In today’s competitive business environment, every business owner wants a competitive edge. However, when they attempt to achieve this goal with dishonest practices, it’s considered unfair competition. These deceptive practices can cripple and even destroy businesses and are a common cause of commercial litigation lawsuits. In fact each year, the FTC brings hundreds of cases to federal court for violation of competition laws.

If your business has suffered from unfair competition, or if someone falsely accused you of it, we can help. Here’s what you need to know about unfair competition and commercial litigation.

Examples of Unfair Competition

Unfair competition covers many types of economic torts. For example, common practices include:

• Trademark infringement

• Bait-and-switch selling

• False advertising or misrepresentation

• Trade dress violation

• Breach of restrictive covenant

• Misuse of confidential information

• False product or service claims

• Unauthorized substitution of goods

• Misrepresentation of product origin

• Trade libel, slander, or rumor-spreading

• Counterfeiting or imitation

• Below-cost selling

To clarify, for libel or slander to qualify, the false information must reduce public trust, respect, or confidence in your business. Typically, trade defamation falls under civil law. Nevertheless, in serious cases it may also face criminal charges.

Unfair Competition and State Laws

State laws govern most unfair competition claims, while federal laws cover issues like trademarks, copyright infringement, and false advertising. When conflicts arise, federal law overrides state law. The Federal Trade Commission (FTC) protects both consumers and business owners from these risks.

How Businesses Distinguish Themselves

There are four devices a business uses to distinguish its company from others. These include:

Trade Names

This is used to distinguish a sole proprietorship, partnership, corporation, or other business entity. A business can register and operate under a trade name or have an assumed name known to the public.

An example might be a restaurant known by one name to the locals but registered under a different name. Under unfair competition laws, both names are considered trade names.

Trademarks

A trademark is a word, phrase, slogan, symbol, emblem, or other device used to signify authenticity or source to the public. Customers recognize registered trademarks which help them easily identify a company’s products and maintain brand loyalty.

Service Marks

These are similar to trademarks but represent services rather than goods. For example, Havard Pest Control provides pest control services so the company has a registered service mark.

Trade Dress

This represents the physical appearance of products or the manner in which they’re presented. How a product is wrapped, packaged, displayed, or promoted all fall under trade dress.

Trade dress may include the design, shape, or texture of a product or its packaging. Colors may also be part of a company’s trade dress. Distinct color schemes or markings are considered trade dress as well.

Qualifying for Protection

The above devices qualify as intangible assets, along with inventions, creative works, and artistic efforts. These assets are considered to be trade secrets.

Trade secrets can include formulas, patterns, processes, techniques, and other tools that allow a company an advantage over its competitors. The trade secret owner is the only one who can exclusively use or benefit from the information.

The laws of unfair competition provide a way to protect trade secrets. The theft of trade secrets can result in the one releasing the information being held liable for any damages or economic injury.

Employees and former employees can be held liable for sharing a company’s trade secrets.

Facets to Unfair Competition Laws

There are additional facets to the laws of unfair competition. These include:

The Exhaustion Doctrine

This allows distributors to market branded items in their original or unchanged state. A distributor can advertise a product associated with a well-known trademark or service mark.

The distributor must state their true connection with the owner of the trademark or service mark. A lack of proper branding or clarification can result in legal action.

Implied Reverse Passing Off

This occurs when an individual or company removes a mark when selling a product or attempts to pass it off as something else. This creates confusion among consumers and can result in legal action.

Express Reverse Passing Off

This occurs when an individual or company removes a mark and tries to rebrand an item, passing it off as their own. Taking legal action for this violation can be challenging.

If you are dealing with any of these situations of unfair practices, you should begin by contacting a reputable commercial litigation lawyer to discuss your situation.

Remedies for Unfair Competition

Businesses harmed by unfair practices can seek:

• Injunctive relief – Courts can order competitors to stop illegal actions.

• Monetary damages – Compensation for economic losses caused by unfair competition.

Courts assess factors like the seriousness of the offense, number of violations, and willfulness when deciding damages.

Damages for Unfair Competition in Commercial Litigation

The court takes unfair competition seriously and considers a number of factors into account when awarding damages. These include:

• The number of violations
• Length of misconduct
• The nature and seriousness of the offense
• The willfulness of the misconduct
• A defendant’s net worth, assets, and liabilities

Hire a Commercial Litigation Attorney

Unfair competition involves any wrongful act that harms businesses or consumers. Florida business owners rely on commercial litigation lawyers to protect trade secrets and enforce their rights.

At Boyer Law Firm, our attorneys have deep experience handling unfair competition cases. Whether you face false accusations or real business harm, we can guide you through the litigation process and defend your interests.

Contact Boyer Law Firm today to schedule a consultation.