Border Control of Intellectual Property Rights – Brazil

1. Introduction to National Customs Jurisdiction [Description of the legal
basis for Customs administration and organisational relationship with
IP administration, impact of TRIPS agreement, if any]

During the period of military government, which spanned from 1964 until 1984,
Brazil went through a policy of substitution of importation. This policy aimed at
encouraging the growth of the Brazilian industry but the actual results were
actually the overprotection of the national companies, which limited competition
thus making the prices to the final consumer a matter of unilateral decision by
the company offering the products and services and the thriving of the
counterfeiting market.

Without the presence of foreign goods, millions of Brazilians specialised in the
importation of counterfeited goods from Asia and the population became used
to finding such goods in the regular market.

The lack of control of the Brazilian borders was another very relevant factor
which allowed the importation of such goods. Brazil has borders with ten other
Latin American countries, totalling a perimeter of 16,886 Km to administer. This
unique situation, made Brazil become one of the largest importers of
counterfeited goods.

With the end of the military era, Brazil began a very fast but very disorganised
developments process. The opening of the country, which was thirsty for foreign
goods, to the international market created a sudden growth in the importations,
without the corresponding growth in the control of the borders. The
counterfeiting continued but as of 1984, the strong entrance of foreign
companies in the Brazilian market made the government stir a little for a reform
and adaptation of the country to the international regulations.

In the first years after 1984, Brazil also went through several economic crisis
which contributed to the growth of the informal market, which took advantage of
the very cheap counterfeited products coming from abroad.

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