3 Introduction Unfair Competition
3 Introduction Unfair Competition
3 Introduction Unfair Competition
LAW
UNIVERSITY OF HERTFORDSHIRE
SDL PROGRAMME
Prepared By:
V. Puvaneswary
What is meant by Protection Against Unfair
Competition?
https://www.youtube.com/watch?v=rPzlfgDAI5w
The Protection Against Unfair Competition
• What is “Protection Against Unfair Competition”?
• A market economy allows and encourages competition between industrial and commercial organizations. As
competitors are out to win, they may sometimes be tempted to use malicious means to gain an unfair advantage
such as making a direct attack against a competitor or misleading the public to the detriment of a competitor.
• Self-regulation, via associations of organizations, can play an important role by setting up a code of conduct or
controlling practices, however, it often fails to be respected by participants or followed by judicial authorities.
• As a general rule, any act or practice carried out in the course of industrial or commercial activities contrary to
honest practices constitutes an act of unfair competition; the decisive criterion being “contrary to honest
practices”. In Belgium and Luxembourg honest practices are sometimes referred to as “honest trade practices”,
in Switzerland and Spain as “the principle of good faith” and in Italy as “professional correctness”.
• It is not easy to find a clear-cut and worldwide definition of what constitutes an act contrary to honest practices.
Standards of ‘honesty’ and ‘fairness’ may differ from country to country to reflect the economic, sociological
and moral concepts of a given society. Therefore, the notion of ‘honesty’ has to be interpreted by the judicial
bodies of the country concerned. Conceptions of honest practices established by international trade should also
be taken into consideration, especially in cases of competition between organizations in different countries.
Protection Against Unfair Competition
• Protection against unfair competition is an ever-evolving notion that has to adapt to
the evolution of trade, and the development of new principles and obligations for
participants in the business market.
• Originally designed to protect the ‘honest businessman’, the scope of protection
against unfair competition has now been enlarged to include protection of the
customer.
• Nowadays laws against unfair competition aim to ensure fair competition in the
interests of all concerned.
• It may be conveniently, if emotively, described as ‘free riding’ or ‘reaping without
sowing’.
Behaviour Classified as Unfair Competition
• In 1900, at the Brussels Diplomatic Conference for the Revision of the Paris Convention,
Article 10 bis was added to the Convention to try and prevent unfair competition.
• Article 10 bis of the Paris Convention classifies unfair business practices into three broad
categories:
I. Acts causing Confusion
II. Acts that are Misleading
III. Acts damaging Goodwill or reputation