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Viewing cable 08MEXICO2866, BILL INTRODUCED TO STRENGTHEN IP PROTECTION

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Reference ID Created Released Classification Origin
08MEXICO2866 2008-09-24 21:05 2011-08-25 00:00 UNCLASSIFIED Embassy Mexico
VZCZCXRO0869
PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #2866/01 2682105
ZNR UUUUU ZZH
P 242105Z SEP 08
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 3361
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY
RUEHGV/USMISSION GENEVA PRIORITY 1043
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHMFISS/DEPT OF HOMELAND SECURITY WASHINGTON DC PRIORITY
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
UNCLAS SECTION 01 OF 02 MEXICO 002866 
 
SIPDIS 
 
STATE FOR EEB/IPE RACHEL WALLACE 
STATE PASS USTR FOR TANUJA GARDE 
 
E.O. 12958: N/A 
TAGS: KIPR ETRD ECON
SUBJECT: BILL INTRODUCED TO STRENGTHEN IP PROTECTION 
 
1. (U) Summary:  As part of the Calderon Administration's 
comprehensive strategy against organized crime, a ruling 
party Senator has introduced a bill to amend the Mexican 
Customs Law and give Mexican customs officials' additional 
tools to protect trademark owners.  The proposed 
legislation authorizes customs officials to detain 
suspected counterfeit goods for up to five days and calls 
for the establishment of a customs trademark registry. 
This initiative has been well-received within both the 
public and private sectors, and eventual approval is 
likely.  End Summary. 
 
2. (U) On Tuesday, September 7, PAN Senator Jorge A. Ocejo 
Moreno introduced a bill to enhance the ability of the 
Mexican General Customs Administration (Aduanas) to stop 
the importation of counterfeit goods.  Under the proposed 
bill, Aduanas would be authorized to detain suspected 
counterfeit goods for up to five days, in order to give 
trademark owners and Mexican authorities adequate time to 
secure appropriate action.  Currently, customs officials 
are not authorized to detain suspicious goods.  Instead, 
under Article 148 of the Mexican Customs Law (MCL), Aduanas 
may retain goods and hold them in custody if ordered to do 
so by a court, a public prosecutor, or an administrative 
authority.  However, Article 149 of the MCL places the 
burden on the trademark owner to request such an action, 
and goods are often released into circulation before the 
authorities can act upon the request.  This bill would 
amend the contents of Articles 148 and 149 of the MCL and 
grant Aduanas the legal faculties to seize temporarily the 
imports of counterfeit goods. 
 
3. (U) This proposed legislation does not remove the burden 
from the trademark owner to launch a judicial or 
administrative action of seizure, nor does it award the 
same ex-officio authority to customs officials as they are 
accorded in the United States and elsewhere, but it does 
grant government officials and the private sector 
sufficient time to cooperate with each other and help deter 
the flow of counterfeit goods.  It also appears to bring 
Mexico into greater compliance with international norms as 
stipulated in Article 58 of the Agreement on Trade-Related 
Aspects of Intellectual Property Rights (TRIPS). 
 
4. (U) Aduanas uses a random inspection system, through 
which it inspects only about 7% of the merchandise that 
enters Mexico.  In 2008, Aduanas has performed 78 seizures 
of more than 32 million counterfeit goods, after rights 
holders secured actions ordering them to do so.  The number 
of seizures is up from 2007 (66), in which almost 43 
million pirated goods were seized. 
 
5. (U) Aduanas often lacks the necessary information to 
identify counterfeit goods and notify trademark owners. 
The proposed legislation also calls for the creation of a 
database known as the Padrsn Unico de Marcas de 
Importacisn, or the Central Registry of Marks of 
Importation.  This database would function much like the 
Intellectual Property Rights Recordation system in the 
United States, and similar registries in the European 
Union, Argentina and Peru.  Trademark owners would provide 
a copy of their certificate of registration, the names of 
authorized importers and distributors, contact information 
for a legal representative, and other important 
information.  Aduanas and the Mexican Institute of 
Industrial Property (IMPI) have been working to realize 
such a database for some time, trying to match both 
agencies' registration systems.  Aduanas uses taxpayers' 
registration numbers, called RFC, and IMPI uses a different 
trademark registration number.  This database is expected 
to be up and running by December 2008, and before the 
proposed legislation is likely to come into effect. 
 
6. (U) An IMPI official told Econoff that the information 
to be included in the database would be at the request of 
interest parties.  IMPI would be charged with reviewing and 
confirming that the trademarks and information provided by 
the requester are valid. 
 
7. (U) Both Aduanas and IMPI have reacted positively to 
this initiative.  Both IMPI and Aduanas are providing 
advice to the Senate in order to strengthen the proposed 
legislation, such as what procedures must be taken should 
 
MEXICO 00002866  002 OF 002 
 
 
the detained shipment be found to actually contain 
counterfeit goods.  The American Chamber is also 
supportive, and various members have told EconOff that they 
will lobby for its swift approval. 
 
8. (U) Congressional approval of this proposed amendment to 
the MCL is likely; however, this legislative session is 
full with energy reform legislation and next year's federal 
budget pending congressional review.  The same holds true 
for a pending bill that would amend the Mexican Penal Code 
and the Law of Industrial Property to provide federal 
prosecutors the authority to pursue pirates and 
counterfeiters ex officio.  This "ex officio" bill passed 
the lower Chamber in April and now awaits Senate action. 
The question is not whether the Senate will support these 
bills (Note: EconOff thinks it will. Post's robust and 
continued cooperation with the GOM on IPR issues, with the 
assistance of the private sector, DOJ, DOC, DHS and USPTO, 
has had a positive influence on the perception and 
protection of IP in Mexico.  End Note.); it is whether the 
Senate will be able to focus its attention on these IP 
issues. 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity and the North 
American Partnership Blog at 
http://www.intelink.gov/communities/state/nap / 
 
GARZA