Brazil threatens to scrap restrictions over intellectual property rights of US companies

17 Jun '05

2 min read

Brazilian policymakers announced that they are serious about to remove restrictions on the intellectual property rights of US companies if US administration fails to modify the existing cotton subsidy mechanism.

The deadline, July 1, 2005 was set by the World Trade Organization (WTO) in Geneva that found that US support to cotton farmers, which resulted disruption in world prices by encouraging overproduction.

If US administration fails to resolve the issue before deadline, it would affect a range of US industries that include entertainment, computer software, publishing, biotechnology, and pharmaceuticals.

A spokesperson for US Trade, Rob Portman informed that any talk of Brazilian action is "premature," adding that Washington "intends to meet the terms so there will not be any need for retaliation."

As per the latest industry figures, US cotton farmers received $1.6 billion in subsidies last year, with California growers getting a $144 million share.

Chief executive of the Motion Picture Association of America in Los Angeles and Secretary of Agriculture during the Clinton's administration, Dan Glickman informed that any Brazilian move against US copyrights or patents probably would result in retaliation from US over a number of major Brazilian exports, including commercial aircraft produced by Embraer, which sells many airplanes in the US.

This could result a serious tit-for-tat trade dispute, he added.

Brazilialian officials informed that they are unconvinced with the Bush Administration, which claims to come up with a plan to cut down subsidies to cotton farmers.

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