On April 29, 2021, Senate approved Bill 12/21 (proposed by Senator Paulo Paim – PT/RS), which seeks to change article 71 of the IP Law Statute, creating a new procedure for the compulsory licensing of patents and patent applications in Brazil.

Compulsory Licenses are already foreseen in Brazilian Law. However, one of this Bill’s innovations is to remove the exclusive power of decision on the matter from the Federal Executive Branch, since it enables compulsory licensing in cases of national calamity, decreed by the Legislative Branch.

If the Bill is approved, the proceedings to declare the compulsory licensing will count on the collaboration of the private initiative and public entities to prepare an initial list of patents and patent applications to be licensed, including those related to the control of Covid-19’s pandemic.

After Senate approved the Bill, the proposal was remitted to Congress, where it is going to be debated by the congressmen and women. If approved, it will up to the President to pass the law or reject it. However, if he chooses to reject it, an absolute majority of the two legislative houses can overturn the presidential veto and ensure that the bill becomes law. The effectiveness and timeliness of the proposal divide specialists and it is still unclear whether it will have sufficient support in Congress.