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The fiscal laws were complemented by Normative Act 15, issued by the BPTO on September 11, 1975.
As to know-how licensing, the BPTO adopted a very restrictive attitude based on the fact such technology was of unpatented nature of limited time-frame.
The BPTO also refused the recordation of clauses that obliged licensee to cease the use and return all licensed technology to licensee with contractual termination.
Despite the revocation of Normative Act 15 and of the new economic policy adopted after 1991, the BPTO maintains some restrictive position towards know-how licensing.
An interesting matter in this regard is that the decisions issued by the BPTO were (as still are) based on unwritten rules without further justification.
More specifically, the BPTO does not accept clauses in know-how licensing agreements that (a) set out the obligation of licensee to cease the technology after termination; (b) determine the return of the technology and documents about it to licensor (or the destruction of such documents) and (c) stipulate confidentiality for a period longer than 5 years as from the date of disclosure.
(4) According to the data published by the Brazilian Patent and Trademark Office (BPTO), plain know-how or unpatented technology licensing agreement relates to approximately 18% of the registered agreements during the period of 2000 to 2015.
Forfeiture takes place due to the non-use of a registered trademark for a period of five (5) years as from the grant or if the registered trademark has been used in a modified form that implies modification in its original characteristic as granted by the BPTO. See Law 9,279 of 14 May 1996, articles 143-145.
(45) Know-how is further used as a guarantee to franchisees that a franchisor holds strong success franchise features in view of the BPTO's backlog of work in prosecuting patents and trademarks.
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