Disney Reaches Settlement With Starz In Brazilian Trademark Infringement Lawsuit

Walt Disney Co DIS has reached a settlement with Starz, a Lions Gate Entertainment (NYSE: LGF-A) company, that will enable Disney to pursue the introduction of its Star Plus streaming service in Brazil.

What Happened: Starz sued Disney for trademark infringement related to the planned release of its new Star+ streaming service in Latin America. Starz has offered its streaming service StarzPlay in Latin America since 2019 and claimed the Star+ service is too closely named to the existing Starz and would lead to consumer confusion.

Last month, a judge in São Paulo issued a temporary restraining order that prevents Disney from using the Star+ name when its service debuts in Brazil on Aug. 31.

Disney offered Starz a $9.5 million bond to compensate against the potential loss of business based on similar brand names, but the court rejected that offer and set an Aug. 24 trial date.

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What's Next: According to a Variety report, Starz has dropped its injunction against Disney in Brazil and a settlement was reached between the companies that will enable the new streaming service to launch on Aug. 31 under the Star Plus brand.

The terms of the settlement weren't disclosed, but a Disney spokesperson stated it would allow the company to use the Star Plus name “for our general entertainment streaming service across Latin America.”

Starz had also filed trademark lawsuits against Disney in Argentina and Mexico, but an Argentine court rejected Starz’s request for an injunction and the Mexican courts have yet to rule on the issue.

The São Paulo court that affirmed the settlement stated that “each of the parties will bear the court costs already expended and the counsel fees of their respective patrons, and any remaining court costs should be evenly split between the parties.”

Photo: A scene from Disney's 1944 Latin American-focused classic "The Three Caballeros."