Brazilian Federal Senate approves EU–Mercosur Interim Trade Agreement with intellectual property provisions

Brazilian Federal Senate approves EU–Mercosur Interim Trade Agreement with intellectual property provisions

Interim Trade Agreement (iTA) between Mercosur and the European Union. The agreement, signed in Asunción on 17 January 2026, forms part of the new trade framework between the two blocs and includes a dedicated chapter on intellectual property aimed at harmonizing the protection of rights and enhancing legal certainty for companies operating in both markets.

One of the most detailed aspects of the intellectual property chapter concerns geographical indications (GIs). The agreement establishes a regime of mutual and immediate protection for the denominations listed in an annex to the treaty, prohibiting third parties from using protected terms, even when accompanied by expressions such as “type”, “style” or “imitation”.

Producers that were already using denominations now protected before the cut-off dates established in the agreement — such as “Parmigiano Reggiano” or “Gruyère” — may continue to do so, provided that strict labelling conditions are met. These include the clear indication of the product’s local origin, the prohibition of symbols that could suggest European origin, and the requirement that the protected term be displayed in a font size substantially smaller than the company’s trademark.

The agreement also seeks to balance the protection of geographical indications with existing trademark rights. Trademarks registered or acquired in good faith prior to the protection of a given GI may continue to be used and renewed, provided that they do not mislead consumers. In addition, the text provides that a country is not required to protect a GI where such protection could create confusion in the market due to the prior existence of a famous or widely recognized trademark in the local market.

With respect to patents, the parties undertake to make best efforts to accede to the Patent Cooperation Treaty (PCT) and to ensure that grant procedures take place within a reasonable time frame, thereby preventing administrative delays from effectively shortening the term of protection.

Regarding trademarks, the agreement strengthens the protection afforded to well-known marks by extending the principles of the Paris Convention to services and to situations in which the use of signs on dissimilar goods could harm the interests of the right holder. The parties also undertake to accede to the Madrid Protocol and the Nice Classification, and to maintain public databases and accessible opposition procedures. For Brazil, which is already a member of these systems, the main impact lies in the regulatory harmonization that these obligations promote in the other Mercosur countries.

The chapter also addresses other relevant intellectual property assets. In the field of copyright, it reaffirms commitments to the main international conventions, provides protection against the circumvention of technological protection measures for copyrighted works, and imposes transparency obligations on collective management organizations regarding the distribution of revenues to right holders. Industrial designs and plant varieties receive protection aligned with international standards, while trade secrets are given an explicit definition and specific civil procedures aimed at preventing their misappropriation.

With respect to enforcement, the chapter provides for more robust civil mechanisms to address infringements, including provisional measures to halt violations, mechanisms for the preservation and production of evidence, damages proportionate to the harm caused, and strengthened border control measures for goods suspected of counterfeiting or piracy.

Overall, the agreement is expected to encourage increased filings for trademarks, patents and other industrial property rights by enhancing legal certainty for companies operating between the two blocs. For economic operators in Brazil, the most immediate point of attention will be the need to review trademark portfolios and product labelling in light of the new rules governing geographical indications.

It is worth noting that the agreement concluded between Mercosur and the EU consists of two instruments: the Interim Trade Agreement (iTA), focused on trade disciplines, and the EU–Mercosur Partnership Agreement (EMPA), which has a broader scope. Both instruments still depend on ratification. In the EU, they require the consent of the European Parliament and the adoption of a decision by the Council, while the EMPA additionally requires individual ratification by all Member States. In Mercosur, each country must complete its internal incorporation procedures. In Brazil, following the Senate’s approval of the iTA, the text proceeds to the promulgation of the legislative decree by the President of the National Congress and subsequently to ratification and promulgation by the President of the Republic. The iTA will enter into force only after the completion of these procedures by all parties and will remain applicable until the EMPA eventually enters into force.

The texts of both agreements can be accessed at: EU–Mercosur Partnership Agreement and Interim Trade Agreement.

The Legislative Decree Bill No. 41 of 2026 can be accessed at: PDL 41/2026 – Federal Senate.