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Brazilian Legal Infrastructure for further developing the Biotechnology/Innovation Industry

Brazilian Legal Infrastructure for further developing the Biotechnology/Innovation Industry. Edson Beas Rodrigues Jr. Buenos Aires, September 29, 2006. Relevant Legal Texts. Industrial Property Code as of 1996

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Brazilian Legal Infrastructure for further developing the Biotechnology/Innovation Industry

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  1. Brazilian Legal Infrastructure for further developing the Biotechnology/Innovation Industry Edson Beas Rodrigues Jr. Buenos Aires, September 29, 2006

  2. Relevant Legal Texts • Industrial Property Code as of 1996 • Outcome: Expansion of the scope of patentability – more stringent standards of protection. • Theoretical beneficiaries: Biotech. and Pharma industry

  3. INPI patentability guidelines on the biotech. and pharmaceutical fields: further expansion of the scope of patentability established by the Industrial Property Code Brazilian patentability guideline -> similar to the USPTO/EPO guidelines

  4. Impacts of the Legal Framework Depletion of the Scientific Commons in Brazil

  5. After the 10th anniversary of the Industrial Property Code, Should we celebrate? Brazilian Biotech. Industry: Facts and Figures

  6. AGE OF BIOTECH FIRMS 1 to 3 years – start ups after 2000 = 3 (13%) 3 to7 years – New companies (after 96 – before 99 = 6 (26,1%) 7 years and more – Mature companies= 14 (untill 1996) = 60.9% Source: FINEP 2003

  7. The Myth of more R&D and Foreign Direct Investment in R&D ORIGIN OF CAPITAL AND R&D BIOTECH INVESTMENTS source: DPP FINEP (2003) Derengowski

  8. BIOTECHNOLOGY PATENTS IN BRAZIL

  9. GENOMIC PATENTS IN BRAZIL

  10. LEADER FIRMS IN PATENT RACE BY ORIGIN AND APPLICATION

  11. BIGGEST BIOTECH PATENT CLAIMERS IN BRAZIL (1998-2001)

  12. Despite strong Governmental investments, Stringent standards of patentability, the Brazilian biotech. Industry is struggling to emerge . But there are exceptions: BIOMINAS, CIATEC, etc.

  13. 2004 – shift in innovation policy Innovation Act – similar to the US Bayh Dole Act Innovation became a byword of IP entitlements

  14. Foundations of the Innovation Act Foundations of the Innovation Act • Strategic alliances between public research organizations (Universities) and Companies Important: 90% of all scientists and qualified human resources are in the public University

  15. Foundations • Universities and Public Research Centres have the legal obligation of setting up Offices of Transfer of Technology • Possible drawback: the draining of Public Resources. (R. Nelson and the US Bayh-Dole Act.)

  16. FOUNDATIONS • Scientists involved in the projects are entitled to co-own of innovations and to receive from 5% to 33% of the royalties arising from the commercialization of the innovations • Private and Public enterprises based in Brazil are entitled to use the premises and laboratories of public universities and public research centers • Scientists are allowed to leave Universities and work in the private sector

  17. Conclusions – Brazilian case study • Strong IP standards do not necessarily generate more R&D and innovation (J.Lerner) • The stronger the IP standards are, the heavier will be the transactions costs • Innovation Act may be a good stimulus, but it doesn´t tackle the challenge of developing products for the neglected needs of the South. Who are the real stakeholders of Innovation policies? • Need for independent IP policies in developing countries

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