The European Union and the founding members of Mercosur (Argentina, Brazil, Paraguay and Uruguay) reached a political agreement for the EU-Mercosur Partnership Agreement on 6 December 2024. The agreement includes a specific chapter (Chapter X) on Intellectual Property, with an aim to reassure a strong protection of IP rights (“IPR”) in the region, fostering measures to further promote research and development, as well as trade and investment between the Parties. The agreement must now be approved within the EU and Mercosur countries to enter into force.
Key Implications for IPR Holders:
- Enhanced Protection:
- Strengthened IP Rights: The agreement provides for protection of a wide range of IPRs, including:
- Patents: The agreement only prescribes best efforts to accede to PCT. The agreement does not include the so called “TRIPS-plus” provisions, such as implementation of PTA or PTE systems, or regulatory data protection.
- Trademarks: Stronger protection for well-known trademarks, including those with a reputation in the EU or Mercosur. Best efforts to accede to the Protocol relating to the Madrid Agreement, compliance with Nice Agreement and provision of publicly available electronic database are also mentioned. These provisions have limited practical impact to Brazil, but they could change the landscape in other Mercosur countries.
- Designs: Enhanced protection for industrial designs, including those for products and packaging, as well as best efforts to acceded to the Hague Agreement. Protection of unregistered designs and additional protection based on copyrights may also be available, though dependent on local laws and regulations.
- Plant Varieties: Enhanced protection of plant varieties rights, pursuant to the 1978 UPOV ACT or the 1991 UPOV ACT.
- Trade Secrets: Improved protection for confidential business information, such as formulas, processes, and customer lists.
- Increased Enforcement:
- Border Measures: The agreement calls for stricter border measures against counterfeiting and piracy, including increased cooperation between customs authorities, and encourages the use of electronic systems.
- Civil and Criminal Remedies: It provides for effective civil and criminal remedies to enforce IPRs, deter infringement, and compensate rights holders.
- Geographical Indications:
- Protection of Geographical Indications: The agreement offers enhanced protection for geographical indications (GIs). One of the most controversial parts of the IP Chapter, the agreement institutes immediate protection for a wide list of GIs originating from virtually all countries involved, though exceptions for earlier users of certain GIs have also been included in the last round of negotiations. This section is long and detailed, and the Agreement includes a specific Annex with a list with additional details on specific GIs, protection territories, transition periods and exceptions. Additional information may be provided upon request.
- Increased Market Access: This could open up new markets for products with protected GIs, boosting exports and brand reputation.
We are committed to providing you with the latest updates and guidance on the EU-Mercosur Agreement. Please do not hesitate to contact us if you have any questions or require further assistance.
Disclaimer: This circular provides a general overview of the key implications of the EU-Mercosur Agreement on intellectual property rights. It is not intended to be legal advice and should not be relied upon as such. For specific legal advice tailored to your circumstances, please consult with our attorneys.
