WORLD TRADE
ORGANIZATIONWT/DS199/1
G/L/385IP/D/23
8 June 2000
(00-2254)
Original:  English
BRAZIL – MEASURES AFFECTING PATENT PROTECTION
Request for Consultations by the United States
The following communication, dated 30 May 2000, from the Permanent Mission of the
United States to the Permanent Mission of Brazil and to the Chairman of the Dispute Settlement
Body, is circulated in accordance with Article 4.4 of the DSU.
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My authorities have instructed me to reques t consultations with the Government of Brazil
pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes (DSU), Article XXII of the General Ag reement on Tariffs and Trade 1994 (GATT 1994) and
Article 64 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS
Agreement) (to the extent that it incorporates by reference Article XXII of GATT 1994), concerningthose provisions of Brazil's 1996 industrial propert y law (Law No. 9,279 of 14 May 1996;  effective
May 1997) and other related measures, which establish a "local working" requirement for the
enjoyability of exclusive patent rights that can only be satisfied by the local production – and not the
importation – of the patented subject matter.
Specifically, Brazil's "local working" requirement stipulates that a patent shall be subject to
compulsory licensing if the subject matter of the patent is not "worked" in the territory of Brazil.Brazil then explicitly defines "failure to be wo rked" as "failure to manufacture or incomplete
manufacture of the product", or "failure to make full use of the patented process".  The United States
considers that such a requirement is inconsistent with Brazil's obligations under Articles 27 and 28 of
the TRIPS Agreement, and Article III of the GATT 1994.
We look forward to receiving your reply to the present request and to fixing a mutually
convenient date for these consultations.
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