The Kellis IP Weekly: Issue 12.1

Announcement

Astute readers of the Kellis IP Weekly will have noticed that no newsletter was published last week. We hope all our readers enjoyed a happy Thanksgiving and extend warm wishes for the holiday season.

Beginning with this issue, readers of the Kellis IP Weekly will begin to see major changes to the newsletter, as we seek a format that provides, as succintly as possible, more focused reporting on the most important recent developments regarding intellectual property in Brazil. Whether you like the changes or not, please send us your feedback so that we can deliver a product that you find useful and worth reading.

Issue 12.1

AI: With October elections in the rear-view mirror, the National Congress is back to work. In a significant development, the Senate's temporary committee on AI approved this morning the seventh draft of PL 2338/2023, the bill to regulate AI in Brazil, with broad support from both government and opposition senators.  The draft legislation now goes to the Senate plenary for a vote. 

• IP Impact: The approved revision of bill allows, in Section IV, copyrighted content to be used for text and data mining by certain nonprofit entities, subject to conditions including that the activity have no commercial purpose and the rights holders economic interests not be unjustifiably harmed.  Outside of this broad exception, copyright holders can prohibit use of their work, and owners of works that are used are entitled to remuneration.

• Read more: https://www12.senado.leg.br/noticias/materias/2024/12/05/comissao-chega-a-consenso-e-regulamentacao-da-inteligencia-artificial-vai-a-plenario; https://legis.senado.leg.br/sdleg-getter/documento?dm=9858756&ts=1733416960197&disposition=inline; https://www1.folha.uol.com.br/tec/2024/12/bolsonaristas-brecam-projeto-de-lei-de-ia-no-senado-por-oposicao-a-pagamento-de-direitos-autorais.shtml

EU-Mercosur Agreement: Uruguay’s foreign minister announced today that negotiations regarding the EU-Mercosur Agreement have concluded, and that the accord will be signed tomorrow, Dec. 6, on the final day of the Mercosur Leaders’ Summit in Montevideo. European Commission President Ursula von der Leyen flew to Montevideo today in anticipation of the expected signing ceremony.

• IP Impact: Under the agreement, Mercosur countries will honor hundreds of EU geographical indications, including GIs for terms that are considered generic in the U.S. While Mercosur countries conducted an analysis to identify companies that qualify for grandfathered use of those terms, no U.S. companies made the list (at least in Brazil). As a result, U.S. companies who sell varieties of cheeses and other goods known by names that are considered protected geographic indications in Europe will be effectively frozen out of the Mercosur market—unless they choose to rename their products.

• Read more: https://www.cnnbrasil.com.br/economia/macroeconomia/entenda-o-que-e-o-acordo-de-livre-comercio-entre-mercosul-e-ue/; https://www.kasznarleonardos.com/en/update-on-the-protection-of-foreign-geographical-indications-gis-in-brazil-especially-those-from-the-european-union/; https://www.eunews.it/en/2024/12/05/von-der-leyen-flies-to-uruguay-to-close-eu-mercosur-deal-macron-furious-unacceptable/

Protect your slogans: Slogans are now protectable in Brazil as trademarks, by virtue of a change in interpretation of existing law.

• IP Impact: We hope this is self-evident . . .

• Commentary: While this change is welcome, the idea that such a significant change can be achieved with a mere change in interpretation should cause some concern.  What other changes might be made by simply reexamining existing law from a new perspective--or, more bluntly, with a new objective?  Not every such change would be beneficial.

• Read more: https://portal.comunique-se.com.br/310776-registro-de-slogans-marca-nova-era-de-protecao-no-brasil/; https://www.gov.br/inpi/pt-br/central-de-conteudo/noticias/inpi-atualiza-diretrizes-para-registro-de-marcas-com-elementos-de-propaganda; https://manualdemarcas.inpi.gov.br/projects/manual/wiki/Atualiza%C3%A7%C3%B5es

In brief:

• The Chamber of Deputies approved Brazil’s accession to the Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure. https://www.camara.leg.br/noticias/1115113-camara-aprova-adesao-do-brasil-a-tratado-internacional-sobre-patente-de-microrganismos

• INPI renewed its PPH agreement with EPO for five more years, necessary because EPO does not participate in the Global PPH.  https://www.gov.br/inpi/pt-br/central-de-conteudo/noticias/brasil-e-europa-renovam-acordo-para-cooperacao-em-patentes 

• INPI published Relationship and Transparency Policy that appears to set the stage for something like office-initiated examiner interviews.  https://revistas.inpi.gov.br/pdf/Comunicados2813.pdf

• INPI published the following statistics for October: Average patent pendency from filing:  4.3 years. Average patent pendency from request for examination:  3.1 years. Average patent pendency for accelerated examination programs:  9.7 months.  Average trademark pendency, no opposition:  17.2 months.  Average trademark pendency, with opposition:  25.2 months.  https://www.gov.br/inpi/pt-br/governanca/planejamento-estrategico/central-de-monitoramento

• From July-September, average patent pendency from filing for biopharmaceuticals was 5.7 years; for biotechnology, 5.6 years; for electronics and computing, 5.5 years; and for telecommunications, 5.3 years. https://www.gov.br/inpi/pt-br/servicos/patentes/relatorios-gerenciais/relatorios/tempodecisao_trimestr_jul24_set24-1.pdf

One more thing:

Brazil’s Supreme Court is debating the constitutionality of provisions of Brazil's Internet Civil Rights Framework, which could result in social media platforms being held responsible for content posted thereon by users. 

• Concerns: Observers see significant potential pitfalls to the Court's involvement in this issue.  https://www.estadao.com.br/opiniao/regular-as-redes-e-atribuicao-do-congresso/; https://www1.folha.uol.com.br/ilustrissima/2024/11/stf-precisa-defender-a-democracia-e-a-republica-ao-julgar-marco-civil-da-internet.shtml; https://www.gazetadopovo.com.br/vida-e-cidadania/juristas-dizem-ao-stf-que-mudanca-no-marco-civil-da-internet-deveria-partir-do-congresso/; https://www.jota.info/artigos/preservar-para-evoluir-marco-civil-e-o-futuro-do-ecossistema-digital

• Expected Outcome: Based on public comments of STF ministers, the Court will almost certainly change the status quo. https://noticias.uol.com.br/ultimas-noticias/agencia-estado/2024/11/29/toffoli-inicia-votacao-e-critica-imunidade-de-redes.htm; https://www.jota.info/artigos/o-julgamento-sobre-o-marco-civil-da-internet-no-stf; https://www.cnnbrasil.com.br/politica/no-stf-google-e-facebook-citam-possibilidade-de-ampliar-responsabilidade-por-conteudo-sobre-golpe/; https://noticias.stf.jus.br/postsnoticias/marco-civil-da-internet-relator-considera-inconstitucional-exigencia-de-ordem-judicial-para-retirada-de-conteudo/

• About-face: The Lula government changed its official position mid-course. After briefing the argument that existing law should be held constitutional but interpreted differently (anyone notice a theme?), the administration’s current position is that the existing law is unconstitutional and should be struck down.  https://www1.folha.uol.com.br/poder/2024/11/governo-altera-posicao-em-julgamento-no-stf-sobre-redes-e-defende-derrubada-de-regra-do-marco-civil.shtml

• Last-ditch efforts: Google and Meta, two platforms that will be directly affected by the eventual ruling, released statements highlighting the actions they already take to moderate user content.  https://www1.folha.uol.com.br/poder/2024/12/big-techs-fazem-ofensiva-em-meio-a-julgamento-no-stf-que-afeta-redes.shtml

UPCOMING IP EVENTS

December 9, 2024: XV International Seminar on Patents, Innovation, and Development: The challenges of intellectual property and the New Brazilian Industry (NIB). Rio de Janeiro. https://abifina.org.br/eventos/xv-sipid-os-desafios-da-propriedade-intelectual-e-a-nova-industria-brasil-nib/ (Portuguese).

*January 22-24, 2025: World Intellectual Property Forum. Dubai. https://www.worldipforum.com/ (English).

*January 27-28, 2025: International Intellectual Property Lawyers Association Conference. Dubai. https://iipla.org/events/dubai/ (English).

March 17-19, 2025: XXIV ASPI Intellectual Property Congress. Sao Paulo, Brazil. https://congresso.aspi.org.br/ (Portuguese).

March 20-23, 2025: XX ABAPISUL Regional Meeting. Foz do Iguaçu, Brazil. https://abapi2.org.br/ (Portuguese).

* Indicates events at which I will be speaking.

^ Indicates events I will be attending.

QUESTIONS OR CONCERNS

Kellis IP is available to provide consulting services to help you understand and respond to any of the developments highlighted in this newsletter, or any other IP issues in Brazil and the surrounding region.