Brazil to Break Patents on U.S. Films, Books, Drugs

Brazil will seek to break intellectual property rights on U.S.-made prescription drugs, music, books, software and movies in a bid to force the U.S. government to end cotton subsidies that violate global trade rules.

Brazil’s government submitted a list of products that may have royalties, copyrights and patents suspended as part of $829 million in retaliatory sanctions authorized by the World Trade Organization, according to a statement published today in the country’s official gazette.

The Geneva-based WTO in August ruled that Brazil may impose annual sanctions on U.S. imports because the cotton subsidies violate trade regulations. Of the amount awarded, Brazil will adopt penalties on intellectual property rights totaling $239 million this year.

Brazil and U.S. still have room to negotiate an agreement to avoid the application of the sanctions, Foreign Minister Celso Amorim said last week. President Lula Inacio Lula da Silva blamed the “fighting” over the agricultural subsidies on the U.S.’s refusal to sign an accord during the Doha round of global trade talks.

“We want to show the U.S. that it doesn’t matter if you are big or small, or how much money you have as a nation,” Lula said on March 10. “We all want to be respected and to be treated fairly.”

The list of sanctions published today will be open to public consultation for 20 days before taking effect, according to the statement. Patents on veterinary and biotechnology products will also be affected by the measures announced today.

In addition to breaking intellectual property rights, Brazil will impose higher tariffs worth $591 million on 102 U.S.-made goods, including ketchup, wheat, chewing gum, cars and boats, according to a list published last week.