Rio court raises red card against betting brand for using Flamengo colours and marks

The judgement against BetFla is seen as a landmark ruling for intellectual property on Brazil’s nascent regulated online betting market.

Brazil.- The 6th Business Court of Rio de Janeiro has ruled in favour of Flamengo Regatas Club after it lodged a complaint against a betting brand called BetFla. Flamengo, best-known as being the stable of Brazil’s most popular football team, accused the bookmaker of misleading appropriation of its branding.

BetFla had described itself as “the betting house of the red-and-black fans”. The club accused it of improperly using brands, symbols and expressions associated with Flamengo, including its red and black colours, vulture mascot and expressions such as Mengo, Mengão and Rubro-Negro.

As reported by Focus Gaming News Brasil, the court has ordered the imposition of a daily fine of R$50,000 (€8,600) in the event of non-compliance and the suspension of two domains connected to the brand in suspension. The company was also ordered to pay R$ 50,000 for moral damages, while the value referring to the material damages will be defined in the execution phase of the sentence.

The court said BetFla had committed “parasitic exploitation”. “It is neither legal nor ethical for a defendant to profit from engaging in the act of exploiting a business entity, while also bringing reputation harm onto another’s brand,” the judge ruled. 

“The mimicry of distinctive symbols and colours was not accidental but deliberate, and was meant to induce in consumers a false impression of an official partnership.” 

Flamengo suggested the ruling would be seen as a landmark case for intellectual property on Brazil’s nascent regulated online betting market. be upheld in the Bets era. “This isn’t just any one site. It’s also about the line between real sponsorship and digital piracy. Football teams, players and fans are entitled to clarity in a market just beginning to get regulated,” it said.