Why do so many companies lose their brand even after years of use?

In Brazil, it is still very common for entrepreneurs to believe that simply using a brand over the years is enough to guarantee some kind of legal protection. However, especially in the fashion industry—where name, aesthetics, and visual identity are fundamental elements of market value—this perception is completely disconnected from current legislation.

The Industrial Property Law (Law No. 9.279/1996) expressly establishes that ownership of a brand does not arise from use, but from registration duly granted by the INPI (National Institute of Industrial Property). In other words, whoever registers first is, legally, the owner, even if another company has been using that name or symbol in the market for much longer.

It is precisely this reality that causes countless companies to lose their brand even after years of operation. When the entrepreneur does not register, they continue to use a distinctive sign that, legally, does not belong to them. This opens the door for third parties, perceiving the lack of protection, to file a registration request and become the exclusive owners of the brand. From there, they can prevent the use of the trademark, demand an immediate change of the trade name, request the removal of products from the market, and even demand compensation. In many cases, this is a dispute that could have been avoided with specialized legal advice from the very beginning of the trademark's creation.

Although prior use may generate the so-called right of precedence, this right is not automatic nor does it guarantee victory. It depends on robust evidence, consistent documentation, and technical defense, representing a complex and uncertain procedure. Many entrepreneurs believe that the simple fact of using the trademark for years is sufficient, but proof of continuous, public, and good-faith use requires a set of evidence that is rarely adequately produced by companies that do not have legal counsel.

Another relevant point is that many fashion brands use generic, descriptive, or undistinctive names, especially due to aesthetic and linguistic trends in the sector. However, as the Brazilian Industrial Property Law (LPI) itself determines, generic or descriptive signs cannot be registered, which makes the trademark extremely fragile and susceptible to cancellations. Similarly, there are numerous cases where the chosen name conflicts with pre-existing trademarks—something that can only be identified through a technical prior art search. Without this analysis, the risk of uncertainty, opposition, or cancellation is quite high.

Furthermore, even registered trademarks can be lost when their renewal, which occurs every ten years, is not carried out within the legal deadline. Neglecting this step transforms the trademark into the public domain, allowing any third party to register it. This error is surprisingly common, especially in fashion companies that are growing rapidly and do not have robust intellectual property management.

These factors demonstrate that the absence of a solid legal strategy is the main reason why so many companies lose their brand—often at the moment when they are growing the most or gaining visibility. In the fashion sector, where branding, positioning, and uniqueness are essential pillars, losing the brand means much more than changing a name: it means losing assets, identity, reputation, and market value.

Carolina Lago Law Firm, specializing exclusively in Fashion Law, acts preventively and strategically to protect the intangible assets of brands. Our commitment is to guarantee legal security from the creation to the development of the company, avoiding litigation, cancellations, and irreparable losses. Registering, monitoring, and protecting your brand is not a bureaucratic detail: it is an indispensable measure for asset, reputational, and competitive protection.

To learn more about our services or understand how our firm can help your brand, access the link: https://linktr.ee/carolinalagoadvocacia