Law Commission consults on competition law reform
Competition law could form part of reforms to help protect businesses from “bully boy tactics” by rivals who chase their customers away with groundless patent and trade mark infringement threats.
The current law of groundless threats of infringement stems from the 19th century and was introduced to resolve disputes about steam engines. In a consultation launched this week, the Law Commission argues that reforms are now needed if the law is to cope with global battles over information technology.
The Commission proposes to:
- adapt the 2004 patent law reforms and extend them to trade marks and design rights;
- clarify at what stage, and under what circumstances, a rights holder can approach a competitor, their distributor or customers, about a potential infringement;
- protect legal advisers from liability for groundless threats; and
- treat groundless threats as a form of unfair competition and introduce a new cause of action based on the Paris Convention.
David Hertzell, the Law Commissioner leading the project, said: “When retailers receive letters saying that a product infringes a patent, many just drop the product.
“If the product does infringe, that is fair enough. But where the allegation is groundless, it is important to provide the supplier with a remedy. Otherwise it is too easy for a rival to gain an unfair advantage through bully boy tactics.
“Patents, trade marks and design rights are vital to the UK economy. But they must not be misused to stifle competition.”
The consultation, Patents, Trade Marks and Design Rights: Groundless Threats, closes on 17 July 2013.
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