{"id":1620,"date":"2010-08-08T13:19:16","date_gmt":"2010-08-08T19:19:16","guid":{"rendered":"http:\/\/reyesfenigeng.wordpress.com\/?p=319"},"modified":"2010-08-08T13:19:16","modified_gmt":"2010-08-08T19:19:16","slug":"amendments-piracy","status":"publish","type":"post","link":"https:\/\/reyesfenig.com\/en\/2010\/08\/08\/amendments-piracy\/","title":{"rendered":"Amendments to the Mexican statutes toughens (and softens) fight against piracy and IP infringement"},"content":{"rendered":"

Last June 18, 2010, long-awaited amendments to the Industrial Property Statute and to the Federal Criminal Code were published in the Official Journal of the Federation. These amendments allow federal authorities to ex-officio<\/em> investigate and start trials in connection to some crimes involving counterfeited goods.<\/p>\n

Before the 2010 amendments, many activities associated to the infringement of IP rights in Mexico were already punished with extreme severity. For example, the willful production, distribution and importation of goods bearing counterfeited trademarks in commercial scale are delitos graves<\/em> or felonies, thus the defendant is not allowed to be free on bail during the trial. In the same sense, the willful non-authorized reproduction of works protected by copyright in commercial scale is a felony too.<\/p>\n

However, in all cases, in order to start an investigation, the holder of the copyright or registered trademark copyright had to file a querella<\/em> or formal complaint. A characteristic of the crimes that require querella<\/em> is that the right holder may stop the investigation or the trial by withdrawing the charges (perd\u00f3n<\/em> in Spanish).<\/p>\n

The querella<\/em> requirement could obstacle an investigation; for example, when officials of the Customs Agency or the General Attorney Office found and seized a shipment of counterfeited goods or illegal copies of works, without a querella<\/em>, there was no justification to maintain the seizure of goods or authority to continue the investigation. Further, the formalities that have to fulfill a power of attorney required to file a querella<\/em> can be very difficult to accomplish for foreign entities. As a result, a federal judge could dismiss a trial because the power of attorney of the representative of the right holder was missing some formal requirement.<\/p>\n

As I said before, in the case of crimes that need a formal complaint, the copyright or trademark owner could terminate the investigation or even the trial with a perd\u00f3n<\/em> or withdrawal of charges. This possibility allowed the trademark or copyright holder to negotiate a settlement with the defendant, although this sort of negotiations often discouraged, even upset, the officials of the General Attorney Office.<\/p>\n

Now, with the June 2010 amendment, many -not all- IP related crimes (most of them associated to copyright) will be investigated ex-officio<\/em>.<\/p>\n

In the copyright field, for example, willfully producing, reproducing, importing, transporting, distributing, selling (in a store) or leasing copies of copyright protected works, with commercial purposes and without authorization, is not only a felony but also will be investigated ex-officio<\/em>. On the other hand, willfully selling unauthorized copies of copyright-protected works in the streets, with commercial purpose, is a crime that now will be investigated ex-officio<\/em>, although it is not a felony.<\/p>\n

In the trademark field, the June 2010 amendment did not change most of the crimes associated with trademark counterfeiting provided in the statute. Most cases of trademark counterfeiting remain being felonies, but they still need the formal complaint or querella <\/em>filed by the trademark owner in order to be investigated.<\/p>\n

Nevertheless, as a consequence of the June 2010 amendment, willfully offering in sale goods bearing counterfeited trademarks, in the streets with commercial purposes, is now a crime that may be investigated ex-officio<\/em> although, paradoxically, it is not a felony.<\/p>\n

The Federal Congress also amended some provisions regarding the preliminary measures that a trademark, patent or copyright holder may request from the Mexican Patent and Trademark Office (MPTO) to stop infringing activities, namely the requirements that the defendant must fulfill to lift such measures.<\/p>\n

The most usual way to oppose infringement of IP rights \u2013including most copyright infringement cases- is the administrative infringement action, filed with the MPTO. The MPTO has authority to issue preliminary measures. The preliminary measures may include the seizure of infringing products and an order to the infringer to stop the production of infringing products and recall the merchandise already in hands of distributors.<\/p>\n

In order to obtain the preliminary measures, among other requirements, the defendant must file a bond. The purpose of the bond is to guarantee the payment of the actual damages that the preliminary damages may cause to the defendant in case the MPTO decides there was no infringement.<\/p>\n

The defendant is allowed to lift the preliminary measures and continue it business as usual, by filing another bond. The purpose of the bond is to guarantee the payment of the damages that the defendant\u2019s activities may cause to the plaintiff.<\/p>\n

In practice, the MPTO has not enough data, if any at all, about the amount of the possible damages that the preliminary measures may cause to the alleged infringer, thus the MPTO sets the amount of the bond at it own discretion. Sometimes, the plaintiff files the bond with the MPTO before it accepts to issue them; if it is high, there is a good chance that the MPTO will accept it, although technically it is an arguable practice.<\/p>\n

If after the enforcement of the preliminary measures, the MPTO believes that the amount of the bond is too low, it has authority to request the plaintiff to increase the bond, within a three or five days term. Failure of the plaintiff to increase the bond would result in the lift of the preliminary measures.<\/p>\n

Once that the preliminary measures have been enforced, the alleged infringer has the right to lift them, y filing another bond. The purpose of this bond is guaranteeing the payment of the damages that the alleged infringing activities may cause to the plaintiff. The practice of the MPTO was to set the amount of the defendant\u2019s bond in twice the amount of the bond filed by the plaintiff.<\/p>\n

Now, the amended statute stipulates that the bond that the defendant may file shall be 40% higher than the bond filed by the plaintiff. Nevertheless, the MPTO keeps authority to request the increase of the amount of the bonds filed by the plaintiff or defendant, in case it considers that their amounts are not high enough to guarantee the payment of the damages.<\/p>\n

Finally, it is now an administrative infringement that the patent holder, or the recorded licensee (if the recorded license does not provide against the filing of infringement actions against third parties), files an infringement action against a third party, if there was an earlier final decision ruling that there was no patent infringement involving the same cause of infringement.<\/p>\n

From my perspective, this new cause of infringement is odd, and I can only understand it as a way of refraining innovative pharmaceutical companies from harassing generics manufacturers with constant infringement actions repeating the same causes of infringement, assuming of course that the efforts of the patent holders to enforce their patent rights can be generally qualified as \u2018harassment\u2019.<\/p>\n

The amendments to the Federal Criminal Code suggest that there is an intention to increase the fight against piracy, although it also shows lack of a coherent strategy, given the different treatment to crimes associated to trademarks and those related to copyright, and the inconsistencies in each field.<\/p>\n

Only time will tell if the will to combat piracy is real, or only a measure to cool down Mexico\u2019s trade partners, mainly the United States, who kept Mexico is the Watch List of the 2010 Special 301 Report<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

A brief review of the June 2010 amendments to the Industrial Property Law and the provisions of the Federal Crimminal Code against piracy.<\/p>\n","protected":false},"author":3,"featured_media":2028,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[294,296,297],"tags":[301,306,37,38,61,328,331,339,344,355,356,112,377,378,380,382,391,393,399,412,177,416,417,418,420,422,435,437,241,242,484,487],"class_list":["post-1620","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-copyright-law","category-patent-law","category-trademark-law","tag-301-special-report","tag-anticounterfeiting","tag-arturo-d-reyes","tag-arturo-reyes","tag-copyright","tag-counterfeited-goods","tag-criminal-law","tag-district-judge","tag-enforcement","tag-federal-court-of-tax-and-administrative-affairs","tag-federal-criminal-code","tag-impi","tag-industrial-property","tag-industrial-property-law","tag-infringement","tag-intellectual-property","tag-ip-enforcement","tag-ip-rights","tag-law","tag-mexican-patent-and-trademark-office","tag-mexico","tag-mexico-copyright","tag-mexico-intellectual-property","tag-mexico-law","tag-mexico-trademarks","tag-mpto","tag-patents","tag-piracy","tag-reyes-fenig","tag-reyes-lomelin","tag-trademark-litigation","tag-trademarks"],"yoast_head":"\nAmendments to the Mexican statutes toughens (and softens) fight against piracy and IP infringement - Reyes Fenig<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/reyesfenig.com\/en\/2010\/08\/08\/amendments-piracy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amendments to the Mexican statutes toughens (and softens) fight against piracy and IP infringement - Reyes Fenig\" \/>\n<meta property=\"og:description\" content=\"A brief review of the June 2010 amendments to the Industrial Property Law and the provisions of the Federal Crimminal Code against piracy.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/reyesfenig.com\/en\/2010\/08\/08\/amendments-piracy\/\" \/>\n<meta property=\"og:site_name\" content=\"Reyes Fenig\" \/>\n<meta property=\"article:published_time\" content=\"2010-08-08T19:19:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/reyesfenig.com\/wp-content\/uploads\/2022\/01\/blog.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"870\" \/>\n\t<meta property=\"og:image:height\" content=\"580\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Arturo D. 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