In a unprecedented decision in the Brazilian judiciary, the 2nd Specialized Panel of the Regional Federal Court for the 2nd Region (RFC-2) denied the appeal by Philips against a judgment allowing the National Institute of Industrial Property (a.k.a. “INPI”, the Brazilian Patent and Trademark Office) limitation on the remittance of royalties.

The electronics industry based in Holland had filed a writ of security because the INPI had reduced the percentage for the remittance of 20% (the agreed percentage under contract) to 5% on the net price of sales of laser discs produced in Brazil by Novodisc Brasil Fonográfica Ltda. With the decision unfavorable to their request, Koninklijke Philips Electronics appealed to the RFC-2, which decided to affirm the lower court’s decision.

The payment of royalty refers to the use of technology for production of records based on recordable CD-R system, which is patented by Philips. The Dutch company argued that the law does not allow the INPI the power to limit the remittance of royalties set by contract between companies that are not connected, such as the agreement between Philips and Novodisc.

Click here for the full story (in Portuguese).

Source: RFC-2

 

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