The cost of piracy


Jornal do Brasil, 06/06/2005

Ethically condemnable, perverse from an economic point of view, the practice of brand piracy has proved to be a chronic wound among Brazilian companies. The dissemination in Rio de Janeiro gained very revealing indicators at the end of the week, with a survey by the Federation of State Industries (Firjan): 62,5% of industrialists in Rio de Janeiro state that the registration of brands is not necessary because their companies are small.

Regardless of the reasons - omission is attributed, for example, to bureaucracy and the high cost of registration - there are sufficient reasons for concern. This is the wrong behavior. First, the need for registration is not a requirement for the size of the company. Second, because the absence of the brand will harm the company in an eventual expansion process. In the name of immediate gains, entrepreneurs risk suffering significant losses in the future. Bad for them, terrible for the Brazilian economy.