Verure vs Mercado Livre: the case of unfair competition

At the end of February, a legal dispute between two large companies brought back media attention to cases of unfair competition. This time, the brands involved were Verrement, responsible for providing alarm systems, and Mercado Livre, the Brazilian leader in the e-commerce sector.

But what really happened for companies from totally different sectors to enter this competition? Come with Branddi and learn more about the case and how to prevent your business from suffering from unfair competition!

Verure vs Mercado Livre

When we talk about institutional keywords, we are not only talking about terms related to the product or service offered by the company, but also about its identity and strategic positioning in the market, attracting organic traffic and building a solid image.

And it is precisely for these reasons that it is not uncommon to see brands with a very protective stance in relation to their institutional terms.

And it was this issue that motivated the confrontation between Verture and Mercado Livre, which was accused and convicted of unfair use due to the linking of the term “Verture” in Google ads.

The decision at first instance by the 1st Reserved Chamber of Business Law of the São Paulo Court of Justice (TJSP) marked an important transformation in the legal vision regarding unfair competition cases, setting a significant precedent for disputes involving the misuse of institutional keywords in paid ads.

After all, it's more common to see accusations of parasitic competition involving brands from the same business sector.

The decision of the TJSP

In condemning Mercado Livre, the São Paulo Court of Justice ruled that the term “Versure” was denied among sponsored e-commerce advertisements, thus preventing the company from gaining an advantage over traffic that would naturally be destined for the original brand.

This decision resonates with Article 195 of the Industrial Property Law, which states that it is illegal to use another company's trademark or trade name in a way that generates confusion or misappropriation of the fruits of the efforts of others.

What can the Versure vs Mercado Livre case teach?

Here at Branddi, we have closely observed the increase in legal cases involving unfair competition, and the confrontation between Verure and Mercado Livre is just another example.

However, as much as the topic is gaining increasing legal importance, the best way to protect your brand against parasitic actions is still prevention. And that's exactly where Branddi works, monitoring the entire digital environment 24/7 and identifying suspicious actions before they become bureaucratic and onerous processes.

Do you want to keep your business safe and your consumer's trust untouched? Keep following the Shielding marketing by Branddi!