[Ip-health] US Chamber: Brazil Takes Major Step Backward on Intellectual Property Rights

[robert weissman]

U.S. Chamber of Commerce Press Statement

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Brazil Takes Major Step Backward on Intellectual Property
Rights, Says U.S. Chamber

WASHINGTON, DC--Lt. Gen. Daniel W. Christman (ret.), U.S.
Chamber senior vice president for international affairs, issued
the following statement on Brazil's decision to issue a
compulsory license for Merck & Co.'s HIV/AIDS medicine Efavirenz
after the health ministry ended negotiations with the firm:

"Just days after Brazil was recognized for improving its
enforcement of intellectual property (IP) rights, its government
has made a major step backward.

"Breaking off discussions with Merck and seizing its
intellectual property sends a dangerous signal to the investment
community. Merck researchers invested hundreds of millions of
dollars to develop this ground-breaking medicine. Clearly, there
was room to negotiate a solution acceptable to both parties.

"Ironically, the Brazilian decision comes on the heels of real
progress. Last Monday, the Office of the U.S. Trade
Representative recognized Brazil's successful crackdown on
counterfeiting and piracy, moving the country from the Priority
Watch List to the Watch List in its annual 'Special 301' report.
This progress was the critical factor in making last December's
extension of Generalized System of Preferences tariff benefits
possible.

"The bottom line is this: Brazil is working to attract
investment in innovative industries that rely on IP, and this
move will likely cause investments to go elsewhere."

The U.S Chamber is the world's largest business federation
representing more than 3 million businesses and organizations of
every size, sector, and region.