Abstract
One of the main characteristics of a market economy is the presence of competition between various actors in the market.1 The question where the line should be drawn between fair competition and unacceptable competitive behaviour has created abundant debate and literature. In the 90s, the World Intellectual Property Organisation (WIPO) undertook a number of activities dealing with the topic of protection against unfair competition. A study on protection against unfair competition reflecting the world situation at that time was presented in 1994.2 WIPO Model Provisions on Protection Against Unfair Competition were published in 1996.3 In section 2. which follows, Art. 10bis of the Paris Convention which anchors the protection against unfair competition in the international legal framework of industrial property rights, will be discussed. An analysis of the 1996 Model Provisions will be conducted in section 3. Section 4., the final section, contains concluding remarks and an outlook.
Revised and expanded version of a presentation made at the Conference on Unfair Competition Law organised by the Max Planck Institute for Intellectual Property, Competition and Tax Law, Budapest, June 16 to 18, 2005. The views expressed in the present article are those of the authors. They do not constitute an official position of the World Intellectual Property Organisation or of any of its Member States.
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References
Cf. Ulmer, “Das Recht des unlauteren Wettbewerbs in den Mitgliedstaaten der Europäischen Wirtschaftsgemeinschaft” 1–3 and 58–60, Vol. I (1965); Köhler, in: Baumbach & Hefermehl, “Wettbewerbsrecht” — with comments by Köhler & Bornkamm 14–27 (23rd ed. 2004).
WIPO publication No. 725, Geneva 1994.
WIPO publication No. 832, Geneva 1996.
Cf. Micklitz (ed.), “Study of the Institut für Europäisches Wirtschafts-und Verbraucherrecht on a fair trading framework for the European Community,” dated November 2000, 13 and 467, made available on the Internet at <http://www.europa.eu.int/comm/dgs/health_consumer/library/surveys/sur21_vol3_en.pdf> (date of last visit: October 25, 2005).
Cf. Fikentscher, “Historical Origins and Opportunities for Development of an International Competition Law in the TRIPs Agreement of the World Trade Organisation (WTO) and Beyond,” in: Beier & Schricker (eds.), “From GATT to TRIPs — The Agreement on Trade-Related Aspects of Intellectual Property Rights” 226–238, 233–238 (1996); Heinemann, “Antitrust Law of Intellectual Property in the TRIPs Agreement of the World Trade Organisation,” in: Beier & Schricker, ibid., 239–247, 240.
For a brief overview of the historical development, see Ulmer, supra note 1, at 21–24; Bodenhausen, “Guide to the Application of the Paris Convention for the Protection of Industrial Property” WIPO publication No. 611, 142–143 (1969); Glöckner, in: Harte-Bavendamm & Henning-Bodewig (eds.), “Gesetz gegen den unlauteren Wettbewerb (UWG)” 46, note 1 (2004). A detailed description is given by Ladas, “Patents, Trademarks, and Related Rights — National and International Protection” 1678–1685, Vol. 3 (1975).
See “Union internationale pour la protection de la propriété industrielle,” Actes de la Conférence réunie à Bruxelles du 1 er au 14 décembre 1897 et du 11 au 14 décembre 1900, Berne 1901, 164 (proposal by France), 187–188, 310, 382–383 (discussion and adoption).
The principle of national treatment as such does not impose an obligation on the Members of the Paris Union to afford protection against acts of unfair competition. Cf. Ladas, supra note 6, at 1678.
See “Union internationale pour la protection de la propriété industrielle,” Actes de la conférence réunie à Washington du 15 mai au 2 juin 1911, Berne 1911, 53 (proposal), 105, 224, 255, 305, 310 (observations and adoption).
See “Union internationale pour la protection de la propriété industrielle,” Actes de la conférence réunie à La Haye du 8 octobre au 6 novembre 1925, Berne 1926, 252, 255 (proposal), 348, 351, 472, 478, 525, 546–547, 578, 581 (observations and adoption).
See “Union internationale pour la protection de la propriété industrielle,” Actes de la conférence réunie à Londres du 1 er mai au 2 juin 1934, Berne 1934, 197–198 (proposal), 418–419 (discussion and adoption).
See “ Actes de Londres,” supra Union internationale pour la protection de la propriété industrielle,” Actes de la conférence réunie à Londres du 1 er mai au 2 juin 1934, Berne 1934, 197–198 (proposal), 418–419 (discussion and adoption) note 11, at 419.
See “ Actes de Londres,” supra Union internationale pour la protection de la propriété industrielle,” Actes de la conférence réunie à Londres du 1 er mai au 2 juin 1934, Berne 1934, 197–198 (proposal), 418–419 (discussion and adoption) note 11, at 419.
See “Union internationale pour la protection de la propriété industrielle,” Actes de la conférence réunie à Lisbonne du 6 au 31 octobre 1958, Geneva 1963, 725, 784 (proposal by Austria), 106, 118, 725–727, 789–790, 852 (discussion and adoption).
For an overview of the different traditions of unfair competition law, see WIPO study 1994, supra note 2, at 15–17; KAufmann, “Passing Off and Misappropriation — An Economic and Legal Analysis of the Law of Unfair Competition in the United States and Continental Europe” I.I.C. Studies, Vol. 9 (1986).
See the brief overview of national approaches in the WIPO study 1994, supra note 2, at 20–21. As to the different approaches taken by EC Member States, see the overview by Micklitz, supra note 4, at 13–16 and Köhler, in Köhler & Bornkamm, supra note 1, at 65–78. For a detailed description, see Bodewig, Henning-Bodewig & Bakardjieva Engelbrekt, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 180–346.
Cf. Ulmer, supra note 1, at 42–43; Ladas, supra note 6, at 1685–1686; Reed, “Water from Kerry Spring and ‘Honest Practices’,” 26 E.I.P.R. 429–431, 430 (2004).
See Schünemann, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 580, notes 76–78.
Cf. Ulmer, supra note 1, at 249; Micklitz, supra note 4, at 13; Schünemann, in: Hartebavendamm & Henning-Bodewig (eds.), supra note 6, at 580, note 79. It seems necessary to clarify whether this critique also concerns established international trading practices which, pursuant to Bodenhausen, supra note 6, at 144, and MICKLITZ, supra note 4, at 467–468, may be used by national judicial and administrative authorities as a point of reference for determining honest practices in the sense of Art. 10bis Para. 2. See also WIPO Model Provisions 1996, supra note 3, at 6, note 1.02.
Cf. Schünemann, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 591, notes 113–114; Ullmann, “Das Koordinatensystem des Rechts des unlauteren Wettbewerbs im Spannungsfeld von Europa und Deutschland,” 2003 GRUR 820-821; Baudenbacher, “Machtbedingte Wettbewerbsstörungen als Unlauterkeitstatbestände,” 1981 GRUR 19–29, 21–22; Löwenheim, “Suggestivwerbung, unlauterer Wettbewerb, Wettbewerbsfreiheit und Verbraucherschutz,” 1975 GRUR 99–110, 103–104; Nordemann, “Der verständige Durchschnittsgewerbetreibende,” 1975 GRUR 625–631, 629–631; Sack, “Lauterer und leistungsgerechter Wettbewerb durch Wettbewerbsregeln,” 1975 GRUR 297-307, 301–302.
Cf. the WIPO study 1994, supra note 2, at 11–13, which, on the basis of the international framework, reflects considerations of this nature. Nevertheless, Schünemann, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 582, argues that Art. 10bis PC codifies dogmatic approaches of the late 19th century. This argument, however, can hardly be considered compelling. The room for interpretation offered by international norms has always been used to adapt their application to actual problems and needs. Given the flexibility and openness of the wording of Art. 10bis, it seems unjustified to characterise the provision as outdated. As elaborated above, the latest change to the text of Art. 10bis, moreover, dates back to the 1958 Lisbon Conference and not to the late 19th century.
Cf. Ulmer, supra note 1, at 58–59; Schünemann, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 592, note 116.
Cf. Schünemann, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 608, note 165.
Cf. Glöckner, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 47, note 2.
See Bodenhausen, supra note 6, at 144; Ladas, supra note 6, at 1689.
See “Actes de La Haye”, supra Union internationale pour la protection de la propriété industrielle,” Actes de la conférence réunie à La Haye du 8 octobre au 6 novembre 1925, Berne 1926, 252, 255 (proposal), 348, 351, 472, 478, 525, 546–547, 578, 581 (observations and adoption) note 10, at 472.
See “Actes de La Haye”, supra Union internationale pour la protection de la propriété industrielle,” Actes de la conférence réunie à La Haye du 8 octobre au 6 novembre 1925, Berne 1926, 252, 255 (proposal), 348, 351, 472, 478, 525, 546–547, 578, 581 (observations and adoption) note 10, at 476; Ladas, supra note 6, at 1706–1707. Cf. Art. 1 Para. 2 PC. With regard to the interplay of specific intellectual property rights and supplementary protection against unfair competition, see Sambuc, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 408–413. As to trademarks, see Ní Shúilleabháin, “Common-Law Protection of Trade Marks — The Continuing Relevance of the Law of Passing Off,” 34 IIC 722–750 (2003); Bornkamm, “Markenrecht und wettbewerblicher Kennzeichenschutz — Zur Vorrangthese der Rechtsprechung,” 2005 GRUR 97–102. Art. 10bis Para. 3 (1) need not necessarily lead to supplementary protection of specific industrial property rights. The international obligation to protect service marks and trade names resulting from Arts. 6sexies and 8 PC may be fulfilled through appropriate protection against unfair competition. See Bodenhausen, supra note 6, at 122 and 133. As to service marks, however, Art. 16 of the 1994 Trademark Law Treaty sets forth the obligation to “register service marks and apply to such marks the provisions of the Paris Convention which concern trademarks”. In respect of the specific situation in the field of geographical indications, cf. Knaak, “The Protection of Geographical Indications According to the TRIPs Agreement,” in: Beier & Schricker, supra note 5, at 117–140, 119–127; Vroom-Cramer, “Juridische aspecten van geografische aanduidingen” 22–33 (2002); Ingerl & Rohnke, “Markengesetz” 1904–1905 (2nd ed. 2003); Staten, “Geographical Indications Protection Under the TRIPS Agreement: Uniformity Not Extension,” 87 Journal of the Patent and Trademark Office Society 221–245, 233–236 (2005).
See “ Actes de Londres”, supra Union internationale pour la protection de la propriété industrielle,” Actes de la conférence réunie à Londres du 1 er mai au 2 juin 1934, Berne 1934, 197–198 (proposal), 418–419 (discussion and adoption) note 11, at 419. As to the German approach to comparative advertising, cf. Steckler & Bachmann, “Comparative Advertising in Germany with Regard to European Community Law,” 19 E.I.P.R. 578–586 (1997); Köhler, in: KÖhler & Bornkamm, supra note 1, at 786–788.
As to recent developments and the approaches taken on the basis of the different legal traditions of unfair competition law, cf. WIPO study 1994, supra note 2, at 60–64; Cornish & Llewelyn, “Intellectual Property: Patents, Copyright, Trade Marks and Allied Rights” 632–635, 715–719 (5th ed. 2003).
See Directive 84/450/EEC of September 10, 1984 on misleading and comparative advertising, as amended by Directive 97/55/EC of October 6, 1997, and the decision of the European Court of Justice, April 8, 2003, Case No. C-44/01, 34 IIC 808-814 (2003) — Pippig v. Harlauer.
See WIPO study 1994, supra note 2, at 47–48, para. 92; Ullmann, supra note 20, at 819; Ohly, “Das neue UWG — Mehr Freiheit für den Wettbewerb?,” 2004 GRUR 889–900, 892–894.
See Ladas, supra note 6, at 1687.
See the critical comments made by Schünemann, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 582, note 84.
See “Actes de Lisbonne”, supra note 14, at 725, 784 (proposal by Austria), 106, 118, 725–727, 789–790, 852 (discussion and adoption). Cf. LADAS, supra note 6, at 1687.
Cf. Ladas, supra note 6, at 1735.
See Bodenhausen, supra note 6, at 143.
For an overview of acts not expressly mentioned in Art. 10bis, see WIPO study 1994, supra note 2, at 48–68.
Cf. WIPO study 1994, supra note 2, at 74.
WIPO publication No. 725, Geneva 1994, supra note 2.
John Adams, London; Ernesto Aracama-Zorraquín, Buenos Aires; Ivan Cherpillod, Lausanne; Gu Ming, Beijing; Desmond Guobadia, Lagos; Frauke Henning-Bodewig, Munich; Baldo Kresalja, Lima; Yoshiharu Kunogi, Tokyo; Krishnaswami Ponnuswami, Delhi; Heijo Ruijsenaars, Munich; Imre Voros, Budapest; Glen Weston, Naples, Florida.
WIPO publication No. 832, Geneva 1996, supra note 3. The Model Provisions had been prepared by the International Bureau of WIPO in the light of the 1994 WIPO study. In the preparation of the Model Provisions, Bernard Dutoit, Lausanne; Charles Gielen, Amsterdam; William Keefauver, New Vernon; and Kazuko Matsuo, Tokyo, gave advice.
See WIPO Model Provisions 1996, supra note 3, at 6, note 1.01.
See WIPO Model Provisions 1996, supra note 3, at 6, note 1.01. Usually, a flexible, open clause or general principle which supplements more specific regulations and allows courts considerable discretion is also a core element of national protection systems. Cf. WIPO study 1994, supra note 2, at 20–22; Micklitz, supra note 4, at 13.
Cf. Glöckner, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 47.
As to the difficulty of concretising the standard of honest practices in the light of the unfair acts and practices expressly listed in Arts. 2–6, see Micklitz, supra note 4, at 473. The view that a boundary line is to be drawn between the concept of honest practices and the specified acts considered unfair per se is not endorsed here. In fact, it seems more consistent to assume that the cases specified in Arts. 2–6 are examples of acts of unfair competition which, evidently, are contrary to honest practices. Cf. Ulmer, supra note 1, at 250. For this reason, it is not necessary to give evidence of non-compliance with the standard of honest practices, as pointed out in WIPO Model Provisions 1996, supra note 3, at 10, note 1.07. The protection of trade secrets in Art. 6 Para. 1, requiring additionally proof of conduct contrary to honest commercial practices, is an exception to this general rule which is rooted in Art. 39 Para. 2 TRIPS.
See WIPO Model Provisions 1996, supra note 3, at 10, note 1.06.
See WIPO study 1994, supra note 2, at 24, para. 31.
See WIPO study 1994, supra note 2, at 24, para. 33.
See WIPO Model Provisions 1996, supra note 3, at 12, note 1.10. Cf. WIPO study 1994, supra note 2, at 74.
See WIPO Model Provisions 1996, supra note 3, at 10, note 1.06.
For a description of the regulatory potential of the cases listed in Arts. 2–6, see also Micklitz, supra note 4, at 474–478.
See WIPO Model Provisions 1996, supra note 3, at 16 and 20, notes 2.04 and 2.11; WIPO study 1994, supra note 2, at 28–29. Cf. Ruijsenaars, “The WIPO Report on Character Merchandising,” 25 IIC 532 (1994), and the critical comments by Jaffey, “Merchandising and the Law of Trade Marks,” I.P.Q. 240–266 (1998).
See WIPO Model Provisions 1996, supra note 3, at 44, note 5.05. Due to the reference to competitors in Art. 10bis Para. 3 (2), it has been argued that the Paris Convention does not provide for protection against unfair press activities. Cf. Micklitz, supra note 4, at 468.
See WIPO Model Provisions 1996, supra note 3, at 30, note 4.02.
Information on this example and its interplay with special laws protecting geographical indications and appellations of origin is provided in WIPO Model Provisions 1996, supra note 3, at 38, note 4.11.
See WIPO study 1994, supra note 2, at 39–40.
See WIPO study 1994, supra note 2, at 54–58 and particularly para. 109.
As to the dilution doctrine, cf. Mostert, “Famous and Well-Known Marks — an International Analysis” 56–68 (1997); Fezer, “Markenrecht” 840–844 (3rd ed. 2001); Strasser, “The Rational Basis of Trademark Protection Revisited: Putting the Dilution Doctrine into Context,” 10 Fordham Intell. Prop., Media & Ent. L.J. 375–432 (2000); Casparie-Kerdel, “Dilution Disguised: Has the Concept of Trade Mark Dilution Made its Way into the Laws of Europe?,” 23 E.I.P.R. 185–195 (2001); Moskin, “Victoria’s Big Secret: Wither Dilution Under the Federal Dilution Act,” 93 Trademark Reporter 842–859 (2004); McCarthy, “Dilution of a Trademark: European and United States Law Compared,” 94 Trademark Reporter 1163–1181 (2004). With regard to the international recognition of protection against dilution in Art. 16 Para. 3 Trips, see Kur, “TRIPs and Trademark Law,“ in: Beier & Schricker, supra note 5, at 93–116, 107–108; Gervais, “The TRIPS Agreement: Drafting History and Analysis” 174 (2nd ed. 2003).
Cf. Krasser, “The Protection of Trade Secrets in the TRIPs Agreement,” in: Beier & Schricker, supra note 5, at 217–225; Lang, “The Protection of Commercial Trade Secrets,” 25 E.I.P.R. 462–471 (2003).
See WIPO study 1994, supra note 2, at 51, para. 99.
See WIPO Model Provisions 1996, supra note 3, at 50, note 6.08.
See Glöckner, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 47. Cf. earlier proposals made by Ulmer, supra note 1, at 242–243.
As to their function and status in public international law, see Hilgenberg, “A Fresh Look at Soft Law,” 1999 European Journal of International Law 499–516; Thürer, “Soft Law” — eine neue Form von Völkerrecht?,” 1985 Zeitschrift für Schweizerisches Recht 429–453; Wengler, “Nichtrechtliche” Staatenverträge in der Sicht des Völkerrechts und des Verfassungsrechts,” 1995 Juristenzeitung 21–26.
See 1999 Joint Recommendation Concerning Provisions on the Protection of Well-Known Marks, WIPO publication No. 833, Geneva 2000; 2000 Joint Recommendation Concerning Trademark Licenses, WIPO publication No. 835, Geneva 2000; 2001 Joint Recommendation Concerning Provisions on the Protection of Marks, and Other Industrial Property Rights in Signs, on the Internet, WIPO publication No. 845, Geneva 2001. The joint recommendations are made available on the Internet at <http://www.wipo.int/about-ip/en/development_iplaw/>.
Cf. Wichard, “The Joint Recommendation Concerning Protection of Marks, and Other Industrial Property Rights in Signs, on the Internet,” in: Drexl & Kur (eds.), “Intellectual Property and Private International Law” IIC Studies 257–264, 263, Vol. 24 (2005).
Cf. Micklitz, supra note 4, at 472, who speaks of “an example for States who are obliged to provide protection against unfair competition under Art. 10bis of the Paris Convention or Art. 2 of the TRIPS Agreement”.
See Art. 1 of Directive 2005/29/EC of May 11, 2005 (“Unfair Commercial Practices Directive”). For an overview of its provisions, see Handig, “EG-Richtlinie gegen unlautere Geschäftspraktiken,” 2005 Österreichische Blätter für gewerblichen Rechtsschutz und Urheberrecht 196–203; Henning-Bodewig, “Die Richtlinie 2005/29/EG über unlautere Geschäftspraktiken,” 2005 GRUR Int. 629–634.
This shift in the theoretical approach, however, does not necessarily imply changes in the substance of protection. Cf. Schünemann, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 572–573. The official draft submitted by the government, accordingly, focused on continuity rather than a change of paradigm. See the official document of the German federal parliament, Bundestags-Drucksache 15/1487, 16.
See Henning-Bodewig, “A New Act Against Unfair Competition in Germany,” 36 IIC 421–432, 425–426 (2005); Ohly, supra note 31, at 894–896.
Cf. the contribution of Reto Hilty to this publication and the guidelines of Ullmann, supra note 20, at 821–824. As Micklitz, supra note 4, at 467 and 473, points out, a “world standard” in the field of protection against unfair competition does not exist. It remains to be seen whether an abstract functional approach, resting on universal requirements for a functioning market economy rather than depending on specific national circumstances, could pave the way for its development.
See Henning-Bodewig, supra note 71, at 426. Cf. Ullmann, supra note 20, at 821, who speaks of an additional safety net.
See WIPO study 1994, supra note 2, at 24–25.
Cf. Helm, “Intellectual Property in Transition Economies: Assessing the Latvian Experience,” 14 Fordham Intell. Prop. Media & Ent. L.J. 119–215, 152–159 and 161–164 (2003); Bakardjieva Engelbrekt & Henning-Bodewig, in: Harte-Bavendamm & Henning-Bodewig (eds.), supra note 6, at 197–200, 257–264, 290–298, 314–322, 331–344; Henning-Bodewig, “Unfair Competition Law — European Union and Member States” (2006).
However, cf. Cornish & Llewelyn, supra note 29, at 718–719, who emphasise the influence of different historical attitudes. For an analysis of decisions of the European Court of Justice and the German Federal Supreme Court concerning comparative advertising, see Köhler, “Was ist vergleichende Werbung?,” 2005 GRUR 273–280.
A closer analysis of the influence of constitutional guarantees is not unlikely to trigger a much broader discussion going beyond the context of comparative advertising. Cf. Timbers & Huston, “The “Artistic Relevance Test” Just Became Relevant: the Increasing Strength of the First Amendment as a Defense to Trademark Infringement and Dilution,” 93 Trademark Reporter 1278–1301 (2004); Cantwell, “Confusion, Dilution and Speech: First Amendment Limitations on the Trademark Estate: An Update,” 94 Trademark Reporter 547–584 (2004). In respect of the general tendency to have recourse to constitutional guarantees in order to achieve balanced results in intellectual property law, see Geiger, “Fundamental Rights, a Safeguard for the Coherence of Intellectual Property Law?,” 35 IIC 268–280 (2004).
Cf. Ullmann, supra note 20, at 818–819; Davis, “Locating the Average Consumer: His Judicial Origins, Intellectual Influences and Current Role in European Trade Mark Law,” 2005 I.P.Q. 183–203.
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Höpperger, M., Senftleben, M. (2007). Protection Against Unfair Competition at the International Level — The Paris Convention, the 1996 Model Provisions and the Current Work of the World Intellectual Property Organisation. In: Hilty, R.M., Henning-Bodewig, F. (eds) Law Against Unfair Competition. MPI Studies on Intellectual Property, Competition and Tax Law, vol 1. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-71882-6_3
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