MARCH 2008 New General Telecommunications Law Moves Forward Bill number 16398, or the General Telecommunications Law (GTL), was debated for the first time in the Legislative Assembly on February 13, 2008, passing by a majority of the legislators in attendance. The bill opens up the telecommunications sector and sets operating conditions for this market. In addition to meeting the commitment assumed by the country in negotiating the free trade agreement with Central America, the Dominican Republic and the United States (DR-CAFTA), the bill seeks to create a basis for developing a safe, competitive market in Costa Rica for the different telecommunications service providers. From an organizational standpoint, the GTL separates the roles of the State in telecommunications, with direction to remain in the hands of the Ministry of the Environment and Telecommunications while regulation would go to the Telecommunications Superintendence and operation to the Costa Rican Electricity Institute (ICE) and its subsidiaries. The bill also creates the National Telecommunications Fund (FONATEL) to develop the principles of universal service and access.  In addition to regulating radio spectrum concessions and establishing licensing for activities not requiring a spectrum concession, it sets a fee schedule for operators and sanctions for noncompliance. Furthermore, the GTL seeks to develop a freely competitive telecommunications market, allowing operators to choose the technologies they wish to use, as long as common standards are met that comply with the requirements needed for achieving sectoral policy goals and objectives. Under this concept the principle is to guarantee convergent technologies without major regulatory hurdles. The GTL is slated for second debate in the Legislative Assembly on Monday, February 18, 2008.  Nevertheless, it was sent for constitutional review to the Supreme Court’s Constitutional Chamber within the allowed period of time; the court has one calendar month to issue its qualified opinion after which the bill will be returned to the Legislative Assembly, either for final approval or for correcting any constitutional clashes that may have been detected.  If the bill is found constitutional by the Constitutional Chamber, it will go to second debate, where discussion will focus solely on whether the new law should be promulgated or not. For more information on this issue, please feel free to contact us at our central e-mail address solsab@lawfirmcr.com or at (506) 2290 7220, extension 17. February 2008 NEW MEMBERS OF THE LAW FIRM Soley, Saborío , Fallas & Asociados (SSF&A)  , announces the incorporation of attorneys Sinda Góchez Vargas and  Arturo Guerrero Díaz . Mrs. Sinda Góchez joined the Firm since November 2007 and will support and enrich the Firm’s corporate law practice in litigation, commercial and labor matters and consultancy. E-mail contact:  sgochez@lawfirmcr.com Mr. Arturo Guerrero joins SSF&A after serving several years as attorney and head of legal departments of local finance and banking institutions. With his incorporation, SSF&A will fortify its corporate law practice in contractual and finance matters. E-mail contact: aguerrero@lawfirmcr.com Should you require any further information about this news, please contact us at solsab@lawfirmcr.com EXTENSION PROVIDED BY THE WTO Costa Rica, among other nations, was scheduled to eliminate export benefits, among them the tax incentives manufacturing companies in the Free Trade Zone regime enjoyed. The date provided to comply with this mandate was set to be December 31, 2009.   Last July 27, the World Trade Organization (WTO) approved a last and final extension to the term in which subsidies and benefits for export products had to be eliminated until the year 2015.  With this extension, it is possible to guarantee the continuation of the regime currently in effect and there is further space to develop new incentive models that ensure the level of competitiveness in Costa Rica to attract investments.   Apart from this concession, the WTO has been clear that the period between 2013 and 2015 should be focused on plans to eliminate direct subsidies and the search for new projects compatible with the WTO guidelines.  In this sense, the Government of the Republic of Costa Rica has announced its commitment to continue preparing the legal amendments necessary to ensure new incentive models based on other criteria accepted by the WTO standards rather than export criteria.  Among them, these are some of the criteria evaluated for this purpose:  Granting benefits to pioneering companies (i.e. those that represent attracting new technologies); Investments that mean employment generation in rural or marginal areas Investments in training for the company’s staff. The decision made by the WTO has been very relevant to the Costa Rican exporting sector, and in particular for the sector developing export activity under the free trade area regime.  This is because the original term would expires in six months and there were no clear alternatives yet to be proposed in order to provide continuity to the incentives that represent an important element of competitiveness for the country.   Should you require any further information about this news, please contact us at solsab@lawfirmcr.com March 2007 FIRST CLINICAL RESEARCH STUDY APPROVED ACCORDING TO THE NEW REGULATIONS FOR CLINICAL RESEARCH After going through a detailed step-by-step regulatory process, last March 22, 2007, the Pediatric Care Institute (IAP: Instituto de Atención Pediátrica), whose legal counsel is the Law Firm Soley, Saborío, Fallas & Asociados (http://www.lawfirmcr.com), finally completed a long process towards obtaining the approval and countersignature by the Costa Rican General Comptroller’s Office of the agreement subscribed by and between the Pediatric Care Institute and Caja Costarricense de Seguro Social (CCSS). This agreement regulates the terms and conditions by means of which the “Multinational Latin American Epidemiological Monitoring Study of the Invasive Pneumococcal Disease” shall be executed. This study is promoted by Wyeth Pharmaceuticals Inc. (http://www.wyeth.com/), with the support of the Latin American Association of Pediatric Infectology and the World Association of Pediatric Infectology. It is important to underscore that this study was declared of public and national interest by the Costa Rican government, by Executive Decree No. 33388-S (Official newspaper La Gaceta #2065 of October 27, 2006), as a positive response to a detailed analysis of this scientific project by the Ministry of Health and CCSS. The said institutions clearly determined the public need of this study, considering it fundamental to learn about the epidemiology of such illnesses in the country; so that the Ministry of Health can make objective, scientific decisions about the introduction of new vaccines into the program of basic immunizations. The study represents a great opportunity for the Health authorities to have access to scientific data about our population, in order to adequately support the decisions they make regarding sanitary planning, acquisition of medicines, establishment of health care policies; and also to make more efficient pharmacological-economic analyses. In addition, the implementation of this study in Costa Rica, effectively responds to the (World Health Organization (WHO) recommendation, in the sense that each country should be aware of the burden represented by the pneumococcal disease in their area. Costa Rica was pointed out as one of the countries where there is no scientific data about the incidence of the invasive pneumococcal disease. In general, in Latin America there is lack of information about the pneumococcal epidemiology. Internationally, this important study is sponsored by the pharmaceutical company Wyeth Pharmaceuticals Inc. In addition to Costa Rica, countries such as Mexico, Colombia and Brasil participate in this multicentric study.    The Instituto de Atención Pediátrica (Pediatric Care Institute) dedicates to clinical research in Costa Rica; and it has achieved ample experience in the area of pediatrics. It has an extensive and impeccable record, at a national and international levels; and it is responsible for the preparation of scientific articles that have been submitted to international discussions; thus, contributing directly and effectively to the development of medical sciences. In the development of clinical studies (both, those whose main objective is the development of a new drug, and those within an epidemiological or observational study, such as the aforementioned), in addition to the company sponsoring the study, also regulatory entities, physicians, academic investigators and patients participate. Other organizations are also contracted to administer and implement the research on a local basis. In the case of Costa Rica, they are identified as the “Institutions In Charge of the Study” The successful completion of this regulatory process represents for Soley, Saborío, Fallas & Asociados a new professional achievement, which consolidates it as a pioneer Law Firm in the area of legal counsel to clinical research companies in Costa Rica; thus enlarging its important achievements in its Corporate Practice. Soley Saborío Fallas & Asociados, through its division of Corporate and Intellectual Property Practice, provided legal support throughout the negotiation process of the IAP, as well as in the procurement of the necessary approvals for the “Multinational Latin American Epidemiological Monitoring Study of the Invasive Pneumococcal Disease;” and finally, in the formalization of this project. Attorneys at Law Elías Soley Gutiérrez (esoley@lawfirmcr.com) and Emilia Saborío Pozuelo (esaborio@lawfirmcr.com) directed the team of lawyers who participated in this task. For additional information about Soley Saborío Fallas & Asociados, we invite you to visit  www.lawfirmcr.com .

 

February 2007

New member of Central American Legal Group
(Grupo Jurídico Centroamericano)

The Central American Legal Group, Grupo Jurídico Centroamericano, at its 2007 Regular Meeting finalized the incorporation of its Guatemalan member, the firm: ROSENBERG, MARROQUÍN & ASOCIADOS, S.C.

ROSENBERG, MARROQUÍN & ASOCIADOS, S.C.  is a recognized Guatemalan law firm that has been dedicated to providing high quality legal services in Guatemala City, Central America, for approximately 20 years.

"Grupo Jurídico Centroamericano" is a professional strategic alliance of law firms in the Central American countries. This organization, a pioneer in this type of regional services, was created in 1997 in response to the needs for legal advisory services for our business clients in the Central American region.

Our professional group has developed different areas of practice based on company and individual needs to provide greater value added to legal services and to help their business operations, supplying professional support in all the different regional legal matters through firms affiliated with "Grupo Jurídico Centroamericano" in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama.

The "Grupo Jurídico Centroamericano" has successfully established itself as a reliable organization, providing its clients with the chance to coordinate their businesses in the region through our affiliated firms.

Currently, "Grupo Jurídico Centroamericano" is made up of the following law firms:
Panama:      Rivera, Bolívar & Castañedas  (www.riveboca.com)
Costa Rica:   Soley, Saborío, Fallas & Asociados (www.lawfirmcr.com)
Nicaragua:   Sánchez Cordero & Asociados (http://www.sanchezcorderolaw.com.ni)
Honduras:     Consultoría Jurídica Internacional Bufete Bográn & Asociados ( http://www.conjurinter.com )
El Salvador: Sáenz & Asociados  (http://www.saenzlaw.com )
Guatemala:   Rosenberg, Marroquín  & Asociados (http://www.rrmmp.com)

The efficient standardized nature of the service, the professional support from each of our members, and our group’s guaranteed versatility make it possible for us to conduct business in various specialized areas:  administrative hiring, international commerce and investment, corporate law, intellectual property, tax law, customs, real estate, and others. We offer all these services while maintaining the highest level of professionalism required by the current company dynamics.

Detailed information about the members of "Grupo Jurídico Centroamericano" can be provided upon request.  For more information, please visit our web page -- www.lawfirmcr.com -- or contact us at our main email address: solsab@lawfirmcr.com .

 

JANUARY 2007

Company in the medical sector duplicates
its industrial plant in Costa Rica

The company ArthroCare Corporation (www.arthrocare.com ), established in Costa Rica since 2002, inaugurated last November the expansion of its industrial plant located in GLOBAL PARK Free Zone Industrial Park, in the province of Heredia. With the aforesaid investment, ArthroCare duplicated its production area in our country.

ArthroCare Corporation is a company that develops, produces and commercializes technology used for the surgical treatment of tissues; most part of this equipment is used in high accuracy operations such as those of dorsal spine, heart, ear, shoulder, throat and nose.

According to several press releases, the additional investment was estimated in 3 million US dollars (“Periódico El Financiero” edition of January 22 – 28, 2007 - http://costarica.capitalfinanciero.com/edactual/actualidad962882.html ). With his expansion, ArthroCare intends to satisfy the production needs of new products acquired by the company.  

Nowadays, ArthroCare de Costa Rica registered more than 450 employees and expects to increase this figure within the next months.

Soley, Saborío, Fallas & Asociados through its corporate and international trade division, participated in the project advisory for Arthrocare Corporation ever since the decision to invest in Costa Rica was made, providing all the necessary legal services to get established within the free zone regime and develop its business in Costa Rica.  The lawyers Elías Soley (esoley@lawfirmcr.com ) and Emilia Saborío (esaborio@lawfirmcr.com ) directed the team of lawyers who collaborated in this task.     

MAY 2006

COSTA RICAN TELECOMMUNICATIONS OPERATORS SUBSCRIBE AGREEMENT WITH GLOBAL CROSSING (NASDAQ: GLBC)

Last May 04, 2006, Global Crossing, and the Costa Rican Telecommunications Operator (ICE) (an autonomous institution) and the Internet service provider, RACSA, formalized agreements for the purchase of capacity and landing of Global Crossing Sub sea cable, which shall land through the Pacific coast. This news was highlighted by the principal Costa Rican media.
At the ceremony held on the occasion of the signature of the Agreement, at the headquarters of Institution Costarricense de Electricidad (ICE), Mr. José Antonio Ríos, Chief Admininistrative  Officer (CAO) and international President of Global Crossing, announced plans for expanding the company’s main network to Costa Rica. By expanding Global Crossing’s Pan American Crossing (PAC) system – currently running along the Western Central American coast, from Panama to Los Angeles – which shall enter the country at the ground point of Unquí in Esterillos, Costa Rica shall have direct access to the first global IP network that serves more than 600 cities in 60 countries.
Global Crossing’s presence in Latin America and the Caribbean is significant, with branch offices and operation centers in 12 of the main cities of the region, through its submarine and ground cable systems. Global Crossing efficiently connects South America. Mexico, Central America and the Caribbean with the rest of its global network, offering their services to customers around the world. Costa Rica will connect to the PAC system, which currently enters lands in Balboa, Panama and Grover Beach, California. Upon having officially completed its regional network in the year 2001, Global Crossing virtually serves all the main operators of the region, as well as several prestigious Latin American companies, research and education networks and global companies operating in the region – among which, the largest Latin American construction and engineering firm, Odebrecht; one of the principal airlines of the region, Mexicana; and Banco Santander Internacional. Likewise, Global Crossing recently announced that it shall update its Mid-Atlantic Crossing system (MAC), which connects North and Latin America through the Caribbean. This last project is also a direct response to the rapid growth in customers’ demand.
Global Crossing (NASDAQ: GLBC) offers telecommunications solutions through the first integrated global IP network in the world. Its main network connects more than 300 important cities and 30 countries around the world, and serves more than 600 cities and 60 countries. The company’s global sales and support model correspond to the network’s presence; likewise, it allows the customers around the world to obtain the same level of service at all times.

Soley Saborío Fallas & Asociados, through its corporate, administrative contracting and telecommunications divisions, participated in the consulting and negotiation of the agreement, in its capacity as Global Crossing’s local firm, providing all the legal services required for the formalization of this project. The lawyers Elías Soley Gutiérrez (esoley@lawfirmcr.com) and Emilia Saborío Pozuelo (esaborio@lawfirmcr.com) led the legal team in charge of this task.

We invite you to visit our web page www.lawfirmcr.com for additional information about Soley Saborío Fallas & Asociados.

OCTOBER 2005.

            CAFTA: A  Challenge Rather than a Threat

As if the problems troubling our society were not significant, the uncontrollable public discussion about the Central American Foreign Trade Agreement, including the Dominican Republic, (known as DR – CAFTA) appears to lack foundation on the part of those who oppose the CAFTA. Their discourse seems to be sterile, lacking strong arguments, demagogic, ignorant and in contradiction with the country’s reality and with the development model we have followed for the past decades.

DR-CAFTA is not anybody’s salvation or death. This commercial instrument is a tool for development, a mechanism to pave the road towards our country’s insertion in a globalize economy, a tool – as many others offered in the national productive milieu – which intends to consolidate a free trade zone that would multiply the growth opportunities for the productive sectors.

The agreement’s negotiation was directed by the Executive Branch (who is responsible for this type of negotiations). The organized private sector participated in it; and most importantly, it responds to the development model the country has followed and strengthened since the government of Luis Alberto Monge Álvarez. During his Presidency, transcendental decisions were made to recover the country’s economic situation, strengthening the foundations of the motive power of today’s economy, developing a growing non-traditional exporting sector, which has generated thousands of direct jobs. Also, the country obtained recognition as a safe and stable place to invest, evidenced by the development of high technology clusters. Costa Rican workers, technicians and professionals contribute, with their work, to make the productive milieu attractive to the Direct Foreign Investment.

            This development model represents a serious political initiative, which has proven to be consistent, and has allowed the productive sectors to grow. This is achieved by transferring high technology to our technicians and professionals, and motivating the different sectors to specialize, in order to vertically integrate the economy, by offering high quality goods and services demanded by such DFI. As everything else, the system can be improved, but a higher level of commitment and effort are needed. However, it is by promoting policies that are consistent with this development model that the image of stability and legal security of our productive milieu can be improved; and thus, attract more investment to our country.

In spite of the foregoing, it is with great concern that we have witnessed the position assumed by certain sectors of our political society, whose urge to be in the limelight has caused them to stick to the idea of opposing the DR-CAFTA, without major arguments and showing an irresponsible fickleness. In the face of such incongruence, we ask ourselves: Is it that these people have not been able to understand that the development model our country has followed is precisely one that strives for finding more attractive conditions for DFI, and the strengthening of our exporting sector? Or is it that they have not become aware of the fact that the Government has not been a source of employment for many years; and that nowadays, a more specialized working class has found a space to develop in the private sector, and thus, needs investment to keep growing for the country to continue being considered as a DFI destination, and for the current investments to consolidate and stay in our country?

The truth is that these trade instruments represent, in today’s world, an effective tool to provide legal security to the productive sectors, to foster the economic growth of the peoples involved, and that all this is to the advantage of the democratic system.

Mr. President Pacheco: Those who voted for you elected you to govern this country. Those who did not, respectful of democracy, also expect from you to govern responsibly. I respectfully urge you to, in compliance with your duties, submit the DR-CAFTA to Congress; and, by doing so, give the opportunity to the Deputies to discuss it seriously and in depth, assuming their responsibility at this historic moment in the development of our country.
Please do not hesitate to contact us if you need any additional information, at our e-mail address solsab@lawfirmcr.com

 

APRIL 2005. 

            “Municipal tax exemption confirmed for Free Zone companies located in Heredia”

By initiative of the Mayor of the Central County of Heredia, a consultation dated November 22, 2004 was submitted to the Attorney General’s Office, with the purpose of imposing municipal taxes to the beneficiary companies of the Free Trade Zone Regime installed in such location.
The said consultation motivated several of our clients installed under the free trade zone regime to request the legal analysis of our law firm Soley Saborío Fallas & Asociados), through its corporate and international trade department. As part of this effort, led by Attorney Emilia Saborío (esaborio@lawfirmcr.com), a legal study was carried out, intending to prove that the municipal tax of the Central county of Heredia was created by Law 6650 of September 4, 1981; thus, partially in force to this date, because it was established prior to the promulgation of the Free Trade Zone Regime Law, which stipulates municipal tax exemption.
To this respect, the Attorney General’s Office issued Advisory Opinion C-087-205 dated March 1st, 2005, stating that all the companies located in the Central County of Heredia, under the Free Trade Zone Regime, which started operations after the promulgation of the Free Trade Zone Regime Law, “are not obliged to pay the municipal patent tax for the term referred to in Article 20, paragraph h)” of the aforesaid Law. The said advisory opinion makes important precisions, which allow to adequately dimensioning this matter; thus confirming the conditions granted to the companies authorized to operate under the free trade zone regime. At the same time, this opinion contributes to strengthening the legal security and safe investment climate needed by our country to continue being considered as an attractive location for Direct Foreign Investment (DFI).
Please do not hesitate to contact us if you need any additional information, at our e-mail address solsab@lawfirmcr.com

AUGUST 2002

New company in the medical sector officially inaugurates
Its industrial plant in Costa Rica

The company Arthrocare Corporation whose headquarters are located in Sunnyville, California, has established its operation in our country providing employment to more than 75 Costa Ricans.  The official inauguration of its industrial plant took place last July 30th, 2002.

Arthrocare Corporation is a company that develops, produces and commercializes technology used for the surgical treatment of tissues; most part of this equipment is used in high accuracy operations such as those of dorsal spine, heart, ear, throat and nose.

According to several press releases, the initial investment was estimated in 2 million dollars; the manufacturing plant is located in GLOBAL PARK Free Zone Industrial Park, in the province of Heredia.

Company headquarters are located in Sunnyville, California, and several analysts expect Arthrocare Corporation to increase its sales by 30% at the end of this year 2001, given this situation, the company is a potential candidate to be acquired y large companies of the medical sector, especially of the orthopedic area.

For the year 2000, this company registered sales of US$67.6 million and more than 270 employees.

Costa Rica was selected among countries like Ireland, Mexico and Singapore, and its representatives expect the plant in the country to be far superior than the one in California, this because they recognize the skilled and trained labor they will have.

Among other advantages that the country offers, its representatives indicated the availability of professionals in the area, the experiences of renowned companies like Abbott, Baxter and McKhan and the ability and skills of Costa Rican labor.  They also pointed out the importance of some local suppliers that will collaborate in the productive process that will be developed in the country.

It has been mentioned, on repeated occasions, that with the attraction of this type of companies, the fact that Costa Rica is increasingly closer to forming a high technology cluster in the field of medical devices is reinforced.