One of the first considerations for a company starting a business abroad is selecting a unique name and registering its trademarks. These steps are integral to the planning process, ensuring the chosen name is not already in use and protecting it from future use by others. But this advice seems to have been overlooked by one of the largest multinationals doing business in Brazil.

In 2021, Facebook rebranded itself as Meta, a significant undertaking for a company with global operations. In Brazil, this name change sparked a trademark dispute. It turns out that Meta Serviços em Informática, a local computer services provider, had already trademarked the Meta name. Founded in 1990, Meta Serviços em Informática applied for the trademark in 1996, and the trademark was eventually granted in 2008.

As a result of the prior trademark registration, a São Paulo court ordered Facebook’s parent company to stop using the name Meta in Brazil, subject to a fine of BRL$100,000 per day for non-compliance. The decision, however, was quickly overturned. An appeals court, worried about the potential for irreparable harm to Facebook caused by the lower court’s order, reversed course.

While the battle over the name Meta in Brazil continues, the dispute underscores an essential lesson: filing trademarks and registering intellectual property should be a priority for any company doing business in Brazil. Frankly, it’s critical for companies anywhere in the world. Ignoring this crucial step or putting it off for later can lead to significant legal challenges and unnecessary financial costs.