The Brazilian Council for Economic Defense (CADE) holds that the exercise of an industrial property right could turn out to be illegitimate and be an antitrust violation (Volkswagen do Brasil Indústria de Veículos Automotivos)

The author gives thanks to Mr. Bruno Droghetti Magalhães Santos and to Ms. Christine Holland, who gave support in research that was very useful to build this article. I. Background to the dispute The case refers to a Preliminary Investigation introduced by the Secretariat of Economic Law of the Ministry of Justice (“SDE/MJ”), in light of the a claim raised by the National Association of Auto Parts Manufacturers (“ANFAPE”) against the car manufacturers Volkswagen do Brasil Indústria de Veículos Automotivos Ltda., Fiat Automóveis S.A. and Ford Motor Company Brasil Ltda. (Defendants), who were supposedly taking advantage of their economic power by abusively exercising their industrial property rights in the auto parts sector. The information found in the records show that the Defendants