Business Expansion in Brazil

Businesses that are expanding into Brazil will be receiving encouragement from the country’s government officials as long as they follow all laws and regulations within the Brazil legal system. Brazilian law firms can help foreign businesses develop strategies for expanding into the country and conducting mergers or acquisitions.

With the millions of people to choose from around the world, Forbes elected Brazilian president Dilma Rousseff as the eighteenth most powerful and influential person on the globe. Rousseff has brought forth an entrepreneurial spirit to the country, which has stimulated the growth of start-up companies and brought more engagement from Brazilian youth.

Channel News Asia also reported that the President has urged companies to expand throughout Brazil in order to build a stronger economy. The country has been reducing energy costs to help spur business competitiveness and decrease poverty rates.

“Our recipe for a stronger Brazil is to invest in overcoming poverty, guaranteeing home ownership, expanding employment, increasing education opportunities and improving our infrastructure and the competitiveness of our companies,” Rousseff told the nation in a public, widespread broadcast. “I am sure that 2013 will be an even better year for all Brazilians.”

In 2013, the electricity costs will be cut by nearly 17 percent in order to satisfy the companies that have had problems with the excessive energy-related spending. Huge investments are also being made by the federal government in building roads, highways, railways, ports and airport expansions.

Foreign businesses that are planning to expand into Brazil – whether through a merger or acquisition – are advised to work with Brazilian lawyers who have a strong background in negotiating international contracts along with major settlement deals in case of a potential dispute.

Stocks in Brazil

Foreign businesses operating in Brazil will need to develop strong contracts and negotiation tactics when conducting transactions with international companies. By working with a Brazilian law firm, businesses will be able to gain the necessary aid in contract law and other legal resolutions.

With business law differing in Brazil from that of the United States, a Brazilian attorney may help explain the discrepancies between the two legal systems when it comes to contract law.

The Wall Street Journal reported that companies conducting business dealings in Brazil are performing well, as Brazilian stocks opened slightly higher today after the Christmas holiday. However, the last trading sessions are expected to be shortened, as many investors have taken time off for the holiday season.

However, the utilities’ stocks in Brazil had tumultuous showings, with shares from power company Eletropaulo Metropolitana Eletricidade de Sao Paulo experiencing a rise in 3.5 percent while electric power utility Centrais Energeticas de Minas Gerais SA illustrating a decline in shares by 2.5 percent.

“The Ibovespa index is not expected to post impressive gains in the coming sessions as it has already gone up 6.3 percent in the month of December,” the news source stated. “Year-to-date, Brazil’s Ibovespa is up 7.6 percent.”

Other financial goings-on in Brazil point to the strengthened currency. Reuters reported that the Brazilian central bank has sold 69 percent of its currency swaps offered in an auction, which has brought more stability to the country’s currency.

Businesses conducting transactions in Brazil and investors hoping to gain a strong shareholding within the country would benefit from contacting a Brazilian attorney who can provide legal services defending the interests of foreign clients.

Copyright Laws

Copyright laws in Brazil have been undergoing various changes in recent months and business owners will need to be careful when undertaking transactions and developing products in this country, as being compliant to patent and copyright law is imperative.

A Brazilian law firm can help ensure that a business owner is able to follow all regulations and avoid copyright infringement in case another company produces similar products.

The publication Entertainment Law reported that the Copyright Act was undergoing reforms this fall when Ana de Hollanda stepped down from the Brazilian Minister of Culture position. The new Copyright Act is still currently undergoing the approval process. The bill must be approved by both the Ministry of Culture and the Ministry of Civil Affairs.

Business owners who partner with a Brazilian law firm will be able to copyright any intellectual property they have developed, whether it is a book, software product, baked goods or even a song. When a company is located in the U.S. and opening up a facility in Brazil, it is vital to understand the copyright laws of both countries.

Products that are copyrighted in only one country may have trouble containing the same rights internationally, so patenting products globally may be more beneficial for businesses. A Brazilian attorney can help an executive or manager develop burdens of proof within their copyright license so that no other company is able to steal one’s ideas and benefit from stolen products, services or work processes.

By working with law firms in Brazil, U.S.-based companies can gain the expertise of attorneys who have represented foreign clients in the past. In case of a patent infringement, these lawyers are able to develop a plan of action to support their client’s needs.

New Android-powered iPhone may pose legal risks for Brazilian company

U.S. business owners may have heard about the major legal disputes going on between Samsung and Apple, with both companies developing mobile phones and allegedly infringing on each other’s patents. A similar intellectual property case may be in the works in Brazil if a company goes through with its plans for an Android-powered iPhone.

IGB Electronica SA, a Brazilian electronics maker, is currently in the process of developing this type of mobile technology, according to Techno Buffalo. In the past, the company applied for but was not awarded a patent trademark to use the iPhone’s technological aspects in Brazil. Regardless, the new iPhone may be deployed in the coming months, with various problems regarding patent infringement likely to ensue, especially from the Android makers.

The new iPhone Neo One will be using Google’s Android operating system, according to online publication The Verge. Apple is looking to expand its services and manufacturing in Brazil and is undertaking routes to handle the high importing tax in order to bring electronics to the country.

“IGB indeed sought to obtain an iPhone trademark back in 2000 but met stiff resistance in its attempt to do so. Apple would later file for the iPhone brand in 2006, ahead of the first model’s launch, and was granted the trademark,” the source stated. “Whether Apple deems IGB’s new Android device to be worthy of its legal team’s attention is another matter.”

Foreign businesses attempting to conduct transactions in Brazil as well as produce new products or manufacturing centers will need to be prepared for intellectual property compliance. With the help of a Brazilian lawyer from an experienced business-centered Brazilian law firm, companies will be able to avoid such cases as well as represent themselves in patent infringement lawsuits.