Brazilian Antitrust Authority, CADE, to Pre-Approve Licensing Agreements

Brazilian Antitrust Authority, CADE, to Pre-Approve Licensing Agreements

Post on August 14, 2013, 3:00 pm by the-victoria-law-group 20 Comments

One step up and two steps back is not an inaccurate way to describe doing business in Brazil.  Just when you think the bureaucracy is starting to implement policies that make it easier to do business in the country, the Brazilian government does something to surprise you.  Every capitalist country should stimulate competition. That’s the right formula to drop the market price to consumer and to promote new technology. Of course, competition and new technology spread thought-out the world and Governments need to pass regulations to protect the market and the people. Nonetheless, excessive compliance laws should not be a burden on the private sector because not only stimulates corruption but also discourage investment and competition. In Brazil, Brazilian Federal antitrust authority CADE ruled last Wednesday that technology licensing agreements, even if containing no restrictive covenants, must be submitted to its previous approval. The agency justified the request on the possibility of such contracts having potential impacts on competition. In its announcement, CADE also mentioned that several other types of contracts with potential antitrust consequences continue to be subject to its approval, like, e.g., contracts combining strategies for research funding with tactics to reach markets and other contractual clauses which may cause the progressive suppression of competition. The intention is good and understandable but should the private sector really carry this burden of filling more documents with the Brazilian authority?

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Filed Under: Business in Brazil

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