The introduction of a 30% tax on international flight tickets for Argentine residents looks set to be a major challenge for the country's already struggling aviation industry. In addition, the future of Argentina's low-cost airline market is in doubt due to its inability to capitalise on the fall in fuel prices due to high inflation and devaluation of the Argentine peso. This video discusses these issues as well as the potential effects of the COVID-19 pandemic on airport business in Argentina.
Further to a National Cabinet meeting on 16 March 2020, a new regulation was introduced which prohibits entry into Argentina by sea, air or land for 15 calendar days by non-resident foreign nationals; this timeframe may be extended or lifted by the government as deemed appropriate. Given the uncertainty about the duration of these measures, it remains to be seen what effect they will have on the maritime industry.
Federal Civil and Commercial Court 2 recently dismissed a damages claim against Aeromexico brought by two passengers for the rescheduling of their flights. The court found that the decision to reschedule the relevant flights had been approved by the Argentine Aviation Authority and that the plaintiffs had been informed of the rescheduled flights in a correct, clear and detailed way.
Until the approval of Emergency Decree 274/2019 in April 2019, the regulation of unfair competition in Argentina was characterised by a lack of organisation, narrow scope and lack of a general rule for standardising acts of unfair competition. The new decree sets out numerous provisions that are relevant to the IP field, including provisions addressing the regulation of comparative advertising, designations of origin, secrecy, data exclusivity and trademarks.
On 23 December 2019 a 30% tax on services hired abroad by travel agencies located in Argentina was introduced. The fact that the new tax applied the day after its introduction created chaos for air companies as non-compliance can trigger fines with interest. The Argentine Tax Authority recently introduced a resolution to address the lack of clarity surrounding the collection of the new tax, but it will take time for carriers to implement the measures required to comply with the new regulations.
The Immigration Authority (DNM) repeatedly imposes substantial fines on carriers. Despite the fact that in many cases these fines have been wrongly imposed, airlines must pay any outstanding fines in order to file a judicial complaint against the DNM, so the fines are widely viewed as another cost of operating in Argentina. That said, a number of airlines have recently challenged the DNM's fines and the courts have given a clear sign that, even with the above difficulties, it is worth challenging this legal loophole.
The protection provided under industrial property law to commercial signs registered with the National Institute of Industrial Property is more effective than that offered by unfair competition law. It is therefore worth questioning whether unfair competition law exercises any function with regard to the protection of registered signs. There may be sectors in which the protection of a rights holder's interest requires the combined use of IP and competition law.
In a recent Federal Civil and Commercial Court 2 case, the plaintiffs filed a complaint for damages for a rescheduled flight after a mandatory mediation hearing ended without a settlement. However, the court found that the change of flight schedule had complied with civil aviation and consumer rules. As a result, it rejected the claim and imposed legal costs on the losing party.
Since the Trademark Law reserves the right to use a trademark for the mark's owner, legal scholars in Argentina have long debated whether the use of trademarks in comparative advertising is permitted. With the recent approval of Emergency Decree 274/2019, legislation has, for the first time, addressed comparative advertising in Argentina in a detailed and systematic manner and established when it is allowed.
It is not unusual for immigration authorities to pursue airlines for infringements of the passenger documentation requirements which travellers must meet in order to enter a country. Argentina is no exception and the Immigration Authority (DNM) has been incentivised to detect passenger documentation infringements and collect fines from air carriers. However, a number of recent decisions regarding the DNM's imposition of fines in such cases could mark a turning point with regard to this issue.
Emergency Decree 274/2019 has established a comprehensive system for regulating unfair competition. Many practices punished by the new unfair competition rules affect IP rights. Further, the new legislation establishes a series of provisions that are highly valued in the IP field, including the detailed regulation of comparative advertising and provisions referring to names of origin and trade secrets.
The Federal Court recently heard a case in which two passengers claimed damages from Aeromexico after they had been ordered to disembark an aircraft for being disruptive. The case provides an insight into the question of whether consumer protection law trumps flight security concerns.
Law 25,163/1999 and Law 25,380/2000 govern appellations of origin in Argentina for wines and wine-based spirits as well as agricultural and food products, respectively. The Ministry of Production and Labour recently acknowledged a new appellation of origin for a sweet quince paste produced in San Juan that is part of the local culinary tradition and whose characteristics derive from the manufacturing process and the quality of the quinces produced in the province.
The question of whether foreign-flagged ships involved in international trade are subject to value added tax (VAT) when supplying bunkers in Argentina is frequently posed. If a vessel is supplied bunkers in one Argentine port and subsequently calls to another Argentine port before proceeding overseas, this is generally considered to be cabotage and is therefore subject to VAT.
The Civil and Commercial Court of Appeals recently overturned a first-instance decision concerning a laptop lost on an Aeromexico flight from New York to Buenos Aires. The first-instance court had ordered Aeromexico to pay damages, but the appeal court found that the model of the lost laptop had never been sold in Argentina and that the plaintiff had neither proved that her laptop had been packed in her luggage nor made her claim in a timely manner.
The terms 'corporate name', 'trade name' and 'designation' are frequently used without distinction in commerce and business. However, these expressions must be clearly distinguished. While corporate names distinguish corporations and their use and protection are based on the Companies Law, designations are protected under the Law on Trademarks.
A federal court recently dismissed a lawsuit against El Al Israel Airlines which had been filed by an Argentine passenger based on a lack of jurisdiction as set out by Article 33 of the Montreal Convention. The court examined the different hypothesis described by Article 33 and found that the claimant had failed to file a lawsuit against El Al before the courts where it was domiciled or had its principal place of business, where the contract had been made or before the courts of the claimant's planned destination.
The government recently published Decree 872/2018, ordering the Secretariat of Energy to launch the first round of international competitive bidding for offshore exploration permits. Given Argentina's size and the potential for the discovery of new energy sources, the government aims to exploit its resources through effective investment in seismic surveys and hydrocarbon explorations in partnership with major oil and gas companies.
Carriers' commitment to travel at certain times implies a duty of extreme diligence to respect the terms of their offer and such commitment is essential to those who use their services. A first-instance court recently declared that Qatar Airways breached its transport contract and the obligations to its passengers following the delay and cancellation of one of its flights from Sao Paulo to Buenos Aires.
The Argentine Executive Power recently issued Decree 27/2018, which has introduced significant and substantial amendments to the Law on Trademarks, the Law on Patents and the Industrial Model and Design Decree 6,673/63. The most important amendments include a simpler registration process, an expansion of the facts that do not destroy novelty and adjustments to renewal and grace periods.