BRAZIL IN NEW PHARMACEUTICAL TRADEMARK THREAT

Radical lawmakers in Brazil have outlined new measures to undermine trademarks in the country. According to local reports, a draft law -- the so-called "Generics Bill" -- in the lower house of the country's Congress would allow local manufacturers to copy packaging on all OTC medicines.

Brazil has already moved to encourage generic prescribing, but the law's backers -- including one legislator associated with recent plans to ease compulsory licensing of HIV/AIDS treatments -- would effectively separate drug brands from chemical names.

Local observers say there is little doubt that the plans are designed to end Brazilians' strong preferences for branded drugs. However, recent surveys suggest that consumers are already well aware of the specific characteristics of generic drugs, which in Brazil are marked with a distinctive strip and the letter G. A recent IMS Health survey recorded that the market share of generics has reached 28% in Brazil, with unit sales 21% higher year-on-year in the first half and turnover rising 47% in the same period.

Legal experts also claim that the new measure not only violates Brazil's 1996 Industrial Property Law, but also the federal Constitution. Further, critics argue that the likely confusion between trade names would undermine fair competition and offer generic drug firms a free ride on the prestige of leading brands.