Breaking: Brazil SC rules patent extensions unconstitutional

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Breaking: Brazil SC rules patent extensions unconstitutional

adobestock-253833573.jpeg

In a nine to two ruling, justices decided in Direct Action 5,529 to remove the guarantee of a 10-year minimum term for successful drug patent applicants

The Brazil Supreme Court yesterday removed the guarantee of a 10-year minimum term for successful pharmaceutical patent applicants.

Ruling nine to two in Direct Action 5,529, the court rendered the sole paragraph of Article 40 of Brazil's Industrial Property Law unconstitutional.

The court will come together again next Wednesday, May 12, to decide whether the ruling should have retroactive effect.

If the justices decide that it does, granted patents for pharmaceutical and biotech inventions would have their term of validity reduced to 20 years counted from the filing date, instead of 10 years counted from the date of grant.

That means that patents that were held up by long waiting times at Brazil's IP office would have their terms significantly cut. 

As a general rule, a Supreme Court decision invalidating a legal provision does have retroactive effect. But if eight or more justices agree, the court could decide that retroactive effect should not take place in a particular case. 

The reporting justice for this case, Dias Toffoli, has proposed that granted patents should not be affected by this decision, with two exceptions: patents in the pharmaceutical and medical fields, and patents whose validity terms are being challenged before courts based on arguments that the sole paragraph of Article 40 violates the constitution.

Justice Marco Aurelio indicated he believed there should be no exceptions to the court’s retroactivity rule, and that the decision should affect all granted patents. 

Meanwhile, Justice Gilmar Mendes indicated that a retroactive effect should be limited to pharma and medical patents related to COVID-19.

Justice Roberto Barroso mentioned he would agree with an exception related to patents that are subject to invalidity lawsuits, but not with an exception for patents in the pharmaceutical and medical fields, because this would violate the TRIPS Agreement.

Ricardo Nunes, partner at Daniel Law, said: “Even the justices that already articulated their initial thoughts on whether a decision should affect granted patents or not can still change their minds when the court happens to discuss this matter, so this is still a completely unsettled issue.”

On Wednesday, May 5, the justices at the Brazil Supreme Court started handing down their opinions on Direct Action 5,529, and finished yesterday.

The news comes after the Supreme Court suspended patent-term extensions in Brazil on April 7 in the lead up to the Direct Action 5,529 trial, in an attempt to lower costs for drugs critical to treating COVID patients at the expense of pharmaceutical firms.

Sources told Managing IP last year that such a ruling, which has now come to pass, would significantly water down the value of patents in Brazil so long as Brazil's IP office takes more than 10 years to prosecute them.

Managing IP will report on the outcome of the judge’s meeting on May 12 next week.

more from across site and SHARED ros bottom lb

More from across our site

Head of IP, Andrew Brennan, and new partner, France Delord, explain how tech provides an edge in the battle for global brand owners’ business
Anton Hopen, shareholder at Trenam Law, shares how counsel should construct Section 101 claims as early 2026 PTAB data shows reversals rising in technical cases
Law firms should consider how they can help clients, as report calls on EU to use IP-backed financing to increase bloc’s competitiveness and attractiveness for businesses
In the final part of a series on challenging patent invalidation decisions in China, lawyers at Spruson & Ferguson and Marshall Gerstein share how courts adjudicate appeals
Stijn Debaene and Carina Gommers want Brussels-based Cast Law to be the place 'everybody wants to work'
The combination between Ashurst and Perkins Coie, which will create a $2.8 billion law firm, is expected to close in Q3
While Sipara will continue operating under its existing name and leadership for now, both firms plan to present a united front at the INTA Annual Meeting in London
Sheppard has added quantum and robotics expertise to its AI industry team to help clients navigate questions around inventorship and IP infringement
The 2026 Americas ceremony recognised outstanding firms and practitioners, along with highlighting impact cases of the year
A development concerning Stephen Thaler’s AI copyright application in India and an integration between IPH group firms were also among the top talking points
Gift this article