IMPI bond and counter-bond practice gets fine-tuning

The Mexican Institute of Industrial Property (IMPI) may grant various precautionary measures in trade mark infringement and unfair competition suits. These include the seizure or suspension from circulation of infringing goods. To protect the alleged infringer who is eventually cleared of infringement claims, the plaintiff must however post a bond to cover the cost of damage caused through the wrongful grant of preliminary relief -- and IMPI will even vacate its order granting preliminary relief where the defendant posts a counter-bond to cover the cost of his own alleged liability.

In the past, IMPI has required that the counter-bond be double the amount of the original bond. However, by a legislative amendment this June, the quantum of the counter-bond is limited to just 140% of the plaintiff's bond on the basis that parties requesting precautionary measures have on their own initiative posted bonds of exorbitant magnitude, for the purpose of making it impossible for the affected party to post a counter-bond for lack of economic resources. IMPI is now also given discretion to increase the amount of the bond or the counter-bond, where it appears that the original amount is inadequate.

Source: note in the 15 July 2010 issue of the INTA Bulletin (Vol. 65, No. 13)