2024-11-12 14:57:00
Losses from counterfeiting and marketing of brands and products have been growing in Brazil. In 2023, the values totaled around R$410 billion. For 2024, the Brazilian Association to Combat Counterfeiting (ABCF) estimates an amount of around R$100 billiona significant impact on the finances of companies that invest in research, product development, sales and even their registration with official protection bodies. In addition to being a crime for those who counterfeit, purchasing illegal products can also result in civil and criminal penalties.
Counterfeiting and imitation of brands is considered a recurring threat to companies and involves unfair competition. Market-leading brands and companies are, today, the main targets of piracy or unfair competition. It can reach the market in different ways, such as improper use of designs, colors, similar labeling, letters, similar names and products, misleading the consumer.
“This type of action considered illegal has seen huge growth with the spread of e-commerce”, says Marcelo Brandão, managing partner of the Campinas unit at Vilage Marcas e Patentes. “This unfair competition causes material and moral damage to companies that invest in research, product development, marketing and even in trademark and patent registrations”, he explains.
According to the executive, duly registered brands and patents are protected by law. “The sale of counterfeit or copied products is considered a crime, in addition to being obliged to remove the counterfeit products from the market, and pay fines and compensation calculated by the courts based on the amount that the affected company failed to receive from the sales, the losses brand and financial, based on accounting and judicial expertise”, explains Brandão
The executive also emphasizes that it is important for companies to “guard their intellectual property protection rights, through registrations, as this is the only way they can enforce their rights”, he adds.
In addition to the company being condemned for misuse of the brand and selling products, the people who purchase it are also subject to criminal action. According to lawyer Sônia Carlos Antonio, the buyer of counterfeit products can be convicted for several reasons. “Purchasing counterfeit products contributes to an illegal market that harms the economy, innovation and intellectual property rights,” she explains.
Furthermore, the legislation provides for penalties for those who purchase counterfeit products, as the practice encourages the production and sale of this type of merchandise. “The idea is that, by also making buyers responsible, the demand for these products and, consequently, their trade will be reduced”, says the lawyer. “The purchase of counterfeit products can also be associated with risks, such as the lack of guarantees and the low quality of the products, which puts consumer safety at risk”, she adds. “Therefore, the conviction seeks to protect both intellectual property rights and the health and safety of consumers”, concludes the professional.
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**Interview with Marcelo Brandão, Managing Partner at Vilage Marcas e Patentes**
**Editor:** Thank you for joining us today, Marcelo. We’re seeing alarming figures regarding losses from counterfeiting in Brazil. Can you give us an overview of the current situation?
**Marcelo Brandão:** Thank you for having me. Yes, the situation is quite serious. In 2023, Brazil lost approximately R$410 billion due to counterfeiting and illegal marketing. For 2024, the Brazilian Association to Combat Counterfeiting estimates losses to be around R$100 billion. This significantly impacts companies, especially those investing heavily in research, product development, and brand protection.
**Editor:** What are some of the common ways that counterfeiting occurs, particularly in the digital marketplace?
**Marcelo Brandão:** Counterfeiting can take many forms, including the improper use of designs, colors, and similar labeling. With the rise of e-commerce, it has become easier for counterfeiters to mislead consumers. They may use similar names or package products in a way that closely resembles legitimate brands, which creates confusion and ultimately harms consumers and honest businesses alike.
**Editor:** You mentioned that counterfeit products lead to both material and moral damage. Can you elaborate on this?
**Marcelo Brandão:** Absolutely. When a company invests in developing a product and protecting its brand, encountering counterfeiters can lead to significant financial losses. This includes lost sales and increased legal costs as they fight to protect their reputation. Moreover, there’s a moral aspect to it—companies that invest in compliance and quality are undercut by those who don’t, which creates an unfair competitive landscape.
**Editor:** What legal protections do companies have against counterfeiting in Brazil?
**Marcelo Brandão:** Duly registered brands and patents in Brazil are protected by law. When counterfeiting occurs, it is considered a crime, and companies have the right to seek the removal of counterfeit products from the market. Offenders can face fines and be ordered to compensate for the losses incurred by the affected companies, which are calculated based on the amount the legitimate company could have earned had the counterfeiting not occurred.
**Editor:** What steps can consumers take to avoid purchasing counterfeit products?
**Marcelo Brandão:** Consumers should always purchase products from reputable sources and verify brand authenticity. They should look for official registration marks and pay attention to product details, as counterfeit items often lack the quality and precision of genuine products. Additionally, we encourage consumers to report suspected counterfeit goods to authorities.
**Editor:** Thank you, Marcelo, for shedding light on this pressing issue. It’s crucial for both businesses and consumers to be aware of the implications of counterfeiting.
**Marcelo Brandão:** Thank you for having me. Awareness is the first step towards combating this illegal practice.
