The Brazilian Supreme Court of Justice has ordered Fiat do Brasil to pay a fine of 3.7 million reais (about $US1.4 million) to Mecânica Europa, a small parts supply company in Minas Gerais state, for improper use of a trademark, writes Rogério Louro Alves.
In 1979 Fiat Brazil launched a version of the compact 147 (a locally-made five-door variant of the 127) called the Europa. But Mecânica Europa had registered the brand Europa in 1976 with INPI, the institute responsible for registered trademarks in Brazil.
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Fiat knew that Europa was a registered trademark but launched the new car model regardless and without paying royalties to Mecânica Europa.
The components maker filed a lawsuit against Fiat which it has now won.
Under Brazilian law, Fiat can now appeal only the amount of the court award.
“We think that the award is too high and we will appeal [to reduce it]”, said a Fiat do Brasil spokesman.
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