Unfair Competition in Business
Unfair competition in business negatively affects the companies involved as well as other companies in the industry. This is because it hinders some companies to attract more clients and obtain better profits.
Thus, in order to prevent the practice of unfair competition in business the Civil Code of 1872 promulgated several provisions.
What is Unfair Competition?
Unfair competition in business literally mean that competitors are competing in an unequal terms. This means that some competitors are given disadvantageous conditions while others are given favorable conditions. Moreover, there are instances in which some competitors harm other competitors through their actions instead of competing equally and fair terms. It is the opposite of fair competition because the rules and regulations are not applied evenly among competitors. That is why some competitors are not given the chance to compete fairly. In this practice, some competitors obtain conditional gains to the expense of loses of others. There is also possibility to gain profits in illegitimate manner.
In like manner, unfair competition in business might result dispute especially when different competitors promote various interpretations according to their interests. This unfair practice happens when a participant swerves from the rules. It is also possible when the competitor has access to the important resources and information according to the principle of the game. In order to prevent unfair competition it is necessary that all participants assume equal ability. This is also true in the field of business competition.
The Law behind Unfair Competition In Business
The main purpose of the law of unfair competition in business is to prevent business from bankruptcies and closures. It also protects the business from different acts such as business fraud, product misrepresentation, tortuous meddling, unpaid debt and misappropriation of intellectual properties. In like manner, the law also hinders trade secret theft, violation of trademark law and false advertising. The good thing about the law of unfair competition in business is that it gives penalties to company proven to be using the trade logo of other company. They will be sanctioned to pay the amount of the possible losses. Another unfair practice is when an employee was forced by the present employer to divulge the trade secrets of his previous employer.
Thus, the unfair competition law in business provides great remedies and benefits for companies that are victims of unfair practices. Nevertheless, they find difficulties to pursue their cases. In this case, many companies and individual failed to recover the appropriate damages and worse lost their cases. That is why in case you are a victim of unfair competition in business you should seek legal advises so that you can do the necessary actions. As long as you know the unfair practices you will also have the chance to know your rights. However, you should also ensure not to engage in unfair competition in business.