IP considerations when expanding your online business to Chile

Fusion is a German SME that has created a notebook, the pages of which are made from a polyester component instead of wood. This enables the user to write, scan with a mobile, upload the content directly to the cloud and erase the pages with a damp cloth. The company has allied with some of the most relevant cloud storage companies, so that when users scan their page through the app, they can organise and decide where this page should be saved in the cloud. The notebook can then be reused indefinitely, saving therefore paper and plastic, which will, in turn, benefit our environment.

After a successful launch in Europe, the company is now ready to make the move to Latin America, starting with Chile. Aware of the need to properly protect their invention, the company decided to file the appropriate trade mark, patent and copyright application to protect its brand, polyester composite and application software, respectively.

However, unaware of the existence of another famous cloud storage company in Latin America called “Iguana Drive”, Fusion offered the same cloud storage options through their app as those offered in Europe. Diego, one of their Chilean users, thought it would be a great idea to add “Iguana Drive” to Fusion’s app. Thus, he developed a new plugin (without Fusion’s authorisation) that would allow the addition of this new functionality to the original app. The plugin was offered through a non-official repository under the name of “Fusion Associates” and, although well elaborated, it did not include the necessary security measures. As a consequence, many users who installed this plugin in their cell phones in Latin America were affected. Many unsatisfied users reported back to Fusion.