Interventions and outdated laws generate barriers for Technology Transfer in Brazil

17 Jul, 2012

Specialists are proposing changes on rules and to limit the intervention of the Brazilian Patent and Trademark Office on tech transfer and licensing agreements


Lawyers in Brazil are working on bills and resolutions suggestions to improve regulation affecting Transfer of Technology (TOT). One important modification would be to limit the intervention of the Brazilian Patent and Trademark Office (BPTO) on the registration of tech transfer and licensing agreements. Specialists say that the Institute has been applying outdated rules and unjustified restrictions, which are jeopardizing internationals transactions.

According to lawyer Carlos Eduardo Eliziário, partner at Dannemann Siemsen law firm, BPTO should only check formal requirements, such as the ownership and term of the licensed rights, and if specific issues of the Brazilian tax law have been observed by the parties.

“In the present time, however, the BPTO goes far beyond. The BPTO intervenes on prices, payment terms, restrictions on use of the licensed technology, term of the contract and of confidentiality obligations, for instance. Companies are losing great deal opportunities, missing contracts, in consequence of these outdated rules that are completely inconsistent with the Brazilian’s and world’s current scenario”, point’s Mr. Carlos Eduardo Eliziário.

“Almost in the whole world, companies are allowed to license know-how (unpatented technology) for a limited time. In Brazil instead, you have to almost settle for a sale contract. That’s a great problem when you are dealing Technology Transfer with companies from other countries, because they don’t want to lose control over their technologies”, explains Mr. Eliziário.

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