The rapid advancement of digital technologies has made software development a strategic asset for companies across all industries. In a competitive landscape driven by innovation, securing legal protection for software creations is essential. In Brazil, registering software with INPI (National Institute of Industrial Property) is the primary way to ensure legal certainty and exclusive
Healthy competition is essential for market development and for offering consumers a range of choices; however, not all commercial disputes stay within legal boundaries. One of the most pressing illicit practices in the digital environment is the unauthorized use of registered trademarks as keywords on Google Ads, a growing concern for brand owners and the Brazilian judiciary.
In this article, we explain what makes this practice a form of unfair competition, the potential risks for companies, and how specialized legal guidance can be crucial for protecting your brand’s interests.
What is the use of trademarks as advertising keywords?
Google Ads is one of the world’s leading online advertising platforms, allowing companies to promote their products and services through sponsored links. When setting up their campaigns, advertisers choose keywords that trigger their ads whenever users search for related terms.
The issue arises when a company uses a competitor’s registered trademark as a keyword to attract consumers who were specifically searching for that brand. Often, the ad doesn’t mention the brand explicitly but still appears in the sponsored results, leading to confusion, customer diversion, and the unfair exploitation of the reputation built by the legitimate trademark holder.
Why is this considered unfair competition?
Using a third-party trademark as a Google Ads keyword without authorization may constitute unfair competition, as defined under Brazil’s Industrial Property Law (Law N° 9.279/96), because it creates a parasitic advantage by exploiting someone else’s market recognition and causes confusion among consumers, diverting them from their original intent.
Unfair competition occurs when actions are taken to confuse, mislead, or gain an improper advantage over a competitor. In the case of sponsored links, unauthorized use of a registered trademark harms both the brand owner and the consumer, who may end up purchasing a product or service they did not originally intend to seek.
In a recent decision, Brazil’s Superior Court of Justice confirmed that this practice qualifies as unfair competition. The court acknowledged that using a third-party trademark in sponsored ads violates trademark rights and constitutes unlawful conduct.
The role of trademark registration
Registering a trademark is a key step in protecting any business, since it isn’t merely a visual symbol: it reflects the reputation, quality, and credibility a company has built over time.
In Brazil, registration with the National Institute of Industrial Property grants the owner exclusive rights to use the brand throughout the country and allows for legal action against third parties who misuse identical or similar signs. Trademark rights can also be protected internationally through local registrations and global treaties, making them an essential asset for companies operating across borders.
What are the risks of not taking action?
Ignoring the unauthorized use of your trademark in sponsored ad campaigns can lead to serious consequences, such as:
- Customer diversion: users searching for your brand may be redirected to competitors;
- Reputational damage: if consumers feel deceived or dissatisfied, they may associate negative experiences with your brand;
- Loss of market position: unauthorized use can weaken your brand’s visibility and reduce the effectiveness of your branding investments;
- Financial losses: the practice can lead to lower sales and higher advertising costs, as you may need to outbid infringers for visibility.
It’s important to note that legal actions to stop such practices may include claims for damages as well as injunctions to halt unauthorized use.
How to protect your brand
Given these risks, trademark owners should proactively defend their rights. Recommended measures include:
- Ongoing monitoring: regularly track the use of your brand in online ads and search platforms;
- Cease-and-desist letters: in many cases, a formal notice is enough to stop infringers;
- Legal action: when informal measures are ineffective, judicial proceedings may be necessary to enforce your rights and seek compensation;
- Specialized legal counsel: partnering with a law firm focused on intellectual property is essential to ensure an effective and strategic approach at every step.
The importance of legal guidance
Unfair competition through the use of registered trademarks as Google Ads keywords is a real and growing issue. It can significantly impact a company’s reputation, revenue, and long-term growth. Given the complexity of the digital advertising landscape and the speed at which conflicts can escalate, taking preventative and corrective legal measures is essential.
Seeking the right legal guidance is not only a way to respond to damage already caused, it is a smart strategy to strengthen your brand’s market position and safeguard the value you’ve built over time. Ricci Intellectual Property has a team of highly qualified professionals ready to assist companies in protecting their trademarks, combatting unfair competition practices, and developing effective legal strategies in both administrative and judicial spheres.
