The top court of the state of São Paulo ruled that Meta, the parent company of platforms such as Facebook, Instagram, and WhatsApp, can no longer use its name or trademark in Brazil on intellectual property grounds.
Meta was given 30 days to comply with the injunction. However, the decision is only temporary and the case still has to be heard in lower courts. The tech giant has yet to comment on the ruling.
The prohibition came after another tech company claimed ownership of the name. Meta Serviços em Informática, founded in the 1990s, was granted trademarks for the name “Meta” in 2008 and 2009. Formerly known as Facebook Inc., Meta did not announce a name and brand change until October 2021, as it bet on investing in the metaverse.
Appeal judges considered that there are “overlaps between the services provided” by the two companies, as the registration granted by Meta in Brazil by the National Institute of Industrial Property (INPI) is very broad, covering “all services related to the analysis and processing of data.”
The Silicon Valley giant will also need to permanently disclose on its communication channels that Meta Serviços em Informática “has owned the Meta trademark in Brazil for more than 30 years and is not directly or indirectly part of the Facebook group, nor has it any relationship with it.”
Meta in Brazil told the court that it has been harmed — being confused with the American giant by the public, the press, and even the authorities. It alleged distress for being unduly included in several lawsuits against the Facebook owner, among other inconveniences.
Meta Platforms Inc. will have to pay a daily fine of BRL 100,000 (about USD 20,000) if it does not comply with the ruling.
This case is not the only intellectual property dispute between Brazilian companies and Silicon Valley giants. Apple is also facing a similar case over the name “iPhone” in Brazil.
Apple is in a legal fight with struggling Brazilian tech producer IGB (formerly known as Gradiente), which applied for the trademark of the name “iphone” in 2000.
The trademark would only be granted in 2008, one year after Apple launched the first iteration of its now iconic smartphone.
This is a textbook example of how patent delays can be detrimental to businesses. A 2021 report ranked Brazil’s intellectual property regulator Inpi as the slowest in the world to grant patents, despite recent improvements.
In 2021, the two companies ended 20 rounds of negotiations without a settlement. The case reached the Supreme Court in 2020, and justices decided to make it a landmark issue to establish a precedent for how intellectual property should be dealt with in Brazil.
Back in October 2023, the court started a “virtual trial,” when justices cast their opinions electronically so trials can finish faster. However, one of the court members punted on the case after calling for an in-person trial — which has yet to be scheduled.
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