The Future of Industrial Property in Brazil: The Impact of the Federal Court Decision on the Brazilian Patent and Trademark Office

A judicial decision that may reshape Brazil’s industrial property system

In recent years, companies, startups, research centers, and investors have faced a recurring challenge in Brazil: delays in the examination and granting of industrial property rights, particularly patents. This phenomenon, commonly known as the patent backlog, directly affects legal certainty, business competitiveness, and incentives for innovation.

In March 2026, an important ruling by the Federal Regional Court of the 2nd Region (TRF2) added a new chapter to this debate. The court unanimously upheld a first-instance decision in a public civil action filed by the Brazilian Intellectual Property Association (ABPI), determining structural measures aimed at reorganizing the Brazilian Patent and Trademark Office (INPI).

The decision recognizes the structural challenges faced by the agency responsible for examining trademarks, patents, and other industrial rights in Brazil and establishes an institutional path toward addressing them. For the business environment, this may represent a significant milestone in the development of Brazil’s innovation protection system.

The structural problem of the patent backlog in Brazil

The INPI is the federal authority responsible for granting industrial property rights, including trademarks, patents, industrial designs, and geographical indications, under Brazil’s Industrial Property Law (Law No. 9.279/1996).

Historically, the agency has faced structural, financial, and operational constraints that have resulted in significant delays in the examination of applications. This situation has generated a large accumulation of pending cases awaiting technical examination.

The public civil action filed by ABPI in 2021 sought precisely to address this structural issue. According to the arguments presented, the accumulation of applications was linked to budgetary restrictions and structural deficiencies within the institution.

The matter became even more sensitive after the Brazilian Supreme Federal Court declared unconstitutional the automatic patent term extension previously provided for in Article 40 of the Industrial Property Law. Without this extension mechanism, administrative delays began to directly affect the effective exclusivity period of patents, raising concerns among innovative companies.

As a result, the efficiency of patent examination became not merely an administrative issue but a fundamental factor in maintaining a balanced environment for innovation and investment.

The TRF2 decision and the restructuring of the INPI

When reviewing appeals filed by the federal government and the INPI, the TRF2 upheld the lower court ruling that ordered structural measures to address the backlog and improve the institutional functioning of the agency.

Among the court’s determinations is the obligation for the INPI to submit, within 90 days, a detailed diagnostic report on its operations identifying inefficiencies, operational bottlenecks, and resource needs in terms of personnel, materials, and funding.

Additionally, the institution must present a comprehensive action plan outlining concrete restructuring measures, implementation timelines, and funding requirements. Once approved by the court, the plan must be implemented and monitored through periodic progress reports.

The ruling also establishes that the federal government must ensure the allocation of the financial resources necessary to implement the restructuring measures.

For intellectual property specialists, the decision represents a structural judicial intervention aimed not only at resolving a dispute but also at strengthening a key institution in Brazil’s innovation ecosystem.

Implications for companies, startups, and investors

Although the decision has judicial and administrative nature, its consequences may directly affect the Brazilian business environment.

Efficient protection of intangible assets—such as patents, trademarks, and technological developments—is essential for competitiveness in innovation-driven industries. Companies that invest in research and development depend on a reliable and efficient industrial property system to protect their investments.

Reducing patent examination times can generate several positive impacts, including greater regulatory predictability, stronger incentives for technological innovation, and improved legal certainty for businesses operating with intangible assets.

Investors and venture capital funds also closely monitor the efficiency of a country’s intellectual property system. In many cases, the valuation of innovative companies is closely tied to their patent portfolios or technology protection strategies.

In this context, strengthening the INPI may contribute to improving Brazil’s innovation ecosystem and aligning it more closely with international administrative standards.

The strategic role of industrial property in business

The TRF2 decision also highlights an often underestimated element of corporate planning: the strategic management of intellectual property.

Trademarks, patents, software, industrial designs, and trade secrets represent valuable assets in modern companies. In many sectors, these assets constitute the core of a company’s competitive advantage.

However, legal protection for these assets requires adequate planning, regulatory awareness, and constant monitoring of registration and protection processes.

Companies that properly structure their industrial property strategies tend to gain relevant competitive advantages, including protection against unfair competition, enhanced intangible asset valuation, and expanded opportunities for technology licensing.

The importance of preventive legal guidance

For businesses that develop technology, register trademarks, or invest in innovation, monitoring the evolution of the industrial property system has become increasingly important.

Institutional changes, judicial decisions, and regulatory developments may directly influence strategies for protecting intangible assets.

In this context, specialized legal guidance in intellectual property law can assist companies in structuring strategies for registering, protecting, and managing their technological and brand assets.

Preventive legal advice often helps reduce legal risks, identify protection opportunities, and align business strategies with regulatory developments.

More than a technical field, industrial property has become a central element in the competitiveness of companies operating in a knowledge-based economy.