A frequent and risky misconception among corporate founders is assuming that registering a corporate name at the commercial registry automatically confers exclusive proprietary rights to identify goods and services in the marketplace. These legal instruments serve fundamentally distinct purposes.
1. Corporate Entity Name (Commercial Registry)
The corporate name identifies a legal entity as a subject of rights and obligations before government tax agencies, banks, and contracting parties. Its function is strictly corporate and contractual; it does not grant trademark exclusivity over products or services, nor does it prevent third parties from registering the identical name as an IP trademark.
2. Registered Trademark (Industrial Property)
A trademark is the distinctive sign granted by the IP office under Decision 486 enabling consumers to identify the commercial origin of goods or services. It grants the critical ius prohibendi: the exclusive right to prevent competitors from using identical or confusingly similar signs in commerce.
"Holding a corporate certificate of incorporation does not authorize you to brand products with a name that infringes a third party’s prior registered trademark."
3. Trade Names under Andean Law
Distinct from the corporate name, a Trade Name identifies a business establishment or commercial enterprise activity. Under Andean Decision 486, rights in a trade name arise from first public and continuous commercial use, though formal deposit before SENAPI provides strong legal presumption in dispute proceedings.
