Unlawful competition court cases.

In a competitive and free market environment, conducting a successful business comprises a constant battle for obtaining market-share and creating goodwill.

This is achieved by, inter alia, building a brand so as to distinguish over the products and services of competitors, protecting registerable industrial property in order to obtain a competitive edge, and growing a reputation based on performance.

If properly managed, the value of the overall goodwill will exceed the sum of the parts.

Once goodwill has been created, competitors often want to share in the spoils of a trusted and established business.

Although competition per se is allowable, and indeed essential in a free market environment, the boundaries of acceptable competition are often transgressed by competitors trying to profit from the vested interests of a competing party, thus resulting in unlawful competition.

Unlawful competition is in essence a collective term for competing acts that infringe the protectable interests of a competitor.

Some interests, such as patents, trade marks, registered designs and copyrights, are protected by law and enforced.

However, many other interests are not specifically protected by statute, but are nevertheless protectable under the laws of unlawful competition.

Some examples include passing off, leaning on, misappropriation of trade secrets or confidential information and disparagement of a competitors goods or services.

Passing off is the most common and best-known form of unlawful competition. Passing off is to be found in the representation by one person that his or her business, services or goods are that of another, or that it is associated with that off another.

In order to succeed in proving passing off, an aggrieved party will have to show that there is a reasonable likelihood that members of the public may be confused into believing that that the business, services or goods so represented are indeed that of the aggrieved party.

If successful, a court may grant an interdict and also award material and moral damages.

INTELLEKTUS network of intellectual property attorneys renders professional services in all aspects relating to unlawful competition, including formulation of infringement opinions and representing in the court.