Newsletter
September 24, 2024
Brazilian CNPQ defines Intellectual Property guidelines for funded inventions
The Brazilian National Council for Scientific and Technological Development (CNPQ), through CNPQ Ordinance No. 1,935 (“Ordinance”), dated September 20, 2024, has established Intellectual Property rules governing the relationship between the CNPQ and project-executing institutions. This includes, but is not limited to, project-executing institutions, researchers, grantees, and other beneficiaries. The full text of the new Ordinance can be found here.
The CNPQ is a public foundation linked to the Ministry of Science, Technology, and Innovation. Its primary functions include promoting scientific, technological, and innovation research. One of its most significant roles is conceding research grants to scientists. As these grants can potentially lead to innovations with economic value, capable of being protected by Intellectual Property rights, there were questions regarding economic rights the CNPQ might have as a research funder. The Ordinance discussed here is therefore important for increasing legal certainty in this regard.
Among the new rules, it is noteworthy that the institution responsible for the research project will have the exclusive right to determine the ownership of the intellectual creations arising therefrom, as well as to establish the rules and responsibilities for the administrative procedures for protecting intellectual creations in Brazil and abroad.
In this sense, the Ordinance is clear in defining that the CNPQ will not receive economic gains resulting from the commercial exploitation of intellectual creations derived from funded projects, and that it is solely up to the entities benefiting from the resources to verify whether the project’s results will produce Intellectual Property rights.
The new Ordinance also mandates that the Intellectual Property rights and obligations be stipulated in the agreements signed between the CNPQ and the institutions and companies executing the funded research projects. Furthermore, the Ordinance establishes that the institutions and companies executing the funded research projects must: (a) assume the costs of protecting Intellectual Property in Brazil and, if applicable, in other countries; (b) ensure the sharing of economic gains from the commercial exploitation of Intellectual Property with the researchers and creators of the intellectual creations; and (c) avoid establishing Intellectual Property protection that generates restrictions that hinder or prevent the development of new technologies.
Finally, the Ordinance establishes that, when a Scientific and Technologial Institution (ICT) holds ownership of the Intellectual Property, it must seek opportunities for its exploitation by third parties through licensing and commercialization.
We will continue to monitor the implementation of the new rules and guidelines for Intellectual Property related to CNPQ funded programs. If you would like more information on this topic, please do not hesitate to contact our partner felipe.monteiro@kasznarleonardos.com.
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