Rob Rodrigues

Over the past decade, Brazil has seen an increase in patent litigation, as the local economy grows and stabilizes. With more companies eyeing Brazil as a strategic country for the protection of IP, the patent system becomes more scrutinized and more complex patent cases are filed. On June 12, 2024, the Superior Court of Justice (Superior Tribunal de Justiça, or STJ), Brazil’s highest court with jurisdiction over non-constitutional matters, issued a ruling allowing invalidity defenses on an industrial design infringement lawsuit. Although the case involves industrial design, the court’s opinion contains non-precedential statements that are applicable to patent cases.

In May 2024, the Brazilian Senate Committee on Science, Technology, Innovation, and Informatics hosted two public hearings to discuss implementing Regulatory Data Protection (RDP) for pharmaceutical products of human use. The call for hearings (REQ 27/2023) was presented by Senator Izalci Lucas (Liberal Party). While recognizing that regulatory changes would have significant implications for the local industry, the healthcare system, and consumers, Sen. Lucas expressed concern that a lack of measures could discourage investment in R&D.

Did you know that Brazil’s medical device market is experiencing a surge, attracting billions in imports annually? This boom, however, is attracting not only legitimate businesses but also those looking to exploit loopholes. On average, more than US$6.7 billion worth of products are imported annually, with around 14,000 new products being introduced every year. One example is the increase in sales of equipment for endoscopic surgeries, given the rise in the number of bariatric surgeries, which already exceeds 70,000 procedures per year.

On February 20, 2024, a Brazilian congress member, Antônio Luiz Rodrigues Mano Júnior (known as Júnior Mano), introduced a bill to amend the national IP Statute (Law #9,279/96) and regulate the ownership of inventions generated by artificial intelligence systems. Bill #303/2024 proposes the addition of a paragraph to Article 6 of the IP Statute, which regulates ownership of inventions, with the following wording: “in the case of inventions autonomously generated by artificial intelligence system, the patent can be requested in the name of the artificial intelligence system that has created the invention, being the artificial intelligence system considered the inventor and owner of rights arising from the invention.”

Unlike other jurisdictions, injunctions in Brazil are no equitable remedy. There is no discretionary power of the court to decide whether to grant a permanent injunction upon the finding of infringement at the end of the proceedings. Injunctive relief is the primary remedy, and it can only be substituted by financial damages at the election of the plaintiff. Preliminary injunctions, on the other hand, are subjected to the discretion of the courts—and must pass a test of balance of hardships.