The National Insurance and Bonding Commission recently amended the Sole Insurance and Bonding Rules to include the process for securing a temporary authorisation to operate as a regulated company in the insurance sector using 'technologically novel models' (ie, tools or technological media that do not exist in the market and help in the rendering of financial services). This process aims to allow start-ups to offer and test novel models without having to fully comply with the applicable legal framework.
In 2014 the federal government announced that civil liability insurance would be required for motor vehicle owners who travel on federal roads, avenues and bridges in order to guarantee third parties relief for any damages caused to themselves and their property. This measure was gradually rolled out under the Law of Federal Roads, Bridges and Transportation and, as of 1 January 2019, now applies to all motor vehicles.
The National Insurance and Bonds Commission recently amended the Sole Provisions on Insurance and Bonds, removing the obligation for insurers and bonding companies to inform the commission when their users' sensitive information is altered, extracted, lost, deleted or suspected of having been accessed without authorisation or compromised. Now, insurers and bonding companies must immediately conduct an investigation and notify affected users of a data breach within three working days.
The recently elected government administration has publicly announced that it intends to eliminate the private medical insurance currently granted to public officials as part of their benefits. This measure aims to encourage public officials to use state medical services and reduce government expenditure. If the cancellation of this benefit is confirmed, a significant number of officials are likely to seek major medical expenses insurance, which will present an opportunity for various companies in the sector.
A recent amendment to the Insurance Law has mandated medical expenses insurers to offer insurance products that cover risks which can cause disabilities in individuals. The amendment decree also revised the General Law for the Inclusion of Disabled Individuals, which prohibits any type of discrimination against individuals with any type of disability.
Mexico recently became the first country to ratify the United States-Mexico-Canada Agreement (USMCA), Chapter 20 of which is one of the most comprehensive IP chapters in any trade agreement. Although the 2018 amendments to Mexico's IP laws provided for most of the specific rights required under the USMCA, the country still has a lot to do to provide for the obligations regarding geographical indications, data exclusivity, trade secrets and enforcement.
In 2018 the rules for notifying the issuance of a patent, utility model or industrial design application were amended. Thus, all notices issued by the Mexican Institute of Industrial Property (IMPI) must be published via the Official Gazette. In a broad interpretation of this reform, the IMPI now provides only digital copies of letters patent and utility model and industrial design registrations. While this interpretation may be inaccurate, it aligns with the global trend of digitalisation among IP offices.
The 2018 changes to the Mexican patent system are not looking promising for patent prosecution. By way of the amendments, the Mexican Institute of Industrial Property has implemented a new system whereby it will issue official communications to applicants through its Official Gazette instead of personally or by certified mail. Applicants should exercise extreme caution in order to avoid a loss of rights due to a failure to monitor and identify issued office actions.
The need to control costs in jurisdictions where government fees increase substantially based on the number of claims often forces patent practitioners to use various claim drafting strategies, including multiple dependent claims. However, multiple dependent claims must be drafted carefully, as there is a risk that they could be considered unclear or contain features which are inconsistent with those of the claims on which they are based.
The new government will have a significant impact on the Mexican IP framework. In particular, it has introduced numerous policy changes to fulfil its objectives of providing greater social benefits to marginalised citizens and promoting the economic development of indigenous communities. Among other initiatives, the Institute of Industrial Property will attempt to meet these objectives by promoting the protection of denominations of origin and geographical indications.
A number of changes to the cannabis legal landscape have taken place in Mexico over the past few weeks. For example, the Federal Commission for the Protection against Sanitary Risk recently published on its website guidelines on the sanitary control of cannabis and cannabis derivatives. Further, the Supreme Court issued its fifth decision granting constitutional protection against the adult use prohibition and Congress was presented with a bill to implement the General Law for Cannabis Control.
The Secretariat of Health recently announced amendments to the General Law on Tobacco Control. The new Title Eight includes Articles 56 and 57, which specifically address crimes relating to tobacco products. The new provisions are particularly relevant for individuals and legal entities engaged in the tobacco industry. Industry players are advised to consider the scope of these amendments and determine how their business operations in Mexico may be affected.
New legal provisions regarding the use of marijuana for medical and industrial purposes were recently published in the Federal Official Gazette and have sparked great interest in the potential development of such products in Mexico. However, the proposed regulations could contravene other federal laws, regulations and standards which explicitly state that marijuana and its derivatives cannot be used as ingredients or raw materials for food, beverages, cosmetics and other products bound for human consumption.
Mexico attracts a large number of tourists, and real estate to support this booming industry is frequently being developed by investors. As Mexico has an abundance of natural resources, tourism developments often take place in a range of different ecosystems, such as forests, beaches and jungles. This article examines the main legal issues that developers should consider when planning a real estate project in Mexico.
As with any other type of investment opportunity, when investing in real estate, it is crucial to limit the risks as much as possible while maintaining maximum returns. Fractional ownership is a good option in this regard, irrespective of whether a party wants to develop real estate or invest in personal real property. Often mistakenly compared with the timeshare model, the fractional ownership model has unique characteristics which can make investing in real estate more feasible and manageable.
Procuring title insurance has become common practice in real estate transactions for both lenders and owners. As title insurance is a type of indemnity insurance which covers financial loss from title defects, it protects policyholders from past events which could affect the property's transfer. However, certain aspects of real estate development which are unique to Mexico must be taken into account in this regard.
Convention 169 – Indigenous and Tribal Peoples Convention establishes that indigenous peoples or communities must be consulted on any legislative or administrative act that may directly affect them. Companies that intend to develop or invest in real estate projects in Mexico should therefore consider community consultation as part of their feasibility criteria.
Acquiring real estate in Mexico can be cumbersome and time consuming, particularly for foreign investors. The Constitution forbids foreign individuals and entities from holding direct ownership of land or waters in the geographic area known as the 'restricted zone'. However, Mexican law allows foreign individuals and entities to use a foreign trust to acquire beneficial interests in real estate that is located in the restricted zone where it is intended to be used for residential or commercial purposes.
Trusts are the most commonly used special purpose vehicle (SPV) in Mexico. Most securitisations involve the use of a trust as the SPV. Trusts are also used for secured loans, and collateral or payment source trusts are often used in Mexican financings to segregate collateral from the debtor. In addition, almost all project finance involves transferring assets to a trust in order for such trust to be the payment vehicle of the transaction. However, a recent court decision may have put these structures at risk.