The 1st Reserved Chamber of Business Law of the São Paulo Court of Justice (TJSP) has upheld the conviction of Mercado Livre for unfair competition against Verisure, a company specializing in alarm systems. The marketplace was found liable for improperly using the trademark “Verisure” as a keyword in Google Ads, redirecting consumers to its website and exposing them to competitors of the security company.
The Court’s Ruling
The judicial decision was based on Statement XVII of the Group of Reserved Chambers of Business Law, which classifies using a third party’s registered and distinctive trademark as a search term in paid online advertisements as an act of unfair competition. Although Mercado Livre argued that it does not operate in the same sector as Verisure, the court ruled that this practice constitutes customer diversion and a violation of the Industrial Property Law.
Article 195 of the Industrial Property Law (Law No. 9,279/1996) establishes that fraud is illegal to attract another company’s clientele and create market confusion. The TJSP reaffirmed this principle, ordering the platform to cease using the Verisure trademark in paid ads and imposing financial penalties.
Impact and Repercussions
This decision sets an important precedent for using institutional keywords in digital advertising, reinforcing the need for companies to be vigilant in protecting their trademarks. The case underscores the importance of following intellectual property regulations to ensure fair market competition.
How to Protect Your Trademark?
Cases like this highlight the need to continuously monitor a company’s digital presence. The unauthorized use of registered trademarks can directly impact a business’s reputation and revenue. To avoid similar situations, companies should seek specialized intellectual property advisory services.
Tavares IP offers comprehensive trademark monitoring, protection, and enforcement services in digital and market environments. Contact us to learn how to safeguard your most valuable asset: your corporate identity.
