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Croatia - New Trade Law's Unfair Competition Provisions

A new Law on Trade, the first statute of independent Croatia to regulate trade issues, became effective February 1, 1996. The Law was prepared pursuant to the requirements of the World Trade Organization (WTO) and of European Union legislation, and to further Croatia's effort to join the WTO. Although the new Law attempts to regulate all issues concerning trade, our sources indicate that the following unfair competition provisions may be of particular interest to our clients:

1) unfair competition is generally defined as acts that are contrary to good trade practices and that impede free competition or harm consumers;

2) specific acts that may be considered unfair competition include:

a) advertising or sales methods that harm the goodwill or reputation of another merchant;

b) the sale of goods that may cause confusion with respect to, inter alia, their origin, means of production, quantity or quality;

c) the unjustified use of another's name, trade name, trademark, or other designation, even with the owner's consent, that could cause confusion in the market;

d) the unlawful use of another's trade secrets;

3) in addition to remedies of damages, the new law establishes fines for corporations and individuals, although there is no provision for injunctive relief.


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© Copyright 1997 Ladas & Parry - Posted 8/17/96
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