IP News Bites | Problematic regulation in Venezuela
June 25th, 2012 by Danny G. Pérez y Soto - B&R Research
New labor law in Venezuela changes IP regulation.
The recently approved labor law in Venezuela -Ley Orgánica del Trabajo, los Trabajadores y las Trabajadoras (Lottt)- has made changes to the IP regulation under labor contracts. According to articles 325 and 326 of the law, a different standard has been created for intellectual production under working relationships with the public and the private sectors.
For intellectual property created under labor relationships with the public sector (which is understood as intellectual production by public employees of financed through public funds) there will only be public recognition of the author, but the creation itself will be considered of public domain since the moment of its creation.
For the private sector, on the other hand, the creations can the exploited by their creator, or by its employer as long as the labor relationship exists or the license contract signed between both parties is valid. This rule overturns the previous regulation, under which the employer had the property rights over the intellectual production of its employees.
This is a problematic and strange change in IP regulation, and it’s sure to create problems for the private and public sector, reducing innovation and incentives for research and development. It’s not clear how big corporations, especially in industries such as software development and journalism, will manage their IP rights under this regulation when their labor contracts are terminated.