Addressing Unfair Competition Matters

Unfair competition is the subject of both state and federal statutes. In this state, California Business and Professions Code Section 17200 prohibits “any unlawful, unfair or fraudulent business act or practice” in addition to false or misleading “advertising.” A claim of statutory unfair competition is typically combined with a claim of infringement of intellectual property.

I am attorney Lawrence G. Townsend. Based in , I have handled many unfair competition cases under this statute. If you believe that your business has been damaged due to unfair competition by a former employee or other party, you should talk to an intellectual property lawyer as soon as possible.

What Does Your Case Involve?

I typically handle cases involving:

• Trademark infringement
• Claims of “false designation of origin”
• A seller of a business or a former partner or shareholder who has started a new business, which is claimed to be a violation of a noncompetition agreement
• The enforceability of restrain of trade agreements, outside of permitted uses for sales of business interests, that have the effect of severely restricting or disallowing the free right to engage in one’s chosen trade or profession

When we meet to discuss your case, I will help you identify legal options that will protect your business and hold the responsible party accountable for the unfair competition they have created.

Proving Unfair Competition

Successfully establishing an unfair competition claim requires demonstrating several key elements. California courts typically require plaintiffs to show specific legal factors and provide compelling evidence. The following elements are crucial for building a strong case:

• Identifying unlawful, unfair or fraudulent business practices by the defendant
• Evidence of economic injury or likelihood of injury to the plaintiff
• Causal connection between the defendant’s conduct and the plaintiff’s harm
• Standing to bring the claim under the relevant statutes

Documentation plays a crucial role in these cases, and early collection of evidence significantly strengthens your position during litigation or settlement negotiations. I can help businesses build a case against parties that have practiced unfair competition.

Common Unfair Competitive Digital Business Practices

The internet has introduced novel forms of unfair competition that present unique challenges for businesses operating online. Digital marketplaces create opportunities for competitors to engage in practices that may violate California’s unfair competition laws in ways not possible in traditional business environments:

• Cybersquatting: Registering domain names similar to established brands
• Meta tag abuse: Using competitors’ trademarks in hidden website code
• Review manipulation: Creating false reviews or paying for positive ones
• Search engine optimization abuse: Improperly using competitor names
• Social media impersonation: Creating accounts that mimic legitimate businesses

Vigilant monitoring and swift action are essential for protecting your business interests in the digital marketplace, where unfair practices can quickly damage your reputation and customer relationships. I can help identify unfair competitive practices that have harmed your business and help you build a case to recover compensation.

Damages And Remedies For Unfair Competition

California law provides several powerful remedies for businesses harmed by unfair competition practices. Understanding the available remedies helps in planning strategic responses to unfair competition and setting realistic expectations about potential outcomes:

• Injunctive relief: The court orders the stopping of the unfair practices
• Restitution: Recovery of money or property wrongfully acquired
• Disgorgement: Forcing defendants to surrender profits from unfair practices
• Attorney fees: Available in some cases with significant public benefit

Calculating damages requires careful analysis and often involves financial experts who can quantify both direct losses and more complex forms of market harm resulting from unfair competition.

Frequently Asked Questions

If you have questions about unfair competition and your legal options, I am here to help:

How can unfair competition affect my business?

Unfair competition can have a major impact on your business depending on the specific type of unfair competition that you are facing. For example, perhaps it is an intellectual property violation where another company is fraudulently making products that appear to be made by your company. This costs you sales and harms your reputation if the knockoff products are a lower quality than the ones you are actually making.

Someone is using a name similar to my business – is that unfair competition?

It depends on the situation and the type of corporate structure your business has used. If the similar name is likely to cause consumer confusion, then it may be an illegal practice. Two factors that the court will consider are the geographical location and the industry that you work in. When businesses are relatively close and operating in the same industry, there is a higher chance that similar names would lead to problematic consumer confusion.

Can I use noncompete agreements to prevent unfair competition in California?

No, noncompete agreements have been banned by the Federal Trade Commission. However, there are other steps you can take to prevent unfair competition. For instance, you can have employees sign nondisclosure agreements, or you can take proactive steps to get the proper intellectual property protections in place, such as patents or trademarks. You can also work with an experienced attorney to respond to unfair trade practices that may already be in progress.

What is a “cease and desist” letter and when should I send one?

A cease and desist letter allows you to tell another business owner that you are aware of the fraudulent activity and that they need to stop immediately or you are going to take further legal action. For instance, maybe another company stole your logo and other intellectual property off of your website and is using it on their own site to impersonate your business. You may want to send them a cease and desist letter indicating that they need to immediately take all of that material down, or you will file a lawsuit against them.

If you have further questions about your legal options, I would be happy to answer them at a consultation.

Contact An Attorney In For Help With Unfair Competition Claims

Contact me, California unfair competition law attorney Larry Townsend today. I can meet with you and together we can discuss the legal options for your case.