In its request, XP Investimentos argued that the conduct of the sports betting house in using the brokerage firm's acronyms constitutes a “violation of the ed trademark”, “unfair competition” and “parasitic exploitation”.
In turn, XP Bet claimed that it operates in a different field from the investment brokerage firm and denied that there is any confusion or association between the brands. It also added that the decision that ordered the name change makes its commercial activities unfeasible and would cause harm even among consumers, as it would make it impossible to withdraw funds.
XP Bet has been authorized to operate by the Ministry of Finance since February of this year. The company has been in existence since July 2024.
In her decision this Thursday (15/5), Judge Tereza Cristina Sobral Bittencourt Sampaio, from the 13th Private Law Chamber of the TJRJ, acknowledged the existence of confusion and economic exploitation by the sports betting house.
“The expression ‘XP Bet’ or ‘XP Game’ related to sports betting and online casinos, refers to the intention of making money, something that resembles investments, in which consumers aim to increase their assets,” pointed out Tereza Cristina.
“Although people with greater enlightenment are aware of the risk and subjection to the randomness of events, a large part of consumers see the possibility of making quick money and, of course, the confusion of the brands reinforces the idea that it is an investment,” continued the TJRJ judge.
The judge established a daily fine of R$10,000 (US$1,800), initially capped at R$50,000 (US$8,850), in case of non-compliance with the decision.
This is a second-instance single-judge decision subject to appeal. In the first instance, Judge Priscila Fernandes Miranda Botelho da Ponte, of the 1st Business Court of the Capital of Rio de Janeiro, also granted XP Investimentos' request and had determined an even stricter fine of R$50,000 (US$8,850) per day, capped at R$500,000 (US$88,500).
Source: GMB / Metrópoles
