A Direct Action of Unconstitutionality (ADI), which called for the abolition of pipeline patents, has been removed from the daily agenda by the Federal Supreme Court. A prospective date has not been set. The ADI was originally proposed by the Attorney General’s Office in 2009, which calls for the repeal of articles 230 and 231 of the Industrial Property Law of 1996. This law alloweda Brazilian patent to be granted for pharmaceuticals that already obtained a patent in another country.The patent lasts for 20 years.
Whilst patents are recognised as a mechanism for encouraging innovation by placing a monopoly on a new product so that a company may recover research and development costs as well as gain profits, there is controversy within Brazil surrounding the extent of public spending on pipeline patented medicines as a result of this law.