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Strengthening and challenge of Intellectual Property in El Salvador following the new agreement with the U.S.
How does this agreement affect Salvadoran companies, their intangible assets, and digital commerce?
The recent trade agreement signed between El Salvador and the United States is not limited to tariffs or market access. Although that is usually the initial focus, the text incorporates provisions that directly affect digital commerce and intellectual property — two areas that are now key for any company, regardless of its size.
On the digital front, the agreement establishes that El Salvador must allow the transfer of data to the United States and recognize certain mechanisms that facilitate that flow of information. In practice, this is relevant for companies that use cloud services, technology platforms, or international providers. It is not about imposing new obligations on companies, but about providing greater legal certainty when data is processed or stored outside the country.
It also includes a provision prohibiting any requirement to hand over technology, source code, or algorithms as a condition for operating in the national territory, except in formal investigations and under guarantees of confidentiality. This type of requirement is not common in our environment, but its express inclusion in the treaty reinforces legal certainty for companies that develop their own technological solutions.
Likewise, the agreement reaffirms that customs duties may not be imposed on electronic transmissions, such as software downloads or digital content, consolidating a rule that already existed under CAFTA-DR.
As for intellectual property, the treaty does not create new rights. El Salvador already has administrative, civil, and criminal systems, as well as border measures, to protect trademarks, copyrights, and other intangible assets. However, the agreement requires these mechanisms to be effective and to prioritize enforcement, including in the online environment.
Additionally, the commitment to file for accession to certain international treaties on industrial designs, patents, trademarks, and plant varieties could entail technical adjustments in the future. These changes are not immediate, but they are part of the commitments undertaken that could lead to technical adjustments in the medium term.
In today's economy, a company's value often lies not in what is visible, but in what is unseen: the software it develops, the information it manages, the brand it has built, the knowledge it has accumulated. The new agreement does not transform the legal system overnight, but it does strengthen the protection of those assets and provides greater clarity in the relationship with a market that concentrates much of the technological infrastructure our companies use.
For companies that operate with international infrastructure, use cloud services, process payments through global platforms, or have operations and partners abroad, these provisions are not merely formal. They influence the way information flows, how technology is protected, and the level of legal certainty with which they can project themselves.
For those in the process of expansion, protecting the intangible stops being a mere formality and becomes part of the business strategy.
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