AIPPI International Association for the Protection of Intellectual Property Buenos Aires 10 – 15 October “Contributory patent infringement in Mexico” Daniel Sánchez y Béjar Overview Civil law originates in Roman law influenced by French law (Napoleonic Code). Written formal proceedings. Intellectual Property is regulated by administrative Laws, and enforced before administrative and judicial authorities. Administrative and judicial authorities should observe the wording of the appropriate statutory law. Jurisprudence for interpretation and/or application of the statutory law. Jurisprudence is formed by five equal, uninterrupted and unanimous precedents of courts at the same level. Overview Only Supreme Court’s jurisprudence is mandatory for all the judicial and administrative authorities. Jurisprudence of the Circuit Courts and others Courts are binding only to lower courts. Patent Litigation before the Mexican Institute of Industrial Property (IMPI). Enforcement of Patents in Mexico Direct Infringement: Import Make Use Offer to sale Sale Enforcement of Patents in Mexico - The patented Invention - Literal Infringement: - The accused device must meet all the limitations of the patent claim. - Doctrine of equivalences. Not tested. - Patent owner has the burden of the proof for patented products. - In some cases, burden of proof can be shifted to defendant when enforcing a patented process. Enforcement of Patents in Mexico - Without authorization or right. - License - Exhaustion of rights - Experimental / Non commercial use - In the Mexican Republic. - Patented products used in a vehicle in transit. Enforcement of Patents in Mexico - During the term of the patent. - 20 years as of the filing date - Damages are available only for infringement occurred after the publication of the application. - Infringements occurred during the term of the patent can not be pursued after patent term. Enforcement of Patents in Mexico - Contributory infringement. - Not provided in the IPL - Definition under 35 U.S.C. § 271 (C). "… (c) Whoever offers to sell or sells within the United States or imports into the United States a component of a patented machine, manufacture, combination, or composition, or a material or apparatus for use in practicing a patented process, constituting a material part of the invention, knowing the same to be especially made or especially adapted for use in an infringement of such patent, and not a staple article or commodity of commerce suitable for substantial noninfringing use, shall be liable as a contributory infringer…” Enforcement of Patents in Mexico - Neither this conduct nor a related definition thereof is provided in the IPL. - General cause for unfair competition Article 213, Section I. Industrial Property Law: “Article 213. The following are administrative infringements: I. Commission of any act contrary to good practices and custom in the industry, commerce or services, which implies unfair competition and is related to matters regulated in this Law…” Enforcement of Patents in Mexico - “Nula poena sine lege” - Only activities prohibited by the Law can be punished. - General cause for unfair competition Vs - “Nula poena sine lege” (Not tested) - Precedents in enforcing this cause of action against activities not provided by the IPL. Remedies and actions A. Preliminary and permanent injunctions. - Before filing an infringement action, or - at any time during the litigation. Requirements: - File a written petition. - Prima facie proof of infringement. - Show marking. - Post a bond. Remedies and actions B. Types of injunctions available. - Seizure of infringing product. - Orders to stop commercialization. - Border measures. - Orders to withdraw from circulation: - - Infringing products. - Articles, packing, wrappings, stationery, advertising material - Ads, signs, posters, stationery - Utensil or instruments destined for or used in the manufacture, production or obtention of the infringing product. Injunctions to third parties. Prosecution of a patent infringement 1. Filing a written claim containing all the arguments of infringement along with all the evidence to prove it. 2. Defendant has 10 working days to respond in writing the claim along with the all proofs to support its defenses. 3. If expert witness testimonies are offered by the parties, IMPI grants a discretional time to be rendered. 4. Official file is send to the Patent Division of IMPI for the Infringement technical analysis. 5. Parties have a common period of 10 working days to submit allegations (closing arguments) 6. Resolution. Punishment: I. Fine up to 20,000 days of minimum wage ($70,000 USD, approximately) II. Additional fine, 500 days of minimum wage III. Temporary closure (never applied) IV. Definitive closure (never applied) V. Administrative arrest (never applied) FORMULA FOR 40% OF DAMAGES (PATIENCE) Appealing Process Circuit Court Revision Nullity Trial FCTAA Specialized Court IMPI Indirect Amparo (Appeal-District Court) Time line 7 to 14 years I II IV III Publication of Application 18 months Patent granted Prosecution 3 to 6 years Possible infringement actvity Infringement Action filed before IMPI 3 to 5 years Circuit Court Revision 1 to 2 years 1 year Appeal before FCTAA 2 to 3 years 1st Court 2 to 4 years 2nd Court 1 to 2 years Damages / Civil Judge MUCHAS GRACIAS Daniel Sánchez y Béjar Attorneys at Law-Engineers Intellectual Property, Corporate and Commercial Law Tel. (+52 55) 5322 30 00 Fax (+52 55) 5322 30 01 Email: dsb@olivares.com.mx www.olivares.com.mx