The Legal Framework for Startups

On December 14th, the Chamber of Deputies of Brazil approved the complementary bill (PLP) 146/19 better known as the “Legal Framework for Startups” and now is subject to the appreciation by the Federal Senate.

According to the bill, the startups shold have a history of up to ten years since foundation and up to 16 million reais of annual revenue.

The company also needs to declare that it has an innovative business model or that it belongs to the special regime Inova Simples, provided for in The General Law on Micro and Small Enterprises (123/06) it has the objective of establishing general rules regarding the differentiated treatment to be given to micro-enterprises (MEs) and Small Companies (EPPs) throughout the country.

fonte: camara.leg.br

The draft bill provides to implementation of a regulatory sandbox to stimulate innovation. Also provides a special bidding procedure to stimulate investment in startups. Furthermore, the draft bill provides rules will affect the working relationships.

In short, the “Legal Framework for Startups” proposes to facilitate the expansion of the startups market in the country, especially because promises simplifying bureaucracy and to create a more legally secure environment for entrepreneurs and potential investors.

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Lawyer Author of the Comment: Sheila de Souza Rodrigues

Source: Câmara dos Deputados aprova marco legal das startups

“If you want to learn more about this topic, contact the author or the managing partner, Dr. Cesar Peduti Filho.”
“Se quiser saber mais sobre este tema, contate o autor ou o Dr. Cesar Peduti Filho.”

IP for startups in Brazil

Intellectual property’s rights is for sure one of the concerns a startup needs to worry about, and it is important to identify when to protect your rights, and what are the priorities to be protected.

Initially, when there is a consensus on which trademark will be used for the products or services provided, it is recommended to file an application for a trademark registration as soon as possible, even if it is in the name of one of the founders, transferring the ownership in the future, when a legal entity is constituted.

A trademark registration is a preventive measure, since, if the startup decides to register the trademark only in the future, when it has already invested in advertising, or the trademark is already stamped on its products and materials, it is possible that the trademark will be already registered in the name of a third party, for the same market segment, so it will be necessary to change the name, giving rise to losses.

In this same sense, it is important to register the domain name (address of the company’s website) right away, in order to guarantee its availability of use, even for a future moment, when the startup will be, in fact, in activity.

Regarding patent protection, despite the possibility of the founders having a brilliant idea in their hands, it is not possible to protect an idea in Brazil, since a patent must meet the requirements: a) inventive step; b) novelty; and c) industrial application. The protection of this idea, however, may be carried out in the future, when it fulfills such requirements, as well as it is possible to sign a confidentiality term between the companies involved in the startup, in order to avoid greater risks.

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Lawyer Author of the Comment: DRM

“If you want to learn more about this topic, contact the author or the managing partner, Dr. Cesar Peduti Filho.”
“Se quiser saber mais sobre este tema, contate o autor ou o Dr. Cesar Peduti Filho.”