The use of computer programs or software in business operations has become indispensible, thus making compliance withsoftware agreements necessary, including the necessity of strict compliance with most applicable Mexican laws andregulations governing this area. The improper use of software in Mexico is sanctioned by various provisions of the FederalCopyright Law (Ley Federal del Derecho de Autor), Federal Criminal Code (Código Penal) and international copyrighttreaties to which Mexico is a party, all of which protect the owners of software programs concerning the unauthorized useor reproduction of such intellectual property. The Mexican government and owners of valuable copyrights have been veryactive in the defense of this class of intellectual property rights, which has led many companies to receive visits seeking toverify proper use of licensed software. Penalties that may be incurred for improper use of software may be of a financialnature and, on occasion, imprisonment, along with damages and losses that may be claimed in high amounts, depending onthe alleged infraction committed. For all these reasons, it is very important to maintain current all software use licenses andensure that personnel working within a company refrain from installing unauthorized computer programs, since theinstallation of such software could cause serious legal repercussions to the business or owner of the equipment.
