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The formation of an SCP is not subject to any formality, and may be proved by means of any evidencepermitted by Brazilian law. It is most commonly used in particular operations, such as import, export,and participation in transactions, procurements and others.3.7. Wholly owned subsidiaryThe Corporation Law also provides for the wholly owned subsidiary, which is a strictly unipersonalcorporation, whose only shareholder shall necessarily be a Brazilian company. Its creation can beoriginated or derived. In the former case, it will be incorporated by public deed. Its creation will bederived when the company is converted into a wholly owned subsidiary through the acquisition, by aBrazilian company, of all its shares or through the incorporation of all the shares of the capital stockinto the net equity of another Brazilian company.4. INDUSTRIAL PROPERTYIndustrial Property is regulated by Law 9,279/96, the Industrial Property Act (Lei da PropriedadeIndustrial - LPI), which was drawn up with the purpose of adapting Brazilian legislation to therequirements established by the World Trade Organization (WTO). Therefore, the protection conferredby the LPI on patent and trademark rights’ owners located both in Brazil and abroad is consistent withinternational industrial property protection standards.Invention patents are valid for a period of 20 years and the utility model type, for the period of 15years, as from the date of the respective filing. Patents filed in Brazil are only valid in Brazil. However,in this case, because of the Patent Cooperation Treaty (PCT) the process for filing patents abroad willbe simpler.The LPI permits the compulsory license of patents when their owner exercises the rights resultingtherefrom in an abusive manner, commits abuse of economic power through them, when there is noexploitation of the patent’s subject matter in the Brazilian territory or the incomplete manufacturethereof. In these cases, the license may only be applied for by an interested party with a legitimateinterest in and the technical capacity for the efficient exploitation of its subject matter, three years afterthe patent granting date.It is important to point out that though pharmaceutical products and processes have been patentablesince the enactment of the LPI, the granting of patents in this segment is contingent on prior approvalfrom the Brazilian Sanitary Surveillance Agency (Agência Nacional de Vigilância Sanitária – ANVISA).24