The resolution issued by the Collegiate Body of Intellectual Rights (OCDI) of Ecuador on April 29, 2025, declares the nullity of the registration of the trademark “TRAZANO plus design,” registered by COMERCIAL Y DISTRIBUIDORA SURTI-LLANTAS CIA. LTDA., on the grounds that it was filed in bad faith, pursuant to Article 172 of Andean Community Decision 486.

The nullity action was filed by ZHONGCE RUBBER GROUP COMPANY LIMITED, the owner of the TRAZANO trademark in multiple countries and a tire manufacturer since 1958. The claimant argued that SURTI-LLANTAS registered an identical mark in the same class of goods (Class 12: tires and rims), despite the mark being widely recognized internationally, which constitutes misappropriation of another party’s rights.

Bad faith in trademark registration is assessed based on standards established in the jurisprudence of the Andean Court of Justice and specialized doctrine. It is held that all legal actions must be governed by the principle of good faith. Bad faith implies deceitful, dishonest, or misleading conduct, carried out with the intent to harm another or to unduly benefit from their business efforts. To qualify as such, it must be demonstrated that the applicant acted with awareness or intent to violate the law, infringe upon the rights of others, or mislead consumers.

The burden of proof lies with the party alleging bad faith—in this case, ZHONGCE RUBBER —which submitted strong evidence of the international renown and use of the TRAZANO trademark, including registration certificates from various countries, images of original products, specialized articles, and international rankings positioning the company as an industry leader. It was also demonstrated that SURTI-LLANTAS engages in tire distribution, not manufacturing, and failed to justify its choice of the TRAZANO name or the adopted design to identifies its products.

The OCDI found there were sufficient reasonable grounds to infer bad faith: full similarity between the trademarks, identical design, colours, graphic layout, same class of protected products, and lack of proper justification by the applicant. Furthermore, it was emphasized that the absence of any explanation regarding the origin of the sign is a significant factor in presuming unfair copying, especially when the foreign sign has strong distinctive value.

In conclusion, it was determined that SURTI-LLANTAS knew or should have known of the existence of the TRAZANO mark, and that its registration was an attempt to exploit the commercial reputation and prestige of another party—clearly constituting bad faith. The OCDI therefore declared the previous registration null and void for violating the provisions of Decision 486.

If you require further information or legal advice regarding trademark cancellation and/or nullity proceedings in Ecuador, consult a specialized attorney. At ABREU & ASOCIADOS, we are ready to assist you.