Rediscovering the Value of Intellectual Property Rights: How
Brazil's Recognition and Protection of Foreign IPRs Can Stimulate Domestic
Innovation and Generate Economic Growth
Lawrence A. Kogan, J.D., LLM
Table of Contents
The industrializing economy of Brazil possesses many favorable competencies
and capabilities owing to its cultural diversity, its growing technological
know-how, and its expanding entrepreneurial class. It also boasts a number
of intellectual property-rich companies in the life sciences and information
and communication technology sectors whose capacity for innovation has yet
to be exploited. Brazil, however, suffers from a deficit in core human
capital and lacks a market-friendly enabling environment that incorporates
strong intellectual property right protections. These deficiencies have
largely prevented Brazil from developing the cutting-edge indigenous
know-how and commercial innovations that could dramatically improve Brazil’s
future scientific, technological and economic growth prospects.
Unable to resolve its national dilemma itself, the Government of Brazil, has
worked alongside numerous developing countries and activist civil society
organizations within multiple international fora to promote a new global
knowledge paradigm. Such paradigm discounts the value of private
intellectual property rights in promoting innovation, and calls for
scientific and technology-based knowledge and information, and the
commercialized products and processes derived from it, to become, as a
matter of international law, ‘universally accessible, ‘open source’, and
essentially ‘free of charge’ to emerging and developing economies, i.e.,
‘public international goods’.
The
following article documents Brazil’s efforts and then disputes the various
rationales advanced by proponents of this new anti-private intellectual
property paradigm. It emphasizes how patents and trade secrets are forms of
exclusive private property which are entitled to legal protection as
inalienable constitutional, civil and human rights. It also shows how
patents and trade secrets are economically valuable assets that are
important to both foreign and domestic investors, especially, knowledge and
technology-rich internationally-focused companies, and explains why the
Government of Brazil should aggressively seek to protect them. This
article, furthermore, analyzes numerous studies that collectively describe
how the establishment of a market-friendly enabling environment that
includes strong enforcement of intellectual property rights will enable
Brazil to attract the research and development-related foreign direct
investment and technology transfers, and to realize numerous other
incidental spillover benefits, that will dramatically improve its domestic
industries, enhance its educational and health systems and satisfy its
national innovation needs.