Meta’s Branding Blunder: Overlooking Trademarks in Brazil

In 2021, Facebook rebranded as Meta. Changing a company’s name is challenging enough for a small business, let alone for a multinational giant like Facebook with extensive global operations. However, this significant transformation doesn’t excuse oversight in critical areas such as trademark protection.

When entering the Brazilian market, one of the first steps any business should take is to secure its trademarks and other intellectual property. Unfortunately, when Facebook changed its names, it overlooked - or ignored - the fact that another company had already registered the “Meta” trademark in Brazil. As a general rule, the first to register a trademark in Brazil holds superior rights.

Meta Serviços em Informática, a local computer services provider, applied for the “Meta” trademark in 1996. The trademark was granted in 2008, some 13 years before Facebook’s rebranding. Recently, the similarity in names has led to a significant mix-up: the Brazilian company, mistaken for Facebook’s Meta, has been wrongfully named in nearly 150 court cases.

A São Paulo court recently ordered Facebook’s Meta to cease using the Meta name in Brazil, imposing a fine of BRL$100,000 (approximately US$20,000) per day for non-compliance. Facebook’s Meta contested the decision, and an appeals court issued a temporary stay, citing that the enforcement of the court’s order could cause irreparable harm.

As the legal proceedings continue, the Meta trademark dilemma serves as a critical reminder to all international investors: when starting a business in Brazil, do your research first. Then, protect your intellectual property by registering your trademarks.