DRUG INDUSTRY URGES CAUTION ON BRAZIL COMPETITION LAW

Intellectual property rights experts in Brazil have issued a robust defence of the pharmaceuticals industry's right to exploit patents under local competition law. The argument comes in light of recent decisions by Brazilian anti-trust regulator CADE.

Brazilian law recognises that drug patents constitute an exception to anti-monopoly laws, but there are reported problems with the transference of IP rights between firms. Local legislation prevents the "abuse of dominant market positions" and "arbitrary" increases in prices, with compulsory licensing a clear threat in case of infringement of these rules.

Industry sources recall that one recent licensing deal between a multinational and a local firm was cleared by CADE. Observers are now urging the regulator to approve contracts such as these in this case by case manner, in order to ensure that anti-trust laws are not used arbitrarily after the transaction has completed.

In recent months, foreign firms with regulatory sanctions over alleged price control violations and attempts to block the entry of generic competitor products.