Monday, October 4 2021   \  Published by Peduti Advogados.

What is unfair competition? How to proceed in Brazil if my competitor practices unfair competition?

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. Continue Reading

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