The unfair competition is a crime provided in the Brazilian Industrial Property Law. It is committed by anyone who:

• employs fraudulent means to divert customers of others, to his own or another party’s advantage;
• publishes, by whatever means, false statements to the detriment of a competitor, for the purpose of obtaining any advantage;
• uses, unduly, a third party’s trade name, business name or insignia, or sells, displays or offers for sale or has in stock a product bearing these references;
• and others hypothesis provided in the law.

Acts of unfair competition are generally characterized by bad faith, fraud and deceptive trade practices.

The penalty for unfair competition crimes in Brazil is imprisonment of 3 (three) months to 1 (one) year, or a fine.

The perpetrator also must be processed, to pay all the damages caused. A suit might result in an order of monetary damages and an injunction against the guilty party if continue with such actions.

A prompt action against the competitor is important to avoid damages, confusion or association by the customers.

We emphasize that is important to be assisted by professionals specialized in intellectual property in these cases. Our office monitors your intellectual property rights and possible violations. Contact us for more information.

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Author: Luciana Santos Fernandes, Junior Associate at Peduti Advogados.

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“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.”