Protecting IP: Mission and Priority

A main concern for innovators is the protection of their intellectual property (IP) rights to guarantee the recovery of their investment. In highly innovative industries like the pharmaceutical sector, poor enforcement, as is the case in Mexico, can greatly diminish investment interest, says Fernando Becerril, President of the Mexican Association for the Protection of IP (AMPPI) and Partner and President of Becerril, Coca & Becerril. “IP is an engine for economic development. Companies that produce a large amount of IP can generate large profits. The biggest companies in the world have the largest amount of IP.”

AMPPI was created 50 years ago to protect IP in every sector. “The association aims to bring together experts, mostly specialized lawyers working at national and international law firms and from every industrial sector. However, less than 10 percent of our associates belong to this last group and our goal is to incorporate a larger number of these professionals to gain a comprehensive view of the country’s needs in terms of IP.”

Although intellectual property plays a significant role in all industries, the pharmaceutical sector is particularly keen on defending its IP rights due to the high investment costs involved in the development of any new medicine. “The pharmaceutical industry is one of the most active and interested in protecting IP,” says Becerril. “The sector has two priorities: innovation and IP protection.”

The costs of protecting a new molecule are also high, especially considering that it is necessary to do so in 200 territories around the world. “Mexican laws related to IP cover the needs of the sector and are on par with international laws in terms of approval times and protections granted,” Becerril says. However, Mexico has a significant challenge: “Litigation in this sector is an extremely long and complex process that might take up to 10 years before a resolution is reached.” These long periods carry high costs. Once these 10 years have passed, there is yet another instance that must be concluded for demanding damages. This problem has serious consequences, not only for pharmaceuticals, but also for many other different sectors that might cause long and high cost processes. “My conversations with members of the pharmaceutical sector have revealed a declining interest in protecting their products in Mexico. As a result, we are seeing a relatively decreasing number of patents in this particular sector in recent times.”

Another large hurdle impacting all segments in Mexico is piracy. “Mexico has a significant problem with fake medicines. In the best-case scenario, these drugs are nothing but sugar pills, but they can also be contaminated.” To improve Mexico’s enforcement capabilities, it is necessary to strengthen the capabilities of regulatory authorities, Becerril says. “Mexico must improve its internal enforcement capabilities to be on par with the countries with which we are signing treaties. Sadly, 2018 may prove difficult as many governmental processes could be put on hold because of the presidential elections.”

Internationally, AMPPI sees significant potential for the country as it pursues treaties and agreements. “The greatest areas of opportunity Mexico has now are the renegotiations of NAFTA and TPP11.” The association has closely followed the NAFTA talks and has always had an active role in the negotiation of international treaties regarding IP. In the NAFTA renegotiations, the Association wants to be more than a participant; it wants to be an influencer. As members of the Mexican Confederation of Industrial Chambers (CONCAMIN), the association has two representatives involved in the talks.

“We hope that what was achieved during the drafting of the TPP in terms of IP can be used in the renegotiation of NAFTA. So far, we have not seen significant discussions on this chapter but some say that the easier to discuss chapters are left to the end of the negotiations. I expect that NAFTA, if it continues, will have a chapter on IP similar to the existing chapter with some adjustments that were negotiated during the TPP discussions to make it more efficient and attractive to foreign companies willing to come to Mexico.”