Watchdog groups around the world denounced Thursday an Ecuadorian court decision to send four journalists to prison and impose a $40 million fine for libel against President Rafael Correa.

Correa pledged not to keep "one cent" of the libel award against the daily El Universo, after a judge Wednesday convicted newspaper senior managers Carlos, Cesar and Nicolas Perez and their former editorial page editor Emilio Palacio of libel, sentencing them to jail and granting the president damages.

"I'm not interested in one cent, even worse from a person like (columnist) Emilio Palacio or the Perezes," Correa said after the court decision that also called for three-year prison terms.

The president of the US-based Inter-American Press Association, Gonzalo Marroquin, called the decision a "serious blow to the most essential principles of freedom of information."

"In addition to our resistance to this outrage against the independent press we are solidly behind the journalists and the entire staff of El Universal and hold the hope that higher courts will know how to uphold the right to freedom of the press and of expression of all citizens," he added.

Human Rights Watch Americas director Jose Miguel Vivanco called the conviction a "major setback for free speech in Ecuador."

"Punishing a journalist and directors of a newspaper for 'offending' the president is likely to have a very negative impact on the news media and public debate in Ecuador," he said.

Ricardo Uceda of the Peru-based Institute of Press and Society called the ruling "troubling" because it could mean that "the exercise of editorial opinion... could become a criminal act."

France-based media watchdog Reporters Without Borders said it was "shocked" by the court ruling, calling it was contrary to the general trend in Latin America of decriminalizing media offenses.

"Jailing someone for a media offense is contrary to the jurisprudence established by the Inter-American Court of Human Rights, which Ecuador is required to follow as a member of the Organization of American States," the group said.

"This kind of judicial persecution suggests that the authorities are pursuing a strategy aimed at silencing the country's media, which are heavily criticized by President Correa in his radio and TV broadcasts."

Correa has said that his lawyers would appeal the ruling, seeking the full $80 million initially sought. Newspaper lawyers are also appealing.

The president said the money could be used for a government plan to fight global warming that involves seeking $3.6 billion from international donors in exchange for not drilling for oil in the Amazon rainforest.

Correa's lawyers filed the lawsuit in March after Palacio wrote a column calling the president a "dictator," and warning that he could be tried for rights abuses for allegedly ordering supporters to open fire against a hospital during a September 2010 police mutiny.

The president alleged that during the revolt, sparked by police demands for pay increases, opposition forces briefly held him hostage and tried to kill him. At least 10 people died in the uprising and related unrest.

The ruling was a "milestone" because it clearly means that "the reign of terror imposed by the press in this country is finally over," Correa said.

Like his regional ally leftist Venezuelan President Hugo Chavez, Correa has used referendums to increase his presidential power.

In May, Correa won a vote on 10 reforms, including controversial measures to regulate Ecuador's media and judiciary -- moves criticized by the opposition as a power grab and a threat to freedom of expression.

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