Coexistence agreement in Brazil

Modelled on the English football team Spartan FC, the UK menswear company Spartan 1960, got licensed the needed UK trademarks owned by the soccer team and started operating nationally.

Some time after, SC Spartan Carioca, a Brazilian football club located in Rio de Janeiro, approached the UK SME with interest to distribute their products in Brazil and suggested a profit share if they allow the UK brand to be registered in Brazil.

In order to strengthen their negotiating position, the English company performed a prior search with the intention to apply for a trademark registration in the Latin American country. Moreover, they figured out that the Brazilian company was the owner of a well-known trademark and, hence, had an exclusive right over the term ‘spartan’.