USTR: Mexico Agrees To Raise IP Enforcement Standards With The US

Mexico and the United States have reached a preliminary agreement to raise standards of enforcement of intellectual property rights, according to the Office of the US Trade Representative (USTR). Among the terms, the agreement appears to toughen requirements for internet service providers in protecting against copyright theft and extend copyright terms, and might make it harder for Mexico to agree elsewhere to strengthen its protection of geographical indications.

According to a fact sheet issued by USTR today, the agreement would require a series of standards of enforcement, including criminalisation in some cases, against piracy, counterfeiting, camcording, satellite and cable signal theft, and trade secret theft, including by state-owned enterprises.

The text of the preliminary agreement is not yet available. and must be agreed by Canada to make it apply to the North American Free Trade Agreement (NAFTA). At press time, no statement on the draft agreement could be obtained from the Mexican government.

NOTE: The full Fact Sheet, including sections on intellectual property, digital trade, de minimis, financial services, labor, and environment is now available for download here.

On IP and digital trade, the fact sheet states:

INTELLECTUAL PROPERTY

The United States and Mexico have reached an agreement on a modernized, high-standard Intellectual Property (IP) chapter that provides strong and effective protection and enforcement of IP rights critical to driving innovation, creating economic growth, and supporting American jobs.

Key Achievement: Most Comprehensive Enforcement Provisions of Any Trade Agreement

For the first time, a trade agreement will require all of the following:

• Enforcement authorities must be able to stop goods that are suspected of being pirated or counterfeited at all areas of entry and exit.
• Enforcement against counterfeits and piracy occurring on a commercial scale.
• Meaningful criminal procedures and penalties for camcording of movies.
• Civil and criminal penalties for satellite and cable signal theft.
• Broad protection against trade secret theft, including against state-owned enterprises.

Key Achievement: Strongest Standards for Trade Secrets of Any United States FTA

This deal, if finalized, will be the first FTA to require all of the following to protect United States rightsholders from theft of trade secrets, including by state-owned enterprises: civil remedies, criminal remedies, prohibition on impeding licensing of trade secrets, protections for trade secrets during the litigation process, and penalties for government officials who wrongfully disclose trade secrets.

Key Highlights: Protections for Innovators

The new IP Chapter will:

• Require full national treatment for copyright and related rights so United States creators are not deprived of rights in foreign markets that domestic creators receive.
• Provide strong patent protection for innovators by enshrining patentability standards and patent office best practices to ensure that United States innovators, including small- and medium-sized businesses, are able to protect their inventions with patents.
• Include strong protection for pharmaceutical and agricultural innovators.
• Extend the minimum copyright term to 75 years for works like song performances and ensure that works such as digital music, movies, and books can be protected through current technologies such as technological protection measures and rights management information.
• Establish a notice-and-takedown system for copyright safe harbors for Internet service providers (ISPs) that provides protection for IP and predictability for legitimate technology enterprises who do not directly benefit from the infringement, consistent with United States law.
• Provide important procedural safeguards for recognition of new geographical indications (GIs), including strong and comprehensive standards for protection against issuances of GIs that would prevent United States producers from using common names.
• Enhance provisions for protecting trademarks, including well-known marks, to help companies that have invested effort and resources into establishing goodwill for their brands.
• Includes 10 years of data protection for biologic drugs and expanded scope of products eligible for protection.

DIGITAL TRADE

The new Digital Trade chapter contains the strongest disciplines on digital trade of any international agreement, providing a firm foundation for the expansion of trade and investment in the innovative products and services where the United States has a competitive advantage.

Key Highlights of the Digital Trade Chapter

The new Digital Trade chapter will:

• Prohibit customs duties and other discriminatory measures from being applied to digital products distributed electronically (e-books, videos, music, software, games, etc.).
• Ensure that suppliers are not restricted in their use of electronic authentication or electronic signatures, thereby facilitating digital transactions.
• Guarantee that enforceable consumer protections, including for privacy and unsolicited communications, apply to the digital marketplace.
• Limit governments’ ability to require disclosure of proprietary computer source code and algorithms, to better protect the competitiveness of digital suppliers.

 

Image Credits: US International Trade Administration