Mexico - Northern Triangle FTA (2000)
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Article 16-17. Publication.

In accordance with their legislation, the Parties shall publish each trademark prior to its registration or promptly thereafter, giving interested persons a reasonable opportunity to oppose or challenge its registration.

Article 16-18. Rights Conferred.

The owner of a registered trademark shall have the exclusive right to prevent any third party, without his consent, from using in the course of trade identical or similar signs for goods or services that are identical or similar to those for which the trademark is registered, where such use gives rise to a likelihood of confusion. In the event that an identical sign is used for identical goods or services, it shall be presumed that there is a likelihood of confusion. The aforementioned rights shall be granted without prejudice to prior existing rights and shall not affect the possibility of the Parties to recognize rights on the basis of use.

Article 16-19. Well-known Trademarks.

1. The Parties shall, ex officio, if their legislation so permits, or at the request of the interested party, refuse or invalidate the registration and prohibit the use of a trademark for goods or services that constitutes a reproduction, imitation or translation, liable to create confusion, of a trademark that the competent authority of the country of registration or use considers to be well known there and used for identical or similar goods or services. The same shall apply when the essential part of the mark constitutes the reproduction of such a well-known mark or an imitation liable to create confusion therewith.

2. It shall be understood that a trademark is well known when a determined sector of the public or of the commercial circles of the Party in which the notoriety is claimed, knows the trademark as a consequence of the commercial or promotional activities developed by a person who uses that trademark in relation to its products or services. For the purpose of proving the notoriety of the trademark, all means of evidence admitted in the Party in question may be used, including those national and from abroad.

3. The Parties shall not register as a trademark those signs equal or similar to a well known trademark that, when applied to any product or service, its use could indicate a connection with the owner of the well-known trademark, or harm the interests of the owner of the well- known trademark.

4. A minimum period of five years, as from the date of registration, shall be granted to claim the cancellation of such trademark. The Parties have the option to provide a time limit within which the prohibition of use must be claimed.

5. No time limit shall be set for claiming the cancellation or prohibition of use of trademarks registered or used in bad faith.

Article 16-20. Exceptions.

Each Party may provide limited exceptions to the rights conferred by a trademark, such as fair use of descriptive terms, provided that such exceptions take into account the legitimate interests of the trademark owner and third parties.

Article 16-21. Duration of Protection.

The initial registration of a trademark shall have a duration of 10 years from the date of filing of the application or from the date of its registration, according to the legislation of each Party, and may be renewed indefinitely for successive periods of 10 years, provided that the conditions for renewal are met.

Article 16-22. Requirement of Use.

1. Where a Party does not provide for a requirement of use of a trademark to maintain its registration, that Party shall provide for such requirement in its legislation within five years from the date of entry into force of this treaty. The registration of a mark may be declared lapsed or cancelled for non-use only after at least a continuous period of non-use of three years has elapsed, unless the owner of the mark demonstrates valid reasons supported by the existence of obstacles to use. Circumstances arising, independently of the will of the trademark owner, that constitute an obstacle to the use of the trademark, such as import restrictions or other governmental requirements applicable to goods or services protected by the trademark, shall be recognized as valid reasons for non-use.

2. A trademark shall be understood to be in use when the goods or services that it distinguishes have been placed in commerce or are available on the market, in the quantity and in the manner that normally corresponds, taking into account the nature of the goods or services and the modalities under which they are marketed.

3. For purposes of maintaining the use requirement, use of a mark by a person other than the owner of the mark shall be recognized when such use is subject to the owner's control.

Article 16-23. Other Requirements.

The use of a trademark in the course of business operations with special requirements, such as, for example, use with another trademark, use in a special form or use in a manner that impairs the ability of the trademark to distinguish the goods or services of one enterprise from those of other enterprises, shall not be complicated without justification. This provision shall not preclude the requirement that the name identifying the enterprise producing goods or services be used in conjunction but not in connection with the mark distinguishing the specific goods or services in question of that enterprise.

Article 16-24. Licenses and Assignment of Trademarks.

Each Party may establish conditions for the licensing and assignment of trademarks. The owner of a registered trademark shall have the right to assign it with or without the transfer of the enterprise to which the trademark belongs. Compulsory licenses shall not be permitted.

Section D. Patents

Article 16-25. Patentable Subject Matter.

1. Without prejudice to the provisions of paragraphs 2 and 3, patents shall be granted for inventions, whether products or processes, in all fields of technology, provided that they are new, result from an inventive step and are susceptible of industrial application.

2. Subject to the provisions of paragraph 3, there shall be no discrimination in the granting of patents, nor in the enjoyment of the respective rights, on the basis of the field of technology, the territory of the party in which the invention was made or whether the products were imported or produced locally.

3. Each Party may exclude from patentability inventions the commercial exploitation of which in its territory must be prevented in order to protect public order or morality, including for the protection of health or human, animal or plant life, or to avoid serious damage to nature or the environment, provided that such exclusion is not made merely because the exploitation is prohibited by its legislation.

4. Likewise, each Party may exclude from patentability plants and animals, except microorganisms and essentially biological processes for the production of plants or animals, other than non-biological or microbiological processes. However, the Parties shall provide for the protection of all plant varieties by patents, an effective sui generis system or a combination thereof. To the extent compatible with its legislation, without implying any commitment of adherence, each Party shall consider complying with the existing substantive provisions of the International Convention for the Protection of New Varieties of Plants (UPOV).

Article 16-26. Rights Conferred.

1. A patent shall confer upon its owner the following exclusive rights:

a) where the subject matter of the patent is a product, to prevent third parties, without its consent, from performing acts of: manufacture, use, offering for sale, sale or importation for the purposes of the product that is the subject matter of the patent; or

b) when the subject matter of the patent is a process, to prevent third parties, without his consent, from performing the act of using the process and the acts of: using, offering for sale, selling or importing for these purposes, at least the product obtained directly by means of said process.

2. Likewise, patent holders shall have the right to assign or transfer by any means the patent and to enter into licensing contracts.

Article 16-27. Conditions Imposed on Patent Applicants.

1. Each Party shall require the applicant for a patent to disclose the invention in a manner sufficiently clear and complete to enable persons skilled in the art to carry out the invention. Likewise, each Party may require that the applicant indicate the best mode of carrying out the invention known to the inventor at the date of filing of the application or, if priority is claimed, at the priority date claimed in the application.

2. Each Party may require a patent applicant to provide information relating to its applications for, and grants of, patents abroad.

Article 16-28. Exceptions.

Each Party may provide limited exceptions to the exclusive rights conferred by a patent, provided that such exceptions do not unreasonably conflict with the normal exploitation of the patent and do not unreasonably prejudice the legitimate interests of the patent owner, taking into account the legitimate interests of third parties.

Article 16-29. Other Uses without Authorization of the Right Holder.

Where the law of a Party permits other uses of the subject matter of a patent, other than those permitted under the preceding article, without the authorization of the right holder, including use by the government or by third parties authorized by the government, the following provisions shall be observed:

a) The authorization of such uses shall be considered on a case-by-case basis;

b) such uses may only be permitted where, prior to such use, the potential user has attempted to obtain the authorization of the right holder on reasonable commercial terms and conditions and such attempts have not been successful within a reasonable period of time. The Parties may waive this obligation in case of national emergency or other circumstances of extreme urgency, or in cases of public non-commercial use. However, in situations of national emergency or other circumstances of extreme urgency, the right holder shall be notified as soon as reasonably possible. In the case of public non- commercial use, where the government or contractor, without conducting a patent search, knows or has demonstrable reason to know that a valid patent is or will be used by or for the government, the rights holder shall be promptly informed;

c) the scope and duration of such uses shall be limited to the purposes for which it was authorized;

d) such uses shall not be exclusive;

e) such uses may not be assigned, except together with the part of the company that enjoys such uses;

f) such uses shall be authorized primarily to supply the domestic market of the authorizing Party;

g) authorization for such uses may be withdrawn subject to adequate protection of the legitimate interests of the persons who have received authorization for such uses, if the circumstances that gave rise to the authorization have disappeared and are not likely to recur. The competent authorities shall be empowered to examine, upon a substantiated request, whether such circumstances continue to exist;

h) the right holder shall be paid an adequate remuneration according to the circumstances of each case, taking into account the economic value of the authorization;

i) the legal validity of any determination regarding the authorization of such uses shall be subject to judicial review or independent review by a different higher authority;

j) any determination regarding the remuneration granted for such uses shall be subject to judicial review or independent review by a different authority;

k) the Parties shall not be obliged to apply the conditions set forth in subparagraphs b) and f), when such uses have been permitted to remedy practices that, as a result of judicial or administrative proceedings, have been determined to be anti-competitive. The need to correct anti-competitive practices may be taken into account in determining the amount of remuneration in such cases. The competent authorities shall have the power to refuse to revoke the authorization, if it appears likely that the conditions that gave rise to such authorization will recur; and

l) where such uses have been authorized to allow the exploitation of a patent (second patent), which cannot be exploited without infringing another patent (first patent), the following additional conditions shall be observed:

i) the invention claimed in the second patent must involve an important technical advance of considerable economic relevance with respect to the invention claimed in the first patent;

ii) the owner of the first patent shall be entitled to a cross-license, on reasonable terms, to exploit the invention claimed in the second patent; and

iii) the authorized use of the first patent may not be assigned without the assignment of the second patent.

Article 16-30. Revocation or Cancellation.

Judicial review of any decision to revoke or cancel a patent shall be available. Each Party may revoke or cancel a patent only when there are grounds that would have justified the refusal to grant it.

Article 16-31. Evidence In Cases of Infringement of Patented Processes.

1. Where the subject matter of a patent is a process for obtaining an identical product, the judicial authorities shall have the authority to order the defendant to prove that the process for obtaining a product is different from the patented process. Accordingly, each Party shall provide that, in any infringement proceeding, the defendant shall have the burden of proving that the allegedly infringing product was made by a process different from the patented process, at least in the following cases:

a) if the product obtained by the patented process is new; or

b) if there is a substantial likelihood that the identical product was manufactured by the process, and the patentee cannot establish by reasonable efforts which process was actually used.

2. The Parties shall be free to provide that the burden of proof referred to in paragraph 1 shall be on the alleged offender only if the condition set forth in subparagraph (a) is met or only if the condition set forth in subparagraph (b) is met.

3. In the presentation of evidence to the contrary, the legitimate interests of the defendants in the protection of their industrial and commercial secrets shall be taken into account.

Article 16-32. Duration of Protection.

The protection conferred by a patent shall not expire before a period of 20 years has elapsed, counted from the filing date of the application.

Section E. Utility Models

Article 16-33. Protection of Utility Models.

Each Party shall protect utility models in accordance with its legislation.

Section F. Industrial Designs

Article 16-34. Conditions and Duration of Protection.

1. Each Party shall grant protection to new or original industrial designs that are of independent creation. Each Party may provide that designs shall not be considered new or original if they do not differ to a significant degree from known designs or combinations of features of known designs. each party may provide that such protection shall not extend to designs based essentially on functional or technical considerations.

2. Each Party shall ensure that the requirements for obtaining industrial design protection, particularly as regards any cost, examination or publication, do not unreasonably impair the opportunity of a person to apply for and obtain such protection. parties shall be free to implement this obligation through industrial design law or through copyright law. 3. Each Party shall grant a period of protection for industrial designs of at least 10 years counted from the date of filing of the application.

Article 16-35. Rights Conferred.

1. The owner of a protected industrial design shall have the right to prevent third parties without his consent from manufacturing, selling or importing articles bearing or incorporating a protected design or essentially a copy thereof, when such acts are carried out for commercial purposes.

2. The parties may provide for limited exceptions to the protection of industrial designs, provided that such exceptions do not unreasonably conflict with the normal exploitation of the protected industrial designs, nor unreasonably prejudice the legitimate interests of the owner of the protected design, taking into account the legitimate interests of third parties.

Section G. Undisclosed Information

Article 16-36. Protection of Undisclosed Information.

1. In ensuring effective protection against unfair competition, the parties shall protect undisclosed information in accordance with paragraph 2, and data that has been submitted to governments or official bodies, in accordance with Article 16-37.

2. Natural and legal persons shall have the possibility to prevent information that is legitimately under their control from being disclosed to third parties, or from being acquired or used by third parties without their consent, in a manner contrary to honest commercial practices, to the extent that such information:

a) secret, in the sense that, as a whole or in the precise configuration and composition of its elements, it is not generally known or readily accessible to persons within the circles that normally handle the type of information in question;

b) the information has a commercial value because it is secret; and

c) in the given circumstances, has been the subject of reasonable measures to keep it secret by the person lawfully in control of it.

3. In order to grant protection, each Party may require that a trade secret be contained in documents, electronic or magnetic media, optical discs, microfilms, films or other similar instruments.

4. No Party may limit the duration of protection for industrial or trade secrets, as long as the conditions described in paragraph 2 exist.

5. No Party shall discourage or prevent the voluntary licensing of trade secrets by imposing excessive or discriminatory conditions on such licenses, or conditions that dilute the value of trade secrets.

Article 16-37. Data Protection of Pharmaceutical or Agrochemical Goods.

Each Party shall, where it requires, as a condition of approving the marketing of pharmaceutical or agricultural chemical goods using new chemical ingredients, the submission of undisclosed test or other data that involve considerable effort to produce, protect such data from unfair commercial use. In addition, each Party shall protect such data from disclosure, except where necessary to protect the public or unless measures are taken to ensure that the data are protected from unfair commercial use.

Section H. Geographical Indications and Appellations of Origin

Article 16-38. Protection of Geographical Indications and Appellations of Origin.

1. Each Party shall protect geographical indications and appellations of origin, under the terms of its legislation.

2. In relation to geographical indications and appellations of origin, each Party shall establish the legal means for interested persons to prevent:

a) the use of any means in the designation or presentation of the product that indicates or suggests that the product in question comes from a territory, region or locality other than the true place of origin, in such a way as to mislead the public as to the geographical origin of the product; and

b) any other use that constitutes an act of unfair competition within the meaning of Article 10 bis of the Paris Convention.

3. The Parties shall, ex officio, if their legislation so permits, or at the request of an interested party, refuse or invalidate the registration of a trademark containing or consisting of a geographical indication or appellation of origin in respect of goods not originating in the territory indicated, if the use of such indication in the trademark for such goods in that Party is of such a nature as to mislead the public as to the true place of origin.

4. Paragraphs 2 and 3 shall apply to any geographical indication or appellation of origin which, while correctly indicating the territory, region or locality in which the goods originate, gives the public a false idea that the goods originate in another territory, region or locality.

5. With respect to geographical indications and appellations of origin, each Party shall establish the means to prevent the importation, manufacture or sale of a good that uses a geographical indication or appellation of origin protected in another Party, unless it has been produced and certified in that Party, in accordance with the laws, regulations and standards applicable to that good.

Section I. Enforcement of Intellectual Property Rights Article

Article 16-39. General Obligations.

1. Each Party shall ensure that its legislation establishes procedures for the enforcement of intellectual property rights in accordance with the provisions of this Section that permit the adoption of effective measures against any infringing action of the intellectual property rights referred to in this Chapter, including expeditious remedies to prevent infringement and remedies that constitute an effective deterrent to further infringement. These procedures shall be applied in such a way as to avoid the creation of obstacles to legitimate trade, and shall provide for safeguards against their abuse.

2. Procedures relating to the enforcement of intellectual property rights shall be fair and equitable. Likewise, these procedures shall not be unnecessarily complicated or burdensome, nor shall they entail unjustified time limits or undue delays.

3. Decisions on the merits of a case shall be in writing and reasoned. They shall be made available at least to the parties to the proceeding without undue delay. They shall be based only on evidence on which such parties have been given an opportunity to be heard.

4. The parties to the proceedings shall be given the opportunity for a review by a judicial authority of final administrative decisions and, subject to the jurisdictional provisions in their legislation relating to the importance of a case, of at least the legal aspects of all first instance judicial decisions on the merits of the case. However, it shall not be mandatory to give them the opportunity to review acquittals in criminal cases.

5. It is understood that this section does not impose any obligation to establish a judicial system for the enforcement of intellectual property rights different from that already existing for the enforcement of laws in general, nor does it affect the ability of the Parties to enforce their laws in general. Nothing in this section creates any obligation with respect to the allocation of resources between intellectual property rights enforcement and general law enforcement.

Article 16-40. Fair and Equitable Procedures.

Each Party shall make available to right holders civil judicial procedures for the enforcement of all intellectual property rights referred to in this Chapter. Defendants shall be entitled to receive written notice in a timely manner and in sufficient detail, including the basis of the claim. The parties shall be authorized to be represented by independent counsel and the proceedings shall not impose unduly burdensome requirements as to mandatory personal appearances. All parties to such proceedings shall be duly entitled to substantiate their claims and present all relevant evidence. The procedure should provide for means to identify and protect confidential information, unless this would be contrary to existing constitutional requirements.

Article 16-41. Tests.

1. The judicial authorities shall have the authority to order that, where a party to the proceeding has presented reasonably available evidence sufficient to support its allegations, and has identified any evidence relevant to substantiate its allegations that is under the control of the opposing party, the opposing party shall provide such evidence, subject, in appropriate cases, to conditions that ensure the protection of confidential information.

2. Where a party to the proceeding voluntarily and without good cause refuses access to necessary information, or otherwise does not provide such information within a reasonable period of time or substantially impedes a proceeding relating to an enforcement action, the Parties may empower the judicial authorities to make preliminary and final determinations, affirmative or negative, on the basis of the information submitted to them, including the claim or allegation made by the party adversely affected by the denial of access to information, provided that the parties are given an opportunity to be heard on the allegations or evidence.

Article 16-42. Injunctions.

1. The judicial authorities shall have the authority to order a party to the proceeding to desist from the alleged infringement, inter alia, to prevent imported goods infringing an intellectual property right from entering the channels of commerce within their jurisdiction, immediately after the goods are cleared through customs. Parties are not required to grant such authority in relation to protected subject matter that has been acquired or ordered by a person prior to knowing or having reasonable grounds to know that dealing in such subject matter would involve infringement of an intellectual property right.

2. Notwithstanding the other provisions of this section and provided that the provisions of this chapter specifically referring to use by the government or by third parties authorized by the government, without the consent of the right holder, are respected, the Parties may limit the remedies available against such use to the payment of compensation, in accordance with the provisions of Article 16-29(h). In other cases, the remedies provided for in this section shall apply or, where such remedies are inconsistent with law, declaratory judgments and appropriate compensation may be obtained.

Article 16-43. Damages.

1. The judicial authorities shall have the authority to order the infringer to pay the right holder adequate compensation for the damage suffered by the latter as a result of an infringement of his intellectual property right, where the infringer has been convicted in the corresponding judicial proceedings.

2. Likewise, the judicial authorities shall have the authority to order the infringer to pay the right holder's expenses, which may include appropriate attorney's fees. Where appropriate, the Parties may empower the judicial authorities to award compensation for profits or damages previously recognized, even if the infringer did not know or had no reasonable grounds to know that he was engaged in an infringing activity.

Article 16-44. Other Resources.

1. In order to provide an effective deterrent to infringement, the judicial authorities shall be empowered to order that goods found to be infringing be, without compensation, removed from the channels of commerce in such a way as to avoid causing damage to the right holder, or that they be destroyed, provided that this is not incompatible with constitutional provisions in force.

2. The judicial authorities shall also be empowered to order that the materials and instruments that have been predominantly used for the production of the infringing goods be removed, without compensation, from commercial channels in such a way as to minimize the risk of further infringements. The need for proportionality between the seriousness of the infringement and the measures ordered, as well as the interests of third parties, shall be taken into account when processing the corresponding requests.

3. With respect to counterfeit goods, the mere removal of the unlawfully affixed mark shall not be sufficient to allow their release into the commercial circuits, except in exceptional cases established by the legislation of each Party, such as those in which the authority provides for their donation to charitable institutions.

Article 16-45. Right to Information.

Unless it is disproportionate to the seriousness of the infringement, each Party may provide that the judicial authorities may order the infringer to inform the right holder of the identity of third parties who have participated in the production and distribution of the infringing goods or services, and of their distribution channels.

Article 16-46. Indemnification to the Defendant.

1. The judicial authorities shall have the authority to order a party to the proceedings, at whose request measures have been taken and who has abused the enforcement procedure, to adequately compensate the party on whom an obligation or restriction has been unduly imposed, for the damage suffered as a result of such abuse. Likewise, the judicial authorities shall be empowered to order the plaintiff to pay the defendant's expenses, which may include attorneys' fees.

2. In connection with the administration of any laws relating to the protection or enforcement of intellectual property rights, each Party shall exempt both the authorities and its officials from liability for appropriate remedial action only in the case of actions taken or intended in good faith for the administration of such laws.

Article 16-47. Administrative Procedures.

To the extent that civil remedies may be available as a result of administrative proceedings concerning the merits of a case, such proceedings shall follow principles substantially equivalent to those set forth in this section.

Article 16-48. Precautionary Measures.

1. The judicial authorities shall be empowered to order the adoption of prompt and effective precautionary measures aimed at:

a) to prevent the infringement of any intellectual property rights and, in particular, to prevent counterfeit goods from entering the channels of commerce within their jurisdiction, including imported goods, immediately after customs clearance; and

b) preserve relevant evidence related to the alleged infringement.

2. The judicial authorities shall be empowered to take precautionary measures, where appropriate, without having heard the other party to the proceedings, in particular where there is a likelihood that any delay would cause irreparable harm to the rights holder, or where there is a demonstrable risk of destruction of evidence.

3. The judicial authorities shall have the authority to require the plaintiff to produce such evidence as Is reasonably available to them to establish to their satisfaction to a sufficient degree of certainty that the plaintiff is the right holder and that his right is or will be imminently infringed, and to order the plaintiff to furnish a bond or equivalent security sufficient to protect the defendant and to prevent abuse.

4. Where precautionary measures have been taken without the other party to the proceedings having been heard, they shall be notified without delay to the affected party at the latest immediately after their implementation. At the request of the respondent, within a reasonable time after such notification, a review shall be held in which the right to be heard shall be recognized in order to decide whether such measures should be modified, revoked or confirmed.

5. The authority in charge of the execution of the precautionary measures may require the claimant to submit any additional information necessary for the identification of the assets in question.

6. Without prejudice to paragraph 4, interim measures taken under paragraphs 1 and 2 shall, at the request of the respondent, be revoked or otherwise terminated if proceedings leading to a decision on the merits of the case are not instituted within a reasonable period of time, to be established where national law so permits, by a determination of the judicial authority that has ordered the measures, and that in the absence of such determination shall not exceed 20 working days or 31 days, whichever is longer.

7. In cases where the precautionary measures are revoked or lapse due to action or omission of the plaintiff, or in those cases where it is subsequently determined that there was no infringement or threat of infringement of an intellectual property right, the judicial authorities shall have the authority to order the plaintiff, upon request of the defendant, to give the defendant adequate compensation for any damage caused by such measures.

8. To the extent that precautionary measures may be ordered as a result of administrative proceedings, such proceedings shall conform to principles substantially equivalent to those set forth in this section.

Article 16-49. Suspension of Customs Clearance by Customs Authorities.

Each Part:

a) shall adopt procedures so that a right holder, who has valid reasons to suspect that the importation of counterfeit trademark goods or pirated goods infringing copyright is being prepared, may submit to the competent authorities, a written complaint in order that the customs authorities suspend the release of such goods for free circulation, in accordance with Articles 16-50 to 16-58;

b) may authorize such a demand to be made in respect of goods involving other infringements of intellectual property rights, provided that the requirements of this section are complied with; and

c) may establish similar procedures for the customs authorities to suspend the release of such goods for export from its territory.

Article 16-50. Demand.

Any right holder initiating proceedings pursuant to Article 16-49 shall be required to submit sufficient evidence to satisfy the competent authorities that, according to the legislation of the country of importation, there is a presumption of infringement of his intellectual property right and to provide a sufficiently detailed description of the goods so that they can be readily recognized by the customs authorities. The competent authorities shall communicate to the applicant, within a reasonable period of time, whether they have accepted the application and, where they themselves establish it, the time limit for action by the customs authorities.

Article 16-51. Bond or Equivalent Guarantee.

1. The competent authorities shall have the authority to require the claimant to provide a bond or equivalent security, sufficient to protect the respondent and the competent authorities and to prevent abuse. Such bond or equivalent security shall not unduly deter recourse to these procedures.

2. Where, as a result of an application under articles 16-50 to 16-58, the customs authorities have suspended the release for free circulation of goods involving industrial designs, patents or undisclosed information, on the basis of a decision not taken by a judicial or other independent authority, and the time limit stipulated in article 16-53 has expired, the owner, importer or consignee of such goods shall have the right to obtain a precautionary measure without the authority duly empowered to do so, and if all other conditions required for importation have been met, the owner, importer or consignee of such goods shall be entitled to obtain the release for free circulation of such goods, without the issuance of a precautionary measure by the authority duly empowered for that purpose, and if all other conditions required for importation have been fulfilled, the owner, importer or consignee of such goods shall be entitled to obtain the clearance of such goods, upon the posting of a bond in an amount sufficient to protect the right holder in any case of infringement. The payment of such security shall be without prejudice to any other remedy available to the right holder. It shall also be understood that the bond shall be returned if the right holder does not exercise his right of action within a reasonable period of time.

Article 16-52. Notification of Suspension.

The importer and the claimant shall be promptly notified of the suspension of customs clearance of the goods, in accordance with Article 16-49.

Article 16-53. Duration of Suspension.

In the event that within a period not exceeding 10 working days from the communication of the suspension to the plaintiff by notice, the customs authorities have not been informed that a party to the proceedings other than the defendant has initiated proceedings leading to a decision on the merits of the case or that the authority duly empowered for that purpose has taken precautionary measures prolonging the suspension of customs clearance of the goods, the goods shall be released if all other conditions required for their importation or exportation have been fulfilled; in appropriate cases, the aforementioned period may be extended for a further 10 working days. If proceedings leading to a decision on the merits of the case have been initiated at the request of the defendant, a review shall be carried out within a reasonable time, including the right of the defendant to be heard, in order to decide whether such measures should be modified, revoked or confirmed. However, where the suspension of customs clearance is effected or continued pursuant to a precautionary judicial measure, the provisions of paragraph 6 of article 16-48 shall apply.

  • Chapter   I INITIAL PROVISIONS 1
  • Article   1-01 Establishment of the Free Trade Zone. 1
  • Article   1-02 Objectives 1
  • Article   1-03 Relationship with other Treaties and International Agreements 1
  • Article   1-04 Scope of Application 1
  • Article   1-05 Compliance with the Treaty. 1
  • Article   1-06 Succession of Treaties. 1
  • Article   1-07 Annexes. 1
  • Chapter   II GENERAL DEFINITIONS 1
  • Article   2-01 Definitions of General Application 1
  • Annex 2-01  Country- Specific Definitions 1
  • Chapter   III NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 1
  • Article   3-01 Definitions 1
  • Article   3-02 Scope of Application. 1
  • Article   3-03 National Treatment 1
  • Article   3-04 Tariff Relief 1
  • Article   3-05 Duty Drawback Programs on Exported Goods, Duty Deferral Programs and Duty Exemption Programs Applied to Exported Goods. 1
  • Article   3-06 Temporary Importation of Goods. 1
  • Article   3-07 Importation Free of Customs Duty for Samples of No Commercial Value 2
  • Article   3-08 Customs Valuation 2
  • Article   3-09 Import and Export Restrictions. 2
  • Article   3-10 Registration of Importers 2
  • Article   3-11 Customs Measures. 2
  • Article   3-12 Establishment of Specific Customs. 2
  • Article   3-13 Customs Processing Fees 2
  • Article   3-14 Export Taxes 2
  • Article   3-15 Country of Origin Marking 2
  • Article   3-16 Distinctive Products 2
  • Article   3-17 Publication and Notification 2
  • Article   3-18 Committee on Trade In Goods 2
  • Article   3-19 Temporary Flexibility Levels 2
  • Chapter   IV AGRICULTURAL SECTOR 2
  • Article   4-01 Definitions 2
  • Article   4-02 Scope of Application 2
  • Article   4-03 International Obligations 2
  • Article   4-04 Access to Markets 2
  • Article   4-05 Non-Tariff Measures 2
  • Article   4-06 Internal Aid 2
  • Article   4-07 Domestic Food Aid 2
  • Article   4-08 Export Subsidies 2
  • Article   4-09 Special Agricultural Safeguard 2
  • Article   4-10 Agricultural Trade Committee 2
  • Article   4-11 Sugar Trade. 2
  • Chapter   V SANITARY AND PHYTOSANITARY MEASURES 2
  • Article   5-01 Definitions 3
  • Article   5-02 Scope of Application 3
  • Article   5-03 Rights and Obligations 3
  • Article   5-04 International Standards and Harmonization. 3
  • Article   5-05 Equivalence 3
  • Article   5-06 Risk Assessment and Adequate Level of Sanitary and Phytosanitary Protection. 3
  • Article   5-07 Recognition of Pest or Disease Free Areas and Areas of Low Pest or Disease Prevalence 3
  • Article   5-08 Control, Inspection and Approval Procedures. 3
  • Article   5-09 Transparency. 3
  • Article   5-10 Committee on Sanitary and Phytosanitary Measures. 3
  • Article   5-11 Technical Working Groups. 3
  • Article   5-12 Technical Cooperation. 3
  • Article   5-13 Technical Consultations. 3
  • Article   5-14 Settlement of Disputes. 3
  • Chapter   Vi RULES OF ORIGIN 3
  • Article   6-01 Definitions. 3
  • Article   6-02 Instruments of Application and Interpretation 4
  • Article   6-03 Originating Goods. 4
  • Article   6 Value of Regional Content. 4
  • Article   6-05 Value of Materials 4
  • Article   6-06 De Minimis. 4
  • Article   6-07 Intermediate Materials. 4
  • Article   6-08 Accumulation. 4
  • Article   6-09 Expendable Property and Materials. 4
  • Article   6-10 Sets or Assortment 4
  • Article   6-11 Indirect Materials. 4
  • Article   6-12 Accessories, Spare or Replacement Parts and Tools. 4
  • Article   6-13 Packaging and Packaging Materials for Retail Sale. 4
  • Article   6-14 Containers and Packing Materials for Shipment. 4
  • Article   6-15 Automotive Industry Goods. 4
  • Article   6-16 Non-origin Conferring Transactions and Practices. 4
  • Article   6-17 Transshipment and Direct Shipment. 5
  • Article   6-18 Determination of the Origin of Goods 5
  • Article   6-19 Regional Input Integration Committee. 5
  • Article   6-20 Functions of the CIRI 5
  • Article   6-21 Procedure 5
  • Article   6-22 Deadlines, Opinion and Notification of CIRI. 5
  • Article   6-23 Resolution of the Commission. 5
  • Article   6-24 Referral to the Commission 5
  • Article   6-25 Operating Regulations. 5
  • Article   6-26 Rules of Origin Applicable to Flexibility Levels Temporary. 5
  • Chapter   VII CUSTOMS PROCEDURES FOR HANDLING THE ORIGIN OF GOODS 5
  • Article   7-01 Definitions 5
  • Article   7-02 Declaration and Certification of Origin. 5
  • Article   7-03 Bligations with Respect to Imports. 5
  • Article   7-04 Obligations with Respect to Exports. 5
  • Article   7-05 Exceptions 5
  • Article   7-06 Accounting Records. 5
  • Article   7-07 Procedures to Verify Origin. 5
  • Article   7.08 Confidentiality 6
  • Article   7-09 Sanctions 6
  • Article   7-10 Anticipated Criteria. 6
  • Article   7-11 Review and Challenge. 6
  • Article   7-12 Committee of Origin 6
  • Chapter   VIII SAFEGUARD MEASURES 6
  • Article   8-01 Definitions. 6
  • Article   8-02 General Provisions. 6
  • Article   8-03 Bilateral Safeguard Measures. 6
  • Article   8-04 Global Safeguard Measures. 6
  • Article   8-05 Procedure. 6
  • Chapter   IX UNFAIR INTERNATIONAL TRADE PRACTICES 6
  • Article   9-01 Definitions. 6
  • Article   9-02 General Principle. 7
  • Article   9-03 Grants. 7
  • Article   9-04 Principles for the Application of National Legislation. 7
  • Article   9-05 Publication of Resolutions. 7
  • Article   9-06 Withdrawal of the Investigation. 7
  • Article   9-07 Notifications. 7
  • Article   9-08 Minimum Content of Resolutions. 7
  • Article   9-09 Notification to the Exporting Govemment. 7
  • Article   9-10 Conciliation Hearing. 7
  • Article   9 Preliminary Resolution. 7
  • Article   9-12 Guarantees. 7
  • Article   9-13 Clarifications. 7
  • Article   9-14 Sending Copies. 7
  • Article   9-15 Technical Information Meetings. 7
  • Article   9-16 Public Hearing. 7
  • Article   9-17 Access to Confidential Information. 7
  • Article   9-18 Access to Information Contained In other Files. 7
  • Article   9-19 Rights and Obligations of Interested Parties. 7
  • Article   9-20 Reforms to National Legislation. 7
  • Chapter   X CROSS-BORDER TRADE IN SERVICES 7
  • Article   10-01 Definitions. 7
  • Article   10-02 Scope of Application and Extent of Obligations. 7
  • Article   10-03 Most- Favored-Nation Treatment. 7
  • Article   10-04 National Treatment. 7
  • Article   10-05 Local Presence. 7
  • Article   10-06 Reservations and Exceptions. 7
  • Article   10-07 Transparency. 7
  • Article   10-08 Non-discriminatory Quantitative Restrictions. 7
  • Article   10-09 Future Liberalization. 7
  • Article   10-10 Committee on Cross-Border Trade In Services and Investment. 7
  • Article   10-11 Procedures. 7
  • Article   10-12 Granting of Permits, Authorizations and Licenses. 8
  • Article   10-13 Denial of Benefits. 8
  • Article   10-14 Technical Cooperation. 8
  • Article   10-15 Other Disciplines. 8
  • Article   10-16 Relationship with Multilateral Agreements on Services. 8
  • Annex 10-10  Cross-Border Trade in Services and Investment Committee 8
  • Chapter   XI FINANCIAL SERVICES 8
  • Article   11-01 Definitions. 8
  • Article   11-02 Scope of Application and Extent of Obligations. 8
  • Article   11-03 Self-regulated Organizations. 8
  • Article   11-04 Right of Establishment. 8
  • Article   11-05 Cross Border Trade. 8
  • Article   11-06 National Treatment. 8
  • Article   11-07 Most Favored Nation Treatment. 8
  • Article   11-08 Recognition and Harmonization. 8
  • Article   11-09 Exceptions. 8
  • Article   11-10 Transparency. 8
  • Article   11-11 Financial Services Committee. 8
  • Article   11-12 Consultations. 8
  • Article   11-13 New Financial Services and Data Processing. 8
  • Article   11-14 Senior Management and Boards of Directors. 8
  • Article   11-15 Reservations and Specific Commitments. 8
  • Article   11-16 Denial of Benefits. 8
  • Article   11-17 Transfers. 8
  • Article   11-19 Dispute Settlement between a Party and an Investor of Another Party. 9
  • Annex 11-01  Competent Authority 9
  • Chapter   XII TELECOMMUNICATIONS 9
  • Article   12-01 Definitions. 9
  • Article   12-02 Scope of Application and Extent of Obligations. 9
  • Article   12-03 Access to and Use of Public Telecommunications Networks and Services. 9
  • Article   12-04 Conditions for the Provision of Enhanced or Value-added Services. 9
  • Article   12-05 Measures Relating to Standardization. 9
  • Article   12-06 Anti-competitive Practices. 9
  • Article   12-07 Relationship with International Organizations and Agreements. 9
  • Article   12-08 Technical Cooperation and other Consultations. 9
  • Article   12-09 Transparency. 9
  • Article   12-10 Relationship with other Chapters. 9
  • Chapter   XIII TEMPORARY ENTRY OF BUSINESS PEOPLE 9
  • Article   13-01 Definitions. 9
  • Article   13-02 General Principles. 9
  • Article   13-03 General Obligations. 9
  • Article   13-04 Temporary Entry Authorization. 9
  • Article   13-05 Availability of Information. 9
  • Article   13-06 Committee on Temporary Entry of Business Persons. 9
  • Appendix 2 to Annex 13-04  Migratory Measures in Force 10
  • Chapter   XIV INVESTMENT 10
  • Section   A Investment 10
  • Article   14-01 Definitions. 10
  • Article   14-02 Scope of Application and Extent of Obligations. 10
  • Article   14-03 Minimum Standard of Treatment. 10
  • Article   14-04 National Treatment. 10
  • Article   14-05 Most Favored Nation Treatment. 10
  • Article   14-06 Treatment In Case of Loss. 10
  • Article   14-07 Performance Requirements. 10
  • Article   14-08 Senior Corporate Management and Boards of Directors. 10
  • Article   14-09 Reservations and Exceptions. 10
  • Article   14-10 Transfers. 10
  • Article   14-11 Expropriation and Compensation. 10
  • Article   14-12 Special Formalities and Information Requirements. 11
  • Article   14-13 Relationship with other Chapters. 11
  • Article   14-14 Denial of Benefits. 11
  • Article   14-15 Extraterritorial Application of a Party's Law. 11
  • Article   14.16 Measures Relating to the Environment. 11
  • Article   14-17 Investment Promotion and Exchange of Information. 11
  • Section   B Dispute Settlement between a Party and an Investor of Another Party. 11
  • Article   14-18 Objective. 11
  • Article   14-19 Claim by Investor of a Party, on Its Own Account or on Behalf of an Enterprise. 11
  • Article   14-20 Settlement of Disputes Through Consultations and Negotiations. 11
  • Article   14-21 Notice of Intention to Submit Claim to Arbitration. 11
  • Article   14-22 Submission of the Claim to Arbitration. 11
  • Article   14-23 Conditions Precedent to the Submission of a Claim to Arbitration. 11
  • Article   14-24 Consent to Arbitration. 11
  • Article   14-25 Number of Arbitrators and Method of Appointment. 11
  • Article   14-26 Integration of the Tribunal In the Event That a Disputing Party Fails to Appoint an Arbitrator or Fails to Reach Agreement on the Appointment of the Presiding Arbitrator. 11
  • Article   14-27 List of Arbitrators. 11
  • Article   14-28 Consent to the Appointment of Arbitrators. 11
  • Article   14-29 Consolidation of Proceedings. 11
  • Article   14-30 Notifications 11
  • Article   14-31 Participation of a Party. 11
  • Article   14-32 Documentation. 11
  • Article   14-33 Place of Arbitration Proceedings. 11
  • Article   14-34 Applicable Law. 11
  • Article   14-35 Interpretation of Annexes. 11
  • Article   14-36 Expert Opinions. 11
  • Article   14-37 Provisional or Precautionary Measures. 11
  • Article   14-38 Final Award. 11
  • Article   14-39 Finality and Enforcement of the Award. 11
  • Article   14-40 General Provisions. 12
  • Article   14-41 Exclusions. 12
  • Article   14-42 Subrogation. 12
  • Annex 14-11  Public Utility 12
  • Annex 14-40(2)  Delivery of Notices and other Documents 12
  • Annex 14-41  Exclusions 12
  • Chapter   XV MEASURES RELATING TO STANDARDIZATION 12
  • Article   15-01 Definitions. 12
  • Article   15-02 Scope of Application. 12
  • Article   15-03 Confirmation of International Rights and Obligations. 12
  • Article   15-04 Extension of Obligations. 12
  • Article   15-05 Principal Rights and Obligations. 12
  • Article   15-06 Use of International Standards. 12
  • Article   15-07 Risk Assessment. 12
  • Article   15-08 Compatibility and Equivalence. 12
  • Article   15-09 Conformity Assessment. 12
  • Article   15-10 Approval Procedures. 12
  • Article   15-11 Metrological Standards. 12
  • Article   15-12 Notification, Publication and Delivery of Information. 12
  • Article   15-13 Information Centers. 12
  • Article   15-14 Committee on Measures Relating to Standardization. 13
  • Article   15-15 Labeling, Packaging and Packing Subcommittee. 13
  • Article   15-16 Approval Procedures Subcommittee. 13
  • Article   15-17 Subcommittee on Telecommunication Standardization Measures 13
  • Article   15-18 Technical Consultations. 13
  • Article   15-19 Handling of Hazardous Substances and Hazardous Wastes. 13
  • Article   15-20 Technical Cooperation. 13
  • Chapter   XVI INTELLECTUAL PROPERTY 13
  • Section   A General Provisions and Basic Principles 13
  • Article   16-01 Definitions. 13
  • Article   16-02 Protection of Intellectual Property Rights. 13
  • Article   16-03 Provisions on the Subject Matter. 13
  • Article   16-04 National Treatment. 13
  • Article   16-05 Exceptions. 13
  • Article   16-06 Most Favored Nation Treatment. 13
  • Article   16-07 Control of Abusive or Anticompetitive Practices and Conditions. 13
  • Article   16-08 Cooperation to Eliminate Trade In Infringing Goods. 13
  • Section   B Copyright and Related Rights 13
  • Article   16-09 Protection of Copyright and Related Rights. 13
  • Article   16-10 Performers. 13
  • Article   16-11 Producers of Phonograms. 13
  • Article   16-12 Broadcasting Organizations. 13
  • Article   16-13 Protection of Encrypted Program-carrying Satellite Signals. 13
  • Article   16-14 Term of Protection of Related Rights. 13
  • Article   16-15 Limitations or Exceptions to Related Rights.Ā  13
  • Section   C Trademarks 13
  • Article   16-16 Subject Matter of Protection. 13
  • Article   16-17 Publication. 14
  • Article   16-18 Rights Conferred. 14
  • Article   16-19 Well-known Trademarks. 14
  • Article   16-20 Exceptions. 14
  • Article   16-21 Duration of Protection. 14
  • Article   16-22 Requirement of Use. 14
  • Article   16-23 Other Requirements. 14
  • Article   16-24 Licenses and Assignment of Trademarks. 14
  • Section   D Patents 14
  • Article   16-25 Patentable Subject Matter. 14
  • Article   16-26 Rights Conferred. 14
  • Article   16-27 Conditions Imposed on Patent Applicants. 14
  • Article   16-28 Exceptions. 14
  • Article   16-29 Other Uses without Authorization of the Right Holder. 14
  • Article   16-30 Revocation or Cancellation. 14
  • Article   16-31 Evidence In Cases of Infringement of Patented Processes. 14
  • Article   16-32 Duration of Protection. 14
  • Section   E Utility Models 14
  • Article   16-33 Protection of Utility Models. 14
  • Section   F Industrial Designs 14
  • Article   16-34 Conditions and Duration of Protection. 14
  • Article   16-35 Rights Conferred. 14
  • Section   G Undisclosed Information 14
  • Article   16-36 Protection of Undisclosed Information. 14
  • Article   16-37 Data Protection of Pharmaceutical or Agrochemical Goods. 14
  • Section   H Geographical Indications and Appellations of Origin 14
  • Article   16-38 Protection of Geographical Indications and Appellations of Origin. 14
  • Section   I Enforcement of Intellectual Property Rights Article 14
  • Article   16-39 General Obligations. 14
  • Article   16-40 Fair and Equitable Procedures. 14
  • Article   16-41 Tests. 14
  • Article   16-42 Injunctions. 14
  • Article   16-43 Damages. 14
  • Article   16-44 Other Resources. 14
  • Article   16-45 Right to Information. 14
  • Article   16-46 Indemnification to the Defendant. 14
  • Article   16-47 Administrative Procedures. 14
  • Article   16-48 Precautionary Measures. 14
  • Article   16-49 Suspension of Customs Clearance by Customs Authorities. 14
  • Article   16-50 Demand. 14
  • Article   16-51 Bond or Equivalent Guarantee. 14
  • Article   16-52 Notification of Suspension. 14
  • Article   16-53 Duration of Suspension. 14
  • Article   16-54 Indemnification to the Importer and the Owner of the Goods. 15
  • Article   16-55 Right of Inspection and Information. 15
  • Article   16-56 Ex Officio Action. 15
  • Article   16-57 Resources. 15
  • Article   16-58 Insignificant Imports. 15
  • Article   16-59 Criminal Proceedings. 15
  • Chapter   XVII TRANSPARENCY 15
  • Article   17-01 Information Center. 15
  • Article   17-02 Publication. 15
  • Article   17-03 Notification and Provision of Information. 15
  • Article   17-04 Guarantees of Hearing, Legality and Due Process. 15
  • Chapter   XVIII TREATY ADMINISTRATION 15
  • Article   18-01 Administrative Commission. 15
  • Article   18-02 Administrative Subcommittee. 15
  • Article   18-03 Secretariat. 15
  • Annex 18-01  Officers of the Administrative Commission 15
  • Annex 18-02(1)  Officers of the Administrative Subcommittee 15
  • Annex 18-02(2)  Committees and Subcommittees 15
  • Chapter   XIX SETTLEMENT OF DISPUTES 15
  • Article   19-01 Cooperation. 15
  • Article   19-02 Scope of Application. 15
  • Article   19-03 Dispute Settlement Under the WTO Agreement. 15
  • Article   19-04 Perishable Goods. 15
  • Article   19-05 Consultations. 15
  • Article   19-06 Intervention of the Commission, Good Offices, Conciliation and Mediation. 15
  • Article   19-07 Request for the Establishment of the Arbitral Tribunal. 15
  • Article   19-08 List and Qualifications of Arbitrators. 15
  • Article   19-09 Integration of the Arbitral Tribunal. 15
  • Article   19-10 Model Rules of Procedure. 16
  • Article   19-11 Participation of a Third Party. 16
  • Article   19-12 Information and Technical Advice. 16
  • Article   19-13 Preliminary Report. 16
  • Article   19-14 Final Report. 16
  • Article   19-15 Compliance with the Final Report. 16
  • Article   19-16 Suspension of Benefits. 16
  • Article   19-17 Judicial and Administrative Instances. 16
  • Article   19-18 Alternative Means of Dispute Resolution. 16
  • Annex 19-02  Nullification and impairment 16
  • Annex 19-08  CODE OF CONDUCT 16
  • Section   A Responsibilities with Respect to the Dispute Resolution System. 16
  • Section   B Reporting Obligations. 16
  • Section   C Performance of Duties of Nominees and Members. 16
  • Section   D Independence and Impartiality of Members. 16
  • Section   E Specific Obligations. 16
  • Section   F Confidentiality. 16
  • Section   G Responsibilities of Attendees and Staff. 16
  • Annex 19-10  MODEL RULES OF PROCEDURE 16
  • Chapter   XX EXCEPTIONS 17
  • Article   20-01 Definitions. 17
  • Article   20-02 General Exceptions. 17
  • Article   20-03 National Security. 17
  • Article   20-04 Exceptions to Disclosure of Information. 17
  • Article   20-05 Taxation. 17
  • Article   20-06 Balance of Payments and Safeguard. 17
  • Annex 20-05  Competent Authority 17
  • Chapter   XXI FINAL PROVISIONS 17
  • Article   21-01 Validity. 17
  • Article   21-02 Future Negotiations. 17
  • Article   21-03 Reservations. 17
  • Article   21-04 Modifications. 17
  • Article   21-05 Accession. 17
  • Article   21-06 Denunciation 17
  • Article   21-07 Transitory Provisions. 17
  • Annex I 17
  • Annex I  Schedule of El Salvador 18
  • Section   A 18
  • Section   B 19
  • Annex I  Schedule of Guatemala 19
  • Annex I  Schedule of Honduras 20
  • Annex I  Schedule of Mexico 23
  • Chapter   Chapter Il. 32
  • Annex II 35
  • Annex II  Schedule of El Salvador 35
  • Annex II   Schedule of Guatemala 36
  • Annex II   Schedule of Honduras 36
  • Annex II   Schedule of Mexico 38
  • Annex III 38
  • Section   A Economic Activities Reserved to Each Party 38
  • Annex III  Schedule of El Salvador 38
  • Annex III  Schedule of Guatemala 38
  • Annex III  Schedule of Honduras 38
  • Annex III  Schedule of Mexico 38
  • Section   B Activities Previously Reserved for the Mexican State. Schedule Ofof Mexico 39
  • Annex IV  Schedule of El Salvador 39
  • Annex IV  Schedule of Guatemala 39
  • Annex IVĀ   Schedule of Honduras 39
  • Annex IV  Schedule of Mexico 39