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Brazil to Break Patents on U.S. Films, Books, Drugs (Update2)
http://www.bloomberg.com/apps/news?pid=20601086&sid=a.VF70UEOmVM
By Iuri Dantas

March 15 (Bloomberg) -- Brazil will seek to break intellectual property
rights on U.S.-made prescription drugs, music, books, software and movies in
a bid to force the U.S. government to end cotton subsidies that violate
global trade rules.

Brazil¹s government submitted a list of products that may have royalties,
copyrights and patents suspended as part of $829 million in retaliatory
sanctions authorized by the World Trade Organization, according to a
statement published today in the country¹s official gazette.

³These measures don¹t change policies or our commitment to protection of
intellectual property,² Carlos Marcio Cosendey, head of Foreign Ministry¹s
economic department told reporters in Brasilia. ³These are temporary
measures aimed to force a change in the U.S.²

The Geneva-based WTO in August ruled that Brazil may impose annual sanctions
on U.S. imports because the cotton subsidies violate trade regulations. Of
the amount awarded, Brazil will adopt penalties on intellectual property
rights totaling $239 million this year.

Brazil and U.S. still have room to negotiate an agreement to avoid the
application of the sanctions, Foreign Minister Celso Amorim said last week.
President Lula Inacio Lula da Silva blamed the ³fighting² over the
agricultural subsidies on the U.S.¹s refusal to sign an accord during the
Doha round of global trade talks.

³We want to show the U.S. that it doesn¹t matter if you are big or small, or
how much money you have as a nation,² Lula said on March 10. ³We all want to
be respected and to be treated fairly.²

No ³concrete offer² was made by U.S. trade officials during meetings with
their Brazilian counterpart, Cosendey said. The U.S. government asked for
more time before engaging in talks as coordination with the Congress is
needed on agricultural subsidies, Cosendey said.

If Brazil carries out its threat to infringe on intellectual property rights
it will be the first country to cross-retaliate for practices that hurt
trade of goods, Cosendey said.

The list of sanctions published today will be open to public consultation
for 20 days before taking effect, according to the statement. Patents on
veterinary and biotechnology products will also be affected by the measures
announced today.

In addition to breaking intellectual property rights, Brazil will impose
higher tariffs worth $591 million on 102 U.S.-made goods, including ketchup,
wheat, chewing gum, cars and boats, according to a list published last week.

To contact the reporter on this story: Iuri Dantas in Brasilia Newsroom at
idantas at bloomberg.net

Last Updated: March 15, 2010 12:54 EDT

Victor Menotti
Executive Director
International Forum on Globalization
1009 General Kennedy Avenue #2
San Francisco, CA 94129  USA
Cel: +1-415-351-8065
Tel: +1-415-561-3491
Fax:+1-415-561-7651
Email: vmenotti at ifg.org
Skype: victormenotti
www.ifg.org


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