How Mexico’s Intellectual Property Protections Benefit Manufacturers

US companies interested in taking advantage of the Mexican nearshoring option should have a firm grasp of the country’s intellectual property (IP) laws. While many popular outsourcing destinations do not adequately safeguard IP, Mexico’s intellectual property protections are quite extensive. As a manufacturing country, Mexico has placed considerable emphasis on securing and protecting the IP rights of those doing business there.

As a result, the country has a well-established legal framework for foreign companies relocating operations there. And recent laws have only strengthened Mexico’s intellectual property protections, modernizing them and closing loopholes. 

Mexico is focused on manufacturing for export. Their many FTAs give businesses there free-trade access to most of the global market. And these manufacturers benefit substantially from a well-established, well-defined, and effectively enforced IP protection apparatus that makes this success in international trade possible.

The Laws Governing IP in Mexico 

Mexico has a long history of intellectual property (IP) protection, beginning with the 1832 “Law on Property Rights for Inventors.” Over time, this legal framework evolved through multiple iterations, including the 1943 “Law of Industrial Property” and the 1991 “New Law of Industrial Property,” each adapting to meet international standards. The 2020 “Federal Law for Protection of Industrial Property” modernized these protections and introduced stricter patent rules, which enhanced trade secret safeguards and created stronger trademark enforcement.

Today, under the “Federal Law for Protection of Industrial Property,” patents can cover new uses for substances, while trademarks enjoy a ten-year validity with expanded protection against bad-faith filings. Trade secret violations now constitute infringements, entitling victims to damages, and counterfeiting penalties include destruction of goods and significant fines. This law also empowers Mexico’s IP enforcement agencies to work alongside federal and local authorities to combat violations, ensuring a robust defense of industrial property.

To modernize IP protections under NAFTA, the USMCA trade agreement further strengthened IP protections in Mexico, and more closely aligned them with US and Canadian standards. It introduced measures like predefined damages for trademark infringement, improved biologic protections, and a notice-and-takedown system for ISPs. Mexico’s law now allows post-examination patent corrections and enforces stronger safeguards for trade secrets, reflecting the country’s commitment to maintaining competitive IP standards in a globalized market.

Key Areas of IP Protection in Mexico

Understanding Mexico’s intellectual property protections is essential for businesses looking to protect their innovations and compete in the global marketplace. Fortunately for US businesses, Mexico offers a robust legal framework not dissimilar to US standards. While structured somewhat differently, Mexican law provides for aggressive protection in key areas like trademarks, patents, trade secrets, and other IP protections, helping businesses safeguard their unique creations and ideas. Some of the key areas Mexican IP law protects include:

• Trade Mark: Mexico’s IP law protects trademarks for 10 years with indefinite renewals if used; trademarks can include names, shapes, sounds, and other distinctive elements, using a “first-to-use” and “registration” system.
• Patents: Patents are granted under a “first-to-file” system, with protection lasting 20 years from filing; a one-year grace period is allowed for public disclosures, and non-use may lead to compulsory licensing.
• Industrial Designs Protection: Industrial designs are protected for up to 25 years through five-year renewable terms; Mexico uses a “first-to-file” system and offers a one-year grace period for public disclosures.
• PCT Patent: PCT applications allow inventors to seek patent protection in Mexico via international filings, aligning with global standards for streamlined multi-country coverage.
• Trade Secrets: Mexican law safeguards trade secrets as confidential information providing business advantages, with legal remedies available for misappropriation or theft.
• Moral Rights: Moral rights in Mexico protect creators’ personal connection to their works, ensuring recognition, integrity, and control over usage, irrespective of economic rights.
• Transfer of Trade Mark Ownership: Mexican law allows trademark ownership transfers via assignments or licensing, with specific procedures to ensure legal recognition.
• The Value of Intellectual Property Assets: Mexico’s IP framework emphasizes the economic and strategic importance of patents, trademarks, and other IP assets, supporting valuation and enforcement mechanisms.

Enforcement Bodies

While Mexico’s intellectual property protections are structured differently than in the United States, they are thoroughly enforced and administered by several competent bodies. Manufacturing companies doing business in Mexico benefit from dedicated protection agencies, including the following government departments:

• The Mexican Institute of Industrial Property (IMPI): This body administers and oversees patent protection and trademark registration as well as enforces intellectual property infringement.
  
• The National Institute of Copyright (INDAUTOR): This agency manages copyright registrations and administers disputes between copyright holders.
  
• The UEIDDAPI: This unit within the Office of the Attorney General has been tasked with the prosecution of intellectual property related crimes.
  
• Mexican Customs Service (Aduanas): This unit oversees the task of restricting the movement of illegal goods across the country’s borders.
  
• The Federal Commission for the Protection Against Sanitary Risks (COFEPRIS): This entity is responsible for regulating processed foods, medical devices, and pharmaceuticals.

The Benefits of Mexico

For US manufacturers, Mexico is a land of opportunity that boasts many unique advantages. And with the steps Mexico has taken in creating and enforcing a robust legal framework for protecting IP, manufacturers can invest there with confidence.

Even though this regulatory framework is not the same as that in the US, the USMCA and other recent updates to Mexico’s intellectual property protections have ensured enforcement on the same level and roughly equal to the standards enjoyed in the US. With a strong commitment to ensuring a secure environment for international manufacturing and a history of prioritizing IP protections, Mexico status as a safe and beneficial place to manufacture will endure.