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Brazil's IP Opportunism Threatens U.S. Private Property Rights Lawrence A University of Miami Law School Institutional Repository University of Miami Inter-American Law Review 10-1-2006 Brazil's IP Opportunism Threatens U.S. Private Property Rights Lawrence A. Kogan Follow this and additional works at: http://repository.law.miami.edu/umialr Part of the Comparative and Foreign Law Commons, and the International Law Commons Recommended Citation Lawrence A. Kogan, Brazil's IP Opportunism Threatens U.S. Private Property Rights, 38 U. Miami Inter-Am. L. Rev. 1 (2006) Available at: http://repository.law.miami.edu/umialr/vol38/iss1/2 This Article is brought to you for free and open access by Institutional Repository. It has been accepted for inclusion in University of Miami Inter- American Law Review by an authorized administrator of Institutional Repository. For more information, please contact [email protected]. ARTICLES Brazil's IP Opportunism Threatens U.S. Private Property Rights Lawrence A. Kogan* I. INTRODUCTION ....................................... 4 A. Brazil's Knowledge Deficit ....................... 4 B. Brazil Promotes a New Anti-IP Framework Premised on Negative Sustainable Development.. 7 C. Brazil Works to Undermine the Established International Order .............................. 12 II. BRAZIL THREATENS U.S. AND OECD NATION PRIVATE PROPERTY RIGHTS .................................... 15 A. Property Rights Broadly Defined ................. 16 1. Property Consists of Both Things and Ideas . 16 2. Exclusive Private Property Rights Have Historical Significance ....................... 17 B. Brazil Monitors OECD Nations' Property Rights Debates .......................................... 19 1. The Age-old Debate Concerning Private vs. Public Property Rights ....................... 19 2. Brazil Observes the European Debates Concerning IPRs and Innovation ............. 21 3. Brazil Observes the American Debates Concerning IPRs & Innovation ............... 24 * Lawrence A. Kogan is an international business, trade, and regulatory attorney. He is CEO of the Institute for Trade, Standards and Sustainable Development, Inc. (ITSSD), a Princeton, New Jersey based non-partisan non-profit international legal research and educational organization. Mr. Kogan obtained his law degree from the University of Miami School of Law, his Masters of Laws in Taxation from Georgetown University, Washington, D.C., and his Bachelors of Arts in Philosophy and Political Theory from Boston University College of Liberal Arts. He is currently pursuing a Masters degree at the John C. Whitehead School of Diplomacy and International Relations at Seton Hall University, South Orange, New Jersey. Mr. Kogan has counseled public as well as private closely held international businesses operating within the commercial and financial sectors for more than twenty years, specializing in the areas of business, commercial, corporate, customs, tax and trade law. He has also advised Bush Administration officials, Congressional subcommittee chairs and foreign trade officials about World Trade Organization (WTO), European Union (EU) and U.S. regulatory, technical standards, international environmental treaty and customary international law issues. INTER-AMERICAN LAW REVIEW [Vol. 38:1 4. Brazil's 'Gaming' of OECD Nation IPRs Violates Constitutional and Human Rights 26 5. Brazil's 'Gaming' of U.S. IPRs Threatens U.S. Economic Competitiveness ................... 28 III. BRAZIL CHALLENGES THE ESTABLISHED GLOBAL IPR FRAMEW ORK ......................................... 30 A. Brazil Actively Engages in 'Regime Shifting' to Reform InternationalIP Law .................... 30 1. Brazil's IPR Regime Shifting from TRIPS to WHO and UNHRC ........................... 36 2. Brazil's IPR Regime Shifting Recognized by WHO and Latin America .................... 57 3. Brazil's IPR Regime Shifting from WTO to UNEP/CBD .................................. 63 B. Brazil Actively Promotes a New International Paradigmof 'Open Source' / 'Universal Access' to Know ledge ....................................... 73 1. Open Source Methods ........................ 73 2. Brazil's Efforts to Nationalize OSMs ......... 84 3. Brazil's Efforts to Internationalize OSMs .... 87 a. Brazil's Efforts at the World Summit on the Information Society .................. 89 b. Brazil's Efforts at the World Intellectual Property Organization.................... 95 c. Brazil's OSM Regime Shifting has Trade Protectionist Undertones ................. 98 C. Brazil Aims to 'Take' U.S. Private Property for Brazilian 'Public Use' Without 'Just Compensation' ...... ............................ 102 1. Introduction ................................. 102 2. Property and the U.S. Constitution: Individual vs. Public Rights .................. 103 3. Individual Natural Rights Include the Right to Private Property .......................... 103 4. Patents are Exclusive Private Personal Property ..................................... 104 5. Trade Secrets are Exclusive Private Personal Property ..................................... 106 6. The Bill of Rights Limits Government Action Against Exclusive Private Property .......... 106 a. Federal Government Action - 'Just Compensation'. .......................... 106 2006] BRAZIL'S IP OPPORTUNISM 3 b. State and Local Government Action - 'Takings' ..... ........................... 108 c. Direct and Indirect 'Takings' ............ 109 d. Takings for 'Public Use' ................. 111 e. U.S. Private Property Rights Are Entitled to ConstitutionalProtection Abroad ...... 114 f ConstitutionalLimitations on the Federal Treaty-Making Power .................... 114 IV. BRAZIL MUST STOP UNDERMINING U.S. PRIVATE PROPERTY RIGHTS .................................... 118 A. Brazil's Efforts Against Counterfeits do not Compensate for its Continued IP Opportunism... 118 1. Brazil Has Made Some Progress Against Counterfeits ................................. 118 2. Brazil's Institutions and Ideology Must Change to Stem IP Opportunism ............ 119 3. The Old Ways Are Simply No Longer Acceptable ................................... 124 B. Continued IP Opportunism May Cost Brazil Significant Bilateraland Regional Benefits ...... 125 1. Brazil-United States Science & Technology Cooperation .................................. 125 2. Inter-American Development Bank Program Financing .................................... 126 3. U.S. Export-Import Bank Program Financing .................................... 129 4. Overseas Private Investment Corporation (OPIC) Program Financing and Underwriting ................................ 132 5. Continued U.S. Generalized System of Preference Status ............................ 133 VI. CONCLUSION ......................................... 136 A. Brazil Must Evolve for its Own Sake, and the World's ............................. : ............ 136 B. OECD Nations Will Not Pay for Brazil's Continued IP Opportunism ...................... 137 4 INTER-AMERICAN LAW REVIEW [Vol. 38:1 I. INTRODUCTION A. Brazil's Knowledge Deficit Brazil is a country rich in entrepreneurial spirit,1 economic growth opportunities,2 and natural resources.' Yet, according to experts, Brazil lacks the core human capital,4 namely, education, and a market-friendly enabling environment6 that incorporates 1. "Brazilian entrepreneurs have the unique characteristic among such large and relatively wealthy countries of being 'necessity entrepreneurs' .... [Tihese types of entrepreneurs are most prevalent in countries with poor economic stability and low job availability. Though Brazil is certainly not considered a 'poor' country with a gross domestic product (GDP) of almost $1.4 trillion, it certainly suffers some of the other characteristics of countries with a large group of necessity entrepreneurs, such as unemployment and infrastructure problems." See JONATHAN ORTMANS, PUBLIC FORUM INST., GOVERNMENT AND EDUCATION EFFORTS TO FURTHER ENTREPRENEURSHIP IN BRAZIL, NATIONAL DIALOGUE ON ENTREPRENEURSHIP 2 (2005), available at http:// www.publicforuminstitute.org/nde/sources/reports/Brazil-2005.pdf. 2. "Although Brazil holds the potential to become an economic powerhouse, social conditions stemming from Brazil's early years as a plantation society have continued to cause inequalities in the distribution of wealth and power." See Brazil, MSN ENCARTA (2006), http://encarta.msn.com/encnet/refpages/RefArticle.aspx?refid=7615 54342 (last visited Dec. 19, 2006) [hereinafter Brazil, ENCARTA]. "Despite its status as South America's leading economic power, Brazil remains an unrealized potential. It has a large population that seeks entrepreneurial opportunities and an innovative telecommunications sect that can provide a strong arena for these individuals." ORTMANS, supra note 1, at 2. 3. Although "all Latin American countries may be classified as resource-rich in absolute terms[, Brazil is] both resource-rich (relative to the world market) and industrialising (relative to the regional market).. ." Michel Fouquin et al., Natural Resource Abundance and its Impact on Regional Integration: Curse or Blessing?, ELSNIT/FUNDACAO GETuLio VARGAS CONFERENCE, April 7, 2006, 8 n.1, available at http://www.cepii.fr/anglaisgraplcommunications/pdf/2006/070406/fouquin.pdf. "The economic development of Brazil has been strongly influenced by a series of economic cycles in which different [natural] resources were exploited in different parts of the country ....Brazil contains a wealth of mineral and plant resources that have not yet been fully explored. It possesses some of the world's largest deposits of iron ore
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