Mexico on USTR’s 2025 Priority Watch List: Progress and Challenges in IP Enforcement

By Goodrich, Riquelme y Asociados

The Office of the United States Trade Representative (USTR) released its 2025 Special 301 Report, a yearly review of the global state of intellectual property (IP) protection and enforcement. In this year’s report, Mexico has been placed on the Priority Watch List, highlighting the U.S. government’s ongoing concerns regarding the country’s IP environment. However, alongside these concerns, the report also acknowledges meaningful legislative progress and cooperation initiatives.

Legislative Reforms and Institutional Efforts

Mexico has made important strides in strengthening its IP legal framework, especially in alignment with the United States-Mexico-Canada Agreement (USMCA). As part of its commitments under the USMCA, Mexico undertook significant legislative reforms, including:

• Amendments to its Copyright Law and Criminal Code

• The 2020 Federal Law for the Protection of Industrial Property

These reforms reflect Mexico’s legislative intent to modernize and align its IP systems with international standards. Furthermore, in 2024, the Mexican Supreme Court upheld the constitutionality of USMCA-related IP laws, including provisions related to criminal sanctions for circumvention of technological protection measures (TPMs) and the implementation of a notice-and-takedown process.

Additionally, Mexico’s IMPI (Mexican Institute of Industrial Property) is engaging in two work-sharing agreements with the United States Patent and Trademark Office (USPTO)—the Parallel Patent Grant (PPG) and the Accelerated Patent Grant (APG)—to enhance efficiency in patent examination.

Implementation Gaps and Enforcement Issues

Despite progress on the legislative front, the USTR report points out delays in the issuance of implementing regulations for the reformed Copyright Law and the Federal Law for the Protection of Industrial Property. This lack of regulatory clarity has created uncertainty for right holders in Mexico’s creative and innovative sectors.

Piracy and counterfeiting remain critical challenges. According to the USTR, Mexico continues to experience high levels of online and physical piracy, including:

• Streaming and peer-to-peer sharing

• Stream-ripping and illicit streaming devices

• Counterfeit physical media and video game circumvention tools

Stakeholders indicate that Mexico ranks among the highest in the world for music and video game piracy, a problem that has grown alongside increased broadband access.

Criminal enforcement faces legal and procedural hurdles, such as the requirement to prove a “direct economic benefit” to the infringer and the need to provide a legitimate physical copy of pirated content—even when dealing with online piracy. Civil enforcement is reportedly hindered by lengthy court procedures, lack of pre-established damages, and limitations in recovering attorney fees.

Border Enforcement and Counterfeit Goods

The report also highlights the prevalence of counterfeit goods in Mexican markets and the limited authority of Mexico’s National Customs Agency (ANAM) to seize or destroy infringing products without prior involvement of IMPI or the Attorney General’s Office (FGR). Some of the most problematic markets—such as El Santuario, Mercado San Juan De Dios, and Tepito—remain operational and are noted in USTR’s 2024 Notorious Markets List.

Nevertheless, enforcement efforts are ongoing. Operación Limpieza, an initiative led by IMPI in coordination with police forces, has targeted counterfeit goods, particularly those originating from China, across various states.

Institutional Constraints and Recommendations

A recurring theme in the USTR’s assessment is the resource constraints faced by enforcement agencies. Budget cuts and staffing reductions have limited administrative actions by IMPI and appear to have affected the operations of other institutions. Stakeholders report that criminal investigations and prosecutions are virtually non-existent, and there has been no reporting of IP enforcement statistics by the FGR in the last five years.

The USTR encourages Mexico to:

• Restore funding for federal, state, and municipal IP enforcement

• Improve coordination across enforcement bodies

• Resume criminal prosecutions and strengthen penalties

• Address concerns with bad-faith trademark registrations

Geographical Indications (GIs)

On the issue of GIs, the USTR urges Mexico to ensure transparency and due process, particularly to safeguard the use of common names in the context of GI protection, especially when granted under international trade agreements.