São Paulo- The rules that govern international trade were the topic of the workshop International Law, led by attorneys at law Cinthya Imano and Luiz Gustavo Haddad this Wednesday (18th). The event was held by the Arab Brazilian Chamber of Commerce in São Paulo and attended by executives.
Imano, from the law firm Almeida Prado e Hoffmann Advogados, spoke on the Madrid Protocol, which was established in the 1980s, but only became effective in 1996. The agreement currently has 96 signatory countries, including Arab ones, and allows businesses in these countries to apply for a single register for all member countries.
Brazil hasn’t adhered so far. Therefore, a Brazilian company looking to operate abroad must register its brand individually in each of the countries it intends to sell to.
“Unfortunately, Brazil is not a signatory of the Madrid Protocol. Its adhesion has been under discussion for some 15 years. Some organizations believe that joining the Madrid Protocol would lead to depreciation of Brazilian brands. On the other hand, some Brazilian organizations are highly particular to the Madrid agreement. For instance, the Federation of Industries of São Paulo and Rio de Janeiro are the biggest supporters, and so is the National Confederation of Industries. In their understanding, the impact on Brazilian trade and on the presence of Brazilian brands abroad will be huge,” Imano said.
The attorney said Brazil has the world’s fifth highest brand registration numbers. “The monthly average is 5,000-7,000 brand registration applications,” she said. In order for Brazil to sign the treaty, it must be approved by the National Congress and sanctioned by the Executive Power. According to Imano, the subject was last discussed by the Brazilian government in 2012.
According to her, one of the biggest hurdles to Brazil’s signing of the Madrid Protocol is a potential lack of structure on the part of the National Institute of Industrial Property (INPI), the organization in charge of brand registration, to meet the demand for registration of international brands that would ensue. “The biggest issue is this: is the INPI ready to provide international services, seeing that, a lot of times, it is questioned even on its domestic efficiency?,” the attorney pointed out.
Imano noted that as per Madrid Protocol rules, once a brand’s international registration has been accepted, it remains valid for ten years, with an option of renewal for another ten. Another advantage for Brazilian companies should the country adhere would be lower fees, since the international registration application under the Madrid Protocol only implies one fee.
Despite the prospective advantages to Brazilian trade, there are no forecasts concerning when the country might sign. “The discussion is growing ever bigger. There are no prospects of signing, but trade and industry organizations are increasingly encouraging our adhesion, trying more and more to prove the advantages of a national brand’s being able to compete with an international one,” she said.
Agreements
Luís Gustavo Haddad, a partner at law firm Lilla, Huck, Otranto e Camargo Advogados, spoke on the Vienna Convention, which sets the rules for international contracts of sale and purchase of goods among signatory countries.
The convention was signed by Brazil in 1980, but went into force only in October 2014. At this time, the Vienna Convention counts on 79 signatory countries. “This convention’s signatories are estimated to account for over 75% of global trade,” Haddad remarked.
He stressed that signatories include major Brazilian trade partners of the likes of Argentina, Germany, United States, China, and Japan, as well as Arab countries such as Egypt, Lebanon, Iraq, and Syria.
At the event, Haddad provided details on how an agreement for the sale and purchase of goods must be formulated in keeping with the convention’s rules. Its terms include preparation of the sale offer, the conversion of the offer into an agreement, the agreement’s acceptance by the buyer, potential breaches of agreement, and how they can be worked out.
“The convention offers added safety to international agreements. There is the perception that international agreements entail higher sums of cash and require more trust, since the parties are far apart, and therefore incur bigger risks. Thus, the stability of contractual relationship needs reinforcing,” he stressed.
The attorney also talked about Brazil’s new Civil Procedure Code, set to enter into effect next year, and how it might affect international trade.
He pointed out that the biggest change concerns conflict resolution between parties. Currently, even if an agreement appoints foreign court jurisdiction for settling contractual issues, in case the agreement’s obligations, such as the shipping of goods, are to take place in Brazil, then the case can be tried in a Brazilian court. “With the new code, the appointing of a foreign court rules out Brazilian jurisdiction,” the attorney explained.
*Translated by Gabriel Pomerancblum
