It is known that intellectual property (IP) can be used as a policy tool during moments of geopolitical tension and commercial retaliation, particularly in the context of international disputes.

Brazil’s new Law 15,122/2025 sets forth IP-related countermeasures that could affect licensing, royalties and tech transfer deals for global companies.

Concerning Brazil, Law No. 12,270, enacted in 2010, was a legislative response to the need for domestic mechanisms to implement trade retaliation under the World Trade Organization (WTO) Dispute Settlement system. Its goal was to enable the Brazilian government to act, when authorized, against foreign violations of trade commitments, including by suspending obligations related to intellectual property rights. The law was introduced in the context of disputes such as the cotton case against the United States, in which Brazil sought to restore fair competition in the face of inconsistent agricultural subsidies.

The idea of retaliating through the suspension of trade or IP concessions regained prominence after the European Union’s environmental import restrictions and later with the U.S. “Trump tariffs.” Therefore, Brazil enacted Law No. 15,122/2025, that authorizes the federal government to adopt countermeasures against countries or economic blocs that impose unilateral measures detrimental to Brazilian trade, investment, or competitiveness.

This new legislation broadens the scope of retaliation by creating other procedures to enable the suspension of IP rights, the withholding of royalties and other commercial obligations — on an exceptional basis but without the procedure established by Law No. 12,270/2010.

The law’s innovation lies not in enabling retaliation but in the process to implement such measures, with the tools made available to the Executive - now authorized to act not only after a WTO proceeding but also unilaterally and provisionally in response to foreign practices deemed harmful: restrictions on the importation of goods and services, suspension of commercial and investment concessions, and, in more sensitive cases, the suspension of obligations related to intellectual property. This may include, for example, the withholding of royalty payments or the suspension of protections for patents, trademarks, software, and other intangible assets held by foreign companies.

This shift allows a more agile and strategic response to external regulatory pressure—especially where such measures affect Brazil’s trade exposure and economic sovereignty.

While the law creates new possibilities for unilateral action in defense of national competitiveness, it also raises practical and diplomatic challenges. Unilateral countermeasures—especially involving intellectual property—could lead to claims of breach under the TRIPS Agreement and trigger retaliation or reputational damage.

Thus, the use of such measures, especially those involving intellectual property rights, must be carefully weighed against potential disputes and reputational risks in international forums. The challenge lies in balancing national regulatory autonomy with the stability and predictability needed to support international trade and innovation ecosystems.

Article 5 of the updated law sets out procedural safeguards for implementing trade countermeasures. It requires the government to regulate the process through public consultations, define clear timelines for the analysis of each case, and provide formal recommendations for possible retaliatory actions. These steps aim to ensure transparency, stakeholder engagement, and a structured decision-making process—particularly important when measures may affect sensitive areas such as intellectual property or access to foreign markets.

Additionally, the law adds an important caveat: IP-related measures are to be treated as a last resort, only when other options prove inadequate. This recognizes the sensitive nature of IP in global supply chains and the potential fallout from targeting these rights in high-value sectors such as pharmaceuticals and technology.

Nevertheless, given this scenario, it is imperative for companies — especially those operating across borders or with exposure to foreign IP portfolios— to review their intangible assets and strengthen their contractual and regulatory strategies.

Adopting a proactive approach to legal compliance and risk management is essential to mitigate the potential effects of this legislation. Strategic measures may include reviewing licensing agreements, analyzing IP-related contractual clauses, and implementing dispute resolution mechanisms, while actively monitoring these developments and understanding the implications of potential countermeasures—actions that can offer greater legal certainty.

Ultimately, Law No. 15,122/2025 highlights the need for prudent IP asset management and a robust legal protection strategy.

[IP rights in Brazil; Law 15,122/2025 impact; Brazil trade countermeasures; Foreign intangible asset risk; Intellectual property compliance in Brazil]

Talita Orsini de Castro Garcia Partner, Intellectual Property | [email protected]

Isabela Zumstein Guido – Lawyer, Intellectual Property | [email protected]