Brazil’s Bolsonaro sanctions compulsory licensing of vaccine patents; immediate enforcement unnecessary

RIO DE JANEIRO, BRAZIL – President Jair Bolsonaro on Thursday, September 2, sanctioned the bill allowing the temporary compulsory licensing of patents on vaccines against Covid-19, medicines and diagnostic tests.

In the same statement in which he announced the sanction, the Presidential Palace said that compulsory licensing will not be enforced at this time.

According to the law, the measure will only be required should the company holding the patent “refuse or fail to meet local demand.”

“Thus, it should be noted that this compulsory licensing will not be enforced at the current moment to fight the coronavirus pandemic, as vaccines are being adequately supplied by international partners,” the government statement says.

“However, in the future, should there be a local market shortage, there is a legal provision to enforce the measure, in an extreme case,” the statement continues.

Also in the note, the President’s Office said that the suspension of a patent’s exclusivity can be done “case by case and upon payment of compensation to the patent holder.”

According to the new rules, which amend the Industrial Property Law, in cases of national or international health emergency, the government will publish a list of patents or patent applications for products potentially needed to address the situation.

Bolsonaro vetoed certain provisions in the bill which will now be analyzed by the National Congress – legislators have the power to maintain or overturn the presidential veto.

Among the vetoed provisions is one that “forced the patent holder to transfer the knowledge and supply the raw materials needed to duplicate the vaccines and medications,” according to the government’s statement. The argument is that such provisions were difficult to implement and could create legal uncertainty.