In recent weeks, the proposal to suspend intellectual property rights as a form of trade retaliation has returned to the center of public debate, particularly in response to tariff increases imposed by countries such as the United States. The idea has resurfaced amid the renewed political prominence of Donald Trump and the reemergence of global trade disputes, raising growing concerns among Brazil’s productive and innovative sectors.
The so-called “Retaliation Law,” or Economic Reciprocity Law (Law No. 15,122/2025), was recently regulated by Decree No. 12,551/2025, published on July 15 in the Official Gazette. The regulation establishes mechanisms that would allow Brazil to adopt symmetrical measures in response to trade barriers deemed unfair by other countries, including the suspension of intellectual property rights.
Although the regulation mentions intellectual property only once, this reference has already caused concern across several sectors due to the sensitivity of the issue and the potential systemic effects of applying IP suspension as a retaliation tool.
How will the new regime work?
- The decree outlines two distinct procedures for adopting countermeasures:
Ordinary procedure: led by the Foreign Trade Chamber (Camex), involving technical analysis, a public consultation process, and a final decision by Gecex. - Exceptional procedure: for urgent situations, in which the Interministerial Committee, composed of the Ministries of Development, Industry, Trade and Services (MDIC), the Chief of Staff’s Office, Finance (MF), and Foreign Affairs (MRE), may adopt temporary and accelerated measures, even without prior public consultation.
Agribusiness, health, and innovation on alert
In agribusiness, the suspension of patents could jeopardize access to essential technologies used in seeds, agrochemicals, and advanced machinery, all of which are crucial to Brazil’s global competitiveness. In the healthcare sector, the measure could harm the environment for innovative medicines and weaken existing Productive Development Partnerships (PDPs).
More broadly, weakening the intellectual property system may discourage investment in research, development, and innovation, increasing legal uncertainty and threatening the future of strategic technology sectors.
Diplomacy and trade: steering away from isolation
Beyond economic impacts, the proposal to suspend IP rights could undermine Brazil’s standing in multilateral forums and weaken its image as a reliable trade partner. At a time when agreements such as Mercosur-European Union are seeking to move forward after years of negotiations, Brazil needs to reinforce its commitment to international treaties.
The time for strategic dialogue
It is essential to promote direct negotiations with strategic partners, focusing on protecting Brazil’s commercial and technological interests without abandoning the principles that support the innovation ecosystem.
Legal flexibility may be considered with balance and restraint, without compromising the integrity of the overall system. Any retaliatory measures should be carefully calibrated to avoid putting Brazil on a collision course with the pillars that sustain sustainable development and the knowledge economy.
Follow the upcoming developments
Our legal, institutional, and government affairs teams are closely monitoring the potential impacts of these measures in both domestic and international contexts. If you have questions, we are available to provide tailored guidance on how to protect your IP assets in this evolving scenario.
