The intellectual property of any brand is a fundamental asset that must be taken care of with special care. What can be lost by spoofing terms or a bad record is simply for many businesses the knowledge of their survival.
Perhaps in this game what happens around piracy is one of the closest and most tangible effects.
To put it in context, only in Mexico it is estimated that the brakes on economic growth and the effects on intellectual and industrial property caused by piracy as well as the improper use of certain assets in the matter leave losses of 43 billion pesos per year. year, according to American Chamber of Commerce and the Development Research Center (CIDAC).
In the digital field, in more ways than one, it strengthened this bad culture, which in markets like Mexico is not understood as a serious problem.
According to the CIDAC findings, in the country 8 out of 10 Mexicans claim to be a consumer of piracy. More worrisome is to recognize that 85 percent of them use as an argument that this model allows them to buy products that they would not otherwise have access to.
At the same time, 3 out of 4 Mexicans affirm that everyone does it, while two thirds of the population assures that it is a practice that prevents large corporations and companies from getting rich.
In fact, 60 percent of consumers, although they recognize that it is illegal, do not consider piracy and mismanagement of copyright to be a serious crime.
At this point, stay up-to-date on changes in terms of property registration Industries and intellectual is a practice that should be the norm for businessmen and entrepreneurs and, in this sense, a movement that came into force in recent days around the Intellectual Property Law is striking.
As indicated by Clarket Modet, “the reform to the (now abrogated) Intellectual Property Law published in the Official Gazette of the Federation on May 18, 2018 brought with it a new figure that inherited the current Federal Law on Protection of the Intellectual Property: the declaration of use ”.
This new figure in the regulatory framework came into force on August 10, with the fact that since that date the first declarations of use of protected distinctive signs should have been presented before the Mexican Institute of Industrial Property (IMPI).
To understand this change, we share the following aspects to consider:
- The declaration of use consists of declaring the real and effective use of the products or services protected by the distinctive signs of which registration was obtained.
- The signs to which this declaration of use is applicable are: trademark registrations, collective brand registrations, trade notice registrations, trade name publications, and certification mark registrations.
- In accordance with article 233, the registration of the distinctive sign will expire ex officio, the owner losing all the exclusive rights of said registration.
To understand more about this change, Claudia Márquez, Director of Foreign File Management at ClarkeModet, answered for Merca2.0 some questions about this movement that your brand cannot ignore when protecting its intellectual property:
Merca2.0: What is the declaration of use of the trademark that supports the Federal Law for the Protection of Industrial Property?
Claudia Márquez (CM): It is the declaration under protest of telling the truth that the owner of a trademark must make before the Mexican Institute of Industrial Property (IMPI) on the use of this. The declaration must be submitted during the three subsequent months, counted from the third year after the registration was granted.
Merca2.0: How does this figure impact the registration of brands and products?
CM: The new provision has no effect regarding the registration procedure, however, it does have post-registration effects since, to keep it in force, the right holder must present this declaration to prevent it from expiring.
There are different positions regarding the positive or negative impact of this figure, however, it can benefit the system and / or the holders of distinctive signs in 3 ways:
- Avoiding the existence of current trademark registrations that are not in use through their owners or licensees to make way for fair commercial competition
- Preventing “trademark hijacking” by third parties, where the latter register trademarks that are not their property to later sell them to their real owners at high costs.
- Discouraging third parties from initiating expiration processes against the trademark owner, since, if he declares that he is using it, the third party will presume that in the face of such use it is not feasible to initiate a legal action against the trademark registration.
Merca2.0: What should trademark owners consider if this process is not carried out?
CM: In the event that the presentation of the declaration of use is not complied with at the times established by the Law, the trademark will expire, which will imply that its owner loses the registration and therefore the exclusivity of the use of said trademark.
Merca2.0: What are the specific changes that came into effect on August 10? Until when can the declaration of use be submitted?
CM: In terms of use, the change consists of the obligation to present the declaration of use during the three subsequent months, counted from the third year after the registration has been granted. As previously mentioned, the declaration must be presented during the three subsequent months, counted from the third year after the registration was granted.
Merca2.0: Why do these types of movements impact the business of brands and companies
CM: As registration before the IMPI is the legal way to have the exclusive use of a trademark or distinctive sign, the owner has the possibility of identifying with said trademark the products and services offered in the market, on many occasions, positioning the trademark In the mind of the consumer, the owner of it implies the investment of large amounts of money and commercial strategies, so that, in the event that the current requirement of the Law is not met, the owner would not only be losing the registration , but it would also be losing the investment made in marketing and worse still, the identity bond achieved with the consumer regarding the brand and its quality and trust, this in case the owner cannot regain exclusive use of the marks before an objection from the authority during a new registration procedure.