Court Blocks Disney From Launching Star+ Streaming Brand In Brazil

A Brazilian court has blocked Walt Disney Co DIS from launching a streaming service in Brazil under the Star+ name.

What Happened: Starz, a Lions Gate Entertainment (NYSE: LGF-A) company, 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.

According to a Variety report, 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.

“The plaintiff proved to have priority of use and registration in Brazil over the word mark ‘StarzPlay,’ including for identifying entertainment services, which grants it the right to protect its reputation and material integrity,” wrote Judge Jorge Tosta in his ruling.

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What Else Happened: The judge added that Disney carried “enormous marketing power” and stated the similarly-named new service threatened to damage Starz’s brand.

“Obviously, a consumer, when referring to the streaming services offered by the parties, will not do so by saying that he watched a movie through ‘StarzPlay’ or ‘Star+,’ but simply through ‘Star,’” he added.

Tosta’s ruling overturned a lower court’s decision that ruled in Disney’s favor. The restraining order is in place pending the outcome of the case.

Starz filed similar lawsuits against Disney in Argentina and Mexico. An Argentinian court denied Starz’s request for an injunction, while the Mexican court has yet to offer a ruling on the case.

Photo: J.H. Janßen / Wikimedia.