São Paulo Court upholds conviction for unfair competition by former tech company employees

On May 27, the 2nd Reserved Chamber of Corporate Law of the São Paulo Court of Justice upheld the conviction of former employees of a technology company for unfair competition, in case no. 1023504-71.2022.8.26.0100. The court ordered the defendants to cease the use of copyrighted materials from their former employer and to pay R$ 20,000 in moral damages, as well as material damages to be determined during the sentence enforcement phase.

According to the reporting judge, Justice Natan Zelinschi de Arruda, the former employees violated a confidentiality agreement by creating a competing business and improperly soliciting clients from their previous employer using confidential information. The defense’s claim that the data used was public was dismissed, as the language of the emails and the similarity of company names caused consumer confusion, evidencing the unfair competition.

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