unfair competition

A term which may be applied generally to all dishonest or fraudulent rivalry in trade and commerce, but is particularly applied to the practice of endeavoring to substitute one's own goods or products in the markets for those of another, having an established reputation and extensive sale, by means of imitating or counterfeiting the name, title, size, shape, or distinctive peculiarities of the article, or the shape, color, label, wrapper, or general appearance of the package, or other such simulations, the imitation being carried far enough to mislead the general public or deceive an unwary purchaser, and yet not amounting to an absolute counterfeit or to the infringement of a trademark or trade-name. Singer Mfg. Co. v. June Mfg. Co., 163 U.S. 169,16 S.Ct. 1002, 41 L.Ed. 118.

Tort involving the misappropriation for commercial advantage of a benefit or property right belonging to another. Marcraft Recreation Corp. v. Francis Devlin Co., Inc., D.C. N.Y., 506 F.Supp. 1081, 1087.

The simulation by one person of the name, materials, color scheme, symbols, patterns, or devices employed by another for purpose of deceiving the public, or substitution of goods, or wares of one person for those of another, thus falsely inducing purchase of goods and obtaining benefits belonging to competitor. Mathews Conveyor Co. v. Palmer-Bee Co., C.C.A.Mich., 135 F.2d 73, 84.

Passing off, or attempting to pass off upon the public the goods or business of one person as the goods or business of another. Socony-Vacuum Oil Co. v. Oil City Refiners, C.C.A.Ohio, 136 F.2d 470, 474.

The selling of another's product as one's own. A. L. A. Schechter Poultry Corporation v. United States, N.Y., 295 U.S. 495, 55 S.Ct. 837, 844, 79 L.Ed. 1570.

Also, deceitful advertising which injures a competitor, bribery of employees, secret rebates and concessions, and other devices of unfair trade. In re Northern Pigment Co., Cust. & Pat.App., 71 F.2d 447, 453.

The equitable doctrine of "unfair competition" is not confined to cases of actual market competition between similar products of different parties, but extends to all cases in which one party fraudulently seeks to sell his goods as those of another. Wisconsin Electric Co. v. Dumore Co., C.C.A.Ohio, 35 F.2d 555, 557.

Under statute providing for enjoining of unfair competition and defining the same as meaning and including "unlawful, unfair or fraudulent business practice" courts may enjoin on-going wrongful business conduct in whatever context such activity may occur; "unfair competition" within such statute is not limited to deceptive or fraudulent conduct. As used in statute prohibiting unfair competition and defining the same as meaning and including "unlawful, unfair or fraudulent business practice," "unfair competition" is not confined to practices involving competitive injury but extends to practices resulting in injury to consumers. Barquis v. Merchants Collection Ass'n of Oakland, Inc., 7 Cal.3d 94,101 CaLRptr. 745, 496 P.2d 817, 828, 829.

Test of "unfair competition" is, not whether distinction between two competing products can be recognized when placed alongside each other, but whether, when the two products are not viewed together, a purchaser of ordinary prudence would be induced by reason of the marked resemblance in general effect to mistake one for the other despite differences in matters of detail. Ralston Purina Co. v. Checker Food Products Co., Mo.App., 80 S.W.2d 717, 719, 720.

See also antitrust acts

- unfair methods of competition

- Uniform Deceptive Trade Practices Act