Partner Isabel Milman contributed with comments to Valor Econômico Newspaper about the recent decision of the Sao Paulo Court of Appeals (TJSP) that ruled in favor ofthe manufacturer of hygiene and cleaning products Flora, from Grupo J&F, against a competitor using the same business name.

The first instance judge denied Flora´s claims  based on Art. 1,166 of the Brazilian Civil Code, which establishes that the exclusive right to the use of the business name is restricted to the states where it is registered.

However, on appeal, the appellate judges of the 1st  Reserved Chamber of Business Law unanimously reverted the first instance decision based on the interpretation of  the sole paragraph of Art. 1.166 of the Brazilian Civil Code and on Art. 8 of the Paris Convention, of which Brazil is a signatory.

According to Isabel Milman, by recognizing nationwide protection, even without registration in all states, the TJSP’s decision diverges from the understanding of the Superior Court of Justice (STJ) in numerous judgments. However, Isabel points out that one must not lose sight of the fact that the main purpose of the system is to curb unfair competition and and avoid consumer confusion. In Isabel Milman’s view, although divergent, the decisions of the STJ and TJSP, in light of the circumstances of the case at trial, seek to fulfill this purpose.

The full article can be read (in Portuguese) here.

 

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