VZCZCXRO5577
RR RUEHAST RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHTM RUEHTRO
DE RUEHBR #0401/01 0902033
ZNR UUUUU ZZH
R 312033Z MAR 09
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 3963
INFO RUEHSO/AMCONSUL SAO PAULO 3817
RUEHRI/AMCONSUL RIO DE JANEIRO 7518
RUEHRG/AMCONSUL RECIFE 9323
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUEHRC/USDA FAS WASHDC

UNCLAS SECTION 01 OF 10 BRASILIA 000401 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR OES/ENRC SEZANEH SEYMOUR 
 
E.O. 12958: N/A 
TAGS: SENV EAGR ECON ETRD KIPR TBIO KPAO BR
SUBJECT:  BRAZIL'S ENTHUSIATIC, THOUGH COMPLICATED, APPROACH TO 
ACCESS AND BENEFIT SHARING OF GENETIC RESOURCES 
 
REF:  A) STATE 9667, B) BRASILIA 265, C) 2008 BRASILIA 1159 
 
BRASILIA 00000401  001.2 OF 010 
 
 
(U)  THIS CABLE IS SENSITIVE BUT UNCLASSIFIED AND NOT FOR INTERNET 
DISTRIBUTION. 
 
¶1.  (SBU) SUMMARY.  Brazil has constructed a complex regime to 
govern access to and benefit sharing of genetic resources. 
Provisional Measure No. 2186-16 and its implementing rules and 
regulations establish the requirements in this field.  The intended 
purpose for collecting the genetic resources - whether for 
commercial or non-commercial purposes - determines the steps to be 
taken.  While the national government claims an ownership interest 
in genetic resources in Brazil, other stakeholders also can make 
claims, such as state and local governments, private landowners, and 
indigenous groups.  This complicates the process of obtaining 
access.  Further, the situation becomes very difficult when dealing 
with traditional knowledge and the issue of which party can provide 
the required Prior Informed Consent for access to such knowledge. 
 
¶2.  (SBU) SUMMARY CONTINUED.  Moreover, the Brazilian Institute of 
Industrial Property (INPI) has issued Resolution No. 134 (which 
entered into force on January 1, 2007), that requires in most new 
cases that the applicant declare to INPI "that it has complied with 
provisions of Provisional Measure No. 2186-16, informing, yet the 
number and date of authorization to relevant access, and the origin 
of the genetic material and associated traditional knowledge, where 
appropriate."  Finally, the national government is working on 
proposed new legislation to supersede Provisional Measure No. 
2186-16, but it has not yet submitted this proposal to congress. 
This cable provides responses keyed to the questions posed in REFTEL 
¶A.  END SUMMARY. 
 
BACKGROUND 
 
¶3.  (SBU) From the start, Brazil has been an active supporter of the 
Convention on Biological Diversity (CBD).  From President Luiz 
Inacio Lula da Silva, to Environment Minister Carlos Minc and 
Minister of Exterior Relations (MRE) Celso Amorin, down to the 
average Brazilian, the Government of Brazil (GOB) speaks of the 
enormous "green" gold in their country.  In a recent meeting with 
the Ambassador, Minister Minc repeatedly urged the United States to 
become a party to the CBD.  Minc stressed that the CBD is critical, 
particularly in making sure that Brazil and other developing 
countries rich in biodiversity are not taken advantage of by 
developed nations.  (See REFTEL B.) 
 
¶4.  (SBU) Brazil became a party to the CBD on February 28, 1994.  It 
rushed to put in place rules governing access and benefit sharing of 
genetic resources.  In 1995, Senator Marina Silva proposed 
legislation to regulate access and benefit sharing.  In response to 
a contract in June 2000 between Novartis and Bioamazonia, the 
government prepared a Provisional Measure, which was subsequently 
revised and reissued on August 23, 2001 as Provisional Measure No. 
2186-16.  Since then there have been various decrees and other 
implementing rules in the field.  The government is working on a 
proposal for a new and very detailed law about the collection of 
biological materials and access to and benefit sharing of genetic 
resources and traditional knowledge.  A draft of that proposal was 
released in 2008 for public comment.  The proposal has not yet been 
finalized for submission to congress.  COMMENT.  The legislative 
process in Brazil is usually long and unpredictable So it is unclear 
exactly when legislation on genetic resources will be enacted by 
congress.  END COMMENT. 
 
¶5.  (SBU)  Currently, there is a wide range of federal actors that 
are or can become involved with any case involving genetic 
resources.  These include:  the National Management Council on 
Genetic Resources (CGEN), the Environment Ministry, and the 
Brazilian Environment Institute for Renewable Natural Resources 
(IBAMA), the National Defense Council, and National Indian 
Foundation (FUNAI).  Traditional knowledge issues became far more 
difficult to deal with, as this brings in the local tribes and 
communities. 
 
¶6.  (SBU) Below are responses keyed to the questions - IN ALL 
CAPITAL LETTERS - posed in REFTEL A. 
 
¶A.  LEGISLATION AND REGULATION OF RESEARCH ON BIOLOGICAL RESOURCES 
 
WHAT ARE THE RELEVANT LAWS AND PROCEDURES THAT RESEARCHERS MUST 
FULFILL IN ORDER TO CONDUCT RESEARCH ABOUT BIOLOGICAL OR GENETIC 
RESOURCES, INCLUDING RESEARCH PERMITS AND VISAS? 
 
The relevant laws and regulations regarding research of biological 
 
BRASILIA 00000401  002.2 OF 010 
 
 
or genetic resources in Brazil are: 
 
- Provisional Measure 2186-16 dated August 23, 2001 
- Presidential Decree No. 98,830 dated January 15, 1990 
- IBAMA Normative Instruction No. 154 dated March 1, 2007 
- CGEN's resolutions (34 so far). 
 
Government authorization is required for access to and shipment of 
genetic resources (referred to as "genetic heritage") and/or access 
to associated traditional knowledge for the purposes of scientific 
research. 
 
-- IN SITU COLLECTION.  Foreigners can only participate in an 
expedition to collect "in situ" samples of genetic heritage or 
associated traditional knowledge if their institution partners with 
a Brazilian institution, which must coordinate the research and is 
the only one that can request the necessary authorizations from the 
competent agencies and bodies.  The details on how research shall be 
conducted by foreign entities are in Presidential Decree No. 98,830 
dated January 15, 1990. 
 
Provisional Measure No. 2186-16 governs access to genetic heritage 
existing in "in situ" conditions, within the Brazilian territory, on 
the continental shelf and in the exclusive economic zone, and access 
to associated traditional knowledge.  It provides that this access 
shall take place by collecting samples and information, 
respectively, and will only be authorized to Brazilian, public or 
private, institutions that carry out research and development in 
biological and related areas. 
 
The person responsible for a collection expedition shall, at the 
conclusion of his activities in each accessed area, sign with the 
landowner, or his representative, a declaration containing a list of 
the accessed material, in accordance with complementary legislation. 
 In cases where the landowner or his representative is not 
identified or found during the collection expedition, the 
declaration containing the list of the accessed material shall be 
signed by the person responsible for the expedition and forwarded to 
CGEN. 
 
A representative sub-sample of the accessed genetic heritage 
component shall be deposited in a "ex situ" collection at an 
institution accredited as trustee by the law. 
 
(NOTE.  Brazilian Agriculture Ministry officials say that the 
requirements for requesting permission for collecting "in situ" 
samples are onerous.  As a practical matter, their ministry either 
finds the genetic materials they are looking for in "ex situ" 
collections or just don't bother trying to collect.  END NOTE.) 
 
-- AUTHORIZATION FOR ACCESS AND SHIPMENT.  Authorization for access 
and shipment of samples of genetic heritage components of an endemic 
or an endangered species will depend on the prior informed consent 
of the competent body.  Authorization shall be given after the prior 
informed consent of: 
 
- The indigenous community involved, after consulting the official 
Indian Affairs body, when the access occurs in indigenous lands; 
 
- The competent body, when access occurs in protected area; 
 
- The owner of the private area, when the access occurs in private 
areas; 
 
- The National Defense Council, when the access takes place in an 
area essential for national security; 
 
- The maritime authority, when the access takes place in Brazilian 
jurisdictional waters, on the continental shelf and in the exclusive 
economic zone. 
 
The holder of the "Authorization for Access and Shipment" is 
responsible for compensating the owner of the area for any damage or 
harm incurred. 
 
The institution holding an "Authorization for Access and Shipment" 
shall forward to CGEN the required consents.  Non-compliance will 
result in its cancellation. 
 
-- PUBLIC INTEREST OVERRIDES NEED FOR PRIOR CONSENT.  In the 
instances of national public interest, cases which will be defined 
in CGEN Resolution No. 8, entrance into public or private area for 
access to samples of genetic heritage components can be done so 
without the prior consent of titleholders. 
 
BRASILIA 00000401  003.2 OF 010 
 
 
 
-- EX SITU SAMPLES.  "Ex situ" conservation of samples of genetic 
heritage components is to be carried out on Brazilian territory, and 
may also, with prior decision of CGEN, be carried out abroad.  "Ex 
situ" collections of samples of genetic heritage components must be 
registered with CGEN, though CGEN may delegate the registration to 
one or more accredited institutions. 
 
WHICH GOVERNMENT AGENCIES ARE RESPONSIBLE FOR ISSUING SUCH PERMITS 
AND SUPERVISING RESEARCHERS?  IS THIS DONE AT THE NATIONAL, STATE, 
OR LOCAL LEVEL?  AT MULTIPLE LEVELS?  ARE THE TERMS AND CONDITIONS 
THAT ADDRESS THE CONCEPT OF MUTUALLY AGREED TERMS FOR RESEARCH 
PERMISSION AND THE SHARING OF BENEFITS GENERAL OR SPECIFIC (I.E., 
GEARED TO THE SPECIFIC COLLECTION ACTIVITY)? 
 
-- GOVERNMENT AGENCIES ISSUING PERMITS.  The agency or agencies 
issuing the permissions for collecting genetic materials depend on 
(1) the purpose of the collection - either for commercial objectives 
(referred to as "potential for economic use") or non-commercial 
purposes and (2) where the genetic resources are located.  The 
national government is involved in all cases involving genetic 
resources, though sometimes state or local or tribal authorities, as 
well as the private sector, may also play a role.  As discussed 
under Question D below, the terms and conditions of the mutually 
agreed terms will differ when collecting for commercial purposes 
versus non-commercial ones. 
 
- IBAMA grants authorization to access of the genetic heritage 
components for scientific research without commercial objectives 
(referred to as "potential for economic use")and that does not 
involve access to the associated traditional knowledge.  IBAMA is 
also responsible for authorization of research activities in Federal 
Conservation Units. 
 
- If the access to the genetic heritage components refers to 
scientific research with potential for economic use, such as 
bio-prospecting or technological development or involves access to 
associated traditional knowledge, the authorization is issued by 
CGEN. 
 
- The National Council for Scientific and Technological Development 
(CNPq), which is part of the Ministry of Science and Technology, is 
responsible for the authorization of scientific expeditions 
involving the participation of foreigners.  After that authorization 
is granted for scientific research purposes, IBAMA must grant the 
access and shipment authorization. If the foreign scientist or 
institution is participating in the access to the associated 
traditional knowledge, CGEN must grant authority for such activity 
together with the Ministry of Science and Technology's decision. 
 
- The National Defense Council will grant authorization when the 
access takes place in an area essential for national security.  The 
Ministry of Foreign Relations (MRE) may also be part of the decision 
depending on the purpose of the research or activity.  The Marine 
Command of the Ministry of Defense will be responsible when the 
access takes place in Brazilian jurisdictional waters, on the 
continental shelf and in the exclusive economic zone. 
 
- The National Indian Foundation (FUNAI) grants authorization when 
the access to genetic resources occurs in indigenous lands.  After 
the access authorization has been granted, CGEN will grant 
authorization for the collection of biological species and genetic 
resources inside indigenous lands.  Details on how to request 
authorization from Indian and local communities can be found on 
CGEN's Resolution No. 9 and No. 19. 
 
¶B. PERMITS FOR THE COLLECTION OF BIOLOGICAL SPECIMENS 
 
WHAT ARE THE PROCEDURES FOR OBTAINING A PERMIT TO COLLECT BIOLOGICAL 
SPECIMENS?  WHO ISSUES THESE PERMITS?  ARE THERE GENERAL OR SPECIFIC 
TERMS AND CONDITIONS THAT ADDRESS THE CONCEPT OF MUTUALLY AGREED 
TERMS ON THE USE OF THESE SPECIMENS AND THE SHARING OF BENEFITS? 
 
In order to collect biological specimens for scientific purposes, 
the researcher must request the authorization through Brazil's 
System of Authorization and Information on Biodiversity (SISBIO). 
On this online database the researcher will have to maintain updated 
contact and personal information, along with a detailed project of 
the research goals and objectives with the biological specimens that 
will be collected and for what purposes they will be used for. 
Other members of the research team must also be registered in the 
system. 
 
The system is maintained by the Ministry of Environment (MMA) and 
 
BRASILIA 00000401  004.2 OF 010 
 
 
through MMA's SISBIO Technical Committee and, therefore, the 
Ministry is responsible for issuing the permits. 
 
The concept of mutually agreed terms is discussed below under 
Questions C and D. 
 
¶C. MOVEMENT OF BIOLOGICAL SPECIMENS 
 
WHAT ARE THE PROCEDURES, TERMS, AND CONDITIONS FOR OBTAINING A 
PERMIT TO EXPORT NON-CITES BIOLOGICAL SPECIMENS (IF ANY)?  WHO 
ISSUES THESE PERMITS? 
 
IBAMA issued exporting licenses in those cases in which the 
specimens are not registered in a scientific biological collection 
and will be used for scientific purposes.  After the license is 
issued and before the specimens are exported, a Material Transfer 
Term (TTM) must be signed (by both the importer and the exporter) 
and a Term of Responsibility for the Material (TRM) must be filed 
and registered in SISBIO.  The exporting license requests 
registration of the institution to where the material is being 
exported to, as well as detailed information about where the 
specimen was obtained.  The permit is filled out online and will 
request the origin of the material and the material collection 
license number.  TTM and TRM's models and guidelines are 
specifically detailed in CGEN Resolution No. 20.  Permission from 
the importing agents from the country receiving the material is also 
necessary. 
 
TTM and TRM are not needed if the material is exported for 
laboratory services of scientific interest to be developed by a 
contracting laboratory abroad, as long as another instrument has 
been signed expressing each party's responsibility notifying that 
the material will only be used for the specific use agreed to in the 
instrument. 
 
The TTM and TRM are mandatory in cases where the biological 
specimens are exported with the purpose of accessing genetic 
heritage.  A permit from CGEN will be needed. 
 
For biomedical purposes that are not part of a research project, the 
person/institution responsible for the export will need to inform 
the originator of the biological specimens that they will need to go 
through the CITES system in order to request permission for the 
export. 
 
In cases involving biological control agents, permits will only be 
given if a copy of the import authorization given by the country 
importing the specimens. 
 
In cases where the research projects plans to export live exotic 
specimens, there is an additional requirement for a report regarding 
the specimen invasive potential and security measures to prevent 
escape.  The report must include a description of the facilities 
where the specimen will be kept, information on how they will be 
managed, specification on the destination of the specimens and 
possible reproduction that might take place during the time they are 
under the project period and other complementary security matters. 
 
No exporting or transportation licenses are needed if the loan, 
exchange or donation of the biological material is registered in a 
biological scientific collection or in a national service or 
security one.  The licenses will not be necessary if there is no 
access to genetic heritage of the biological material and if the 
specimens are not part of the CITES Annexes, for non commercial 
purposes. 
 
WHAT ARE THE PROCEDURES, TERMS, AND CONDITIONS FOR OBTAINING A 
PERMIT TO IMPORT NON-CITES BIOLOGICAL SPECIMENS (IF ANY)? WHO ISSUES 
THESE PERMITS? 
 
As far as importing biological material for research purposes, the 
same rules for exports apply.  In addition, the shipment must comply 
with the rules of Brazil's International Agriculture Surveillance 
System (VIGIAGRO), which is responsibility of the Ministry of 
Agriculture. 
 
ARE THERE RULES FOR INTERNAL SHIPMENT OF SPECIMENS?  (FOR EXAMPLE, 
DUE TO THE SENSITIVE ENVIRONMENT OF THE AMAZON IN BRAZIL, OUR 
UNDERSTANDING IS A SHIPMENT OF SPECIMENS FROM ONE BRAZILIAN 
INSTITUTION TO ANOTHER IS SUPPOSED TO BE ACCOMPANIED BY A PERMIT.) 
 
The shipment of "ex situ" genetic materials from one Brazilian 
institution, public or private, to another must be carried out as 
described below depending on the intended use: 
 
BRASILIA 00000401  005.2 OF 010 
 
 
 
- Deposit of a representative sub-sample of genetic heritage 
component in a collection maintained by an accredited institution; 
 
- Provide information obtained during the collection of samples of 
genetic heritage components, for recording in the database; and 
 
- Signing of a TTM. 
 
If there is the probability of commercial use of the product or 
process arising from a genetic heritage component, a signed 
"Contract for Use of Genetic Heritage and Benefit-Sharing" is 
required. 
 
Shipment of samples of genetic heritage components of species that 
have facilitated exchange in international agreements, including on 
food safety, of which Brazil is signatory to, shall be carried out 
according to the conditions defined therein, maintaining the 
requirements of the items therein.  (NOTE.  This would apply to the 
plants specifically included in the International Treaty on Plant 
Genetic Resources, but not to genetic resources from other plants 
and animals, even though intended for agriculture uses.  END NOTE.) 
 
Shipment of any sample of genetic heritage component from a 
Brazilian institution, public or private, to a foreign-based 
institution, shall be carried out based on material in "ex situ" 
conditions, and on receipt of information on the intended use and 
the prior authorization of CGEN or an accredited institution, 
observing the cumulative compliance of the conditions described 
above. 
 
The TTM shall have its model approved by the Management Council. 
 
ARE THERE ADDITIONAL PHYTO- OR ZOO- SANITARY REQUIREMENTS AND 
PERMITS NEEDED FOR MOVEMENT OF SPECIMENS? 
 
The only such requirements mentioned in the legislation refer to the 
import of biological specimens, which has to follow other demands 
from the Agriculture Ministry's International Agriculture 
Surveillance System (VIGIAGRO). 
Exceptions will take place when there is some kind of facilitated 
exchange through international agreements, including on food safety, 
of which Brazil is signatory to, and shall be carried out according 
to the conditions defined therein, maintaining the requirements of 
the items therein. 
 
¶D. MUTUALLY AGREED TERMS (MAT) 
 
WHAT ARE THE RELEVANT LAWS AND PROCEDURES FOR NEGOTIATING MUTUALLY 
AGREED TERMS FOR ACCESS TO AND/OR USE OF GENETIC RESOURCES?  WHICH 
GOVERNMENT AGENCIES ARE RESPONSIBLE? 
 
Mutually agreed terms (MAT) are governed by Provisional Measure No. 
2186-16, Presidential Decree No. 3945/2001, and CGEN Resolutions 
Nos. 7 and 11.  The Government of Brazil has created a model MAT, 
called a "Contract for Use of Genetic Heritage and Benefit-Sharing." 
 This instrument identifies the parties, the object, the conditions 
of access and of shipment of genetic heritage components and of 
associated traditional knowledge, as well as the conditions for 
benefit-sharing. 
 
CGEN is the agency responsible for the following aspects regarding 
the contract: 
 
Creating the guidelines for drafting the "Contract for Use of 
Genetic Heritage and Benefit-Sharing". 
 
Approving "Contracts for Use of Genetic Heritage and 
Benefit-Sharing" with regard to their compliance with the 
requirements of Provisional Measure 2186-16 and its implementing 
rules. 
 
The Chair of CGEN signs on behalf of the national government any 
"Contracts for Use of Genetic Heritage and Benefit- Sharing". 
 
A "Contract for Use of Genetic Heritage and Benefit-Sharing" must 
clearly indicate and qualify the contracting parties, namely, on the 
one side the owner of the public or private area or the 
representative of the indigenous community and the official Indian 
affairs body, or the representative of the local community and, on 
the other side, the Brazilian institution authorized to carry out 
the access and the recipient institution. 
 
The mandatory clauses in a MAT are: 
 
BRASILIA 00000401  006.2 OF 010 
 
 
 
- The object, its elements, quantification of the sample and 
intended use; 
- Period of duration; 
- The manner of fair and equitable sharing of benefits, and when 
appropriate, access to and transfer of technology; 
- Rights and responsibilities of the parties; 
- Intellectual property rights; 
- Withdrawal; 
- Penalties; 
- Court jurisdiction is in Brazil.  When the national government is 
a party, the contract shall be ruled by Brazilian public law. 
 
A "Contract for Use of Genetic Heritage and Benefit-Sharing" shall 
be considered null and void if it is signed contrary to the 
provisions of Provisional Measure 2186-16 and its implementing 
regulations. 
 
"Contracts for Use of Genetic Heritage and Benefit-Sharing" must be 
submitted for registration with the Management Council and shall 
only enter into force after obtaining its consent. 
 
Brazilian regulations require benefits arising from the economic use 
of the product or process developed from samples of genetic heritage 
components and associated traditional knowledge, obtained by a 
Brazilian or foreign institution are supposed to be shared in a fair 
and equitable manner among the contracting parties.  When the 
national government is not a party to a "Contract for Use of Genetic 
Heritage and Benefit-Sharing," it shall be assured participation in 
these benefits. 
 
The benefits arising from the economic use of the product or process 
developed from a sample of a genetic heritage component or from 
associated traditional knowledge may be, among others: 
- Sharing of profits; 
- Payment of royalties; 
- Access and transfer of technologies; 
- licensing, without cost, of products and processes; and 
- Capacity building of human resources; 
 
Commercialization from genetic resources accessed in a manner 
contrary to the provisions of Provisional Measure 2186-16 can be 
punished by the payment of compensation corresponding to at least 
twenty percent of the gross income obtained in the commercialization 
of the product or of the royalties obtained from third parties by 
the offender, as a result of licensing the product or process or use 
of technology, whether or not they are protected by intellectual 
property, without prejudice to the administrative sanctions and 
appropriate penalties. 
 
DO THESE AGENCIES DIFFERENTIATE AMONG USES FOR BASIC SCIENCE, 
COMMERCIAL DEVELOPMENT, AND AGRICULTURAL RESEARCH?  IF SO, HOW? 
 
For basic science and agriculture activity, the owner of the 
location where the collection will take place must give permission 
to have access. 
 
If there is the probability of commercial use of the product or 
process arising from a genetic heritage component, prior signing of 
a "Contract for Use of Genetic Heritage and Benefit-Sharing" is 
required. 
 
If the potential for economic use is identified in a product or 
process, liable or not to intellectual property protection, 
originating in a sample of a genetic heritage component or in 
information arising from associated traditional knowledge, the 
authorized institution must inform the Management Council or the 
institution where the process for access and shipment originated, to 
formalize a "Contract for Use of Genetic Heritage and 
Benefit-Sharing." 
 
Genetic resources from agricultural plants specifically included in 
the International Treaty on Plant Genetic Resources, but not genetic 
resources from other plants and animals, are governed by that 
treaty. 
 
DO THEY REQUIRE THE DISCLOSURE OF COUNTRY OF ORIGIN OF GENETIC 
RESOURCES IN PATENT APPLICATIONS THAT POTENTIALLY MIGHT USE THOSE 
GENETIC RESOURCES AS A CONDITION FOR OBTAINING RESEARCH, COLLECTING, 
AND/OR EXPORT PERMITS? 
 
In general, the granting of intellectual property rights over the 
process or product obtained from samples of genetic heritage 
components is conditioned on compliance with Provisional Measure 
 
BRASILIA 00000401  007.2 OF 010 
 
 
2186-16.  The person or institution applying for the property rights 
must inform the origin of the genetic material and the associated 
traditional knowledge, as appropriate. 
 
Post has the following responses to the additional intellectual 
property questions posed by Washington: 
 
--  1.  WHAT GUIDANCE DOES THE BRAZILIAN INTELLECTUAL PROPERTY 
OFFICE GIVE TO APPLICANTS IN DETERMINING WHEN A SPECIFIC APPLICATION 
SHOULD DISCLOSE THE SOURCE/ORIGIN/ETC OF A GENETIC RESOURCE OR 
TRADITIONAL KNOWLEDGE? 
 
On December 13, 2006, the Brazilian Institute of Industrial Property 
(INPI) issued Resolution No. 134, coming into force on January 1, 
¶2007.  That resolution "sets the standard procedures for patent 
applications which object has been obtained due to gained access to 
a sample of a component of the national genetic heritage." (Article 
1)  The resolution sets forth that all patent applications must 
declare to INPI "if the object of the patent application was 
obtained, or not, due to access to a sample of a component of the 
national genetic heritage" (Article 2).  INPI4s patent application 
now requires the submission information, wherein the applicant must 
check a box if the applications "has been obtained due to the access 
to a sample of the component of national genetic patrimony."  If so, 
the applicant is required to provide additional information 
regarding source and authorization. 
 
If access to the sample of a component of the national genetic 
heritage occurred before June 30, 2000, the disclosure provision 
does not apply. 
 
If access occurred on or after June 30, 2000 and the related patent 
application was filed before November 10, 2006, the applicant "shall 
declare to INPI, in a specific form established by this act, exempt 
from the payment of remuneration, that the provisions of Provisional 
Measure No. 2186-16 were complied with, informing, yet, the number 
and date of authorization to relevant access, and the origin of the 
genetic material and associated traditional knowledge, where 
appropriate, regardless of notification by the INPI." (Article 3) 
Such information is to be provided in a standardized form "Petition 
to Comply with Article No. 3 of INPI Resolution No 134 of 
13/12/06." 
 
If, on the other hand, access occurred on or after June 30, 2000, 
but the related patent application was filed on or after November 
10, 2006, the applicant "shall declare to the INPI, in the specific 
field of the form of filing the patent application, or in the 
form-entry into the PCT national stage, as appropriate, if the 
object of the patent application was obtained, or not, due to access 
to a sample of a component of the national genetic heritage".  The 
sole paragraph of the article provides further clarification: "the 
applicant must declare to the INPI, also, that it has complied with 
provisions of Provisional Measure No. 2186-16, informing, yet the 
number and date of authorization to relevant access, and the origin 
of the genetic material and associated traditional knowledge, where 
appropriate." 
 
Based on the direct reading of the INPI Resolution, the disclosure 
requirement does not distinguish between art units, and thus applies 
to all patent applications. 
 
--  2.  WHAT IS THE ADDITIONAL COST OF PROCESSING SUCH AN 
APPLICATION? 
 
There are no additional costs applied for processing applications, 
which require this disclosure. 
 
--  3.  HOW OFTEN IS SUCH INFORMATION (A DISCLOSURE REQUIREMENT WAS 
MET) IN A PATENT APPLICATION? 
 
Such information is not available. 
 
--  4.  IN THESE, HOW OFTEN HAD THE GENETIC RESOURCE BEEN:  DIRECTLY 
ACCESSED "IN SITU", ACCESSED FROM A SEED BANK OR OTHER DEPOSITORY, 
OR PURCHASED AS A COMMODITY? 
 
Such information is not available. 
 
--  5.  SINCE THE IMPOSITION OF THAT REQUIREMENT, HAS THE NUMBER OF 
PATENT APPLICATIONS FILED IN THIS AREA OF TECHNOLOGY INCREASED OR 
DECREASED? 
 
Such information is not available. 
 
 
BRASILIA 00000401  008.2 OF 010 
 
 
--  6.  IF IT HAS DECREASED, HAS ANY RESEARCH BEEN DONE TO SEE IF 
APPLICANTS WHO MAY HAVE PREVIOUSLY FILED A PATENT APPLICATION HAVE 
DECIDED TO MAINTAIN THE INVENTION AS A TRADE SECRET RATHER THAN 
FILING A PATENT APPLICATION? 
 
Such information is not available. 
 
--  7.  IF THERE IS A DISCLOSURE REQUIREMENT, DID THE OFFICE ALSO 
REQUIRE DISCLOSURE OF OTHER TYPES OF KNOWLEDGE THAT WAS KNOWN TO THE 
INVENTOR IN MAKING THEIR INVENTION? 
 
No additional disclosure requirements are provided, except those 
normally required pursuant to Brazil's Industrial Property Law 
9.279/96. 
 
--  8.  IF NOT, WHAT IS THE BASIS FOR HAVING A DISCLOSURE 
REQUIREMENT OF THE SOURCE OF GENETIC RESOURCES OR TRADITIONAL 
KNOWLEDGE, BUT NOT OTHER KNOWLEDGE KNOWN TO THE INVENTOR? 
 
According to Article 225 of the Brazilian Federal Constitution 
(1988): "Everyone has the right to an ecologically balanced 
environment, an asset to people's common use and essential to a 
healthy quality of life. It is the government4s and the community4s 
duty to defend it, and preserve it for present and future 
generations. 
 
Paragraph 1 - To ensure the effectiveness of this provision, the 
public power shall: (...) II - preserve the diversity and integrity 
of the genetic heritage of the country, and monitor the entities 
dedicated to research and manipulate the genetic material" 
 
On the international level, Brazil is a party of the CBD since 1994. 
 The CBD provides: "Article 15.  Access to Genetic Resources.  1. 
Recognizing the sovereign right of States over their natural 
resources, the authority to determine access to genetic resources 
rests with the national government and is subject to national 
legislation." 
 
In August 23, 2001, Provisional Measure No. 2186-16 came into force, 
regulating access to genetic resources, protection and access to 
associated traditional knowledge, the distribution of benefits and 
access to technology, and technology transfer aimed to their 
conservation and use. 
 
Article 2 of Provisional Measure No. 2186-16 establishes: "The 
access to genetic resources in the country will be made only upon 
authorization of the Union, and will have its use, marketing and 
usage for any purpose subject to monitoring, sharing of benefits and 
restrictions on terms and conditions set forth in this Provisional 
Measure and the its rules." 
 
Provisional Measure No. 2186-16 also creates the Council Management 
of Genetic Patrimony (CGEN) which, among other duties, shall "decide 
on: a) authorization of access and shipment of samples of components 
of genetic heritage, through prior informed consent of its owner; b) 
authorization of access to associated traditional knowledge through 
prior informed consent of its owner" (Art. 11, IV) 
Finally, it sets forth that "The granting of industrial property 
rights by the competent bodies, on process or product obtained from 
samples of components of genetic heritage, is subject to compliance 
with this Provisional Measure, and the applicant must inform the 
origin of the genetic material and associated traditional knowledge 
when that is the case."(Article 31) 
 
Under Provisional Measure No. 2186-16, CGEN adopted Resolution No. 
23, of November 10, 2006, aiming to implement Article 31 of 
Provisional Measure. 
 
Articles 2 and 3 of CGEN Resolution No. 23/06 regulates that "...the 
applicant for the application of a process or product patent 
resulting from the access to a component of the genetic patrimony, 
held since 30 June 2000, filed after the date of publication of this 
resolution, shall declare to the INPI that it has complied with the 
provisions of this Provisional Measure and report the number and 
date of the correspondent Authorization for Access, under penalty of 
the appropriate sanctions.  Article 3 The applicant for the 
application of a process or product patent resulting from the access 
to a component of the genetic patrimony held between 30 June 2000 
and the date of publication of this resolution shall regulate its 
application before the INPI, in order to comply with this 
resolution." 
 
The penalties mentioned in Article 2 of CGEN Resolution No. 23/06 
are listed under Article 30 of  Provisional Measure No. 2186-16: 
 
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"The administrative violations shall be punished as established in 
the regulation of this Measure, with the following sanctions:  I - 
warning;  II - fine;  III - seizure of samples of genetic heritage 
components and instruments used in collection or processing, or of 
the products derived from information on associated traditional 
knowledge; IV - seizure of products derived from sample component of 
genetic heritage or associated traditional knowledge; V - suspension 
of sale of the product derived from samples of components of genetic 
heritage or associated traditional knowledge and its seizure;  VI - 
ban of the activity; VII - partial or total prohibition of the 
enterprise or activity; VIII - suspension of registration, patent, 
license or authorization; IX - cancellation of registration, patent, 
license or authorization; X - loss or restriction of tax incentives 
and benefits granted by the government;   XI - loss or suspension of 
participation in the financing line in an official credit; XII - 
intervention in the establishment; XIII - prohibition of contract 
with the Government, for a period of five years." 
 
The most relevant paragraphs in Article 30 are: 
"Section 3.  The penalties established in this Article shall be 
applied as established in the procedural regulation of this 
Provisional Measure, subject to the appropriate civil or criminal 
penalties. 
 
Section 4.  The penalty (...) will be arbitrated by the competent 
authority, according to the seriousness of the violation and the 
manner of regulation, and may vary from R200 (two hundred reals) to 
R100,000 (one hundred thousand reals) in case of an individual. 
 
Section 5.  If the violation is committed by a company, or with its 
help, the fine will be R10,000 (ten thousand reals) to R50,000,000 
(fifty million reals), arbitrated by the competent authority 
according to the seriousness of the violation, in the form of 
regulation." 
 
INPI later adopted Resolution No. 134, with the same purpose as 
CGEN4s Resolution No. 23/06.  INPI4s Resolution reinforces the terms 
of CGEN4s Resolution. 
 
--  9.  HOW DID DISCLOSURE IMPROVE EXAMINATION? 
 
As this requirement is only in place since January 2007, it is 
unlikely that any substantive analysis has occurred at INPI given 
the lengthy backlogs in pending patent applications. 
 
--  10.  HOW OFTEN WAS THE INFORMATION MATERIAL TO PATENTABILITY? 
 
As this requirement is only in place since January 2007, it is too 
early to say.  Further the disclosure requirement under INPI 
Resolution No. 134, does not specify the types of applications which 
require such disclosure.  Thus, according to local practitioners, 
they are including the required form in all filed applications in 
order to avoid any negative consequences in the future for 
noncompliance. 
 
--  11.  FOR COUNTRIES WITH AN INTELLECTUAL PROPERTY LAW THAT 
REQUIRED DISCLOSURE, WAS THERE ALSO A NATIONAL LAW THAT MORE 
DIRECTLY RELATED TO MISAPPROPRIATION OR MISUSE OF GENETIC RESOURCES? 
 
 
See response to question No. 8 above. 
 
¶E. STATUS OF MAT AND PIC IN HOST COUNTRY 
 
ARE THERE COORDINATING PROCESSES (INTERAGENCY GROUPS, CIVIL SOCIETY 
FORUMS, ETC) FOR THE DEVELOPMENT OF MAT AND PIC REGULATIONS, ISSUES, 
AND PROCESSES? 
 
There is coordination through CGEN.  That council is headed by a 
representative from the Ministry of the Environment and includes 
eight other ministries and ten other government agencies, institutes 
or foundations.  CGEN has monthly meetings, which include civil 
society leaders and NGO representatives.  Further, the draft 
proposal for a new genetic resources law was developed after 
extensive consultations from civil society representatives, 
non-government organizations amongst others.  MAT and PIC 
regulations where some of the issued discussed in connection with 
that proposal. 
 
HAS THE HOST COUNTRY IDENTIFIED NATIONAL AUTHORITIES RESPONSIBLE 
FOR: GRANTING ACCESS TO GENETIC RESOURCES?  NEGOTIATING SPECIFIC 
CONTRACTS FOR COMMERCIALIZATION OF GENETIC RESOURCES?  RECEIVING 
FINANCIAL BENEFITS FROM ABS CONTRACTS (SUCH AS NATIONAL, REGIONAL, 
OR CONSERVATION TRUST FUNDS)? 
 
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Brazil has identified national agencies and/or ministries that are 
responsible for each of the responsibilities above and they have 
already been discussed above.  The share of profits and royalties 
owed to the national government, resulting from the economic use of 
a process or products developed from samples of genetic heritage 
components, as well as the fines and compensations dealt with by 
Provisional Measure 2186-16, go into the National Environment Fund, 
the Navy Fund and the National Scientific and Technological 
Development Fund.  Those incoming revenues are to be used 
exclusively in the conservation of biological diversity.  Valid 
purposes include the creating and maintaining depositary banks, 
fostering scientific research, supporting technological development 
associated to genetic heritage and building related human resources 
capacity. 
 
DID THE CBD FOCAL POINT HAVE THIS INFORMATION READILY AVAILABLE? 
 
All the information was available online, mainly at CGEN's and the 
Ministry of Environment's website.  Nonetheless, the information on 
the websites is often confusing or hard to understand. 
 
DOES THE HOST GOVERNMENT HAVE GENERAL INFORMATION THAT IT GIVES TO 
FOREIGN RESEARCHERS SEEKING TO OBTAIN 
RESEARCH/COLLECTING/IMPORT/EXPORT PERMITS?  IF SO, PLEASE PROVIDE 
COPIES. 
 
There is no specific information for foreign researchers.  All forms 
and legislation regarding the subjects mentioned above are online, 
though few are in English. 
 
¶7.  (SBU) COMMENT.  Despite the promise of riches from biodiversity, 
Brazil to date has received very little financially in return for 
its genetic resources in the Amazon.  In sharp contrast, Brazil has 
become inundated with many millions of dollars to conserve the 
forest in connection with addressing climate change.  See REFTEL C. 
Moreover, Brazil has grown to be the second leading agriculture 
exporter in the world, a field that heavily relies on maintaining 
and manipulating plant and animal genetic resources.  As discussed 
below, Brazil has put in place an elaborate and confusing regime for 
controlling access to genetic resources and traditional knowledge. 
This regime comes at a price to Brazil and the world.  Anecdotal 
evidence from Brazilian and U.S. government and non-governmental 
sources suggests that there has been a marked decline in scientific 
research in Brazil involving genetic resources and traditional 
knowledge.  END COMMENT. 
 
SOBEL