A nearshore contract manufacturer provides many benefits if you are considering expanding your manufacturing capabilities. Many foreign companies are attracted to a nearshore expansion in Mexico because of both cost effective labor and overall manufacturing capabilities which help to enhance production and the business marketplace.
What Does Contract Manufacturing Do?
Contract manufacturing is an agreement with another company to make certain parts or products for them for a specific period of time. It’s a way to outsource through a business agreement involving manufactured products or parts that can be used by the company in its own manufacturing process.
While the company’s administrative or corporate facility is located in the U.S., manufacturing plants are located nearshore elsewhere, such as in Mexico.
Is My Intellectual Property Safe with Nearshore Manufacturing?
While the safety of intellectual property is a concern for any foreign manufacturer, in Mexico, the short answer is this – intellectual property is safe. While laws and trade regulations differ between countries, and issues have arisen in China in the recent past, in Mexico, you will have proper protection.
Here’s why: intellectual property protection for those manufacturing in Mexico has strengthened, particularly due to the increased commitments cited in the USMCA, the United States–Mexico–Canada Agreement for free trade. This security is important, because Industries with intellectual property to protect support approximately 38 percent of the U.S. gross domestic product.
Mexico Enforces Intellectual Property Protection
Along with the USMCA and other free trade agreements, Mexico enforces protection through government agencies including:
- Mexico’s Office of the Attorney General which has a unit devoted entirely to prosecuting any intellectual property rights crimes
- Instituto Mexicano de la Propiedad Industrial which handles patent and trademark registrations as well as administrative enforcement cases concerning intellectual property rights infringement.
- Instituto Nacional del Derecho de Autor (INDAUTOR) – the National Institute of Copyright, this agency, responsible for copyright registrations and copyright disputes
- Comisión Federal para la Protección contra Riesgos Sanitarios (COFEPRIS) – The Federal Commission for the Protection Against Sanitary Risks, which regulates medical devices, pharmaceuticals and processed foods.
- Mexican Customs Service – which ensures illegal goods don’t cross Mexico’s borders
While there are differences between these agencies and those similar in the U.S., a nearshore contract manufacturer such as Coastline understands and can handle the responsibilities of trade compliance, protecting foreign manufacturers operating within Mexico’s laws.
Intellectual Property Protection with the USMCA
This 2020 trade agreement between the United States, Mexico, and Canada updated regulations to provide what’s needed in today’s landscape. The USMCA covers several IP rights and enforcement required in each of these three countries.
- Trade Secrets
- How to ensure protection
- How long each protection lasts
While understanding the intellectual property rights in Mexico can seem complex, with the help of nearshore contract manufacturers like Coastline, companies can feel confident they are in compliance with the laws, and protected.
Are You Ready to Learn More About Nearshore Manufacturing at Coastline International
If you’d like to find out more about contract manufacturing in Tijuana, or get started with this type of program, then Coastline International can help. We specialize in the nearshore manufacturing of medical devices and electronics and we also have skilled expertise in the aerospace and consumer goods sectors, too.
Call Coastline International at (888) 748-7177 or contact us online, today!