The Mexican Business Information System (SIEM) is an obligatory public business registry on which all industrial,commercial or service businesses must register in conformity with the provisions of Articles 28 and 29 of the Law ofBusiness Chambers and their Confederations. Registry before the SIEM may be made through business chambers authorizedby the Department of the Economy (SECON), in accordance with the trade, activity or location of the business, whichrequires the completion of a form and payment of corresponding registration fees as determined by the sector to which thebusiness belongs, as well as the number of employees of such business. This registration must be renewed each year beforethe end of February with the SECON being authorized to impose fines for not complying with this obligation or for providingincorrect information to the SIEM. It is important to mention that it is not a requirement to be affiliated with a particularchamber in order to be registered or renew a registry with the SIEM, given that affiliation with the Chamber of Commerce inMexico is voluntary and Mexican Chambers of Commerce may not condition membership in their organizations, or paymentof additional fees, as a requirement for membership in any such chamber.
On February 20, 2007 asset tax incentives were published in the Official Journal of the Federation applicable to certaintaxpayers, which consists of providing an exemption to individuals and corporations whose 2006 fiscal year gross income,derived from business activities and real property leasing used by other taxpayers that pay Mexican asset tax, that do notexceed $4,000,000 (four million) Mexican pesos (approximately $360,000 U.S. dollars). However, these taxpayers mustcalculate asset tax that they would have paid in conformity with new tax regulations in force since January 1, 2007, as if theyhad not been exempt from such payment, putting “zero” annotation in the corresponding box. It is important to note that thisincentive does not change in any way the new provisions of the asset tax law against which many taxpayers have filedappeals alleging the unconstitutionality of such new amendments (see CCN Mexico Report No. 38, February 2007).
Pursuant to the Mexican Industrial Property Law, intellectual property rights may be encumbered, transferred or licensed solong as the formalities of applicable Mexican laws have been met. However, in order for the license, transfer orencumbrance to take effect against third parties, the corresponding agreement or contract must be registered with theMexican Industrial Property Institute (IMPI). Such formality of Mexican intellectual property law implies that, if one seeksto license or transfer intellectual property rights without a written agreement, this may be done between the particular partiesinvolved, but such agreement will not be effective against third parties if the agreement has not been registered. Theimplication of “not being effective against third parties” means that the acquirer or licensee of intellectual property rightsmay not be able to enforce its rights against third parties, including the IMPI itself as a possible third party, and also signifiesthat the right to register and have recognized the corresponding intellectual property rights may be lost. This is because a condition to maintaining intellectual property rights in force, and avoiding the expiration of such rights, is their exploitation(in the case of patent/inventions) or use (in the case of trademarks) by either their owner or an “authorized third party”, withthe understanding that an authorized third party is the licensee of an agreement which has been registered with the IMPI.