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Domain Name Issues in Brazil
Brazi/ has a we//-deve/oped system for the registration of domain names
and the reso/ution of disputes invo/ving domain names


Erica Aoki                                             domain name disputes have been enacted in
Moreira Lima Royster& Ohno, Brazil                     Brazil, the policies and procedures to settle
                                                       disputes involving domain names are still



I   n Brazil, domain names are registered with
    the São Paulo State Foundation for Academic
Research (FAPESP), a non-profitable
                                                       unclear. Disputes related to domain name
                                                       registration can be resolved only through
                                                       settlement between the parties or litigation.
                                                          In Brazil, some conflicts involving domain
organisation located in the city of São Paulo. This    name disputes were taken to Federal Courts,
foundation was appointed in 1996 by the Comitê         based on trademark infringement and unfair
Gestor da Internet (CGI), the Brazilian Internet       competition claims. The Superior Court of Justice
Administration Committee, to be the agency in          has already decided that the State's Civil Courts
charge of the registration and management of ali       have the jurisdiction to decide cases arising out
.br Top Levei Domains.                                 of domain name disputes.
   Resolutions 00 I and 002 of the CGI are the            Incase a trademark is being infringed by a
main mies for the registration of domain names         domain name registered by a Brazilian resident, it
in Brazil. Domain name registration bearing M.         is advisable to obtain ali the relevant information
BR, ART.BR, BR, COM.BR, ESP.BR, FM.BR,                 about the infringer in order to determine whether
G12.BR, IND.BR, INF.BR, MIL.BR, NET.BR,                the domain name was registered in bad faith. If
ORG.BR, PSI.BR, REC.BR, TMP.BR, TVR.BR,                the registrant is a cybersquatter, the prior
TV.BR and ETC.BR Top Levei Domains is                  trademark owner may have reasonable chances to
granted only to entites registered with the            succeed in a possible lawsuit to recover the
Brazilian Ministry of Finance's Corporate              domain name. The chances may increase if the
Taxpayer Registry (CNPJ). The maximum                  trademark is registered in Brazil with the
registration allowed are 10 (ten) domains per          Brazilian Patent and Trademark Office (Instituto
each CNPJ number. The CGI is working on a              Nacional da Propriedade Industrial, or INPI).
resolution to allow foreign entities to register the       Before starting a lawsuit against the infringer,
domain name without the CNPJ number provided           it is advisable to send a cease-and-desist letter
that a local representative is appointed.              requesting immediate action to stop the use of the
   Individuais may register a domain name              infringing expression. The cease-and-desist letter
provided that the Brazilian Ministry of Finance's      may also request the voluntary cancellation,
Individual Taxpayer Registry (CPFIMF) number           assignment or redirection of the traffic to a
is presented. The Top Levei Domains available          specific Internet Protocol address of the
for individuaIs are ADM.BR, ADV.BR, ARQ.BR,            trademark owner.
BIO.BR, CNG.BR, CNT.BR, ECN.BR, ENG.BR,
                                                          The mose famous domain name infringement
ETI.BR, FOT.BR, FST.BR, JOR.BR, LEL.BR,
                                                       case in Brazil involves the Internet provider
MED.BR, NTR.BR, ODO.BR, PPG.BR, PRO.                   America Online Inc. versus America On Line
BR, PSC.BR, SLG.BR, VET.BR, ZLG.BR and                 Telecommunicações Ltda., a local provider that
NOM.BR.
                                                       registered the domain name "aol.com.br" in 1998.
  In Brazil, domain names are granted on a first-      The decision is still pending, due to a dispute
come-first-served basis. FAPESP will refuse            over the competent jurisdiction.
applications for domain names already registered          This case has primarily been presented to a
or which contain certain reserved expressions,         Federal Court, which granted a prelirninary
composed mainly by well-known trademarks.              injunction on behalf of the V.S. company. The
   Since no statutory regulations regarding            arguments used by America Online Inc. in this




                                                                                                              IPBA Journal
                                                                                                I Dec2000
lawsuit were based on their prior trademark rights   Formula One racer Ayrton Senna, sought to
over the expression "AOL", and also on the bad       restrain Laboratorio de Aprendizagem Men
faith of the Brazilian provider who should have      Cantinho Ltda., a school from using the domain
had knowledge about the existence of the "aol.       name "ayrtonsenna.com.br". The decision in
com" domain name.                                    lower court was based on the fact that the
   The Federal Court of Appeals reversed the         defendant registered "ayrtonsenna.com.br" in bad
                                                     faith. A preliminary injunction was granted to
decision. The argument of the Federal Court was
that there could be no confusion between domain      suspend the registration. The Court of Appeals
names and trademarks. The Court noted that the       decided to maintain the right of the plaintiff over
Brazilian company was the first to apply for the     the domain name. The judge held that the fact
registration of the domain name "aol.com.br",        that the plaintiff had registered with the INPI the
and was using it in Brazil before America Online     trademark Ayrton Senna, guaranteed the
showed any interest in using such a domain name      protection of the use of such expression
in Brazil.                                           against the use by any means, including the
                                                     Internet.
   On 25 February 2000, the Superior Court of
                                                        Another method of resolving domain name
Justice decided that domain name disputes should
                                                     disputes is by presenting a claim before the panel
only be examined by a State's Civil Court. No
final decision was rendered.                         of the Internet Corporation for Assigned Names
                                                     and Numbers (ICANN), an administrative
   Most companies have taken their cases directly    organisation under the World Intellectual
to the Civil Courts and succeeded in obtaining a     Property Organization (WIPO).
preliminary injunction, using arguments which
                                                         In Brazil, the first company to present a claim
were essentially based on bad faith and unfair       before the WIPO was Embratel, a
competition claims.
                                                     telecommunication company, in response to the
   On 29 March 2000, the Appellate Court of          registration of the domain names "embratel.net"
Brazil rendered a decision granting to the           and "embratel.com" by a third party in the United
trademark owner the title to a domain name           States. Recently, the pane! granted to Embratel
registered by a third party in bad faith. In that    the rights to its domain names. The decision was
case, Ayrton Senna Promoções, represented by         based on the fact that Embratel is a well-known
the heirs and successors of the late Brazilian       trademark worldwide.

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Domainnameissuesin brazil

  • 1. Domain Name Issues in Brazil Brazi/ has a we//-deve/oped system for the registration of domain names and the reso/ution of disputes invo/ving domain names Erica Aoki domain name disputes have been enacted in Moreira Lima Royster& Ohno, Brazil Brazil, the policies and procedures to settle disputes involving domain names are still I n Brazil, domain names are registered with the São Paulo State Foundation for Academic Research (FAPESP), a non-profitable unclear. Disputes related to domain name registration can be resolved only through settlement between the parties or litigation. In Brazil, some conflicts involving domain organisation located in the city of São Paulo. This name disputes were taken to Federal Courts, foundation was appointed in 1996 by the Comitê based on trademark infringement and unfair Gestor da Internet (CGI), the Brazilian Internet competition claims. The Superior Court of Justice Administration Committee, to be the agency in has already decided that the State's Civil Courts charge of the registration and management of ali have the jurisdiction to decide cases arising out .br Top Levei Domains. of domain name disputes. Resolutions 00 I and 002 of the CGI are the Incase a trademark is being infringed by a main mies for the registration of domain names domain name registered by a Brazilian resident, it in Brazil. Domain name registration bearing M. is advisable to obtain ali the relevant information BR, ART.BR, BR, COM.BR, ESP.BR, FM.BR, about the infringer in order to determine whether G12.BR, IND.BR, INF.BR, MIL.BR, NET.BR, the domain name was registered in bad faith. If ORG.BR, PSI.BR, REC.BR, TMP.BR, TVR.BR, the registrant is a cybersquatter, the prior TV.BR and ETC.BR Top Levei Domains is trademark owner may have reasonable chances to granted only to entites registered with the succeed in a possible lawsuit to recover the Brazilian Ministry of Finance's Corporate domain name. The chances may increase if the Taxpayer Registry (CNPJ). The maximum trademark is registered in Brazil with the registration allowed are 10 (ten) domains per Brazilian Patent and Trademark Office (Instituto each CNPJ number. The CGI is working on a Nacional da Propriedade Industrial, or INPI). resolution to allow foreign entities to register the Before starting a lawsuit against the infringer, domain name without the CNPJ number provided it is advisable to send a cease-and-desist letter that a local representative is appointed. requesting immediate action to stop the use of the Individuais may register a domain name infringing expression. The cease-and-desist letter provided that the Brazilian Ministry of Finance's may also request the voluntary cancellation, Individual Taxpayer Registry (CPFIMF) number assignment or redirection of the traffic to a is presented. The Top Levei Domains available specific Internet Protocol address of the for individuaIs are ADM.BR, ADV.BR, ARQ.BR, trademark owner. BIO.BR, CNG.BR, CNT.BR, ECN.BR, ENG.BR, The mose famous domain name infringement ETI.BR, FOT.BR, FST.BR, JOR.BR, LEL.BR, case in Brazil involves the Internet provider MED.BR, NTR.BR, ODO.BR, PPG.BR, PRO. America Online Inc. versus America On Line BR, PSC.BR, SLG.BR, VET.BR, ZLG.BR and Telecommunicações Ltda., a local provider that NOM.BR. registered the domain name "aol.com.br" in 1998. In Brazil, domain names are granted on a first- The decision is still pending, due to a dispute come-first-served basis. FAPESP will refuse over the competent jurisdiction. applications for domain names already registered This case has primarily been presented to a or which contain certain reserved expressions, Federal Court, which granted a prelirninary composed mainly by well-known trademarks. injunction on behalf of the V.S. company. The Since no statutory regulations regarding arguments used by America Online Inc. in this IPBA Journal I Dec2000
  • 2. lawsuit were based on their prior trademark rights Formula One racer Ayrton Senna, sought to over the expression "AOL", and also on the bad restrain Laboratorio de Aprendizagem Men faith of the Brazilian provider who should have Cantinho Ltda., a school from using the domain had knowledge about the existence of the "aol. name "ayrtonsenna.com.br". The decision in com" domain name. lower court was based on the fact that the The Federal Court of Appeals reversed the defendant registered "ayrtonsenna.com.br" in bad faith. A preliminary injunction was granted to decision. The argument of the Federal Court was that there could be no confusion between domain suspend the registration. The Court of Appeals names and trademarks. The Court noted that the decided to maintain the right of the plaintiff over Brazilian company was the first to apply for the the domain name. The judge held that the fact registration of the domain name "aol.com.br", that the plaintiff had registered with the INPI the and was using it in Brazil before America Online trademark Ayrton Senna, guaranteed the showed any interest in using such a domain name protection of the use of such expression in Brazil. against the use by any means, including the Internet. On 25 February 2000, the Superior Court of Another method of resolving domain name Justice decided that domain name disputes should disputes is by presenting a claim before the panel only be examined by a State's Civil Court. No final decision was rendered. of the Internet Corporation for Assigned Names and Numbers (ICANN), an administrative Most companies have taken their cases directly organisation under the World Intellectual to the Civil Courts and succeeded in obtaining a Property Organization (WIPO). preliminary injunction, using arguments which In Brazil, the first company to present a claim were essentially based on bad faith and unfair before the WIPO was Embratel, a competition claims. telecommunication company, in response to the On 29 March 2000, the Appellate Court of registration of the domain names "embratel.net" Brazil rendered a decision granting to the and "embratel.com" by a third party in the United trademark owner the title to a domain name States. Recently, the pane! granted to Embratel registered by a third party in bad faith. In that the rights to its domain names. The decision was case, Ayrton Senna Promoções, represented by based on the fact that Embratel is a well-known the heirs and successors of the late Brazilian trademark worldwide.