The pros and cons of Mexico’s new system to adjudicate IP damages

On November 5, 2020, the new Federal Law for the Protection of Industrial Property (FLPIP) entered into force in Mexico, repealing the Industrial Property Law that was effective in our country for more than 25 years.

One of the most relevant and controversial changes presented by this new law was, without a doubt, the new system for adjudicating damages to IPR holders derived from infringement.

The new FLPIP provides for the possibility of claiming payment of damages in two different ways:

1. Directly before the Federal Courts.
2. Before the Mexican Institute of Industrial Property (IMPI), but once an administrative decision declaring the infringement is issued by the IMPI itself.

At first this could sound great, but not everything has been sunshine and roses, because although this change brought several benefits, there have also been some important negative aspects.

The positive