Furukawa 2007).

Intellectual property (IP) plays a crucial role in markets globally, whether in highly globalized settings or those with a national or regional focus. As a pillar of the global economy, IP protects creations of the mind, from technical inventions to artistic works, contributing to economic development, innovation, and competitiveness (WIPO 2021).

The World Intellectual Property Organization (WIPO) emphasizes that the protection of intellectual property encompasses a variety of rights, including patents, trademarks, geographical indications, copyrights, and others, each with specific functions and applications. Broadly, intellectual property rights are divided into two main categories: copyrights and industrial property rights.

Copyrights protect cultural and artistic creations, such as literature, music, art, and other creative works, while related rights safeguard technical and organizational aspects, such as artistic performances and exhibitions (WIPO 2023a).

Industrial property rights, on the other hand, include patents, trademarks, industrial designs, and geographical indications, among others, granting creators control over the use and commercialization of their works and inventions.

This diverse legal framework enables rights holders to protect, manage, and monetize their creations, thereby fostering innovation, strengthening business performance, and contributing to positioning in a competitive environment. Despite differences in implementation at the international level, intellectual property remains a key driver for global economic and cultural development.

Among the most globally recognized forms of intellectual property are patents, copyrights, industrial design rights, trademarks, plant variety rights, trade dress, geographical indications, and, in some jurisdictions, trade secrets (Lin et al. 2020). However, some of these forms pose challenges and difficulties in terms of their acquisition and applicability.

An invention is a new solution to a technical problem, which can be protected through a patent. A patent is an exclusive right granted for an invention—a product or process that generally provides a new way of achieving something or offers a new technical solution to a problem. The patent holder has the exclusive right to authorize or prevent others from commercially exploiting the patented invention. Typically, these exclusive rights apply only in the country or region where the patent has been filed and granted in accordance with that country’s legislation (Medina 2024; WIPO 2023b). Patents protect the interests of inventors who have achieved groundbreaking and commercially prosperous technologies, ensuring control over the commercial use of their inventions (WIPO 2017b).

Understanding the legal framework governing intellectual property is key for companies and creators to protect their intangible assets and fully leverage the opportunities offered by the global market.

Intellectual property law is a dynamic and complex field that is constantly evolving. While intellectual products within a country can be registered as national intellectual property, debates continue regarding how to define these rights within a global framework to recognize innovations worldwide (Nemlioglu 2019). Although significant differences exist between countries, the international legal framework provides a solid foundation for the global protection of intellectual creations (Sunner 2022).

The World Intellectual Property Organization (WIPO), as a specialized agency of the United Nations, serves as the leading global forum for promoting and strengthening intellectual property (IP). Its mission includes the creation of international treaties that establish minimum standards of protection in key areas such as patents, trademarks, industrial designs, copyrights, and plant varieties. Additionally, WIPO plays an essential role by providing technical assistance, training, and specialized services to improve IP systems in member states.

The treaties administered by WIPO offer a common legal framework that facilitates international trade and collaboration among nations, promoting reciprocity among states. Moreover, the organization acts as a mediator in IP-related disputes, offering arbitration and mediation services that streamline conflict resolution. This not only reduces costs and time for the parties involved but also reinforces confidence in the global IP system WIPO 2023a, 2023b, 2024a, 2024b).

The treaties administered by WIPO, such as the Patent Cooperation Treaty (PCT) and the Paris Convention for the Protection of Industrial Property, are voluntary and do not impose obligations on member states beyond the commitments assumed upon ratification. Consequently, WIPO has no authority to impose legislative harmonization standards among countries. Its role is limited to proposing frameworks and providing technical assistance for member states to strengthen their IP systems (WIPO 2024a, 2024b).

Among the most relevant international treaties is the Paris Convention for the Protection of Industrial Property, which establishes the basis for the protection of trademarks, industrial designs, trade names, and geographical indications.

On the other hand, the Berne Convention for the Protection of Literary and Artistic Works safeguards copyright at the global level. Another important treaty is the Patent Cooperation Treaty (PCT), administered by WIPO, which facilitates patent applications in multiple countries through a single application in one language.

Additionally, the agreements of the World Trade Organization (WTO) establish minimum standards for intellectual property protection in international trade (Nemlioglu 2019; WIPO 2021; Hall et al. 2014).

The WTO plays an active role in harmonizing intellectual property treaties by establishing mechanisms for notification, review, and dispute resolution (WTO 2024). Each member state must report how its national legislation complies with TRIPS.

Through the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), the WTO establishes a binding framework for all its member states, defining the criteria for trademark protection and setting requirements for the attribution of rights. This agreement creates a global harmonization process, with minimum standards that countries must incorporate into their national IP legislation (WIPO 2017a; Bodenhausen 1969).

Unlike WIPO, the WTO monitors compliance with these obligations through mechanisms such as the TRIPS Council and the dispute settlement system.

In Ecuador’s case, as a member of the WTO, it notifies the TRIPS Council about its compliance, which can be a key source for evaluating how Ecuadorian legislation aligns with these requirements.

Each country has its own legal system for protecting intellectual property, and companies must comply with national regulations to obtain and maintain rights over their creations (Gupta et al. 2024). The effective protection of these rights depends both on the existence of intellectual property laws and their enforcement. This, in turn, can generate funds to finance research and development, although access to these investments may be smoother and faster in some countries than in others (Ang et al. 2014).

Strategic and robust attention to intellectual property rights regulations is crucial, as they can greatly benefit developing countries by facilitating innovation and boosting production. However, these regulations must strike a balance between offering sufficient protection and preventing the abuse of exclusive rights, which could lead to monopolies. It is essential to adopt strict enforcement measures to maintain the integrity of the intellectual property system (Caboni and Hagberg 2019).

Finally, intellectual property rights (IPRs) support innovation, entrepreneurship, and sustainable development, benefiting both economies and society. When people trust that their ideas and creations will be protected, they are more inclined to take risks, start new ventures, and contribute to economic development (Yang et al. 2024). A robust intellectual property framework acts as a magnet for talent and fosters entrepreneurial spirit. This increase in entrepreneurial activity, in turn, fuels competition, stimulates innovation and enhances a country’s global competitiveness.

IPRs play a fundamental role in overcoming challenges related to innovation and economic growth. They drive research and development (R&D), which promotes business growth (Neves et al. 2021). In today’s knowledge-based economy, the management of intellectual property by companies is crucial, especially in the context of R&D. Efficient patent administration and commercialization are key to stimulating innovation and fostering economic growth (Okutan and Kasapoğlu 2024).

Additionally, IPRs are essential for protecting invention and creativity, granting individuals and businesses the ability to capitalize on their efforts. By ensuring the protection of innovative ideas and creations, organizations are encouraged to invest in R&D, driving the creation of new products, services, and technologies. This not only allows businesses to expand their product lines but also increases their global competitiveness (Singh and Kaunert 2024).

These intellectual assets become strategic resources that attract both domestic and foreign investment, thereby fostering economic growth. Thus, prioritizing intellectual property rights should be a cornerstone of governments’ economic development plans, as they are essential for improving market conditions, attracting investment and skilled talent, and promoting technological advancement (Singha and Singha 2024).

Finally, patent commercialization offers significant benefits to inventors, enabling them to transform their inventions into tangible products and generate financial opportunities through licensing or royalties. Moreover, it facilitates the establishment of strategic partnerships with industry experts, maximizing resources and expertise for the development of new opportunities (Wang and Qian 2023).

Several factors influence the acquisition and value of a patent, which can be classified as internal or external to the company, encompassing technological, legal, economic, and strategic aspects. Below are some of these factors:

Table 1. Influential factors in the development of patents.

Factor Type	Description
Internal Factors
R&D Capacity	Essential for generating patentable inventions.
Financial Resources	Significant investment required for R&D activities.
Expert Team	A multidisciplinary team is key to identifying and managing patents.
Innovation Culture	Fostering creativity and innovation ensures a steady flow of new ideas.
IP Strategy	A well-defined strategy maximizes the value of patents.
Technological Factors
Level of Innovation	Novelty and originality are key for patentability.
Technological Complexity	Complex inventions require stronger patent protection.
Speed of Change	Rapid technological advancements may shorten a patent’s lifecycle.
External Factors
Legal Framework	National IP laws impact patent requirements and rights.
Economic Environment	Market demand and innovation policies influence patenting decisions.
Competitiveness	Industry competition can drive or deter patent applications.
Academic Collaboration	Partnerships with research institutions foster innovation.
Licensing Potential	The ability to license patents can create revenue streams.
Strategic Factors
Business Objectives	Patents support market entry, competitive advantages, and barriers.
Company Valuation	Patents enhance a firm’s valuation, especially in tech industries.

Source: (Singh et al. 2024; Bravo Martinez and Sánchez Gómez 2022; Dosi et al. 2007).

summarizes the key internal, technological, external, and strategic factors influencing patentability.

1.2. Development and Benefits of Patent Protection

In many global economies, economic progress is closely tied to the development and protection of intellectual property rights (IPR), with patents playing a fundamental role. Patents provide a framework that encourages inventors and creators to commercialize their ideas by granting them temporary exclusivity over their inventions. This incentive not only safeguards innovations but also promotes investment in research and development (R&D), leading to the introduction of technologies, goods, and services that drive economic growth (Abrokwah-Larbi 2024).

Patent protection, as a specific form of intellectual property safeguarding, allows businesses and individuals to secure their inventions, ensuring returns on the investments made in their development. However, the benefits of patents are not solely economic; they are also strategic. Patents provide organizations with competitive advantages by establishing barriers to entry for competitors, fostering technology transfer, and creating opportunities for international collaborations.

While patents have a global scope in terms of impact, their legal nature is territorial. This means that patent rights are valid only in the countries or regions where they have been registered and granted. As a result, businesses must understand and manage the regulatory differences between legal systems in each jurisdiction. These variations can significantly influence a company’s internationalization strategy and its global expansion plans (WIPO 2024a, 2024b; Pérez Peña and Castro Quishpi 2023).

Proper hpatent management is essential for business sustainability and growth. This involves not only protecting inventions but also leveraging them as tools to promote innovation, competitiveness, and economic value creation. In the current context of accelerated globalization and fierce technological competition, companies must view patents as an integral component of their competitive advantage. Additionally, they should continuously identify new opportunities for sustained growth, using patents as strategic resources to position themselves in dynamic markets (Singh et al. 2024; Wang et al. 2023).

Today’s globalized value chains underscore the importance of patents in distributed manufacturing and production. These practices, aimed at reducing costs and optimizing processes, have eroded many traditional sources of competitive differentiation. In this context, patents emerge as crucial intangible assets that allow companies to protect their technical knowledge, knowledge base, and other intellectual property elements, transforming them into key drivers of value creation and sustained competitiveness.

Finally, patent protection plays an essential role in the transition of businesses toward innovation- and knowledge-based models. Beyond traditional physical assets, patents have become fundamental strategic resources for assessing an organization’s market value. According to (Dosi et al. 2007), intangible assets, such as patents, significantly contribute to the competitiveness of companies in highly dynamic markets, ensuring their relevance and adaptability in the future.

The purpose of a patent is to grant its holder the exclusive right to prevent third parties from commercially exploiting the patented invention for a limited period of time and in the country or region where protection has been granted. This means that without the owner’s consent, the production, use, distribution, importation, or sale of the invention for commercial purposes is not allowed. If a third party engages in any of these activities without authorization, the patent holder may go to court to seek redress for the infringement and demand compensation for damages (WIPO 2024a, 2024b).

In most cases, patents are associated with technological aspects and the introduction to innovations is carried out by R&D companies (Block et al. 2014). There are several studies that show that the use of registered patents has a relevant and proven effect on the development of companies, mainly linked to productive activity (Ortiz-villajos 2024; Taalbi 2021). Most of the patents developed evidence of the effort made by organizations to create new products that can be marketed in different local and international markets; at the same time, patents have become indicators of innovation activities and have mostly been used for scientific and experimental purposes (Shapiro et al. 2015).

In some cases, the costs for patenting can be high; however, the benefits that patents represent for companies are superior since they are considered an effective mechanism that allows selling the knowledge created or licenses of use. At the same time, these mechanisms promote the bargaining power of companies, attract new strategic partners, and allow them to generate alliances or enter international markets (Luís et al. 2015), which has a direct impact on their growth and business development, strengthening their competitiveness.

In most cases, patents increase the value of the company by securing its intangible assets, improving its image and technological performance, and improving its positioning before financial resource providers (Luís et al. 2015; Blind et al. 2009).

It should be noted that the innovation strategy applied by companies directly influences patenting management, and several strategic actors are considered within these strategies, which, in one way or another, are related to the value chain of companies. Among them, the suppliers, customers, competitors, and universities, depending on whether organizations promote innovation and research efforts that allow them to create products, can be considered. These are processes that may be patented (Blind et al. 2009).

The global economy is mainly determined by the introduction of modern technologies in various economic, productive, and social sectors, among others. The adaptation of technology is not only present in high-tech companies but in all sectors of the economy, and it promotes a series of reforms based on modern and innovative ideas that improve business development and raise the quality of life of citizens and countries (Rajabov et al. 2023; Kim and Jung 2022). For the achievement of proper business development, there are several conditions that companies should consider; among them are the application of business models that fit their needs, business scope, markets, market segments, and the designs of their products or services (Kruachottikul et al. 2023).

The development of the knowledge economy in today’s world is accompanied by the growing role of intellectual capital. Therefore, it is necessary to innovate the mechanisms for managing a company’s intellectual resources in order to keep up with the times (Nalivaychenko et al. 2024).

There are multiple benefits granted by intellectual property, according to (Wang et al. 2023): access to innovative knowledge, the incentive for national innovation, the generation of wealth, competitiveness in international trade, adaptation to the digital era, positioning in the international trade game, and fair negotiation on global platforms, among others.

The efficient management of patenting has a significant impact on business competitiveness, as it protects innovations, confers business competitiveness, and provides strategic advantages in the marketplace. By filing patents, companies secure exclusive rights to their inventions, which allows them to differentiate themselves from competitors, avoid imitations and maintain competition, avoid imitations, and maintain control over their technologies. This not only makes it easier to obtain revenue through licensing and royalties but also increases the value of the company by positioning it as an innovative leader in its industry. In addition, a strong patenting strategy investment in research and development, creating a culture of continuous innovation that enhances the company’s ability to adapt to market changes and take advantage of new business opportunities, helps to facilitate entry into new markets, the establishment of alliances, and the negotiation of licenses, thus strengthening the position of companies in a highly competitive global environment (Hall 2024; Kruachottikul et al. 2023; Castaldi et al. 2024). Therefore, it is possible to cite certain factors of patenting that have an impact on business growth and competitiveness: As shown in

Table 2. Patenting and competitiveness.

Growth	Patents safeguard innovations, enabling companies to capture more value, expand production, and increase sales. This leads to sustained growth and market presence.
Profitability	Companies benefit from additional revenue streams via licensing, patent sales, and exclusive product rights. Patents also serve as entry barriers, limiting competition and protecting profit margins.
Market Share	Patents help businesses differentiate their products and services, strengthening brand positioning. They also serve as leverage in strategic partnerships and industry collaborations.
Investment and Valuation	A strong patent portfolio enhances a company’s stock market valuation, attracts investors, and signals long-term innovation potential.
Innovation and Reputation	Patents contribute to a company’s reputation as an industry leader in innovation, fostering trust among stakeholders and customers.

Source: (Hall 2024; Kruachottikul et al. 2023; Castaldi et al. 2024).

, patents can influence profitability and business growth.

2. Methods

This research was carried out under a qualitative approach with a descriptive scope, due to the interpretative nature of the study and the need to conduct an in-depth analysis of the legal regulations on intellectual property. The qualitative approach allows for an exhaustive exploration of the dynamics between intellectual property laws in Ecuador and international standards, with special emphasis on patent management.

An exhaustive documentary review was carried out, analyzing key legal regulations in Ecuador, such as the Constitution of the Republic of Ecuador, the Organic Code of the Social Economy of Knowledge (COESC + i), the Organic Code of Production, Commerce and Investment (COPCI), and international regulations such as the Paris Convention for the Protection of Industrial Property, the Patent Cooperation Treaty (PCT), the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and decisions related to patenting management based on the Andean Community. These sources were selected for their relevance in patent management and their influence on business competitiveness.

The selection process of normative sources was based on criteria of relevance and alignment with international treaties. Ecuadorian regulations were selected for their direct impact on business management, while international regulations were chosen for their ability to generate a robust comparative framework. For data analysis, a comparative matrix was used to systematize the information obtained from the different regulatory frameworks. The comparative matrix included key dimensions such as novelty, inventive step, industrial applicability, and duration of protection, which allowed a detailed analysis of the similarities and differences between Ecuadorian and international regulations. This comparative process was crucial to understanding how the particularities of local laws can influence business competitiveness in a global context.

The qualitative analysis software Atlas.ti was used to code and organize the data from the legal regulations, facilitating the identification of patterns and recurring themes. The coding allowed the information to be classified into relevant thematic categories, such as patentability requirements, patent exceptions and limitations, and duration of protection.

The analysis focused on identifying the similarities and differences between Ecuadorian regulations and the international standards established by the World Intellectual Property Organization (WIPO). This study included a detailed evaluation of patent registration procedures, the rights granted, and the limitations imposed, enabling the identification of specific challenges Ecuador faces regarding the efficiency and adaptability of its legal framework for intellectual property protection.

To strengthen the findings, a triangulation of sources was conducted, combining data obtained from local and international regulations with academic studies on intellectual property and competitiveness. This approach ensured that the results were consistent and supported by robust evidence.

Rigorous criteria for reliability and relevance were applied in the selection of documentary sources, ensuring that they reflected current regulations. Additionally, consultations with experts in intellectual property and comparative law were conducted to verify the accuracy of the analyses and their relevance to the Ecuadorian context.

The qualitative approach, supported by content analysis techniques, provided a coherent and well-founded interpretation of the examined regulations, reinforcing the validity of the findings. Additionally, the case study method—commonly applied in exploratory, descriptive, and comparative research within the social sciences—was taken into account (Jiménez 2012).

3. Findings

3.1. Analysis of the Patenting Regulations in Ecuador vs. the WIPO Regulations

This study examines the legal regulations governing patent management, a complex process that encompasses legal, technical, and commercial aspects. The analysis focuses on patenting management both in Ecuador and globally, highlighting the legal framework, procedures, and current trends.

Patent management in Ecuador is regulated by a legal framework composed of several important regulations that establish the basis for the management of intellectual property and patenting. The following is a brief comparative analysis of the representative aspects of Ecuadorian legal regulations and the laws that govern at the international level:

Table 3. Comparative analysis between regulations.

Legal Aspect	Regulations in Ecuador	Internacional Regulations (WIPO)	Interpretation
Definition of Patent	Exclusive right for new inventions with industrial application.	Territorial right for new and useful inventions.	Ecuador’s definition may limit applications in certain industrial sectors.
Patent Term	20 years from filing date (COPCI).	20-year protection.	Ecuador aligns with WIPO standards.
Patentability Requirements	Novelty, inventive step, and industrial applicability.	Same requirements as WIPO.	No major differences, allowing for global integration.
Exceptions and Limitations	No patents for plants, animals, or biological processes (COPCI).	Some exceptions for public interest protection (health, environment).	Ecuador’s stricter limitations may impact biotech sector competitiveness.
Registration Procedure	Managed by SENADI with specific documentation requirements.	WIPO promotes streamlined procedures.	Ecuador’s process is more bureaucratic and slower than WIPO best practices.
International Protection	Ecuador participates in the Patent Cooperation Treaty (PCT).	WIPO facilitates global patent applications through the PCT.	Ecuador aligns with WIPO, easing international protection.

Fuente: (COPCI 2019; COESC 2017; Constitucion 2008; WIPO 1979; Patent Cooperation Treaty 2014; ADPIC 1994; CAN 2000).

presents a comparative analysis between Ecuadorian regulations and international standards set by WIPO.

This analysis shows how Ecuador has aligned its regulations with international standards, although there are still areas where local regulations show particularities that affect the application of patents in specific sectors, such as biotechnology.

3.2. Definition of Patent

Both Ecuadorian and WIPO regulations define patents in a similar way, recognizing that a patent is an exclusive right granted to new inventions with potential for industrial application. However, Ecuadorian law has a more restrictive interpretation in some industrial sectors. This may limit innovation in emerging areas, such as biotechnology and software technologies, where industrial applications may not be immediately obvious. Internationally, WIPO offers greater flexibility in the interpretation of these terms, which encourages innovation in fast-growing industries.

3.3. Patent Term

Both frameworks coincide in granting 20-year protection, which demonstrates Ecuador’s harmonization with the international standards established in the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). However, the challenge in Ecuador does not lie in the duration of the right, but in the efficiency of the registration process and the enforcement of these rights. Internationally, registration processes are more agile and allow companies to take advantage of the full life cycle of their patents, while in Ecuador, the bureaucracy and slowness of the process can reduce the effectiveness of this protection, negatively impacting the competitiveness of local companies.

3.4. Patentability Requirements

Both legal frameworks, both in Ecuador and in WIPO, require that an invention be new, have an inventive step, and be susceptible to industrial application in order to be patented. However, in practice, Ecuador faces challenges in the evaluation of these criteria due to limitations in the technical capacity and infrastructure of the patent offices. Internationally, WIPO has implemented clearer and more robust guidelines for the evaluation of inventive steps, which facilitates the standardization of the process in multiple jurisdictions. Ecuador, by following these guidelines, can benefit from greater integration with global markets but must first improve training and technical resources in the National Intellectual Rights Service (SENADI).

3.5. Exceptions and Limitations

Ecuador imposes significant restrictions on patenting in sectors such as plants, animals, and biological processes, which contrasts with the greater flexibility offered by WIPO in terms of exceptions for the public interest (e.g., public health or environmental issues). This could place Ecuador in an unfavorable situation in terms of innovation in the biotechnology sector. While exceptions are necessary to protect the public interest, greater harmonization with internationally recognized exceptions could encourage the growth of strategic sectors in Ecuador, such as agriculture or biotechnology, where innovations could be essential for the country’s competitiveness.

3.6. Registration Procedure

In Ecuador, the patent registration process is managed by the National Intellectual Rights Service (SENADI), which includes stages such as formal examination, publication of the application, and substantive examination. This process has been criticized for being more bureaucratic and slower compared to the recommendations of the World Intellectual Property Organization (WIPO), which advocates for streamlined procedures through national offices implementing best practices.

WIPO promotes simplified processes aimed at reducing waiting times and improving efficiency in patent application handling. While Ecuador has made significant progress in modernizing its legal framework, it still needs to address bureaucratic bottlenecks that slow down patent granting. This inefficiency in the registration process limits Ecuadorian companies’ ability to secure timely protections, directly affecting their capacity to compete in international markets.

3.7. International Protection

A positive aspect of the Ecuadorian framework is its participation in the Patent Cooperation Treaty (PCT), which allows Ecuadorian inventors to seek protection in multiple countries with a single application. This places Ecuador in a favorable position for the internationalization of its inventions. By following WIPO guidelines in this regard, Ecuador makes it easier for companies to enter international markets, allowing local inventions to have greater reach. However, in order to take full advantage of the benefits of the PCT, it is essential that Ecuador optimizes its internal patent management processes, improving response times and increasing the capacity to evaluate applications in emerging sectors. The following is a brief, more detailed analysis of patenting regulation in Ecuador from the perspective of its regulations:

3.8. Patent Regulation According to the Constitution of Ecuador

The Constitution of the Republic of Ecuador, approved in 2008, establishes the basis for the protection of intellectual property rights, including patent rights. Through various provisions, the Constitution balances the protection of inventors’ rights with the public interest, access to knowledge, and the protection of biodiversity and ancestral knowledge. Patenting and intellectual property are recognized within the framework of rights and obligations that protect both citizens and productive entities. Article 322 is the main constitutional reference in this matter; it establishes that intellectual property rights, including those related to patents, must be oriented towards the common good, promoting technology transfer and access to knowledge, avoiding the privatization of ancestral knowledge and collective knowledge (Constitucion 2008).

The analysis of this framework reveals a dual function: on the one hand, it recognizes and protects the right of innovators to register and benefit economically from their inventions; on the other hand, it establishes limits to the scope of these rights to ensure that they do not interfere with access to key technologies, such as those affecting public health or the environment; it also establishes the rights of individuals to freely develop their economic and productive activities within a framework of respect for the public interest and nature.

The Constitution establishes that the State has an obligation to promote scientific and technological development, facilitating research and innovation, which in turn creates a favorable context for patenting. However, it also stresses that this development must be aligned with the principles of social justice and sustainability, which introduces a balanced vision between individual and collective rights.

The Ecuadorian constitutional framework for patent regulation reflects a balanced approach between the protection of the individual rights of inventors and the collective interest. The Constitution promotes innovation and protects the rights of inventors, ensuring that they can benefit from their creations. At the same time, it imposes restrictions on intellectual property related to genetic resources and traditional knowledge, in line with an approach of respect for biodiversity and ancestral knowledge. In addition, the Constitution allows the establishment of limitations to patent rights in situations that affect public health, which evidences a clear orientation towards social welfare and justice.

3.9. Analysis of the Organic Code for the Social Economy of Knowledge, Creativity, and Innovation (COESC + i)

Analysis of the Organic Code for the Social Economy of Knowledge, Creativity, and Innovation, also known as INGENIOS, came into force in 2016, which provides a robust framework for the regulation of patenting in Ecuador, aligned with international standards but adapted to the country’s needs and priorities (SENADI 2017). Through its provisions, COESC + i seeks to foster an inclusive and sustainable innovation environment while protecting the rights of inventors and the public interest. The effectiveness of this framework will lhargely depend on its practical implementation and the State’s ability to balance intellectual property rights with social and economic development objectives (COESC 2017).

The Ecuadorian legal framework defines a patent as an exclusive right granted by the State to the inventor or owner of an invention, allowing him/her to exploit it for a specific period. This right is granted for any invention, whether product or process, in all fields of technology, provided that it meets the requirements of novelty, inventive level, and industrial applicability, as established in the (COESC 2017). For an invention to be considered patentable, it must meet certain fundamental criteria. First, it must be novel, i.e., it must not have been disclosed to the public prior to the date on which the patent application is filed. Secondly, the invention must present an inventive level, which means that it must involve a technical advance that is not obvious to a person with specialized knowledge in the corresponding area. Finally, the invention must be susceptible to industrial application, which means that it must be able to be used or produced in any type of industry.

These requirements are in line with international standards, particularly those established by the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) of the World Trade Organization (WTO).

At the same time, the patent application process in Ecuador, which is administered by the National Service of Intellectual Rights (SENADI), must be complied with and includes several stages:

• Filing of the Application: It must include a clear and complete description of the invention, claims, drawings (if any), and payment of the corresponding fees.
• Examination of Form: Initial verification to ensure that the application complies with the established formal requirements.
• Publication of the Application: The application is published to allow interested third parties to file observations or oppositions.
• Substantive Examination: Technical evaluation of the novelty, inventive step, and industrial applicability of the invention.
• Grant or Denial: Based on the results of the substantive examination and possible oppositions, SENADI decides to grant or deny the patent.
• Payment of Annual Fees: Once granted, the holder must pay annual fees to keep the patent in force.

The protection granted by a patent in Ecuador under the COESC + i is 20 years from the date of application submission, aligning with international agreements, particularly the TRIPS Agreement.

However, in practice, administrative delays in Ecuador can reduce the effective protection period.

The COESC + i excludes plants, animals, and biological processes from patent eligibility, whereas WIPO regulations allow for more flexible exceptions to safeguard public interests, such as health or the environment. This limitation hinders the competitiveness of Ecuador’s biotechnology sector.

3.10. Analysis of the Organic Code of Production, Trade, and Investment (COPCI)

Analysis of the Organic Code of Production, Trade, and Investment is a key regulation in Ecuador that regulates various areas related to production, trade, and investment. Within its scope, the COPCI also addresses crucial aspects of intellectual property, including the regulation of patenting.

Although COPCI does not focus exclusively on intellectual property, it includes provisions that indirectly relate to the protection of patentable inventions, stressing the importance of a robust legal environment that enables inventors and companies to protect their inventions, thus facilitating a more attractive business climate for foreign investment and local innovation.

It seeks to promote innovation as an engine for economic development and strengthens an environment that encourages the creation of new technologies and innovative processes. By granting exclusive rights for their exploitation, it ensures that inventors can benefit economically from their creations.

Article 56 specifically mentions that the Ecuadorian State will encourage the creation and transfer of technologies through fiscal and non-fiscal incentives to companies that invest in research and development (R&D) (COPCI 2019). This provision reinforces the State’s commitment to the promotion of innovation and the protection of inventors’ rights.

Although it does not directly regulate patents, it has been created with the purpose of being aligned with international treaties, such as TRIPS, ensuring that Ecuador’s policies are compatible with global standards, thus facilitating international trade and investments.

3.11. Andean Community (CAN) Regulations

This regulation is of great importance for patent management in Ecuador, as the country is part of the Andean bloc along with Bolivia, Colombia, and Peru (CAN 2022). As members of the Andean Community, these countries share a common intellectual property regime, established in Decision 486 of the Common Regime on Industrial Property (CAN 2000). This regulation provides a regional framework for the protection of patents, copyrights, trademarks, and other rights related to intellectual property, complementing and harmonizing the national legislation of the member countries.

The relevance of this regulation for Ecuador lies in its establishment of uniform standards for the registration and protection of patents, facilitating commercial and technological integration within the Andean region. It also allows patents granted in one member country to be valid in others, fostering regional competitiveness and reducing administrative barriers for companies and inventors.

3.12. Decision 486 Common Regime on Industrial Property

Adopted by the CAN in 2000, this decision establishes the fundamental rules for the protection of industrial property in the member countries. Concerning patents, this decision is crucial, as it regulates all aspects of the patenting process, from the requirements for obtaining a patent to its duration and the rights it grants to the holder (CAN 2000).

One of the most notable aspects is the clear definition of patentability requirements, which align with the international standards set by WIPO. For an invention to be patentable, it must meet the criteria of novelty, inventive step, and industrial applicability—requirements essential for ensuring that protected innovations provide significant differential value. This framework also establishes that granted patents have a duration of 20 years from the filing date, an international standard promoting long-term protection for innovations.

Furthermore, this decision includes a series of exceptions to patentability, reflecting concerns for public interest. For instance, patents are not granted for inventions contrary to public health, morality, or the environment. These exceptions are important to balance the private interests of patent holders with the social and environmental needs of the region.

3.13. Decision 345 Common Regime for the Protection of Plant Varieties

This decision specifically regulates the protection of plant varieties, meaning new plant varieties that meet criteria such as novelty, distinctiveness, uniformity, and stability. Although this decision does not directly focus on industrial patents, it is highly significant in the field of intellectual property as applied to agricultural biotechnology (CAN 1993).

For Ecuador, a country with rich biodiversity and a strong agricultural sector, Decision 345 is key to protecting innovations in plant breeding. This regulation ensures that new plant varieties can be commercially exploited, granting the breeder exclusive rights for a specific period. However, it also includes exceptions that allow for the use of protected varieties for research or in cases of food emergencies, reinforcing the balance between innovation and public needs.

3.14. Decision 351 Protection of Copyright and Related Rights

While this decision is more related to copyright, it also has an indirect impact on industrial property in certain sectors, especially in the software industry and technological innovations involving intellectual creativity (CAN 2014). In some cases, creations protected by this decision may complement a patenting strategy, as in software protection, where companies can use both patents and copyrights to safeguard their intangible assets.

The framework provided by the decision grants holders exclusive rights over their artistic or scientific creations, protecting original works and ensuring that inventors or creators receive economic benefits from the use of their innovations. This strengthens the regional innovation ecosystem, encouraging the development of new technologies that may also be protected through patenting.

All these Andean Community regulations align with international standards promoted by WIPO, especially with the Patent Cooperation Treaty (PCT) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). This alignment ensures that Andean rules are not only applicable within the member countries but are also recognized globally, facilitating the integration of the region’s businesses and creators into international markets.

3.15. Analysis of International Legal Norms According to WIPO

This analysis focuses on international legal regulations related to patenting, taking as a reference the guidelines established by the World Intellectual Property Organization (WIPO). For this purpose, we consider those regulations that are directly related to Ecuador, evaluating how international regulations influence the country’s patent protection system and its alignment with international agreements on intellectual property. This approach makes it possible to understand Ecuador’s integration into the global framework for the protection of inventions and the implications it has on its local regulations.

3.16. Paris Convention for the Protection of Industrial Property

Established in March 1883, this convention is considered one of the cornerstones of the international system for protecting industrial property. Its main objective is to ensure that patents granted in one member country are recognized in other member countries (WIPO 1979, 2024a, 2024b). Among its key provisions is the Right of Priority, which grants an applicant filing a patent application in one member country a 12-month priority period to file applications in other member countries, thereby protecting the original filing date.

Additionally, it establishes National Treatment, requiring member countries to grant applicants from other member countries the same treatment as nationals regarding the granting of patents. Finally, the Principle of Non-Discrimination ensures that citizens of member countries are treated fairly and without discrimination in the patent application process.

3.17. Patent Cooperation Treaty (PCT)

This treaty simplifies and centralizes the process of filing international patent applications. One of its key features is the international search procedure, which allows for a preliminary search to assess the relevant prior art. Additionally, the PCT includes an International Preliminary Examination, which provides a preliminary assessment of the patentability of the invention. Another advantage is its administrative efficiency, as it facilitates filing patent applications in multiple countries through a single initial process, reducing both costs and administrative efforts.

The PCT provides an efficient framework for international patent protection, facilitating the management of the application process and granting applicants additional time to decide in which countries to seek protection (Patent Cooperation Treaty 2014). By reducing duplicated efforts and providing preliminary reports on patentability, the PCT significantly contributes to optimizing the global patent acquisition process.

3.18. Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)

The WTO (1994) (TRIPS) is part of the World Trade Organization (WTO) framework and establishes minimum standards for international patent protection. One of the most significant aspects of this agreement is the patent duration, which stipulates a minimum protection period of 20 years from the application date. This time frame not only provides legal security for inventors but also promotes investment in research and development by ensuring inventors can benefit economically from their innovations over a considerable period.

Additionally, TRIPS sets specific criteria for patentability requirements, which include novelty, inventive step, and industrial applicability. Novelty means that the invention must not have been previously disclosed to the public, ensuring that patents are granted only for truly innovative inventions. On the other hand, the inventive step requires that the invention not be obvious to a person skilled in the field, protecting significant advances in technology and science. Finally, industrial applicability requires that the invention can be used in industry, ensuring that granted patents have practical use and contribute to economic and social development.

TRIPS also establishes the need for effective mechanisms for enforcing and upholding patent rights. This includes the requirement for member countries to implement procedures for resolving patent-related disputes, which is essential for protecting inventors’ rights. The existence of an efficient and accessible judicial system allows patent holders to enforce their rights and provides a framework for fair and equitable dispute resolution. Together, these TRIPS provisions form the basis for robust patent protection, promoting innovation and technological development globally.

4. Discussion

4.1. Patent Application Cases in Ecuador

It is important to highlight some examples from representative sectors in Ecuador, where patent management becomes a determining factor for development, innovation, and growth.

4.2. Biotechnology Sector

A patent filed by an Ecuadorian company for an innovative method to improve crop resistance to specific pests was rejected due to restrictions on the patenting of biological processes under the COESC + i.

The COESC + i expressly prohibits the patenting of plants, animals, and biological processes, aligning with the restrictions of the Paris Convention for the Protection of Industrial Property (COESC 2017). However, this limitation severely affects strategic sectors such as agriculture and biotechnology, which are vital to Ecuador’s economy due to the country’s biological diversity.

At the international level, WIPO allows more flexible exceptions in the public interest, such as biodiversity protection or public health, while promoting biotechnological innovation by establishing clear criteria for patenting elements derived from biological processes (WIPO 2023a).

The lack of such flexibility in Ecuador reduces opportunities to attract investments in this sector and limits the development of innovative solutions tailored to the region.

4.3. Technology Sector

A patent application for innovative business management software faced challenges due to a lack of clarity in SENADI’s technical evaluation processes, causing significant delays in the registration timeline.

SENADI manages the patent registration process in Ecuador but faces technical limitations and insufficient human resources to evaluate complex applications, such as those related to software and digital technologies. This contrasts with WIPO’s guidelines, which promote more efficient standards through the use of technological tools for patent examination, such as the Patent Cooperation Treaty (PCT) (Patent Cooperation Treaty 2014).

Delays in registration affect Ecuadorian tech companies’ ability to protect their innovations promptly, exposing them to risks of duplication and loss of competitive advantages. Enhancing training and adopting advanced technologies for evaluation could address these barriers, aligning national processes with global best practices.

4.4. Renewable Energy Sector

A patent related to an innovative solar panel design adapted to the climatic conditions of the Andean region was filed using the PCT mechanism, facilitating protection in international markets.

This case demonstrates how leveraging the PCT enables Ecuadorian inventors to protect their innovations simultaneously in multiple countries, optimizing costs and processing times. However, the efficiency of the PCT depends on national offices like SENADI providing adequate support to inventors.

Renewable energy technology is a priority area for sustainability in Ecuador, yet the legal framework needs to foster greater incentives and technical support. While the PCT aids in the internationalization of patents, local inventors face initial barriers to achieving effective national registration.

Ecuadorian regulations seek to protect innovation, fostering economic development through incentives for creativity and research, recognizing the importance of intellectual property and ensuring its protection within the realm of fundamental rights, underscoring the country’s commitment to scientific and technological advancement.

Compared to WIPO’s international regulations, Ecuador follows the guidelines of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and other international treaties such as the Patent Cooperation Treaty (PCT). International regulations establish a more harmonized and comprehensive framework for patent protection, offering greater ease for managing and recognizing patents globally.

Ecuador’s challenge lies in balancing inventors’ rights with social development needs, particularly in areas such as public health and technology transfer. Although Ecuadorian regulations are robust in terms of rights, it is important to improve efficiency in patent management and integration with the international system to boost the country’s global competitiveness in innovation.

Certainly, comparative legal analysis is a widely adopted methodology in intellectual property research across many countries today. Various social actors involved in IP management recognize the importance of understanding how foreign legal systems operate to gain a better understanding of their national systems (Calboli 2021; D’Agostino 2008). Intellectual property law harmonization systems, as well as the centralization of registration procedures, have proven useful for intellectual property rights holders (Calboli and LaFrance 2013). It is important to note that some developing countries have shown a growing interest in intellectual property laws as their economies have grown (Nemlioglu 2019; Hutukka 2023), so fostering an effective system of international harmonization that can be somewhat flexible to adapt to national circumstances and various levels of development, which may change over time, is imperative.

5. Conclusions

Ecuador has made significant progress in adopting intellectual property (IP) regulations aligned with international treaties, such as the Patent Cooperation Treaty (PCT) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). However, considerable challenges remain regarding the efficiency of patenting processes and the adaptation of these regulations to the country’s specific needs.

A comparative analysis of national and international regulations reveals that, although Ecuador has harmonized its legislation with global standards, its patent management system faces obstacles related to bureaucracy and a lack of technical resources in key institutions such as the National Intellectual Rights Service (SENADI). This situation reduces the potential for Ecuadorian companies to effectively protect and commercialize their innovations, affecting their ability to compete internationally.

Patent protection has proven to be a key driver for innovation and business competitiveness. Companies that adequately protect their inventions can secure a larger market share, improve profitability, and stimulate economic growth through innovation. Despite progress, patent management in Ecuador faces certain difficulties that limit the innovation potential of companies, particularly in the biotechnology and high-tech sectors.

Although Ecuador has taken significant steps toward modernizing its IP regulatory framework, it is essential to improve the efficiency and implementation of these regulations to enable sustained growth in innovation. By doing so, the country can strengthen its competitiveness and attract greater national and international investment, thereby driving economic development in an increasingly competitive global context.