FAQ

Q1: What is the Unfair Competition Prevention Law?

A1: The Unfair Competition Prevention Law is directed to maintaining fair competition between companies. The Law allows a party, whose business reputation or interests were damaged by unfair activities, to obtain an injunction barring the other party from such activities and/or to recover damages.

The Law supplements the laws governing Trademarks, Designs, Copyrights and Patents.

Q2: What activities constitute unfair competition?

A2: The following are examples of unfair competition:

1. Acts that cause confusion with another personfs well-known (a degree of renown is lower than “famous”) representation by using representations such as trade names, trademarks, containers, packages and the like that are identical with or similar to the well-known representation;
2. Acts that take a free-ride on the confidence, reliability or credit of a famous (a degree of renown is higher than “well-known”) representation by using representations that are identical with or similar to the famous representation;
3. The act of selling an exact copy of the original goods less than three years after the first sale of the original;
4. Acts, such as theft or fraud, that obtain business secrets of a company by unjust means;
5. Acts that provide false representations of the geographic origin, qualities, contents, use, quantities, method of manufacturing, and the like with respect to the goods or services
6. The acts of making false statements or spreading malicious rumors that will undermine consumersf confidence in the injured party or make it difficult to for him to obtain credit.

Q3: What remedy is available for acts of unfair competition?

A3: If acts of unfair competition damage or are likely to damage a personfs business reputation, he may obtain injunctions against such acts of unfair competition and may recover damages in a civil action.Acts of unfair competition may also result in penalties being imposed under Criminal Law.However, no such relief is provided to consumers.