Cannabis and IP: Nurturing innovation in Brazil’s life sciences industry
The cannabis industry has experienced increasing recognition, mainly due to its versatile applications. Due to the pharmaceutical properties of medical cannabis (or medical marijuana), many countries have legalised its use.
The cannabis plant contains more than 100 different chemicals, known as cannabinoids. Delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD) are the main relevant chemicals used in medicine.
The global medical cannabis market size reached USD $31.8 billion in 2022 and is expected to reach $57.4 billion by 2028 with a compound annual growth rate (CAGR) of 10.34% from 2022 to 2028 ( Medical Cannabis Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023 – 2028). In Brazil, according to a report by Kaya Mind (a business intelligence company focused on cannabis in Brazil), the market could yield R$ 917.2 million ($193.6 million) in 2024.
Intellectual property rights are crucial for innovative industries, and this is no different for cannabis companies. They are intended to attract and protect investments in research and development, allowing ongoing innovation, thus enhancing competitiveness through licensing and strategic collaborations, and ensuring legal recourse against unauthorised use, maintaining a fair market.
By securing their rights, businesses can take legal action against infringement, safeguarding their innovations and contributing to a competitive industry.
As more research regarding the pharmaceutical properties of THC and CBD is carried out and the industry continues to grow, the importance of IP protection becomes more evident. In view of this, it is not surprising that innovators have been filing increasing numbers of patent applications related to cannabis.
As shown in the figure below, there has been an increase in the number of PCT applications related to cannabis. In Brazil, the same pattern is observed before the Brazilian PTO (BR PTO).
