Managing Intellectual Property

Tips on posting bonds for injunctions

01 December 2004

When requesting a preliminary injunction, according to Article 199 bis 1 of the Mexican Law of Industrial Property, it is necessary to post a sufficient bond to warrant the possible damage that may be caused to the alleged transgressor. To ensure the quick and effective implementation of injunctions, some tips that must be considered when posting the bond are:

  1. Issue the bond naming of the possible transgressor, as well as the exact address of the establishment where the injunctions will be implemented. This will avoid the transgressor alleging that the company mentioned in the bond is not operating at the visited address. Since in this case the bond will also bear the exact domicile of the visited establishment, the PTO will be empowered to implement injunctions at the address, regardless of the name of the company operating there.
  2. Post the bond with the PTO along with the petition of preliminary injunctions. Although it is possible, it is not recommended to post the bond after filing the injunction petition, because it significantly delays the scheduling of the date for the implementation of the injunction by the PTO.
  3. Review which warrantor company you are working with. There are companies that issue bonds in a few hours, while others take days and unjustifiably request the preliminary injunction petition duly filed with the PTO, or even request the office action whereby the PTO admitted the injunction petition to issue the bond. This significantly delays the implementation of injunctions.
  4. Remember that the higher the amount covered by the bond, the smaller the chance for the defendant to post a counter-bond that allows the lifting of the injunctions, because a counter-bond is usually fixed at the double the amount covered by the bond posted by the complainant.

Although posting a bond is a simple step, it may make the difference in quick and effective implementation of injunctions in Mexico.

Abraham Díaz Arceo


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