Auto Parts: Brazilian Antitrust Authority Recommends the Sanctioning of Car Industries for IP Misuse Of Registered Industrial Designs

In view of the above, CADE understood that restrictions could be applied to the case, since the incentives on creation and innovation, which are the very motivation of IP Law, in the foremarket would not decrease because of the competition brought by independent auto parts manufacturers in the replacement aftermarket. On the other hand, whilst the incentives of the auto industry are not harmed by such competition in the aftermarket, the harms to consumers and to the competition itself in the auto parts market are considerable, since, according to CADE, the industrial design registrations give rise to temporary monopolies in the supply of car parts.