A Sao Paulo court has ruled that Meta, the parent company of Facebook, must cease using its name in Brazil within 30 days. This decision comes after a local computer services provider, Meta Servicos, filed a lawsuit claiming that it has suffered damage due to third parties confusing the two companies.
The lawsuit, filed by Meta Servicos, alleges that since Meta changed its name in 2021, it has been mistakenly involved in over 100 lawsuits and had Instagram profiles disabled for purportedly impersonating another entity.
The Barueri-based firm, which registered its brand with Brazil’s National Institute for Intellectual Property in the late 2000s, argued that the confusion caused by Meta’s name change has harmed its business operations.
Meta, which also owns Instagram and WhatsApp, has not yet responded to the court’s decision. However, the ruling can be appealed by the tech giant, headed by Mark Zuckerberg.
In its judgment, the appeals court in Sao Paulo stated that Meta must pay a fine of 100,000 reais ($20,201) per day if it fails to comply with the order to stop using its name in Brazil.
Previously known as Facebook, Meta rebranded itself with a focus on developing the “metaverse,” a virtual shared environment envisioned as the next evolution of the internet.
However, this legal setback in Brazil underscores the challenges the company faces as it navigates legal disputes and branding issues in different parts of the world.
