Brazil Publishes Proposed Cross-Retaliation List for IPR and Services in Cotton Dispute

March 15, 2010

Today, Brazil’s Ministry of Development, Industry and Foreign Trade (MDIC) published a list of possible areas for retaliation against U.S. intellectual property rights (IPR) and services, due to the U.S.’ failure to comply with the World Trade Organization’s ruling in the upland cotton dispute. The list of IPR and services countermeasures could constitute a second round of retaliation worth as much as $288 million, in addition to the $560 million in increased tariffs on select goods that Brazil announced on March 8, 2010.

Potential targets for the second round of retaliation include medicine (for both human and veterinary uses), agricultural chemicals, biotech agricultural products (including cultivars), literary works and certain audio visual products. The terms of retaliation against selected products will vary, but may include:

• The removal, for a certain amount of time, the period of protection of patent rights for products and processes;
• Patent licensing for products or processes without owner authorization or payment; or
• Increased administrative fees for patents/trademarks.

MDIC is accepting public comments on the proposed countermeasures until April 4, 2010. After reviewing the comments received, MDIC will select the final set of countermeasures and publish another notice in the Brazil’s Diario Oficial, possibly as soon as April 14, 2010. The first round of retaliation in goods is set to take effect on April 7, 2010.

Despite moving ahead to IPR and services retaliation, a spokesperson for MDIC reiterated yesterday that Brazil remains open to a negotiated settlement with U.S.