The Future of Industrial Property in Brazil: the impact of the TRF2 decision on the INPI and the innovation environment

A court decision that could transform the Brazilian industrial property system

In recent years, entrepreneurs, startups, research centers, and investors have faced a recurring challenge in Brazil: delays in the review and granting of industrial property rights, especially patents. This phenomenon, known as the patent backlog, has a direct impact on legal certainty, business competitiveness, and the stimulation of innovation.

In March 2026, a significant decision by the Federal Regional Court of the 2nd Region (TRF2) brought a new chapter to this debate. The court's 1st Specialized Panel unanimously upheld the ruling issued in a public civil action (ação civil pública, a lawsuit filed to protect collective or diffuse rights) brought by the Brazilian Intellectual Property Association (ABPI), ordering structural measures aimed at reorganizing the National Institute of Industrial Property (INPI).

The decision not only acknowledges the structural problems faced by the agency responsible for reviewing trademarks, patents, and other industrial rights in the country, but also establishes an institutional path to overcome them. For the business environment, this measure may represent a significant milestone in the evolution of Brazil's innovation protection system.

The structural problem of the patent backlog in Brazil

The INPI is the federal agency responsible for granting industrial property rights, including trademarks, patents, industrial designs, and geographical indications, under the terms of the Industrial Property Law (Law No. 9,279/1996).

Historically, the agency has faced structural, financial, and operational limitations that have resulted in significant delays in reviewing applications. This scenario led to a large stockpile of cases pending technical examination, a phenomenon widely known as the backlog.

The public civil action filed by ABPI in 2021 was aimed precisely at addressing this structural problem. According to the arguments presented, the accumulation of applications was directly related to budgetary constraints and structural deficiencies within the institute.

This context became even more sensitive after the Brazilian Supreme Federal Court (STF) ruled unconstitutional the automatic extension of patent terms previously provided for in the sole paragraph of Article 40 of the Industrial Property Law. With the end of this extension, administrative delays began to directly affect the effective period of patent exclusivity, heightening concerns among innovative companies.

As a result, the efficiency of the patent review system has become not just an administrative issue, but also an essential element for the balance of the country's innovation and investment environment.

The TRF2 decision and the order to restructure the INPI

In ruling on the appeals filed by the Federal Government and by INPI itself, the TRF2 upheld the first-instance ruling that orders the adoption of structural measures to address the backlog and improve the institutional functioning of the agency.

Among the court's orders is the requirement that INPI submit, within 90 days, a detailed diagnostic report on its operations, identifying inefficiencies, operational bottlenecks, and needs in terms of human, material, and financial resources.

In addition, a comprehensive action plan must be submitted with concrete measures for restructuring the agency, including implementation timelines and funding estimates. The plan must include structural actions and be accompanied by periodic progress reports after judicial approval.

The decision also establishes that the Federal Government must ensure that the necessary resources are allocated to implement the approved measures, guaranteeing effective conditions for the functioning of the industrial property system.

For intellectual property specialists, this is a structural decision, aimed not only at resolving a specific dispute but at bringing about the institutional transformation of an agency that is central to the country's technological development.

Impacts for companies, startups, and investors

Although the decision is judicial and administrative in nature, its effects may reach directly into the Brazilian business environment.

The efficient protection of intangible assets — such as patents, trademarks, and technologies — is an essential factor for competitiveness in innovation-intensive sectors. Companies that invest in research and development rely on a predictable and efficient industrial property system to protect their investments.

Reducing patent review times can generate several positive effects, such as greater regulatory predictability, encouragement of technological innovation, and increased legal certainty for business operations based on intangible assets.

Investors and venture capital funds also closely monitor the efficiency of a country's intellectual property system. In many cases, the value of an innovative company is directly tied to its patent portfolio or its technology protection strategy.

In this context, institutional improvements at INPI can help strengthen Brazil's innovation ecosystem, bringing it closer to international standards of administrative efficiency.

The role of industrial property in business strategy

The TRF2 decision also reinforces a point often underestimated in corporate planning: the strategic management of intellectual property.

Trademarks, patents, software, industrial designs, and trade secrets represent relevant assets in the economic value of modern companies. In many sectors, these assets can represent the main source of competitive advantage.

However, the legal protection of these assets requires proper planning, regulatory knowledge, and constant monitoring of the registration and rights-granting system.

Companies that properly structure their industrial property strategy tend to gain significant competitive advantages, including greater protection against unfair competition, increased value of intangible assets, and expanded opportunities for technology licensing.

The court decision seeking to strengthen INPI reinforces precisely the importance of a robust institutional system to ensure the effectiveness of these rights.

Trends for the Brazilian intellectual property system

Although it is still early to assess all the practical effects of the decision, the TRF2 ruling signals an important trend in contemporary administrative law: the use of structural decisions to address complex institutional problems.

In this type of ruling, the Judiciary does not limit itself to resolving a specific conflict, but establishes monitoring and institutional restructuring mechanisms to ensure the effectiveness of public policies.

In INPI's case, this could mean a new cycle of administrative modernization, with potential impacts on process digitalization, examiner training, improved resource management, and strengthened institutional governance.

If implemented efficiently, these measures could help consolidate a more efficient industrial property system, better aligned with the demands of an innovation-based economy.

The importance of preventive legal counsel

For companies that develop technology, register trademarks, or invest in innovation, monitoring the evolution of the industrial property system has become a relevant part of business strategy.

Institutional changes, court decisions, and regulatory amendments can directly influence the planning of intangible asset protection.

In this scenario, legal counsel specialized in intellectual property can help companies structure strategies for registering, protecting, and managing their technological and brand assets.

Preventive action often makes it possible to reduce legal risks, identify protection opportunities, and align business strategy with changes in the regulatory environment.

More than just a technical topic, industrial property has become a central element of business competitiveness in an economy increasingly based on knowledge.