header-logo header-logo

Rights bullies stifle competition

25 April 2013
Issue: 7557 / Categories: Legal News
printer mail-detail

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.

Issue: 7557 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

Weightmans—Emma Eccles & Mark Woodall

Weightmans—Emma Eccles & Mark Woodall

Firm bolsters Manchester insurance practice with double partner appointment

Gilson Gray—Linda Pope

Gilson Gray—Linda Pope

Partner joins family law team inLondon

Jackson Lees Group—five promotions

Jackson Lees Group—five promotions

Private client division announces five new partners

NEWS
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
back-to-top-scroll