Doing Business

Doing Business in Mexico 2015

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49 Doing Business in Mexico 2015 In the case of Oil & Gas and refining, gas processing, transportation, storage and distribution, there are specific regulations, relating to permanent establishments, depreciation rates, among others, which should be closely evaluated for tax purposes. Patents and trademarks Industrial property is regulated by the Industry Property Law enacted in June 1991. This law regulates, among others things, patents, trademarks, industrial designs, licenses, slogans, franchises, etc. It is not necessary to submit for prior approval and registration contracts for the use of patents, trademarks or trade names or for providing technical assistance or know-how. However, for due protection of patents, trademarks and copyrights, license agreements for these should be registered with the proper Mexican Authorities, particularly to ensure their enforceability vis-a-vis third parties. Patents In general, patents are issued for a non-extendable term of 20 years from date of issue, considering that the legal date of the patent will be the date on which the application was filed. Holders of Mexican patents are required to commence exploitation of their patents within three years after they are issued, except when the holder of the patent has been importing the patented product or a product obtained through the use of a patented process. Otherwise, unless technical or financial just cause can be proven; an obligatory non-exclusive license to use the patent may be authorized by the Mexican Institute of Industrial Property upon request. In this case, the amount of royalties payable and other terms for such a license will be specified by the authorities. This license will expire if two years have elapsed since it was granted and the holder does not exploit it or prove reasonable cause for not exploiting it. Trademarks Under the law, trademarks may be registered for a period of ten years, renewable every ten years. Proof of actual use of a trademark within at least three years after it was registered must be furnished to the Mexican Institute of Industrial Property, or the registration will be considered to have lapsed. Our Corporate Legal Area can be contacted for competent legal advice in any situation dealing with the protection, licensing or sale of intellectual property rights. Copyright protection against video and audio piracy In order to protect authors or owners of exclusive rights to software programs, video and audio recordings, books and other intellectual or artistic properties, registration of these properties with the National Copyright Institute (Instituto Nacional del Derecho de Autor) must be made in Mexico. The protection of Copyrights lasts during the life of the author and 100 years after his death. To exploit them commercially, those reproducing or exploiting the copyrighted material must demonstrate their legal right to do so, and the reproductions themselves should clearly state the entity's corresponding authorization through a copyright license. Piracy of these restricted-use properties duly registered in Mexico is severely punished through criminal prosecution and confiscation of both the unauthorized copies and the equipment used to carry out this activity.

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