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Mexico’s economic situation gives grounds for cautious optimism. GDP grew by 2.5 % in 2015, and things look brighter still for 2016, if recent estimates released by the National Statistics Institute (INEGI) are accurate: for the first quarter of 2016, the institute predicted growth of 2.7 %. The positive figures reflect growth in all three of the main sectors of the Mexican economy, despite recent cutbacks in oil production and a slowdown in the US economy, with the country’s automotive manufacturing industry in particular remaining a key driver. On the downside, the demand for export goods in the manufacturing sector remains comparatively weak, and the country will have to adjust to falling oil prices. Ratings firm Moody’s has warned that the country could be downgraded if the slide in consumer confidence – as seen during the first quarter of 2016 – continues in the months to come.

Foreign investment remains relatively high, with many companies from the US, Europe and Asia entering the Mexican market, although the number of companies establishing local branches and subsidiaries has decreased slightly since 2015. Investors’ caution has contributed to an increase in internal corporate restructurings and reorganizations, while other notable areas of activity include energy and telecoms (in both cases as a result of the 2013 reforms initiated by President Peña Nieto) and also private equity.

In the competition and antitrust arena, the market remains wary of investigations into various industries. Founded in 2013, the Federal Economic Competition Commission (Cofece) and the Federal Institute of Telecommunications (IFT) –which is responsible for telecoms regulation– are now in consolidation mode, and law firms are expecting an increase in the prosecution of anti-competitive behaviour. Controversially, Cofece is entitled to lead investigations even in the absence of anti-competitive behaviour, so growing uncertainty in the market is unsurprising, and more and more companies are seeking legal advice on compliance issues. Recent work for Cofece’s investigative arm has included challenging the scheduling rules at Mexico City International Airport, claiming that there was a lack of healthy competition in the take-off and landing slots arena, a situation leading to higher consumer prices and discouraging new carriers from entering the market.

In the area of IP, lawyers are watching the ongoing negotiations over the recently signed Trans-Pacific Partnership (TPP) trade deal closely, with some claiming it will likely lead to an amendment of domestic patent legislation (with significant implications for the pharmaceutical and generics sectors) as well as to changes to trade mark and copyright laws. Elsewhere, data privacy is a notable area of activity. The IP-legal market saw patent guru César Ramos, Jr. – a longtime partner at Olivares – move to Calderón & De La Sierra; trade mark expert Manuel Soto retire from Uhthoff, Gómez Vega & Uhthoff, SC; and in mid-2016, the former Avahlegal merge with Spain’s Lerroux & Fernández-Pacheco to become AvaLerroux, S.C., marking a strategic change towards a full-service model.

Following the country’s recent energy reforms, the implementation of new regulations to open the energy industry to the private sector is well under way. Early 2016 saw the launch of a wholesale power market, and the reforms have also brought a new clean energy law, approved by the Mexican Senate in late 2015 after months of modifications. More and more law firms are trying to establish themselves as serious players in the energy arena, with notable names including Solcargo, Ontier, Bello, Gallardo, Bonequi y García, S.C. and the newly established Energia e Infraestructura Asesores S.C..

The legal market continues to see the establishment of specialist boutiques, one of the most notable recent examples being labour and employment firm De la Vega & Martínez Rojas, S.C., whose two founding partners are among Mexico’s most renowned labour law experts. On the telecoms side, Gerardo Soria – long-time practice head at López Velarde, Heftye y Soria, SC (now Dentons López Velarde) – has set up Soria Abogados, S.C..

The tumult in Mexico’s tax sector has continued virtually unabated with Galicia Abogados SC being the latest corporate firm to seek to develop a practice in the sector with the incorporation of Gabriela Pellón as practice head, and Arturo Pérez Robles as counsel (plus four associates); both arrive from the former Ortiz, Saínz y Erreguerena (“OSE”). The latter firm also saw the departure of José Miguel Erreguerena to Rizo Garza-Cantú – now Rizo, Erreguerena y Garza-Cantú, S.C.. As a result, the former OSE has restructured as Ortiz Abogados Tributarios S.C. under the capable leadership of Gabriel Ortiz. Other notable market movements have seen the ‘return’ of Ortiz Abogados Tributarios S.C. –aka “OSY”– to independent private practice after ending its association with KPMG in March of this year; and the departure of Jaime Espinosa de los Monteros from Muñoz Manzo y Ocampo, SC for Hogan Lovells BSTL, S.C..

More generally, however, the heart of the corporate/financial transactional market remains dominated by its ‘big 5’ (alphabetically): Creel, García-Cuéllar, Aiza y Enríquez, S.C., Galicia Abogados SC, Mijares, Angoitia, Cortés y Fuentes S.C., Nader, Hayaux y Goebel, SC and Ritch Mueller, Heather y Nicolau, SC. Hard on their heels comes a heterogeneous group of firms led by the increasingly competitive Jones Day and ever present White & Case S.C., but also including other players with a broad service offering including international players such as Baker & McKenzie S.A.S., Hogan Lovells BSTL, S.C. and Greenberg Traurig, S.C., and additional key domestic players including González Calvillo, SC, Santamarina y Steta, Von Wobeser y Sierra, SC and Basham, Ringe y Correa, S.C..

Firms in the spotlight

Jáuregui y Del Valle, S.C.

Jáuregui y Del Valle (JDV) was founded in 1975 as a Mexican full-service law firm, specializing in domestic and international business transactions. It has a vast array of dedicated professionals with international expertise and capabilities, all widely recognized for their innovative approach in providing solutions with the highest technical and ethical standards, and for the deep understanding of the business needs of their clients. The mission of JDV is to preserve excellence in the rendering of legal services and to remain a leading practitioner of law, which has led it to participate in important transactions in all of its areas of practice

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Legal Developments in Mexico

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  • Notorious Marks

    Notorious marks or the declaration thereof, has always been an issue widely discussed in Mexico by the IP legal community. This is so because provisions of the Paris Convention dealing with this topic have for a long time been uses as an effort to cancel or nullify trademarks registered by Mexican authorities without really making an extensive evaluation of proposed denominations and without examining in depth if such marks may be potentially affecting rights acquired by third parties elsewhere. So, a specific regulation and legal frame that at least tries to resolve this issue is always a good start in the right direction.

    By Ignacio Dominguez Torrado Uhthoff, Gomez Vega & Uhthoff, S.C. Why a new value? Is Mexico avoiding the economic fallout that the world may be facing? In Mexico franchises are worth more? Is Mexico not a country that the global economic standstill is or will affect? The answer is, not really. Are Franchises in Mexico currently experiencing a boom? Perhaps. Are Franchises becoming an important aspect in Mexican economy? Certainly.

    Advertising in Mexico is governed by multiple bodies of law including for at least seven Federal Laws, five Regulations also of Federal application, a number of the so-called Mexican Official Standards (NOM's) and certain other laws and regulations applicable into specific States within the Republic of Mexico. All of them are focusing to establish the form and manners for producing and communicating advertising of products and services in Mexico.

    It has been well publicized in the Mexican media over the last few months that the General Customs Administration (AGA) and the Mexican Institute of Industrial Property (IMPI) are planning to launch a customs trademark registry, as a short-term solution to increase protection for trademark owners against the import of infringing and counterfeit products.

    The evolution in the protection and enforcement of IP rights has also reached the Mexican practice. The traditional ways of defending a registered trademark on a non use contentious procedure have developed.

    By Jose Luis Ramos-Zurita

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