[Federal Register Volume 65, Number 111 (Thursday, June 8, 2000)]
[Notices]
[Pages 36498-36499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14511]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/D-199]


WTO Consultation Regarding Brazil--Patent Protection

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; request for comments.

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SUMMARY: The Office of the United States Trade Representative (USTR) is 
providing notice that on May 31, 2000, the United States requested 
consultants with Brazil under the Marrakesh Agreement Establishing the 
World Trade Organization (WTO), regarding provisions in Brazil's patent 
regime that establish a ``local working'' requirement for the enjoyment 
of exclusive patent rights that can only be satisfied by the local 
production--and not the importation--of the patented subject matter. 
The United States considers that such a requirement is inconsistent 
with Brazil's obligations under Articles 27 and 28 of the Trade-Related 
Aspects of Intellectual Property Rights (TRIPS Agreement), and Article 
III of the General Agreement on Tariffs and Trade 1994 (GATT 1994). 
Pursuant to Article 4.3 of the WTO Dispute Settlement Understanding 
(DSU), such consultations are to take place within a period of 30 days 
from the date of the request, or within a period otherwise mutually 
agreed between the United States and Brazil. USTR invites written 
comments from the public concerning the issues raised on this dispute.

DATES: Although USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before July 28, 2000, to be assured of timely 
consideration by USTR.

ADDRESSES: Submit comments to Sandy McKinzy, Monitoring and Enforcement 
Unit, Office of the General Counsel, Room 122, Office of the United 
States Trade Representative, 600 17th Street, N.W.,, Washington, DC, 
20508, Attn: Brazil--Patent Protection Dispute. Telephone: (202) 395-
3582.

FOR FURTHER INFORMATION CONTACT: Stephen Kho, Assistant General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, N.W., Washington, DC, (202) 395-3581.

SUPPLEMENTARY INFORMATION: Section 127(b) of the Uruguay Round 
Agreements Act (URAA) (19 U.S.C. 3537(b)(1)) requires that notice and 
opportunity for comment be provided after the United States submits or 
receives a request for the establishment of a WTO dispute settlement 
panel. Consistent with this obligation, but in an effort to provide 
additional opportunity for comment, USTR is providing notice that 
consultations have been requested pursuant to the WTO Dispute 
Settlement Understanding. If such consultations should fail to resolve 
the matter and a dispute settlement panel is established pursuant to 
the DSU, such panel, which would hold its meetings in Geneva, 
Switzerland, would be expected to issue a report on its findings and 
recommendations within six to nine months after it is established.

Major Issues Raised by the United States

    Although Brazil has a largely WTO-consistent patent regime that has 
been in place for some time, there remains a longstanding difference of 
views between the United States and Brazil over a narrow provision in 
the TRIPS

[[Page 36499]]

Agreement that the United States considers Brazil to be violating. 
Specifically, the United States is concerned about provisions of 
Brazil's 1996 industrial property law (Law No. 9,279 of May 14, 1996; 
effective may 1997) and other related statutes and regulations, which 
establish a ``local working '' requirement for the enjoyment of 
exclusive patent rights that can only be satisfied by the local 
production--and not the importation--of the patented subject matter.
    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 worked''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.
    Having been unable to resolve this difference over the past five 
years, the United States decided to resort to WTO dispute settlement 
procedures and on May 31, 2000, requested consultations with Brazil.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. Comments must be in 
English and provided in fifteen copies. A person requesting that 
information contained in a comment submitted by that person be treated 
as confidential business information must certify that such information 
is business confidential and would not customarily be released to the 
public by the commenter. Confidential business information must be 
clearly marked ``BUSINESS CONFIDENTIAL'' in a contrasting color ink at 
the top of each page of each copy.
    Information or advice contained in a comment submitted, other than 
business confidential information, may be determined by USTR to be 
confidential in accordance with section 135(g)(2) of the Trade Act of 
1974 (19 U.S.C. 2155(g)(2)). If the submitter believes that information 
or advice may qualify as such, the submitter--
    (1) Must so designate the information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
in a contrasting color ink at the top of each page of each copy; and
    (3) Is encouraged to provide a non-confidential summary of the 
information or advice.
    Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), USTR 
will maintain a file on this dispute settlement proceeding, accessible 
to the public, in the USTR Reading Room: Room 101, Office of the United 
States Trade Representative, 600 17th Street, N.W., Washington, D.C. 
20508. The public file will include a listing of any comments received 
by USTR from the public with respect to the dispute; if a dispute 
settlement panel is convened, the U.S. submissions to that panel, the 
submissions, or non-confidential summaries of submissions, to the panel 
received from other participants in the dispute, as well as the report 
of the panel; and, if applicable, the report of the Appellate Body. An 
appointment to review the public file (Docket WTO/D-199, Brazil--Patent 
Protection) may be made by calling Brenda Webb, (202) 395-6186. The 
USTR Reading Room is open to the public from 9:30 a.m. to 12 noon and 1 
p.m. to 4 p.m., Monday through Friday.

A. Jane Bradley,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 00-14511 Filed 6-7-00; 8:45 am]
BILLING CODE 3190-01-M