First Precedent in Ecuador on Unlawful Pharmaceutical Advertising and Market Protection

We are pleased to inform that Meythaler & Zambrano Abogados obtained a favorable decision at the cassation stage (Administrative Litigation Chamber), in litigation that spanned twelve years and involved our client—a leading company in the Ecuadorian pharmaceutical industry—against a competing pharmaceutical company.

Unfair Competition and Unlawful Advertising: Conduct the Court Did Not Tolerate

The judgment confirmed that the opposing party engaged in acts of unfair competition and disseminated unlawful advertising in relation to a medical treatment for Calcium and Vitamin D Deficiency marketed by our client.

Reputation and Goodwill as Legally Protected Assets

The court’s message is unequivocal:

Judges and courts have a duty to protect intangible assets, not only trademarks, but also the good name of their owners and the goodwill earned through years of honest business activity, particularly in markets as sensitive as the pharmaceutical sector.

Unlawful Comparative Advertising as a Distortion of Competition

The recognition of unlawful comparative advertising as a mechanism that distorts competition promotes a culture of respect for intellectual property rights and transparent commercial practices.

This ruling reaffirms that practices aimed at improperly exploiting the reputation or track record of established products—to the benefit of competing products lacking their own market history, as occurred in this case—must be sanctioned through judicial proceedings.

A Precedent That Marks a Turning Point in Ecuador

This decision constitutes a significant milestone within the Ecuadorian and regional legal framework, primarily for the following three reasons:

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It is the third case in Ecuador in which the existence of unfair competition has been declared.	It represents the first national precedent expressly sanctioning unlawful advertising in the pharmaceutical sector.	It strengthens the protection of fair competition and the attribution of liability for unlawful conduct in the Ecuadorian market, particularly within the pharmaceutical industry.

Andean Law as the Cornerstone of Our Legal Strategy

The cassation ruling directly applied the rules set forth in the Andean Community legal framework, particularly those relating to:

• Acts of unfair competition,

• Improper use of distinctive signs,

• Transparency in commercial advertising, and

• Unlawful exploitation of a competitor’s reputation.

This precedent is of paramount importance for the industry in Ecuador and across the Andean region, especially at a time when the regulation of unfair competition in the country remains relatively underdeveloped.

A National Standard Aligned with the Andean Region

The ruling contributes to harmonizing Ecuadorian legal standards with the supranational framework, ensuring interpretative consistency and reinforcing the protection of intellectual property rights throughout the Andean region.

This outcome demonstrates Meythaler & Zambrano Abogados’ ability to deliver robust, strategic, and sustained legal defense in complex unfair competition and intellectual property litigation.

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