What Is Intellectual Property and How Does It Work in Mexico?

Mexico is quickly becoming a go-to location for manufacturers because it is a hub for international trade and favorable economic policies. However, one advantage often goes overlooked: strong intellectual property (IP) protection. In recent years, Mexico has reformed and updated laws to further strengthen IP protection and enforcement to encourage innovation and investment in the country.

International and US companies manufacturing in Mexico can be confident that their industrial property—including patents, trademarks, and trade secrets—will be protected. This article will explore the importance of IP protection for manufacturers, Mexico’s advantages over China in IP protection and enforcement, IP measures related to the USMCA and other international agreements, entities and processes regulating IP in Mexico, and the importance of partnering with experts for tailored advice.

What Is Intellectual Property?

Intellectual property (IP) refers to the legal rights that protect creations, inventions, and distinctive brand elements from unauthorized use. These rights allow individuals and businesses to control and benefit from their innovations, ensuring that others cannot reproduce or commercialize them without permission.

In Mexico, IP protection covers patents, trademarks, copyrights, industrial designs, and trade secrets. It plays a crucial role in fostering innovation, encouraging investment, and maintaining a competitive advantage in industries such as manufacturing, technology, and pharmaceuticals. By securing IP rights, businesses can protect their products, processes, and brands, ensuring long-term growth and profitability in the global market.

The Importance of Intellectual Property in the Manufacturing Industry

Though IP protection may not be the first factor that comes to mind when thinking about relocating operations internationally in the industrial and manufacturing sectors, it is important to consider. IP protection serves as a vital safeguard for proprietary information and technologies that grant a competitive advantage, providing legal rights that prevent others from copying or exploiting their innovations without permission.

In addition, it is crucial for attracting investments and fostering partnerships in the industry and manufacturing sectors. Companies with robust IP portfolios show a dedication to innovation, differentiating them from competitors and ensuring long-term sustainability. IP protection also facilitates technology transfer, which is becoming increasingly important with today’s rapidly evolving innovations in manufacturing 4.0 and logistics.  

Foreign and US companies manufacturing in Mexico can benefit from the country’s robust IP regulations, allowing them to concentrate on continuous innovation without worrying about the theft of their intellectual property.

Mexico’s advantages over China in IP protection and enforcement

In Mexico, companies have the confidence that their ideas, trade secrets, and designs will be safeguarded. In contrast, in China IP protection has long been an issue, with IP rights being often viewed as negotiable. Many manufacturers have faced challenges related to counterfeit products, patent infringement, and copyright violations, leading to lost revenue and damage to reputation, and reduced market share.

Some of these issues have stemmed from the fact that trademark ownership is determined on a first-to-file basis, the country does not have a process in place for patent opposition, nor does it recognize trademark registers in other countries. This allows Chinese companies to file for trademarks that are well known in other countries, resulting in trademark disputes for companies like Apple and Tesla that are difficult to make claims against.

On the other hand, Mexico has made considerable progress in recent years in strengthening its IP protection regime. In 2018, the country passed the new Federal Law for the Protection of Industrial Property, which brought its IP laws in line with international standards and provided more comprehensive protections to manufacturers.

While China may be a dominant player in manufacturing, Mexico’s robust intellectual property (IP) protection laws offer substantial advantages. Companies that choose to manufacture in Mexico can enjoy favorable business and labor conditions, attractive tax incentives, and, most importantly, a secure legal framework for protecting their IP rights. This combination of benefits makes Mexico an enticing option for multinational and US companies looking to manufacture in Mexico.

Entities That Regulate Intellectual Property in Mexico

Several organizations oversee intellectual property protection and enforcement in Mexico, each with distinct responsibilities:

• Mexican Institute of Industrial Property (IMPI) – The primary authority responsible for registering patents, trademarks, and industrial designs, as well as enforcing IP laws and investigating infringement cases. IMPI plays a critical role in protecting industrial property rights and has established specialized IP courts that offer swift and efficient resolutions, ensuring businesses can safeguard their innovations in a competitive market.
• National Association of Manufacturers (NAM) – An organization that advocates for fair trade practices and works closely with policymakers to strengthen IP protections in North America. NAM supports industrial innovation by pushing for regulations that prevent counterfeiting, patent violations, and unfair trade practices that threaten manufacturers.
• Mexican Customs Services – Plays a crucial role in detecting and preventing the import and export of counterfeit goods. By inspecting shipments at ports and borders, customs authorities ensure that businesses comply with Mexican IP laws and international trade agreements, reducing the circulation of illicit products in the market.
• Federal Commission for the Protection Against Sanitary Risks (COFEPRIS) – Regulates pharmaceutical patents, medical devices, and health-related intellectual property to ensure consumer safety and legal compliance. It oversees the approval and commercialization of patented medicines, working to prevent counterfeit drugs and unauthorized medical products from entering the market.
• American Chamber of Commerce in Mexico (AmCham) – Supports U.S. businesses operating in Mexico by providing guidance on IP protection strategies, compliance with legal frameworks, and enforcement measures. AmCham works closely with policymakers to promote strong intellectual property protections that encourage investment and trade between Mexico and the United States.
• International Intellectual Property Alliance (IIPA) – A global coalition that advocates for stronger copyright protections and anti-piracy measures in Mexico. IIPA works with local and international authorities to strengthen enforcement against counterfeiting, protect digital content, and combat IP theft that affects creative and industrial sectors.
• International Trademark Association (INTA) – A non-profit organization that helps businesses secure and defend their trademarks in Mexico. INTA provides legal resources, educational programs, and advocacy initiatives to ensure brand protection, reduce infringement risks, and improve trademark enforcement mechanisms in Mexico’s regulatory landscape.
• National Association of Corporate Lawyers (ANADE) – A professional legal association that specializes in corporate and intellectual property law, providing legal expertise to businesses navigating Mexico’s regulatory system. ANADE’s members assist companies in IP compliance, litigation, contract negotiations, and legal strategies to safeguard their proprietary assets.

These organizations play a vital role in maintaining a secure and competitive business environment, helping manufacturers protect their intellectual property while fostering innovation and economic growth in Mexico.

Intellectual Property Elements Included in the USMCA

The United States-Mexico-Canada Agreement (USMCA) introduced several provisions aimed at strengthening intellectual property (IP) protection across North America. These measures enhance enforcement mechanisms, promote innovation, and align Mexico’s IP regulations with international standards. Key elements of IP protection under the USMCA include:

• Notice-and-Takedown System – The agreement establishes a digital enforcement mechanism that requires online platforms to remove infringing content upon receiving a valid notice from rights holders. This system helps combat online piracy and protects copyrighted materials more effectively.
• Trade Secrets Protection – The USMCA enhances legal protections for trade secrets, increasing civil and criminal penalties for misappropriation. These provisions safeguard proprietary business information and discourage unfair competition.
• Geographical Indications (GIs) – The agreement strengthens recognition of geographical indications, ensuring that product names associated with specific regions (such as tequila or mezcal) receive legal protection against misuse or imitation.
• Trademarks and Industrial Designs – The USMCA expands protections for trademarks and industrial designs, streamlining registration processes and reinforcing enforcement against counterfeiting. These provisions help businesses secure their brand identity and prevent unauthorized use of distinctive designs.
• Ex Officio Authority – Customs officials and other enforcement authorities are granted the power to act ex officio (on their own initiative) to detain and seize counterfeit or pirated goods, even without a formal complaint from the rights holder. This proactive enforcement measure strengthens border controls and reduces IP infringement.

By implementing these provisions, Mexico has strengthened its intellectual property framework, ensuring that businesses operating in the country benefit from greater legal certainty and improved enforcement mechanisms. These measures contribute to a more secure environment for innovation, investment, and industrial growth.

IP protection under the USMCA and other international measures

The United States-Mexico-Canada Agreement (USMCA) contains several updated provisions regarding IP protection in Mexico. These include the recognition and legal validity of electronic signatures and contracts, facilitating digital trade and e-commerce activities. It also mandates that Mexico implement a patent term adjustment mechanism to address delays in processing, ensuring that owners are granted sufficient effective terms. For the pharmaceutical industry, the agreement includes provisions for establishing a patent linkage system aimed at safeguarding pharmaceutical products. Furthermore, the USMCA provides additional protection for trade secrets through strong criminal and civil penalties in cases of its theft.

Additional international IP protection measures Mexico adheres to include the Patent Cooperation Treaty (PCT), Trademark Law Treaty, and ten other IP agreements. It forms part of the World Intellectual Property Organization and is a member of the Paris Convention, Locarno Agreement which establishes an International Classification for Industrial Designs. This means applicants can file a single international patent application through the World Intellectual Property Organization (WIPO), allowing them to seek protection in multiple countries, including Mexico, through a single filing, streamlining processes and reducing the time and effort required for registration.