Unfair Competition
Topics
- Passing Off
- False Ad
- Commercial Disparagement
- Misapprop.
- T Dilution
Passing Off
- Trade Dress (TD)
- Protections
- Packaging / decor so like arr. items, etc.
- Can't protect fn'al like lighting fixtures
- L Act §43)a
- Need proof of likely confusion 4 liab. so TD strength relev.
- Inherent Distinctiveness
- If inherently distinctive, protectible by §43)a w/o 2nd
meaning (maj., 2 Pesos)
- Hard 2 def. inherent distinctiveness
- Could use taxanomy of sugg. / arb. stuff (Paddington)
- But not if only use combo of elements in dif. way (Turtle
Wax)
- Always show 2nd meaning (min.)
- Product Configuration
- Gen'ly not inherently distinctive & need 2nd meaning
- Three part test 4 inherent distinctive (Duraco)
- Unusual & memorable 2 disting. goods so buyer rsbly rely
4 source ID
- Conceptually sep. from prod. so source indicator
- Likely 2 prim'ly serve as designator of source of prod.
- Need likelihood of pub. confusion 4 liab. even if protectible
False Advertising
- L Act §43)a: False Ad of Misrep. of 1's own / Another's
Good
- Reqts
- False / misleading stmt of fact about own (D's) prod.
- Stmt actually deceived / could deceive subst'l segment of
pub.
- Stmt material so influence buying dec.
- Interstate commerce nexus
- Proper P, 1 who has been / likely 2 B injured
- Competitor's Remedy Not Buyer's Remedy
- Hand's Test (Ely Norris)
- P must show ascertainable loss, dir. diversion of sale
- Need diversion proof 4 damage, but not 4 injunction (Johnson)
- Need only 4 damages / likely damage (rsbl belief) (Johnson)
- P must have lost customers by means law forbids
- State Law
- Not req. diversion of trade
Commercial Disparagement
- Before 1988
- Axn'able Under §43)a
- If D misrep. own good not 4 P's
- State C/L
- P had 2 plead spec. damages
- D had puffing privilege
- After 1988
- False Rep. About P's & D's Goods
- P not show spec. damage
- D can do some puffing but unduly favorable gen. comparisons
isn't puffing
- L Act §43)a: Limited 2 Commercial
Misapprop.
- Case by Case Det.
- Protecting people who spent X & labor v. freedom 2 duplicate
- Gen. Reqt's 4 Misapprop.
- Q-prop. created by subst'l investment of X, $, effort, &
labor
- Not reap where not sown / tort on free riding when cause injury
(INS)
- Try 2 def. carefully b/c if 2 broad, can swallow up other
C/A's
- D approp. @ little / no cost
- P injured by misapprop., ord'ly by diversion of profit
- Gen'ly if injury cont., misapprop. found (INS)
- Split on dir. competition reqt
- Use of Formula
- Split on using stand. (Dow Jones; Golf)
- New Rest 3rd Elim's Misapprop. altogether
T Dilution
- Prevent Others From Diminishing Mark by UnAuth'ed Use
- Reqt's 4 C/L
- Distinctive Mark Capable of Dilution by P
- Unique / acquired 2nd meaning
- Rest 3rd says mark suff'ly distinct if source sig. when encountered
outside of goods / serv's which it is used
- Probably need more than local distinction (Wedgwood otherwise)
- Likelihood of Dilution
- Blurring
- Gen'ly 4 dif. goods, blur distinctive ID / effectiveness of
mark
- Linkage of 2 uses of mark in buyer's mind
- Tarnishment
- D's use of mark w/goods lacking prestige so negative ass'n
- Fed Anti-Dilution Stt: §43)c
- Reqt
- Owner of famous mark by strength factors but famous most imp.
- Comm'l use only
- Must dilute by lwring capacity of famous mark of ID'ing &
disting'ign goods / serv's regardless of presence / absence of
competition or likelihood of confusion
- Relief gen'ly injunctive
- D's wilful intent 2 trade w/P's reputation / cause dilution,
then can get injunction, damages / profit (§43)c)2)
- Not Axn'able
- Use in comparative ad
- Non comm'l form
- All news forms
- Preemption
- Valid reg. is compl. bar 2 state dilution C/A (§43)c)3)
This material is copyrighted by the author. Use of this material
for profit is strictly prohibited without written consent
from the author.
12/2/1996
Ms. Haeji Hong
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