Mexico: Circuit Court grants compensation equivalent to damages, plus 40% of the infringing product sales as punitive damages


Mexican Circuit Court recently used Article 221bis of the Mexican Industrial Property Law known as “the 40% rule” to grant  compensation comparable to punitive damages in the US.

This case law grants compensation for damages and losses suffered and successfully proven, and in addition, compensation known as “the 40% rule” equivalent to 40% of the infringing product sales.

Nevertheless, some experts state that this will entirely change the scope of compensation due to infringement, and therefore, the implementation of this new compensation system is not yet clear.