The aim of these articles is to keep our Clients and Associates updated about developments in the sector of Intellectual Property in general and our firm in particular. In this way, we wish to provide a broader view of the tools that the field of trade marks, domain names, patents, designs and related rights offers to entrepreneurs to enhance and protect their efforts in researching and developing new solutions and ideas.
European Union–Mercosur Interim Trade Agreement: Impacts and Opportunities for Intellectual Property Rights Holders
After years of negotiations, the free trade agreement between the European Union and the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) is back in the spotlight, with concrete prospects for entering into force.
On 17 January 2026, the European Union and Mercosur signed the Partnership Agreement (EMPA) and the Interim Trade Agreement (iTA).
The iTA will apply starting 1 May 2026, for relations between the European Union and those Mercosur countries that have concluded their respective ratification procedures and notified the EU by the end of March. Argentina, Brazil, and Uruguay have already fulfilled these formalities, while Paraguay, which recently completed ratification, is expected to send its notification shortly.
The EMPA, instead, will have to be ratified by all EU Member States before entering into force. Ultimately, the iTA will be repealed and replaced by the EMPA, once the latter enters into force.
This is a broad-reaching agreement that, in addition to reducing tariff barriers, introduces significant developments in the field of intellectual property. In fact, one of the most relevant aspects of the agreement concerns the strengthening of industrial and intellectual property rights protection within Mercosur countries.
The agreement provides for the adoption of higher standards and greater alignment with international practices, offering direct benefits to European companies operating in or intending to expand into these markets.
Geographical Indications (GIs)
A particularly significant chapter concerns the protection of GIs, with the recognition and protection of numerous European products in Mercosur countries.
The EU will recognize over 220 Mercosur GIs, while Mercosur countries will protect 355 European GIs (e.g., Parmigiano Reggiano, Champagne, Rioja), preventing the use of these names for non-authentic products, even when the true origin is indicated or when the name has been translated.
Previously, in countries like Brazil or Argentina, it was common to find local products labeled as "Parmesan-type" or "Italian-style prosciutto." The agreement now imposes a ban on using misleading expressions like these.
The Italian wine sector will benefit from the elimination of customs duties, which currently often exceed 20-30%. Furthermore, the aforementioned protection of GIs will prevent South American producers from misappropriating the names of the most renowned Italian wines. This promotes a crackdown on the improper use of GIs and imitations (Italian Sounding), reinforcing the value of authentic products.
Trademarks
Regarding trademarks, the agreement anticipates improvements in registration procedures, greater transparency in administrative processes (through the creation of public online databases), and a strengthening of enforcement measures against counterfeiting and illicit use. New rules to combat bad faith registrations have also been added.
Designs and models
Designs and models will benefit from a minimum protection duration of 15 years.
Patents
The agreement also promotes higher standards for patent protection, encouraging investment in research and development and ensuring greater legal certainty for technology and pharmaceutical companies.
Also, the agreement encourages (though does not mandate) all Mercosur countries to join the Patent Cooperation Treaty (PCT); Argentina, for example, has historically not been a party to this treaty.
Copyright and Trade Secrets
In terms of copyright, the agreement provides for strengthened protection, including online protection, as well as better measures against digital piracy.
Mercosur countries will align with European provisions regarding economic exploitation rights, providing that they last for the life of the author plus 70 years after their death.
Legal protection is also introduced against the circumvention of Technological Protection Measures (TPM), such as digital watermarks or encryption systems applied to creative content. Furthermore, provisions are included that grant artists a percentage of the sale price during subsequent resales of their works (droit de suite).
More effective enforcement tools have been introduced, such as the possibility for customs authorities to seize counterfeit goods even in transit.
For the first time in a Mercosur-level agreement, a specific framework is introduced for the protection of trade secrets against misappropriation, including judicial measures aimed at preserving confidentiality during litigation.
Conclusion
In general, the agreement introduces a harmonization of rules and greater transparency in legal procedures, creating a safer and more predictable environment for trade and innovation. This allows companies to enter Mercosur markets with fewer risks related to the infringement of their intellectual property rights, serving as an incentive for business internationalization.
From an operational standpoint, companies must closely monitor the evolution of the agreement and evaluate adjustments to their protection strategies in South American markets. The future entry into force of the EMPA may offer new opportunities but will also require an update of IP portfolio management policies.
In an increasingly global context, the EU–Mercosur agreement is among the tools destined to facilitate trade and strengthen the protection of intangible assets. For businesses, it will be essential to promptly seize the advantages offered by this new scenario by adopting a strategic and proactive approach to protecting their distinctive assets.
Our team remains available to further discuss the effects of the agreement and support Clients in defining the best strategies for protecting their IP rights in international markets.