FAS Advogados, in cooperation with CMS

The promise of reducing accidents and revolutionizing sectors such as automakers and insurance companies faces an urgent challenge: creating clear rules to allow testing and safe circulation of autonomous vehicles on the streets. Thinking about autonomous vehicles may seem futuristic, but it is also a reflection on the present. In Europe, different countries have already regulated the development and introduction of the technology in traffic, such as Germany, the first country in the world to do so in 2021, and the United Kingdom, very recently. In the United States, a pioneer country for autonomous vehicles (“AV”), commercial AV based mobility service provider like Uber and Waymo are already on the market and in the US-States Texas and California local state regulation are already in place. Comparing the existing legal framework for AV vehicles globally for instance the liability for car crashes is regulated inconsistent. Further, research showed that the regulatory framework for AVs follows two different regulatory approaches: the pro-business approach, leaving the providers freedom and the regulatory approach which tries to eliminate the security risk of the AVs. In Brazil, the first car to travel on urban roads for more than 70 km was IARA in 2017, a technology developed by the Federal University of Espírito Santo. Today, it is applied in port operations and logistics through the Espírito Santo-based startup Lume Robotics, involving different companies in the sector and state entities. However, the regulatory scenario does not keep up with the speed of Brazilian innovation. Although Bill 1317/2023 is currently proceeding in the National Congress, although its current text has much to gain from the maturity of international experiences. Given the expectation that it will enhance traffic safety, grant mobility also for elderly or handicapped people, secure extra time to driver for emails or reading as well as have repercussions on several sectors of the economy, such as in-car entertainment providers and insurance companies, if the impact of autonomous driving is as significant as expected, it is essential to have clear rules that ensure precisely this purpose. It must be avoided that over regulation hinders the development of AV businesses by determining only allowed and prohibited safety limits. Further, inconsistent rules regarding the driver’s liability for car crashes caused or not by a malfunction of the driving system will discourage customers to rely on their driving system or pay extra for the auto pilot/driving assistant. This is because the promise that technology will increase traffic safety by reducing the human error factor, significantly lowering accident rates, has as a counterpart the relevant risk of system’s decision or failures that cause lethal or non-lethal accidents. Also, it cannot be ignored that traffic is an essentially human environment, filled with unpredictable and uncontrollable factors, such as a pedestrian crossing outside the crosswalk or countless other examples. In other words, the current moment in Brazil is not only important, but indeed essential and it represents an opportunity to allow autonomous driving to be truly safe in the Brazilian experience. So, what can we learn from international experiences? Changing traffic rules is a sensitive endeavor, with various implications and challenges related to social and institutional acceptance. From the perspective of international experience, we observe the conservative German approach and the British model, which already establishes preliminary liability for insurers. Within the scope of this brief reflection, we turn to the legal developments taking place in the United States. Despite the contrast between California and Texas laws, both states are concerned with identifying the human presence in the safe operation of autonomous driving. While California requires a human operator who, to some extent, monitors the circulating vehicles remotely or onboard, Texas law lacks clarity regarding continuous monitoring. However, it imposes duties on the manufacturer and the owner to keep the autonomous driving system (SAE levels 4 and 5[1]) operating in accordance with traffic laws. Despite their differences, both regulations aim to ensure safety and damage reduction measures, especially for the manufacturer. In other words, starting from the freedom-responsibility binomial as a premise, it is up to the manufacturer to do everything within their reach to ensure that autonomous driving is as safe as possible for passengers and the entire community. In other words, acting freely, because it is allowed or not prohibited by law, imposes duties and precautions whose noncompliance may lead to significant legal consequences. Just imagine an accident, caused or not by a malfunction in the system, resulting in serious injuries or even the death of one of the parties involved. Note that the same example may be applicable, for instance, to a hypothetical test on a highway and to a not-so-distant future of app-based passenger transport. Texas regulation generically imposes the duty of safety, requiring autonomous driving to comply with traffic laws and be licensed by regulatory agencies. California law, for example, requires that, during the testing phases, companies have a human operator who, in real time, monitors the operation of each of the vehicles. This remote operator, according to the text, must be able to take control of the vehicle remotely and place it in a minimum risk condition and be trained to “safely execute the duties,” including how to react to dangerous situations and potential accidents. Although imperfect, the experiences of California and Texas can serve as guidance, especially due to the importance of imposing, at the regulatory level, guidelines on safety duties and organizing the bureaucracy related to licenses and specific authorizations from regulatory agencies. In Brazil, the legal gap presents, on one side, the challenge of technological development under the risks of a lack of legal and regulatory support, and on the other side, the opportunity to discuss and propose the adaptation of this development to the Brazilian legal system. Companies already operating or planning to operate in Brazil face a complex scenario, in which the notion of safety and care must be suited to these circumstances. We have the chance now that we don’t just adapt a foreign legal regimes but discuss the different regulatory approaches and develop a tailored legal framework which suits best to the Brazil country. Rodrigo Sardenberg Senior Associate Compliance, Business Investigations and White-Collar Crime FAS Advogados in cooperation with CMS Martin Wodraschke Head of CMS Automotive & Mobility IFG CEE German Practice – CMS Law Firm [1] Society of Automotive Engineers – SAE is the international entity that, together with the International Organization for Standardization – ISO, develops technical standards for the development and circulation of autonomous vehicle technology. The automation levels listed by these entities range from 0 to 5. Level 3 defines conditional automated driving, while levels 4 and 5 differ between high and full driving automation, meaning that the driver's/passenger's level of attention is an important distinguishing factor.

The arrival of Ruy Toledo Piza marks the expansion of the firm’s sectoral reach and reinforces its commitment to specialization and sustainable development FAS Advogados announces the addition of Ruy Toledo Piza as a new partner and the launch of its Agribusiness practice, one of the most strategic sectors for Brazil’s development, now with a dedicated team within the firm. With strong full-service capabilities and a practice aligned with market transformations, FAS takes another step in its expansion—combining legal expertise with key sectors of the national economy. According to Paulo Focaccia, Managing Partner of FAS Advogados, this decision strengthens the firm’s strategy of sustainable growth and investment in cross-practice capabilities that deliver greater value to clients: “We position ourselves as a full-service law firm and want to continue bringing in partners whose profiles align with our culture and structure. Agribusiness has long been part of FAS’s scope through a diverse client portfolio. Now, with Ruy’s arrival, we can serve this sector with even greater technical depth and practical insight. Agribusiness is undoubtedly one of the main drivers of the Brazilian economy and brings challenges and opportunities that connect to multiple legal areas—making its impact truly cross-practice within the firm.” Legal Specialization to Drive the Sector that Fuels Brazil With extensive experience advising companies and investors in the sector, Ruy Toledo Piza will lead the new practice with the goal of offering modern, integrated legal solutions tailored to the complexity of agribusiness. “Brazilian agribusiness faces sophisticated legal challenges, ranging from land and environmental issues to the structuring of national and international contracts and financing models. Our role as specialized lawyers is to anticipate risks, prevent disputes, and support clients in meeting ESG goals and obligations—always with a strategic approach aligned with market evolution,” notes Ruy. He also highlights the sector’s transformation in recent years, driven by the entry of new players, rising regulatory demands, and increased participation of the capital markets: “With the steady growth of private sector participation in agribusiness financing, the number of transactions, regulations, and disputes has also increased. Lawyers with technical knowledge and hands-on experience in the production chain are essential to turning these challenges into opportunities and enhancing Brazil’s competitiveness on the global stage.” Why FAS? Culture, Strategy, and Client Commitment Ruy’s decision to join FAS was a strategic one, as he sees in the firm an environment of innovation, client dedication, and a strong vision for the future: “FAS has a culture that blends innovation, strategy, and a genuine closeness to its clients’ real challenges. The creation of an Agribusiness practice fills a gap that will now be addressed with an approach connected to the realities of the field, yet delivered with high technical standards and tailor-made legal solutions. I am confident that, with the team’s expertise and the firm’s structure, we can develop a robust practice with meaningful impact for the sector and for the country’s sustainable development.” About FAS Advogados FAS Advogados, in cooperation with CMS, is a full-service law firm with both national and international reach. With a strong emphasis on governance, innovation, and technical excellence, the firm supports companies across multiple industries in building modern, sustainable legal solutions aligned with market transformations. The arrival of new partners and the creation of specialized practices reflect the firm’s commitment to continuous evolution and to generating value for its clients.

Firm strengthens its practice areas and reaffirms its commitment to organic growth, equity, and legal excellence FAS Advogados announces the addition of four new partners to its partnership, reinforcing its position as a full-service firm aligned with the highest standards of governance. The new partners, Fernanda Muniz Borges (Labor & Employment) and Karine Oliveira (Banking & Finance), have built their careers within FAS and advanced internally. Meanwhile, Renan Valverde Granja (Debt Capital Markets) and Ruy Toledo Piza (Agribusiness) join from the market, contributing to the diversification of the firm’s practice areas – including the creation of a new Agribusiness practice. Commitment to Organic Growth and Female Leadership The promotions of Fernanda and Karine reflect FAS’s commitment to recognizing internal talent and fostering a culture of opportunity built on transparency, meritocracy, and continuous development. Furthermore, the advancement of these two professionals to partnership highlights the strength of female leadership within the firm—an essential value in FAS’s equity strategy. The presence of women in strategic positions is considered a fundamental pillar in building a more diverse, representative, and innovative environment. “We are building a firm where people can reach their full potential while upholding our governance guidelines and values. The promotion of our two new partners marks this new cycle and shows we are on the right track,” said Managing Partner Paulo Focaccia. “Becoming a partner is a source of great pride for me. It represents the recognition of a career built with dedication, collaboration, and alignment with the firm’s values,” said Fernanda Borges, Partner in the Labor & Employment practice. “Becoming a partner after starting here as an intern is the recognition of a journey built with purpose, collaboration, and commitment,” added Karine Oliveira, Partner in the Banking & Finance practice. Strengthening Strategic Practices with Market-Hired Partners In addition to internal promotions, FAS strengthens its team with the arrival of two experienced and highly regarded professionals in their fields. Renan Granja will be responsible for expanding the firm’s capabilities in Debt Capital Markets, while Ruy Toledo Piza launches the new Agribusiness practice—a key sector of the Brazilian economy and already part of FAS’s client portfolio. “Renan’s addition further strengthens our Banking & Finance practice, with a focus on Debt Capital Markets, an area in constant evolution. As for Agribusiness, we have been working with the sector for some time, and now, with Ruy, we will serve it with even greater specialization, connecting it to various other practices within the firm,” said Paulo Focaccia. “My decision to join FAS was motivated by the firm’s reputation, strategic vision, and genuine commitment to investing in the Debt Capital Markets area. I want to actively contribute to the growth of the practice and participate in high-profile transactions,” said Renan Granja. “FAS has a culture that combines innovation, strategic vision, and a close connection to the real challenges faced by its clients. This motivated me to bring my experience to the firm because I believe in the potential of joining a dynamic team that delivers modern, tailor-made legal solutions for sectors that drive the country’s economy—Agribusiness being one of the areas that FAS Advogados was keen to strengthen,” said Ruy Piza. New Governance and Career Progression Plan The expansion of the partnership comes at a strategic moment, marked by the implementation of new governance and career progression policies. Introduced in 2024, these guidelines establish clear and objective criteria for internal advancement and the integration of new partners. “Professionals nominated for partnership must present a solid business plan, including market analysis and a strategy for adding value. This was a decisive factor for both internal promotions and new hires,” emphasized Focaccia. About FAS Advogados FAS Advogados, in cooperation with CMS, is a full-service law firm with national and international reach. With a strong focus on governance, innovation, and technical excellence, the firm supports companies from a wide range of industries in building modern, sustainable legal solutions aligned with market transformations. The arrival of new partners and the creation of specialized practices reflect the firm’s commitment to continuous evolution and generating value for its clients.