CADE’s Contributions on Standard Essential Patents and Competition Policy in Brazil

Standard Essential Patents (SEPs) constitute a specific subset of intellectual property rights, the subject matter of which is indispensable for the implementation of technical standards established by standard-setting organizations (SSOs). In practical terms, this means that once a standard incorporating a given technical solution has been approved, it becomes impossible to develop compliant products or services without making use of the relevant patent.

 

This essentiality gives SEPs a distinctive legal and economic character: while ordinary patents may, in principle, be circumvented by alternative technologies, SEPs create a scenario of unavoidable dependence, since the standard itself incorporates the patented solution. For this reason, standardization bodies require patent holders to offer licenses on FRAND terms (fair, reasonable and non-discriminatory), precisely to prevent abusive practices and to ensure that standardization fulfills its core function of promoting interoperability and fostering technological dissemination on a global scale.

 

 

In Brazil, the subject has attracted the attention of the Administrative Council for Economic Defense (CADE) — a federal antitrust authority linked to the Ministry of Justice and Public Security, responsible for safeguarding competition and preventing anticompetitive practices. In a dedicated study, CADE provides a comprehensive analysis of SEPs and their implications for competition law, examining both their relevance in high-technology sectors and the commitments undertaken under the FRAND framework.

 

The report further explores different royalty valuation methodologies applicable to standardized technologies, ranging from incremental and cost-based approaches to more sophisticated models, such as the Efficient Component Pricing Rule (ECPR) and the Shapley value method. It also devotes particular attention to the role of standard-setting organizations (SSOs/SDOs), which define the rules governing the interoperability of systems and products on an international scale.

 

In conclusion, CADE’s study highlights that SEPs extend beyond the realm of intellectual property law and have direct implications for competition, access to innovation, and public policy. By addressing the risks associated with opportunistic behavior and by discussing the inherent difficulties in determining fair royalty rates, the document underscores the need for balanced regulatory solutions capable of harmonizing patent exclusivity with the collective interest in technological diffusion. In doing so, it significantly contributes to the development of the national debate and provides valuable guidance both for competition authorities and for ensuring legal certainty for companies operating in technology-intensive sectors.

 

 

Author: Enzo Toyoda Coppola, Thaís de Kássia R. Almeida Penteado and Cesar Peduti Filho, Peduti Advogados.

Source: Cade lança estudo sobre legislação de patentes essenciais + https://www.conjur.com.br/2025-ago-21/cade-lanca-estudo-sobre-patentes-essenciais/

 

 

If you want to learn more about this topic, contact the author or the managing partner, Dr. Cesar Peduti Filho.

Se quiser saber mais sobre este tema, contate o autor ou o Dr. Cesar Peduti Filho.

The ethical crossroads of AI agents in business

Artificial intelligence is no longer confined to research labs or experimental projects. Today, AI agents—autonomous systems capable of interacting with humans and other software, making decisions, and performing complex tasks—are rapidly becoming part of everyday business operations. They promise efficiency, personalization, and scalability on a level that traditional tools cannot match. Yet, alongside these opportunities comes a set of pressing challenges that companies can no longer afford to overlook: the ethical and privacy implications of AI agents.


The core issue lies in the massive volume of data that these systems collect, store, and process. AI agents often rely on personal and sensitive information to refine their performance and deliver tailored responses. While this can enhance user experience, it also raises significant concerns about consent, security, and compliance with data protection laws. Many AI platforms retain user history by default, with limited transparency on how that data is stored or deleted. In some cases, companies collect far more than basic interaction data, extending to biometrics, preferences, and even sensitive categories such as religion or sexual orientation. This reality places organizations at the center of an ethical dilemma: how to balance the need for innovation with the responsibility to safeguard individual rights.


Beyond privacy, there is also the risk of harm on a psychological and social level. When AI systems outperform employees in certain tasks, workers may experience a sense of inadequacy or loss of dignity, creating long-term impacts on morale and workplace culture. In addition, the possibility of biased outputs or inaccurate information being presented as fact can erode public trust and expose organizations to legal liabilities. These risks highlight the importance of not viewing AI agents solely as tools for productivity, but as entities that require careful governance.

 


This is where the concept of “trustworthy AI” becomes crucial. A trustworthy system is not just effective—it is fair, explainable, robust, secure, privacy-preserving, and accountable. Companies that integrate AI into their workflows must adopt governance frameworks that go beyond technical performance. This involves establishing clear processes for data management, implementing continuous monitoring, ensuring transparency in how agents operate, and providing channels for redress when errors occur. International standards and emerging regulations, such as those developed in the European Union and other global organizations, already point toward a structured approach to managing these responsibilities. Businesses that anticipate and align with these frameworks will not only reduce risks but also position themselves as leaders in ethical innovation.


Ultimately, the challenge is twofold. On one hand, AI agents offer undeniable benefits in terms of agility, automation, and competitive advantage. On the other, they demand an urgent commitment to responsible practices that protect privacy, maintain human dignity, and build trust with consumers and employees alike. Companies that ignore this balance risk regulatory sanctions, reputational damage, and the erosion of stakeholder confidence.


Looking ahead, the path is not about slowing down the adoption of AI, but about steering it in the right direction. Ethical safeguards, transparency measures, and continuous adaptation must become part of the corporate DNA. If businesses succeed in doing so, AI agents will not only accelerate transformation but also reinforce the values of accountability and respect for human rights. This, in the end, is the only sustainable route to ensuring that the power of artificial intelligence is harnessed for progress, rather than undermining the very foundations of trust that modern organizations depend upon.

 

 

Author: Marília de Oliveira Fogaça, Thaís de Kassia R. Almeida Penteado and Cesar Peduti Filho, Peduti Advogados.

Source: Privacidade e Ética no Uso de Agentes de IA: Um Desafio Urgente para Empresas + https://aibusinessjournal.com.br/privacidade-e-etica-no-uso-de-agentes-de-ia-um-desafio-urgente-para-empresas/

 

 

“If you want to learn more about this topic, contact the author or the managing partner, Dr. Cesar Peduti Filho.”

“Se quiser saber mais sobre este tema, contate o autor ou o Dr. Cesar Peduti Filho.”