#03 March 2012

In focus – Unfair Competition

Over the last couple of years we have regularly observed trials between known brand owners and mostly local manufacturers that design their production to imitate market leaders and confuse customers.

Parasitic copying, likelihood, distorting practice This is not a complete list of definitions as a description. But let us move ahead a little bit

Expert Opinion

Procedure for Conducting Investigation of Unfair Competition Cases in Ukraine

Alexey A. Kot, Alexander V. Ttretiakov

The Antimonopoly Committee of Ukraine performs quasi-judicial functions during consideration of cases regarding violation of the legislation on protection of economic competition and applies sanctions which are stipulated by the law to violators while exercising of powers on protection of economic competition delegated by the state...

In Re

Unfair Advertising and Unfair Competition

Yelena O. Stasyk

Very often advertisements promise the longest lushes, the lowest prices or the fastest effect, leaving consumers disappointed with the advertised products or services. Such misleading advertisements constitute violation of consumers rights and competition laws. In order to understand what type of advertisement can be viewed as a violation we must analyse the definitions given by Ukrainian laws, and understand the approach of government authorities, as well as review court practice...

Fighting Trade Libel (Defamation) in Ukraine

Daniyil E. Fedorchuk

Imagine having a cup of a morning coffee with a croissant, opening a business newspaper and finding an article saying that a product which you have just introduced in the market is rubbish, was manufactured using slave labor and is dangerous for consumers. Or watching a market analyst giving a TV interview and stating that a medical drug in which you have invested millions to develop is more likely to harm than to heel. Or finding an e-mail message from your colleagues with a link to a web resource where you as a manager are alleged to have been involved in a corrupt plot with the aim of swindling your shareholders...

Parasitic Copying: Ukraine in Comparison to its EU Counterparts

Dmitry P. Taranyk, Predrag Krupez

Parasitic copying has had a noticeable anticompetitive effect on Ukrainian competition over the years and, in light of the global proliferation of advertising through the mass media, it is only going to become more prevalent in the future. Although trademark laws can, to an extent, be relied on to prosecute violators, it is the rules of unfair competition law that act as an instrumental agent for protecting the innovative achievements of businesses. In other words, although we are dealing with intellectual property rights, the provisions of trademark laws fall short of providing adequate protection to businesses...

Case Law

Practical Aspects of Trying Passing-off Cases in Ukraine

Oleh M. Malskyy, Volodymyr O. Yakubovskyy

In recent years major foreign FMG producers face their goods being passed off and other cases of unfair competition from different local producers. In these cases there is no direct counterfeiting. The products are still very similar in name, trademark, packaging or advertising materials which may result in confusion or even the deception of a regular customer. Such cases can be tried before a court for trademark or patent infringement, but a well-known producer often has a weak position as there is no direct confusion with its registered trademark or patent...

Argument

Unfair Competition on the Legal Services Market

Konstantin A. Sidorenko

The On Protection against Unfair Competition Act of Ukraine No.236/96-VR of 7 June 1996 defines unfair competition as any actions in competition that contradict the trade and other fair practices in economic activity. A more detailed definition can be found in the Administrative Offenses Code of Ukraine. The Code considers unfair competition as illegal copying of forms, packaging, exterior and also imitation, copying, and direct reproduction of other business goods, unauthorized use of their name; intentional dissemination of false or inaccurate information that may harm business reputation or property interests of another business; receipt, use, disclosure of trade secrets and confidential information in order to harm the reputation or property of other business

Commercial Agency the Ukrainian Way

Nataliya Y. Mykolska, Anzhela M. Makhinova

At a time when business is tending to get global, it is high time to think about the companys presence on the foreign markets. The ways for expanding businesses changed profoundly and now companies are fortunate enough to use a whole variety of tools while entering foreign markets: from opening a representative office and/or establishing local subsidiaries to operating through distributors and franchisees

Hot Issue

Ukrainian Oil and Gas Sector in 2011

Vitaliy V. Radchenko

2011 has served as a transition period for the Ukrainian oil and gas industry even if there are no particular accomplishments or dramatic changes to speak of. This transition period should pave the way for important and interesting developments in 2012

Networking

Stolypin Club Promoted Charitable Initiatives

Volodymyr O. Kolvakh

The first Christmas Evening of the Stolypin Club took place on 21 December 2011. Being closed to the general public, the Club opened its doors to dedicated guests to provide unique networking on the eve of the Holiday season.

Crux

Countdown to Extra Time

Illya Onyschenko

The threat of administrative and criminal sanctions should encourage companies to bring their business processes into line with data protection regulations. A six month grace period is a good opportunity to do it substantively and systematically

Taras Lukash

The rationale for postponing the statutes coming into force is that it will give companies and individuals an opportunity to make necessary steps aimed at ensuring compliance, which also includes registration of personal databases with the state service of Ukraine for Personal data Protection, with the Personal Data Protection Act of Ukraine

Yevgen Blok

Control over compliance by individuals or legal entities with Ukrainian legislation on protection of personal data is exercised by the state service of Ukraine on Personal data Protection (the Service). The processor or controller of personal database may be inspected by the service pursuant to the scheduled inspection or on the basis of someones complaint submitted to the Service

Maria Gordienko

Controlling mechanisms in the area of personal data protection are currently under development. The order of audits of holders/managers of personal data is not yet developed for the state service on Personal Data Protection (hereinafter the service). Such audits, both scheduled and unscheduled, are envisaged by the regulation of this agency

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