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 2025

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

Three sources explain why a notification by Nanjing’s IP centre in China banning AI use in patent drafting is too broad and could be difficult to enforce
Sheppard Mullin’s latest hires explain why the firm's industry expertise impressed them
Elizabeth Godfrey explains why she doesn’t believe in a ‘salesperson’ approach to BD, and reveals how AI is playing an important role at Davies Collison Cave
Partner moves data from April and May showed the firm boosted its presence in California, while another firm expanded in Atlanta
Angela Oliver shares tips for preparing oral arguments, and reveals her passion for marine biology
The Getty Images v Stability AI case, which will hear untested points of law, is a reminder of the importance of the legal system and the excitement it can generate
Firms explain the IP concerns that can arise amid attempts by brands to show off their ‘Canadianness’ to consumers
Counsel say they will be monitoring issues such as the placement of house marks, and how Mondelēz demonstrates a likelihood of confusion in its dispute with Aldi
The EUIPO expanding its mediation services and a new Riyadh office for Simmons & Simmons were also among the top talking points this week
David Boundy explains why Pierson Ferdinand provides a platform that will allow him to use administrative law to address IP concerns
Gift this article