Brazillian Intellectual Property Law

Intellectual property law can be a confusing topic for businesses that are working internationally, such as between the United States and Brazil. Business law can often cross borders, as more mergers and acquisitions are accomplished between separate countries. Companies also spend time dealing with each other and developing transactions in order to ensure their businesses are prosperous.

Patent and copyright infringement, in particular, can pose difficult questions for foreign companies working in Brazil. The Economist reported on the intellectual property laws within Brazil and how to ensure that infringements are avoided.

In the early 1800s, the country had laws that allowed authors and inventors to have exclusive property rights to their creations for a total of 14 years. By the 1950s, however, the intellectual property law began to ban manufactured imports and the patent office was able to cap royalty payments.

“Instead of believing that it is essential to protect ourselves from foreign industry, we now realise that we must protect our own intellectual property to encourage innovation,” Jorge Ávila, the president of INPI, Brazil’s patent office, told the news source. “And we want foreigners to invest here. We don’t want them to think they won’t get a fair return.”

However, intellectual property is not as troublesome as some foreign businesses may think, as Brazil’s stance on copyright, trademark and patent laws are in line with many other major trading nations.

Before investing in new products or coordinating transactions between businesses, foreign companies will need to have a greater background in Brazilian law. Brazilian lawyers – with knowledge in intellectual property law, patents, contracts and mergers or acquisitions – can help companies find solutions for the complications of business law.

Benefits of a Partnership

The two economic titans of the Americas – the United States and Brazil – share several common interests, along with many of the same structural and economic challenges. Their governments acknowledge that there is a need for mutual cooperation on a variety of global issues, and their leaders seem willing to engage with one another to make such a partnership work.

“The rapid increase in the breadth and depth of the bilateral dialogue and the Brazilian and American governments’ efforts to maintain the doors open for a more productive and consequential relationship suggest, at a minimum, that they understand they need each other, benefit from working together and risk paying a political price for not doing so,” Huffington Post contributor Paulo Sotero notes in a recent analysis of the two countries.

The reelection of President Barack Obama earlier this month ensured that the respective leaders of the United States and Brazil would remain partners for at least the next two years, until Brazilian President Dilma Rousseff runs for her own reelection in 2014.

Sotero makes the point that while American companies have operated in Brazil for years, the South American nation’s ascension into the top tier of the global economy has empowered Brazilian companies to expand their operations into the United States. As the two countries become more intertwined and overarching governmental policies encourage economic cooperation, businesses will find that their best interests may include expanding operations abroad.

But, before doing so, business leaders need to understand the nuances of Brazilian law. A Brazilian lawyer with experience in all phases of corporate law – mergers and acquisitions, contracts, intellectual property and licensing, compliance and bankruptcy – is best suited to respond to any legal difficulties.

Restriction on Businesses

Brazil’s food industry – second only to its petroleum sector – is so substantial that it helps to anchor the country’s GDP and keep its unemployment rate stable. As a major supplier of much of the world’s soy, coffee, sugar, corn and oranges, the continued production of these goods is critical.

But, at what cost to the environment?

This is the question that recently spurred the Brazilian government into action, through the reform of the country’s Forest Code, which had been largely unchanged since 1965. The new law is intended to restore much of the treasured Amazon Rainforest, parts of which had been clearcut in order to account for crop growth.

Even though increased legal provisions against excessive deforestation – and the government’s reliance on satellite imagery – have helped slow devastation, Brazil’s government still felt that an overhaul to the Forest Cost was necessary.

Lawyers in Brazil understand the law’s new provisions

Last month, President Dilma Rousseff vetoed key provisions of the bill, toughening the law in such a way that increased reforestation will be mandatory. The government estimates that the total acreage that could be restored is equal to the size of Italy.

Still, the law is not without its critics.

“The presidential veto slightly improves the text approved by Congress, which was awful, but the new code is not tough enough for recovery of deforested areas and it reduces forest protection,” Greenpeace’s Paulo Adario told Sustainable Business News.

There is no question that many businesses have interests that will conflict with Brazil’s new environmental policies. To avoid government sanctions, businesses need to fully understand the terms of the Forest Code. Lawyers in Brazil can help them to reach the necessary level of comprehension and represent their interests in the country if necessary.

Foreign Direct Investments and Contract Law

In 2011, Cuba’s government called for reforms that would encourage more foreign investment in domestic industries. One of the largest businesses in Brazil has responded to that call by signing a 13-year contract to manage a Cuban sugar mill, ending a more than the 50-year absence of any foreign participation in the industry.

Odebrecht, headquartered in Brazil, is one of the world’s most far-reaching engineering, petrochemical and construction conglomerates. In this instance, it is ambitiously planning to triple per-harvest output from 30,000 to 90,000 tons.

Brazil’s involvement with foreign direct investments

At the other end of the spectrum from the insular Cuba is the country that is home to Odebrecht – Brazil, where foreign direct investment (FDI) is the third-highest in the world, with $48.5 billion in 2010. Given the current appeal of launching operations in Brazil, businesses headquartered outside of the country should gain a level of understanding of Brazilian contract law before engaging in operations within the country.

In fact, according to Corporate Compliance Insights, it is critical for businesses to partner with a Brazilian law firm with knowledge of local legal provisions in order to ensure that proper procedures are followed as contracts are formed. Brazilian contract law is somewhat more strict than its counterparts in other countries, including the United States.

“The United States allows parties leeway to contract for whatever the respective parties deem important,” according to the website. “In Brazil, however, the right to contract is much more narrow in scope because Brazilian laws pre-determine much of the parties’ rights and contractual obligations prior to contract formation.”

A Brazilian law firm will understand the nuances of these legal requirements, especially the fact that the country is governed by a civil law code and not a common law code. As such, legislation mandates more aspects of Brazilian life than Americans, for example, are accustomed to. When contracts are involved, there may be a more specific law that must be followed before an agreement is reached.

Clean Games for World Cup

Two years away from hosting the first of two of the most elaborate sporting events ever known to man, the Brazilian government is striving for one goal – “Logos Limpos.”

In 2014 and 2016, respectively, Brazil will welcome the entire world to its shores as it hosts the World Cup and the Summer Olympics. During the most recent Olympics in London, roughly 300,000 tourists, including athletes, flocked to England for the games – and this year was widely considered to be unusually low in terms of tourism.

Given the considerable infrastructure improvements that will be required for the events to take place without incident – from stadiums and highways to signage and parking lots – the country’s government has braced itself for the possibility of rampant corruption and bribery involving contracted work. These construction projects represent a potential boon for contractors and any organization that could benefit from the rash of spending necessary during the buildup to the two events.

The Brazilian government has tried to police itself through its Logos Limpos (“Clean Games”) initiative, but the index it is using to track the level of transparency in infrastructure upgrades has found that all 12 cities being assessed have not done yet enough to remain accountable, according to Trust Law.

Paulo Itacarambi, vice president of the organization tracking transparency levels, recently explained the metrics that are being applied to the cities.

“Are there information channels about the World Cup investments, are they effective, do they provide all the necessary information, and do they allow for social participation,” he said.

As companies mobilize in Brazil prior to the start of the World Cup, they should be aware of government oversight policies like Logos Limpos that could impact their business practices. A Brazilian law firm can protect these businesses’ interests, especially if they are headquartered outside of the country.