IIPLA News
Thursday, August 5, 2021

Key Brazilian Online Marketplaces Identified as Focal Points for Counterfeit Enforcement

Legal experts highlight enforcement challenges and strategies for brand owners combating counterfeit sales on Brazil’s leading digital platforms

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Key Brazilian Online Marketplaces Identified as Focal Points for Counterfeit Enforcement

Brazil, with its population exceeding 211 million, ranks as the fifth most populous country globally and is considered a major market vulnerable to counterfeit goods. Estimates indicate that approximately 73% of Brazilians purchase counterfeit products annually. These fakes are often imported via ports or land borders shared with ten neighboring countries, although a substantial portion is produced domestically. São Paulo, in particular, has been identified as the largest distribution center for counterfeit goods within Brazil.

While counterfeit sales traditionally occurred at physical locations, the rise of online shopping—accelerated by the COVID-19 pandemic—has shifted significant counterfeit activity to digital marketplaces. To address this, IIPLA News Desk engaged with Andrea Possinhas, Pedro Matheus, and Victoria Wolff of the Brazilian law firm Gruenbaum, Possinhas & Teixeira to examine the online marketplaces most implicated in counterfeit listings.

Under Brazilian Industrial Property Law (Law No. 9.279/96), intellectual property (IP) rights are protected, and counterfeiting is criminalized. This legislation explicitly applies to online sales, empowering rights holders to seek injunctions and damages through judicial proceedings to halt infringements.

Several major Brazilian digital marketplaces—including Mercado Livre, B2W Digital (which operates Americanas and Submarino), and Magazine Luiza—have established Intellectual Property Protection Programmes (IPPPs). These programmes enable brand owners to report IP violations directly to the platforms. Participation in such programmes is advised as a preliminary enforcement step.

However, the Civil Rights Framework for the Internet (Law No. 12.965/14) limits the liability of internet application providers. Marketplaces are only civilly liable for third-party content if, following a specific court order, they fail to remove infringing material within a reasonable timeframe and technical capacity. Consequently, marketplaces are not legally required to pre-screen listings or remove reported counterfeit content absent a judicial mandate.

Rights holders confronting online counterfeiting typically pursue a tiered approach. Initially, they may attempt amicable resolution through marketplace IPPPs or by issuing cease and desist letters to the infringing sellers or platforms. Although marketplaces are not obligated to act without court orders, many adopt best practices by proactively evaluating complaints and removing counterfeit listings to mitigate risk.

If informal measures fail, rights holders can initiate legal action to obtain court orders compelling the removal of infringing content. When infringers remain anonymous, courts may order marketplaces to disclose user data to facilitate further enforcement.

Enforcement costs vary widely, influenced by the nature of the action, necessity of local legal representation, and jurisdictional differences in court fees. Costs can range from several hundred to thousands of dollars, particularly when lawsuits and product seizures are involved. Given these variables, rights holders are encouraged to exhaust amicable and marketplace-based remedies before resorting to litigation.

Among the notable marketplaces, Enjoei, founded in São Paulo in 2009, currently hosts over 370,000 sellers and 4 million products, including brands such as Apple, Zara, Vans, Louis Vuitton, and Nike. Popular categories include used apparel. Counterfeit products suspected on Enjoei include makeup, purses, backpacks, earphones, sunglasses, and electronics.

Enjoei offers a ‘report’ button on product pages for counterfeit complaints and has implemented an initiative named FALSIANY aimed at combating counterfeit sales. However, the effectiveness of this program remains unclear. Complaints suggest that Enjoei may experience delays in processing takedown requests.

As a publicly listed company on the Brazilian Stock Exchange, Enjoei maintains an Institutional Relations page and reportedly collaborates directly with major brands under the FALSIANY initiative. Brand owners are advised to engage with Enjoei to explore participation opportunities and to proactively monitor and report infringing content via the platform’s reporting tools. Additionally, monitoring consumer complaint websites such as RECLAMEAQUI can provide intelligence on counterfeit activity.

Shopee, operated by the global Sea Group since 2019, has rapidly gained popularity in Brazil. Counterfeit products alleged on Shopee include shoes, earphones, smartphones, purses, and clothing. Brand owners can report counterfeit listings or users through ‘Report this Product’ or ‘Report this User’ options available on the platform.

In summary, Brazil’s online marketplaces represent critical battlegrounds in the fight against counterfeit goods. Legal frameworks provide mechanisms for enforcement, but marketplace cooperation and strategic engagement remain essential. Brand owners are encouraged to utilize IPPPs, pursue amicable resolutions, and consider judicial remedies when necessary to protect their intellectual property rights in Brazil’s dynamic e-commerce environment.

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Key Brazilian Online Marketplaces Identified as Focal Points for Counterfeit Enforcement Brazil’s booming e-commerce sector has become a hotspot for counterfeit goods, with a significant share of fake products sold through popular online marketplaces. Legal practitioners from Gruenbaum, Possinhas & Teixeira... Read the full IIPLA article: https://iipla.org/news/key-brazilian-online-marketplaces-identified-as-focal-points-for-counterfeit-enforcement

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