January 20, 2026

Do You Have a “Trade Secret” in Mexico? How the Law Protects It (and What to Do If It’s Misused)

Many businesses compete not only with brands or patents, but with what they know: formulas, processes, customer lists, manufacturing methods, internal know-how, and commercial strategies. In Mexico, this can be protected as an industrial secret (trade secret) if it meets legal requirements. Mexico’s Federal Law for the Protection of Industrial Property regulates industrial secrets and defines when misappropriation occurs.

What is a trade secret under Mexican law?

Mexican law defines an industrial secret as industrial or commercial information kept confidential that provides a competitive or economic advantage, and for which the holder adopted sufficient measures/systems to preserve confidentiality and restricted access.

The law also clarifies that trade secret information may exist in documents or electronic/magnetic media and other formats.

What is NOT a trade secret?

Information is not considered a trade secret if it is:

  • public domain,
  • generally known or easily accessible within the relevant circles, or
  • required to be disclosed by law or a court order.

 

Providing information to an authority to obtain licenses/permits/authorizations/registrations does not automatically make it “public.”

When is there misappropriation?

Misappropriation is the acquisition, use, or disclosure of a trade secret against good practices in industry/commerce/services, involving unfair competition—also covering third parties who knew (or should have known) the secret was obtained improperly.

What is NOT misappropriation?

Mexican law lists common scenarios that are not misappropriation:

  • Independent discovery/creation.
  • Observation/study/disassembly/testing (reverse engineering) of a product available to the public or lawfully possessed, if there is no confidentiality obligation.
  • Legitimate acquisition from another person without a confidentiality obligation, or without knowing it was a trade secret.

Licensing/transfer and confidentiality duties

The person who legally controls the trade secret may transfer it or authorize its use, but the authorized user must not disclose it.

In technical know-how/assistance/engineering agreements, confidentiality clauses may be included and should specify what is treated as confidential.

Duty of confidentiality in employment and business relationships

Anyone who accesses the secret due to employment, position, profession, or business relationship—after being warned it is confidential—must not disclose it without consent.

Liability for hiring to obtain secrets

Hiring an employee/consultant (current or former) specifically to obtain another party’s trade secrets can create liability; the same applies to obtaining trade secret information through illicit means.

Confidentiality during proceedings

In judicial or administrative proceedings involving trade secrets, authorities must adopt measures to prevent unauthorized disclosure and preserve confidentiality; participants must not disclose or use the secret.

Practical checklist to strengthen protection

To support “reasonable measures” and restricted access in practice, companies usually implement:

  • Role-based access controls, passwords, private repositories.
  • NDAs + confidentiality clauses (employees, suppliers, partners).
  • Internal labeling (“CONFIDENTIAL”), policies, training.
  • Audit trails and access logs.
  • Offboarding protocols: return materials, revoke access, written reminders.

(These align with the law’s requirement for sufficient measures and restricted access).

 

If you suspect you have a trade secret—or believe someone is using or disclosing it without authorization—your next step should be strategic and evidence-based.

 

Merida IP can help you:

  • Assess whether information qualifies as a trade secret,
  • Draft/update NDAs and confidentiality clauses,
  • Build protection evidence (measures) and an enforcement strategy,
  • Assist with related procedures before the Mexican Institute of Industrial Property (IMPI).

 

Contact us to request a consultation.

 

**This article is for informational purposes and not legal advice.**

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