september 2011

RIGHTS OF TELECOMUNICATIONS USERS

Currently, telecommunications services are an essential support tool for the operation of any economic activity and so it is vital to learn about the rights guaranteed under the law, because of it partly depends the business continuity.

In this regard, the General Telecommunications Law (Law N° 8642 of June 30th, 2008) seeks to establish the scope and regulatory mechanisms of telecommunications, including the use and operation of networks and the provision of telecommunications services.

The provision of telecommunications services by operators and suppliers leads to the creation of a protective regime for customers and users of these services, regulated in Law N° 8642 and the Regime of Protection to the End User of the Telecommunications Services Regulation.

The law and regulation establish the technical, economic and legal standards applicable to the relations that arise between the public network operators and the service providers, available to the public with their customers and users.

Among the most important rights and guarantees with which the client counts are the following:

Duty to Inform: Network operators and telecommunications service suppliers are required to ensure its customers and users, prior to establishing the contractual relationship, providing clear, accurate and sufficient information on the specific conditions of the service, quality standards and the associated fees, which shall be established in the adhesion contract.

Freedom of Choice of the Operator or Supplier: The customer or user can choose freely between operators and suppliers who provide services in the country.

Access to Networks or Platforms of the different Operators or Suppliers: Customers and users have the right, under equal conditions, to access any of the networks or platforms of the interconnected operators or suppliers.

Filing of Complaints before the Operator or Supplier: Operators and suppliers must ensure the free and efficient care of the claims that provide the users because of impairment in the quality of the service, illegal charges, and violation of privacy and end user rights.

In an open market of telecommunications, the customer’s guarantee is the most important, not only because of having the chance to choose the best services offer, but because there is also the right to receive the quality levels offered in the form and time hired.

For further information please contact us at info@lawfirmcr.com.

August 2011

Opening Of The Cellular Telephone Market In Costa Rica

The Costa Rican government successfully culminated an international public bidding process for the concession of three blocks of radio frequencies to develop cellular telephone networks. The process began formally on August 31, 2010, by means of an invitation to bid in the contest held by SUTEL (the Telecommunications Superintendency). The final award took place at the end of January 2011, while the concession contracts were finalized last May.

The award went to the local subsidiaries of multi-nationals América Móvil (which operates mobile telephone services in Latin America under the CLARO® brand name) and Telefónica de España  (which operates mobile telephone services in Latin America under the Movistar® brand name). Since the final award of the concessions took place, these companies have fulfilled the concession contract finalization process and other requirements related to local regulations. The process ended with the approval of the concession contracts by the General Comptroller of the Republic on June 22, 2011.   The effective period for the concessions that were granted is 15 years, with a renewal option based on applicable legislation. The period went into effect on July 14.

Currently both concessionaires are working feverishly on deploying their new networks to provide advanced cellular service as soon as possible to Costa Rican consumers and extending the supply of services that up to this point has been controlled by the state telephony operator, ICE.

Soley, Saborío & Asociados, through its Telecommunications, Regulatory, and Public Procurement practices, participated with América Móvil (CLARO) in this important process, providing the full legal services needed to successfully wrap up the award and finalize the radio spectrum concession contract.    We are proud to have been part of this process, not just for having worked with a company with such a long, well-known international track record, but also for having had the great opportunity to participate in a new stage in national development. This new stage will doubtlessly mark the beginning of actually opening the telecommunications market in Costa Rica, using new resources to jump start the domestic economy and improve competitiveness in the production sectors. Elías Soley Gutiérrez (esoley@lawfirmcr.com) led the team of attorneys who collaborated with this work.

América Móvil (AMX) http://www.americamovil.com/amx/es/:

América Móvil, the owner of the CLARO brand name, is the third largest mobile telephony operator in the world based on proportional subscribers. It is also the first in Latin America; has a presence in 19 countries with more than 21 million subscribers, and reports annual revenue on the top side of 30 billion dollars. During the last two years, it  has set up a common 3G technology platform in Latin America.

JULY 2011

Special News Report

San Jose Ranked Amongst the Top 10 Best Cities for Foreign Direct Investment in America

“FDI Intelligence” experts from the investigation department of the prestigious editorial house Financial Times all agree that San José fosters the best conditions to attract investors and promote business growth in Latin America.
San José, Costa Rica, July 4th, 2011: The Investigation and Intelligence Department of the prestigious editorial house Financial Times: FDI Intelligence has selected San José as one of the 10 best cities for future foreign direct investment due to its competitive advantages to promote business establishment and growth.
This is the first time that FDI Intelligence is conducting the “American Cities of the Future” ranking, for which it carried out a comparative analysis of around 405 locations in the continent, creating specific sub-categories based on each region. The group of analysts is also known for its “Countries of the Future” ranking, in which Costa Rica has ranked as one of the most competitive destinations in the continent on repeated occasions.

“The vast majority of Free Trade Zone Parks are distributed amongst these three areas and most Special News Report multinational corporations are located in these parks so it is no mystery why these cities were ranked are competitive examples within the study” added Soto. According to data from the Foreign Trade Ministry (COMEX), in 2010 the country attracted US$1450 million in FDI, surpassing the established goal by 12% (US$150 million). Costa Rica expects to attract US$1850 million in 2011. About American Cities of the Future 2011/12 Ranking The researchers studied 405 American cities, analyzing hard data and incorporating the opinion of a panel of international experts. The information was divided in six specific categories: economic potential, human resource, cost efficiency, quality of life, infrastructure, and business openness. A seventh category was analyzed for this ranking: investment promotion strategy. To view the complete report please visit www.fDiIntelligence.com Information taken from CINDE web page. For further information please contact us at info@lawfirmcr.com.

TOP 10 MICRO CITIES COST EFFECTIVENESS RANK CITY STATE COUNTRY 1 Alajuela Alajuela Costa Rica 2 Heredia Heredia Costa Rica 3 Santa Ana San José Costa Rica 4 Campana Argentina Argentina 5 Kamloops British Columbia Canada 6 Chatham Ontario Canada 7 Ajax Ontario Canada 8 Niagara Falls Ontario Canada 9 Brantford Ontario Canada 19 Wooster Ohio US

jUNE 2011

NEW REGULATION TO EXPEDITE RECORDS RELATED TO SANITARY EQUIPMENT AND BIO-MEDICAL MATERIAL

On June 9 of this year, the Ministry of Health formally subscribed to the positive ruling on the “Recognition of the Record Equivalency and Equipment Control System for Biomedical Material of the Food and Drug Administration (FDA) of the United States of America,” number DM-F-1518-2011.

This new standard will expedite approval of engineered medical-biological (EMB) devices in the country since for EMB devices registered with the FDA to obtain registration approval in Costa Rica, they will only need to provide the Certificate of Foreign Government that shows that the EMB complies with the current norms in the United States of America applicable to the matter.

This ensures greater access to the people who need the EMBs with the guarantee that the product being used is safe and effective.In addition, this ruling will provide an incentive to trade these products in Costa Rica since it makes it easier for them to be registered. It cuts down on the registration time and reduces the number of requirements to be provided based on the pertinent class. Therefore, the Ministry of Health will not have to evaluate whether the EMBs registered with the FDA are safe and effective. All it will have to do is check to be sure that the formal requirements are met.

Finally, the standardization ruling may only be overturned if there is evidence that the regulation in the exporting country has changed or does not comply with the objectives established in Costa Rica. Likewise, if there are problems and/or national or international alerts about the EMBs exported by the country where the registration and control system has been recognized as equivalent, the Ministry of Health may immediately revoke that recognition.

For further information please contact us at info@lawfirmcr.com.

APRIL 2011

NEW ASSOCIATE

March 2011

COSTA RICA JOINS THE APOSTILLE

JANUARY 2011

Definition of Strategic Sectors

December 2010

ANTITRUST  AND CONSUMER DEFENSE LAW

october 2010

NEW ASSOCIATE

We are  pleased to announce that Attorney Erick Cordero has joined our Law Firm as an associate. He will be practicing  in the Telecommunications Area as well as in Government Procurement. Attorney Cordero has a successful experience of more than 13 years in telecommunications practice and  providing legal advice to Telecommunications agencies of local public sector. If you need additional information about our areas of practice , please contact us at our main e-mail info@lawfirmcr.com

AUGUST 2010

Soley , Saborío & Associates Reports in Congress about Clinical Research Bill

On Thursday, August 26, Elías Soley Gutiérrez and Emilia Saborío Pozuelo, lawyers at the Soley Saborío & Associates law firm, were called by members of the congressional committee on social affairs to testify on Bill 17.777 (General Clinical Research Act).

As is common knowledge, as of 1998 our law firm has been providing legal advisory to various scientific research institutions as well as international academic institutions and pharmaceutical companies. Accordingly, we have developed extensive experience in regulatory procedures and have a global perspective on the need for legislating on this consequential activity.  

The issue related to clinical research is not new for our country, given that the first regulations came out in 1973 in several articles of the General Health Act. Since then, the regulatory framework has been developed and adapted to the industry’s best practices, becoming a regulatory model worldwide.

As a consequence of the Constitutional Chamber ruling of January 2010, the aforementioned lawyers testified before the legislators that our country is currently internationally disqualified to carry out research, since it does not have a governing legal framework for doing so. They also added that the Constitutional Chamber ruling has led to suspension of the regulatory process for all studies pending approval at the time of the ruling and all those planned for the next few months.

JUNE 2010

EVALUATION ON THE OPENING UP OF THE TELECOMMUNICATIONS SECTOR

The forum “TWO YEARS SINCE THE OPENING UP OF THE TELECOMMUNICATIONS SECTOR” organized by the Costa Rican private sector represented by the Infocommunications Chamber in conjunction with local companies was held last June 29, 2010 at the Real Intercontinental Hotel in San Jose, Costa Rica.

The main objective of this event was to evaluate the progress in this country over the last two years since the regulatory framework Law was passed to legally open up the telecommunications market. Speakers invited to the roundtable formally inaugurated the event and included representatives of the current government as well as from the most recent Arias Sanchez Administration, all important participants in the formation process of the law under debate. Also participating in the round table discussion were speakers representing the private sector including Elias Soley Gutierrez, Esq., a partner with the “Soley, Saborío & Asociados” law firm, a well known expert on the subject and an attorney for important telecommunications companies.

Mr. Soley analyzed recent actions taken by the new public sector telecommunications companies, commenting on the current legal and regulatory framework and concluding with a criticism on the lack of inter-institutional coordination which has produced a lack of leadership by the public sector in decision making required for greater efficiency in opening up the sector. He called attention to the obstacles in interconnection and access negotiations with the dominant operator, ICE.  Up to this point definitive resolution of all the cases involved has been inappropriately routed through SUTEL.

The Vice Minister of Telecommunications, Hannia Vega, MSc recognized that the private sector has been patient in dealing with delays in the process and agrees that what is needed to attain objectives is a stronger telecommunications authority with greater leadership and the ability to bring the players together. She also agreed to bring all of the suggestions of the different sectors to the attention of President Laura Chinchilla.

The representative of the Costa Rican Electricity Institute, Mr. Elbert Duran, defended the opening up process, stating that it has been slow because not only ICE but users require more time. ICE assures that it has followed the procedures under current regulations and the law with regard to interconnection matters.

Speakers agreed that a greater effort should be made to solve the current problems that have delayed the opening up process and threaten to dim the interest of new players in the Costa Rican telecommunications market.

For additional  information about this issue, please feel free to contact us at our central e-mail address info@lawfirmcr.com

APRIL 2010

REGULATIONS GOVERNING ACTIVITIES OF THE SPECIAL COMMISSION FOR THE DEFINITION OF STRATEGIC SECTORS

With the objective to provide regulations for the modifications made to the Free Zone Regime Law approved last January, the Executive Power published the Regulations that govern the activities of the Special Commission for the Definition of Strategic Sectors (Executive Decree No. 35999 – COMEX - H- MIDEPLAN).

These regulations contemplate the parameters the Special Commission must follow to define the Strategic Sectors, as well as the Commission´s members, organization and coordination.

If you or your company is interested in receiving further information on the aforesaid regulations and wish to keep informed on the creation of the new regulations to be implemented under this reform of the Regulations of the Free Zone Law, please don’t hesitate to contact us at our main email address: info@lawfirmcr.com.

MARCH 2010

SARPA LAUNCHED ITS MEDICAL AIR TRANSPORTATION SERVICE IN COSTA RICA

FEBRUARY 2010

New Associate

JANUARY 2010

Regional Assembly of MSI Global Alliance On January 16, the Regional Assembly of MSI Global Alliance of Latin America was held in Costa Rica at the Hotel Real Intercontinental in Escazú. Our Firm Soley, Saborío & Asociados was pleased to serve as host in this congress that was attended by active members of MSI from North America, Central America, South America and the Caribbean. The main objective was to evaluate and create new business opportunities for participating members, as well as comment individual experiences on the advantages of belonging to MSI Global Alliance, an umbrella worldwide organization for professionals in law and accounting. The welcoming remarks were made by Mr. Elías Soley G., partner of Soley, Saborío & Asociados, who emphasized the importance of belonging to MSI, since this membership reflects efficiently the international presence of its members. Other speakers where Mrs. Marcela Trujillo, a member of the Firm Rubio Villegas y Asociados SC Mexico and Mr. James Mendelssohn, MSI's Chief Executive, who summarized their extensive experience in MSI and provided an update of projects for the coming months, as well as the development that MSI has had in Latin America. The activity ended with the final assessment and presentation of future events organized by MSI, both continental and global levels. For more information you can access the page of MSI Global Alliance at www.msiglobal.org and if you have any question please contacts us at info@lawfirmcr.com. Mr. Elías Soley G. Mr. James Mendelssohn

Soley, Saborío, & Asociados has been monitoring, participating and providing legal advice to most of its Free Zone clients in connection with the legislative process subject to the bill of law that purport to reform the existent Free Trade Zone Law # 7210 .

As part of  this task, recently our partner Elías Soley G. has participated as speaker in an event organized by  AMCHAM and IFA ( International Fiscal Association) named “Free Trade Zones: its reform and future”.  At this opportunity he joined others speakers that represents private and public sector (i.e. Mrs. Nancy Palmintere - INTEL Finance and Enterprise Services Vice-President-, Mr. Jorge Brenes - President of the Free Trade Zone Association-, PROCOMER - Free Zone Authority-  and Chamber of Industries  representatives).  It was an appropriate time to analyze the outcome of the Free Trade Zone sector during the last two decades and to reinforce the importance of the reform that is being discussed in the Legislative Economics Committee.

AMCHAM – IFA event held in August , 2009

The main issues of the Free Zone Law reform that is going to be voted in the Plenary Commission of Costa Rican Congress within the next weeks, are the following:

In order to become a Law of the country, this Bill requires to be sent from the Economic Commission to the Plenary Commission. An unanimous affirmative vote was granted to the Bill by the aforesaid Commission, thus the bill will be added to the Plenary Agenda during the first debate session. Once approved by the Plenary Commission of the Legislative Assembly, the Bill will be sent to the Executive Branch for enforcement and publication.

Soley, Saborío, & Asociados, through its corporate and international trade Division, has participated in providing advice in relation to this amendment to the Free Zone Law.

In case you need further information about this matter, please do not hesitate to contact us at (506) 2290-7220 or contact us at info@lawfirmcr.com.

There was a recent publication in the Costa Rican print media about the NOVARTIS pharmaceutical company choosing the Instituto de Atención Pediátrica (The Pediatric Care Institute - IAP) and its team of researchers led by the main researcher, Dr. Adriano Arguedas Mohs, to carry out a clinical study in Costa Rica to develop a prototype of the vaccine against the A1H1N1 virus.

The vaccine type that will be tested in Costa Rica will be subject to similar studies in two other countries; the intent is to seek to generate scientific data to back up the medicine’s safety and effectiveness.

Recently, the UCIMED Ethical-Scientific Committee approved the research protocol and the scientific, legal, and administrative documentation presented by the IAP, declaring that it had fulfilled all the requirements for the regulatory process to carry out the study. This reaffirms that they match the guidelines set by the applicable Costa Rican legislation.

Our firm, Soley, Saborío & Asociados, is assisting the IAP in the regulatory process needed to comply with the local legislation. Attorneys Elías Soley (partner) and Arturo Guerrero (associate attorney) participated on a team of attorneys who saw to this case.

Should you need any further information on this subject, our clinical research practice area, or any other service, please do not hesitate to contact us at our main e-mail address: info@lawfirmcr.com.

Soley, Saborío & Asociados (SS&A), announces the incorporation of attorney Milena Jaikel Gazel.

Mrs. Milena Jaikel Gazel has a Law Degree in Universidad Libre de Derecho and a Masters degree in International Law at the “Instituto de Empresa” of Madrid, Spain. Her participation will strengthen our professional team practicing corporate law and foreign direct investment. With this incorporation SS&A seeks to strengthen its corporate practice with emphasis on investment matters, free zones and contracting.

E-mail contact:  mjaikel@lawfirmcr.com

On April 21st, 2009 the Office of the President of Costa Rica and the Ministry of Foreign Trade had sent to the Legislative Assembly a legislative statement that intends to amend the Free Zone Law. The main goal of the aforesaid reform is to reach the double purpose of achieving not only the World Trade Organization (WTO) requirements, but also that Costa Rica remains as an attractive destination point for local and foreign direct investment.

This proposal will bring benefits to the small and medium national business, as well as to the high quality purveyors, according to the Ministry.

The legislative statement mainly propose to establish a five percent (5%) for the income tax to the Free Zone Companies that qualifies as part of one of the country’s strategic zone, or also if they are install at a minor relative development zone. At this moment the companies are free from the payment of this tax, so, according to the WTO, this regime has to be modified before the year 2015.

With this improvement, the reference for the exportation requirements to obtain the benefits will be eliminated; also it will establish the concept of a strategic zone, and it will maintain the actual conditions of the regime for the companies that fulfill certain levels of investments and employment.

Please do not hesitate to contact us at our central e-mail address info@lawfirmcr.com, for additional information about this issue.

On 1 May 2009 Official fees for obtaining Community trade mark (CTM) registrations will be significantly reduced in the light of a substantial cash surplus built up by OHIM, (the Office for Harmonization in the Internal Market, the not for profit organisation responsible for CTMs). 

The total official fees for obtaining a CTM will be reduced from 1.600,00 Euros for an electronically filed application in up to three classes of goods or services to just 900,00 Euros (and 1.050,00 Euros for paper filed applications). 

Rather than dividing official fees between application and registration, all the official fees will be paid at the outset on application. A separate registration fee which included a fee of 150,00 Euros per additional class over three has effectively been abolished, which is particularly good news for the proprietors of trade marks with a specification covering numerous classes. 

There will also be fee reductions for CTMs filed via the Madrid Protocol, from 1450,00 Euros to 870,00 Euros. 

Transitional Provisions

Under the transitional provisions governing the new fee structure, if a pending CTM application has not yet passed to the registration stage (where the OHIM issues an invitation to pay the registration fee), by 1 May 2009 no registration fee will now be payable, resulting in a total official fee of 750,00 Euros for an electronically filed application or 900,00 Euros for a paper filed application.

Thus if a new CTM application is filed before 1 May 2009 it will be cheaper than when the new fee structure comes into effect on 1 May 2009.  As a result, if you are considering applying for a CTM, submitting the application to OHIM before the new fees come into effect will save at least €150 and €500 in the case of collective marks.

For Madrid Protocol designations, the new fees take effect 3 months after the Commission notifies WIPO, i.e. 3 months after 1 May 2009.
In removing an additional payment from the registration process it is hoped that the overall time from filing to registration will be reduced by at least eight to ten weeks, although this may be over optimistic.

For additional  information about this issue, please feel free to contact us at our central e-mail address info@lawfirmcr.com.

With this new operation, without question the technical device technological and industrial cluster will be strengthened. This represents a significant benefit for those companies that have production facilities in Costa Rica since they can handle sterilizing their products in Costa Rica. They may possibly market their products from here to the Asian and European markets, saving money on having to go through the United States which, up to this point, has been mandatory since there are no suitable sterilization services for that industry.