The current status of Bill 2,338/2023: regulating artificial intelligence in Brazil

The regulation of Artificial Intelligence (AI) is a global concern, and Brazil is making significant progress in this area through Bill 2.338/2023. This proposed legislation seeks to establish a comprehensive framework to govern the use and development of AI technologies, ensuring ethical standards, user protection, and promoting innovation. We aim to provide an overview of the bill’s current status and key provisions as Brazil works towards AI regulation.

 

Background of the Bill

 

Bill 2.338/2023, introduced in the Brazilian Congress, is a landmark initiative to regulate AI, aligning with international trends for responsible AI governance. The proposal responds to rapid advancements in AI and addresses concerns such as privacy, discrimination, accountability, and transparency. By establishing a legal framework, Brazil aims to balance the benefits of AI innovation with the need to protect individual rights and public safety.

 

Key Provisions of the Bill

 

The bill covers various aspects of AI use, with a focus on:

 

– Ethical Principles and Human Oversight: Ensuring AI systems are used in ways that respect human rights, non-discrimination, and transparency. There is an emphasis on human oversight over AI decision-making processes; 

 

– Risk-Based Approach: Classifying AI systems according to their potential risk to society, with higher-risk applications subject to stricter requirements. This approach echoes the European Union’s AI Act and aims to minimize harm from high-stakes AI systems in areas like healthcare, finance, and law enforcement; 

 

– Data Privacy and Protection: Reinforcing the principles established by Brazil’s General Data Protection Law (LGPD), the bill mandates that AI developers and users adopt measures to protect personal data used in AI training and operation; 

 

– Accountability Mechanisms: Introducing requirements for developers and deployers to ensure AI systems are safe and reliable, along with liability rules for damages caused by AI.

 

 

Legislative Progress: 

 

The bill is currently under review in the National Congress, where discussions and amendments are ongoing. As of now, the House of Representatives has held several public hearings to gather input from experts, industry representatives, and civil society. While there is broad support for regulating AI, stakeholders have raised concerns about the need for flexibility to foster innovation and avoid overly restrictive rules.

 

Amendments to the initial draft have been proposed to address these concerns, such as clarifying the scope of the regulation, refining risk classification criteria, and ensuring that small and medium-sized enterprises (SMEs) are not disproportionately burdened by compliance requirements. The timeline for the bill’s passage remains uncertain, but there is optimism that it will progress swiftly, given the global momentum towards AI regulation.

 

Implications for Businesses

 

Businesses operating in Brazil, particularly those in sectors heavily reliant on AI, should prepare for the changes that this legislation will bring. Companies may need to:

 

– Review and Update AI Practices: Conduct internal audits to ensure that their AI applications comply with the ethical and risk-based requirements proposed in the bill; 

 

– Enhance Data Protection Measures: Strengthen data governance practices to align with both the LGPD and forthcoming AI regulations.

 

– Engage in Policy Discussions: Stay informed about the bill’s progress and participate in public consultations to voice concerns or support for specific provisions.

 

Looking Ahead

 

Bill 2.338/2023 represents a significant step towards establishing a responsible AI regulatory framework in Brazil. While the legislation is still being shaped, its eventual passage will mark a crucial milestone in Brazil’s digital transformation journey. Businesses should closely monitor developments, assess the potential impact on their operations, and prepare to adapt to the new legal landscape.

 

The regulation of AI is particularly important in Brazil due to the country’s historical context of social inequality and entrenched prejudices. Without adequate safeguards, AI systems risk perpetuating or even exacerbating biases present in society, leading to unfair outcomes in critical areas such as hiring, law enforcement, and access to financial services. Bill 2.338/2023 aims to ensure that AI development and deployment prioritize fairness and inclusivity, taking into account Brazil’s diverse population and addressing the risk of discriminatory practices. Proper regulation can help harness the potential of AI to reduce inequality while protecting vulnerable groups from technological harms.

 

As discussions continue, the bill will likely evolve to better reflect the needs of the market while upholding the ethical use of AI. The challenge will be to craft a regulatory framework that promotes innovation without compromising public interest and individual rights.

 

 

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

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ANPD Regulation on International Data Transfers

The newly introduced framework sets forth detailed requirements for organizations involved in transferring personal data internationally, aligning Brazil’s data protection regime with international standards such as the GDPR in the European Union. The objective of these rules is to ensure that personal data is granted the same level of protection abroad as it is domestically in Brazil, thus protecting the privacy rights of Brazilian data subjects.

 

Under the regulation, personal data may only be transferred to countries or international organizations that ensure an “adequate level of protection.” The ANPD will assess whether a foreign jurisdiction’s data protection standards are sufficient based on factors such as legal frameworks, international commitments, and the effective enforcement of rights.

 

In the event that the recipient country does not offer adequate protection, businesses must rely on specific mechanisms to legitimize the transfer. These include:

 

  • Standard Contractual Clauses (SCCs) approved by the ANPD,
  • Binding Corporate Rules (BCRs) for multinational organizations,
  • Explicit and informed consent from the data subject, or
  • Execution of international cooperation agreements for data protection.

 

Organizations must perform comprehensive assessments of the risks associated with cross-border data transfers. These assessments should address the legal, technical, and operational measures required to safeguard personal data. The principle of accountability is at the core of the regulation, requiring businesses to document compliance efforts and implement internal governance policies to protect data during transfer.

 

 

The regulation strengthens the rights of data subjects by ensuring that individuals retain control over their personal data even when it is processed internationally. Companies must provide clear and transparent information to data subjects about where their data will be transferred, under what legal basis, and the safeguards in place.

 

In that order organizations must promptly adapt their data handling practices to comply with the regulation within one year. Failure to adhere to the rules could lead to administrative sanctions, including warnings, fines, and the suspension of data processing activities. The ANPD has outlined specific compliance deadlines for businesses to ensure the safe and lawful transfer of personal data across borders.

 

With these new Regulation CD/ANPD nº 19/2024, businesses that engage in international data transfers—whether within the same corporate group or to third-party service providers—must review and potentially modify their practices to meet the compliance obligations outlined by the ANPD. This includes updating data transfer agreements, revising internal policies, and ensuring that contractual clauses or safeguards are in place when transferring data to countries without adequate protections.

 

Our team is here to assist you in navigating these regulatory changes and ensuring that your organization remains compliant with the ANPD’s data transfer requirements. We offer comprehensive services, including risk assessments, legal support in updating contracts, and guidance on implementing robust data governance frameworks.

 

 

Author: Daniel Eustáquio Ramos Marinho, and Cesar Peduti Filho, Peduti Advogados.

 

 

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The significant role that AI has been performing in the protection of trademarks and patents in Brazil.

In Brazil, Artificial Intelligence (AI) has been playing a vital role in protecting trademarks and patents, transforming the way inventors and companies protect their intellectual property.

 

First of all, before you can register a trademark or patent with the BPTO, it’s crucial to examine the validity of the trademark or patent or the originality and the inventive step, when it comes exclusively to the patent. In this context, AI stands out for its ability to carry out extensive searches on existing trademarks and patents, as well as comparing characteristics to identify possible similarities. This enables creators to avoid future conflicts and ensure the exclusivity of their innovations.

 

 

In addition, AI can assist in the drafting of the documents required for registration, a task that is often complex and requires precision. By carrying out detailed analyses, AI is also able to predict the chances of the registration application being granted or rejected, offering a clearer view of the process.

 

After the registration is granted, AI continues to be a valuable partner, helping to monitor possible infringements of the rights associated with trademarks and patents. This provides more effective and proactive protection in the market.

 

However, it’s important to note that AI is not a substitute for human intervention. Supervision and critical analysis are essential to identify flaws and complement the work performed by technology. Thus, AI must be seen as a support mechanism that enhances, but does not replace, the knowledge and experience of professionals in the field.

 

 

Author: Isabela Nicolella Vendramelli and Cesar Peduti Filho, Peduti Advogados

Source

https://oconsultorempatentes.com/inteligencia-artificial-e-propriedade-intelectual/  

https://riccipi.com.br/avancos-da-inteligencia-artificial/

 

 

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Brazil Strengthens Intellectual Property Leadership, Driving Innovation and Economic Growth

Brazil, committed to intellectual property (IP), is fostering a favorable environment for innovation, growth, and socio-economic well-being. The country is a regional leader in this area and continues to adapt, strengthening IP protection and supporting economic development.

 

This is what Spanish expert Etienne Sanz de Acedo, CEO of the International Trademark Association (INTA), highlighted in an article on the Brazilian legal online magazine Conjur. Started on September 16, 2024, Inta will host a series of meetings in Brasília and Rio de Janeiro with the Brazilian IP community, industry representatives, and government, legislative, and judicial authorities. The goal is to understand the Brazilian IP landscape and share knowledge, priorities, and challenges in the field.

 

The INTA leadership, headed by the CEO, will meet with brazilian institutions such as the National Institute of Industrial Property (INPI), the Supreme Federal Court, the Ministry of Development, Industry, Commerce, and Services (MDIC), the Ministry of Foreign Affairs, the Interministerial Group on Intellectual Property (GIPI), and the Federal Revenue Service.

 

INTA is the largest global association of entrepreneurs and professionals dedicated to supporting trademarks and the entire spectrum of IP protection. The non-profit organization is composed of 6,500 members, including companies and law firms from 185 countries, with approximately 35,000 volunteers.

 

 

Acedo, who has previously worked as a lawyer and law professor at the University of Alicante in Spain, later served as head of communications and as a cabinet member to the president of the European Union Intellectual Property Office (EUIPO). He has been INTA’s CEO since 2013.

 

One reason for Brazil’s regional leadership in IP, according to the INTA CEO, is the adoption of the National Intellectual Property Strategy (ENPI), a federal government initiative aimed at coordinating federal and state IP policies and utilizing IP as a tool to drive economic and social development. ENPI provides an organized framework for a series of IP-related activities and establishes performance indicators for policies for the 2023–2025 period.

 

In the interview, Acedo also highlighted a study by INTA that examined the impact of trademarks in Latin America. According to the research, as of 2019, Brazilian industries that intensively utilized trademarks offered salaries 18.9% higher than other sectors and had a significant contribution to GDP and formal job creation.

 

“These findings demonstrate the tremendous economic potential that can be unlocked across Latin America through investment in IP and effective IP policy,” says the CEO (translated).

 

If you’d like to learn more about the topic, feel free to contact Peduti Advogados, a brazilian law firm specialized in Intellectual Property, since 1977.

 

 

Author: Enzo Toyoda Coppola, Junior Associate and Cesar Peduti Filho, Managing Partner of Peduti Advogados.

Source: https://www.conjur.com.br/2024-set-18/brasil-tem-compromisso-com-pi-e-e-destaque-regional-diz-ceo-da-inta/#:~:text=ConJur%20%E2%80%94%20O%20que%20pretendem%20discutir,prote%C3%A7%C3%A3o%20da%20PI%20no%20pa%C3%ADs.

 

 

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Prior Knowledge of a Foreign Trademark is Sufficient to Cancel Registration in Brazil, Decides Federal Court

The Regional Federal Court of the 2nd Region (TRF-2) ruled that prior knowledge of a trademark registered abroad is sufficient to cancel a registration in Brazil. The case involved the Australian brand “Deus Ex Machina”, which, after discovering that a Brazilian company had registered the trademark in bad faith, managed to cancel its registration in Brazil.

 

The decision was based on article 124 of the Industrial Property Law (IPL), which protects foreigner trademarks against unauthorized registrations in Brazil. According to the rapporteur, it is sufficient to prove that one knew or should have known the trademark for the registrations to be declared null and void, regardless of whether it is notoriously known in Brazil or not.

 

It is surely a sign of an important milestone for our intellectual property system, as it faces abusive practices of misappropriation of trademarks through registrations meant to to unfairly exploit third parties. Therefore, the court reaffirms the protection of international brands in Brazil and curbs the common practice of “squatting,” in which companies or individuals attempt to profit from the registration of trademarks of renowned international companies that have not yet registered them locally.

 

 

In addition, decisions like this should increase the confidence of foreign companies in our industrial property protection system by ensuring that they will not be harmed by bad faith attempts of registration. It demonstrates that Brazilian market is also an interesting object of investment, since there is legal certainty and respect for international intellectual property standards, rigorously enforced by the courts.

 

For companies that wish to operate in global markets, brand protection is a valuable asset, and decisions like this must encourage them to invest in their intellectual property registrations, both in Brazil and internationally. On the other hand, bad faith parties should be aware of their actions, for there is a set of legal strategies to protect the legitimate owners.

 

 

Author: Carlos Roberto Parra and Cesar Peduti Filho, Peduti Advogados.

Source: Ter conhecimento de marca no exterior anula registro no Brasil, diz TRF-2 (https://www.conjur.com.br/2024-set-01/ter-conhecimento-previo-de-marca-e-registra-la-basta-para-anular-registro/)

 

 

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Brazilian Space Agency Implements New Intellectual Property Policy to Boost Technological Innovation

The Brazilian Space Agency (AEB) introduced a comprehensive Intellectual Property Policy aimed at enhancing the management and commercialization of its intellectual assets. This initiative seeks to drive scientific and technological progress, positioning Brazil as a key player in the global space sector.

 

The Brazilian Space Agency (in Brazil, AEB) has announced the implementation of its new Intellectual Property Policy through Ordinance No. 1,520, dated July 15, 2024. This measure took effect on August 30, 2024, and aims to strengthen the management, exploitation, transfer, and promotion of AEB’s intellectual property assets, highlighting its role in Brazil’s scientific and technological development.

 

Established on February 10, 1994, the AEB is an autonomous agency linked to the Ministry of Science, Technology, and Innovation (in Brazil, MCTI), serving as the central body of the National System for the Development of Space Activities (in Brazil, SINDAE). Its primary responsibility is to formulate, coordinate, and implement the Brazilian Space Policy, with the goal of promoting the sovereign and efficient use of the space sector for the benefit of society.

 

The new intellectual property policy sets clear guidelines for managing inventions, utility models, industrial designs, trademarks, software, and other creations developed by the agency. The AEB will be responsible for cataloging and strategically managing these assets, promoting their use and commercialization without transferring ownership of the rights. Additionally, the document outlines licensing modalities, both exclusive and non-exclusive, allowing the granting of usage rights for these creations in exchange for financial and non-financial considerations, such as goods, scholarships, and training programs.

 

 

The policy also allows for the negotiation of exclusive licenses in the case of joint developments, with specific compensations. In situations involving licenses of national defense interest, the Ministry of Defense will be consulted.

 

Encouraging intellectual production is one of the document’s priorities, benefiting civil servants, military personnel, employees, and students involved in the agency’s projects. The policy also establishes that if intellectual property rights are not exploited within the stipulated deadlines, they will revert to the AEB, ensuring that assets do not remain inactive.

 

The economic gains generated by the exploitation of intellectual property assets will be managed by support foundations and reinvested in new science, technology, and innovation activities. With this policy, AEB aims to increase the transfer and licensing of its assets, stimulating technological progress and promoting the sustainable development of Brazil’s space sector.

 

Through this initiative, the Brazilian government demonstrates its commitment to fostering the country’s intellectual and technological advancement, seeking to make Brazil more competitive on the global stage and attract foreign investments to the space sector.

 

As this is a new subject with many nuances and approaches, it is worth contacting a lawyer who specialises in intellectual property to understand the subject. Peduti Advogados can help you with this.

 

 

Author: Marília de Oliveira Fogaça and Cesar Peduti Filho, Peduti Advogados.

Source: Agência Espacial Brasileira institui sua Política de Propriedade Intelectual https://www.gov.br/aeb/pt-br/assuntos/noticias/agencia-espacial-brasileira-institui-sua-politica-de-propriedade-intelectual

 

 

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SÃO PAULO COURT ORDERS META NOT TO USE USER DATA FOR ADVERTISING PURPOSES

In Brazil, the court of justice of the state of São Paulo has issued an injunction prohibiting the company META, which owns the social networks Instagram, Facebook and Whatsapp, from using its users’ data for advertising purposes.

 

The decision was the result of an injunction arising from a public civil action by the Federal Public Prosecutor’s Office and the Consumer Protection Institute, which claim that WhatsApp violated rights by forcing its users to accept a rule that shares personal data with other companies of the group, which would characterize an abusive practice. Also, the new privacy policy would be sparse and generic.

 

The Data Protection Act (LGPD) has proved to be extremely important for this case, since, when applied to social networks, it guarantees that the user must have the right to: Consent to data collection, with clear information on what data will be collected and its purposes, transparency and security

 

 

The decision correctly follows the data protection Brazilian legislation, since, understanding that the policy presented by the META group was abusive and unclear about the sharing of information, it should prevent the data from being spread for other purposes.

 

In this way, users are promoted a safer environment on social networks, so that large companies don’t misuse sensitive data. With the injunction, users can be more confident that the protection of their data is being guaranteed and is correctly protected by legislation. 

 

 

Autores: Daniela Russo, Advogada Junior e Cesar Peduti Filho, Peduti Advogados

Fontes: https://www.meioemensagem.com.br/midia/justica-de-sp-proibe-meta-de-usar-dados-do-whatsapp-para-anuncios 

 

 

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

Social network ‘X’ and the unauthorized use of user data

X users recently learned that their interactions with Grok, the platform’s artificial intelligence chatbot, were being automatically used to “train and fine-tune” the systems of xAI, Musk’s artificial intelligence company, without explicit permission to share data.

After the news broke, the social network said: ‘All X users have the ability to control whether their public posts can be used to train Grok, the AI research assistant. This option is in addition to your existing controls over whether your interactions, inputs and results related to Grok can be used. This setting is available on the web platform and will soon be available on mobile.’

 

However, Europe’s data protection watchdog says X isn’t being transparent enough and is seeking clarity on the change to open up space for new regulatory scrutiny of the social media platform.

In Brazil, X’s practice is also being questioned.

 

 

In Brazil, Meta had previously used text, images and videos from social networks to develop and perfect its generative language models, such as ChatGPT, by using public data shared by Brazilians on the social networks Instagram and Facebook.

 

At the beginning of July 2024, the government, through its National Data Protection Authority (ANPD), ordered the company to suspend this practice in the country. As a result, Meta must discontinue the rules for the Brazilian internet, under penalty of a daily fine of R$50,000.

 

Similarly, the practice adopted by Ellon Musk’s social network has been repudiated by the Brazilian Institute for Consumer Defence (IDEC), which warns that the change to social network X would have occurred without prior information or consent from users.

 

‘Specifically, we see a malicious design: there is a pre-selection of the option that consumers would accept the use of their data for AI processing purposes. This consent should not be presupposed but should be explicit,’ the consumer protection body said in its statement.

 

‘Idec emphasizes its indignation at seeing yet another ‘big tech’ exploiting consumers in order to grow its economic power,’ the body added.

 

As this is a new subject with many nuances and approaches, it is worth contacting a lawyer specialized in intellectual property to understand the limits of protection and exploitation that exist to date. Peduti Advogados can help you with this.

 

 

Author: Marília de Oliveira Fogaça and Cesar Peduti Filho, Peduti Advogados.

 

Source: X, de Musk, usa dados de usuários para treinar IA sem autorização + https://epocanegocios.globo.com/inteligencia-artificial/noticia/2024/07/x-de-musk-usa-dados-de-usuarios-para-treinar-ia-sem-autorizacao.ghtml

 

 

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End of the Legal Battle Over Nirvana’s “Smiley Face” Logo

After a protracted six-year legal battle, the dispute between fashion designer Marc Jacobs and the rock band Nirvana over the rights to the iconic “smiley face” logo has come to an end. The controversy began in November 2018, when Marc Jacobs released a collection called “Bootleg Redux Grunge” featuring a design similar to Nirvana’s famous smiley face.

 

The only difference was that Jacobs replaced the X eyes with “MJ” (his initials) and swapped out the band’s name with the word “Heaven.”



Upon the release of the collection, the remaining members of Nirvana filed a lawsuit, asserting their copyright over the smiley face design, which they claimed was created by Kurt Cobain in 1991. Despite their assertions, former band members Dave Grohl and Krist Novoselic stated they were unaware of the design’s origins.

 


Marc Jacobs’ legal team argued that the copyright registration should be considered invalid due to the lack of any living person with firsthand knowledge of the design’s creation, among other deficiencies. This argument was bolstered by the testimony of Robert Fisher, a graphic designer who worked as an art director at Geffen Records, Nirvana’s label, and who also claimed to have designed the logo. However, his claim was dismissed by the entity managing Nirvana’s copyrights.



Now, after years of legal wrangling, the California federal court has announced that Nirvana’s members, Robert Fisher, and Marc Jacobs have agreed to settle the matter and reach an agreement in the coming weeks. The involved parties have not yet commented publicly on the resolution.

 

 

Author: Enzo Toyoda Coppola, Junior Associate and Cesar Peduti Filho, Managing Partner of Peduti Advogados.

Source: https://lorena.r7.com/post/Marc-Jacobs-e-Nirvana-finalizam-disputa-judicial

 

 

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The Protection of Software Rights in Brazil

From a legal point of view, a software creation is seen as an intellectual creation, not an industrial one. Within this argument, Computer Programs are intellectual works resulting from the creative work of human beings and have the character of expressive originality.

 

Consequently, the legal nature of software has been guided by the Copyrigh regime. Thus, in Brazil, the legal protection given to computer programs has been based on the Copyright Law (Law 9.610/98). This fact is confirmed by Article 7 of the Copyright Law, which affirms that computer programs are subject to copyright protection.

 

In the same line, the Industrial Property Law, in its article 10, V, expressly forbids the registration of patents on computer programs.

 

 

Thus, as an author’s right, the protection of software is independent of any form of registration, so that protection extends for 50 years from its creation.  

 

The rights of copyright in software ensure that the owner has protection of the property rights related to the economic exploration of his or their work. This means that the reproduction, editing, distribution and use of the software by third parties without the authorization of the owner is expressly forbidden.

 

However, a software product that meets the requirements of novelty, inventiveness and industrial application, when integrated with hardware in such a way that it is essential for the latter’s functionality, may be patentable. This is because the hardware-software combination can constitute an invention or utility model. Thus, protection extends to the set as a whole, and not just to the software in its own right.

 

 

Author: Isabela Nicolella Vendramelli, Thaís de Kassia R. Almeida Penteado and Cesar Peduti Filho, Peduti Advogados

Source

https://baptistaluz.com.br/espacostartup/propriedade-intelectual-sobre-software-uma-visao-geral/ 

https://www.ufsm.br/app/uploads/sites/762/2019/10/propriedade-intelectual-de-sofware.pdf

https://www.planalto.gov.br/ccivil_03/leis/l9610.htm 

 

 

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