In recent years, Peru as well as its neighbouring countries have modernized its Intellectual Property law by leaps and bounds yet shortcomings remain and effective enforcement of IP law continues to represent a considerable challenge. Infringement of intellectual property remains a serious problem. According to the International Intellectual Property Alliance's 2006 country report on Peru, 73% of software in use in Peru was pirated in 2005.

There are stakeholders who represent an outspoken minority of pirates who stand to benefit from weak laws and minimal enforcement. Most legislation that threatens an imitation-ridden economy has been held off by those who cloak themselves in national sovereignty and paint any effort to improve global and hemispheric intellectual property protection as a mere aggression spearheaded by power monger developed countries.

Defining appropriate Intellectual Property policy is a key social policy matter for the governments of Latin American. The IP interests of countries in the region differ substantially from comparable interests in the United States, Europe and Asia, and IP interests among Latin American countries tend to differ as well.

Many Latin American countries have a strong tradition of creative works covered by copyright, such as authorship of books, music and paintings.

However, most Latin American countries do not traditionally develop new chemical entities in the pharmaceutical sector, and patent rights are held almost exclusively by European, Japanese and US firms. Protection of trademarks and related "identifiers" is a growing necessity for business, regardless of geographic location.

Peru experienced a considerable increase in the number of patent and trademark infringements in 2007 in comparison to previous years. Most of these events went unnoticed by the victimised company for the simple fact that they did not factor into their yearly budget an IP Protection and Enforcement Strategy. Consequently, tedious and costly litigious and administrative procedures became a typical course of action in order to return a brand name or trade mark to its legitimate owners but in many instances, the damage caused to the company image had already been done.

Theoretically, countries in Latin American do have stronger IP protection interests for artists and authors yet weaker IP protection for pharmaceutical enterprises whilst sharing a business interests in the protection of trademarks. Nevertheless, a common denominator is that education, research and other public access methods need to be promoted if any considerable change is to be made. The specific tailoring of IP laws to suit the national interest is the "way of life" in the United States and Europe, where the laws are constantly being readjusted to suit their interest.

As for the impact that the US—Peru Free Trade Agreement will have on intellectual property in Latin America, one can optimistically consider Mexico as a success story that greatly benefited from the IP protection provided through their own NAFTA agreement that resulted in Mexico becoming a leading pharmaceutical market in the region. It should be noted that an important part of this success is owed to Mexico's willingness to protect intellectual property, patents and foreign direct investment resulting in a steady growth.

Lastly, developing an intellectual property protection strategy is a must for business ventures of all sizes. Although such a strategy can be considerably more elaborate for a major corporation; small and medium businesses cannot afford not to have protection in Latin America. Globalization has made it imperative for companies to take stock of their IP assets. Mapping out a strategy for protecting these assets is an essential part of an effective IP protection program. As Peru's economy grows, its government will have additional resources, including personnel and expertise to wage a plundering campaign against copyright and other intellectual property violations.

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