Ukraine enacted a new Unfair Competition Law which entered into effect on January 1, 1997. The provisions summarized below may be of particular interest to our clients.

Unfair competition is defined as "any act committed with the purpose of gaining advantage which contradicts the rules and honest customs in entrepreneurial activity and can inflict or has inflicted damage to entrepreneurs or consumers."

Acts of unfair competition specifically include: the unauthorized use of an entrepreneur's reputation, including use of another person's or company's name, trademarks, service marks, advertising material, packaging or product appearance that would cause confusion; misleading use of designations of origin; the use of incorrect or misleading comparisons; unfairly undercutting the prices of goods and services; discrediting an entrepreneur by spreading false or inaccurate information in order to interfere with his market position; disclosing or exploiting commercial secrets; or inducing a breach of contract between a competitor and its contracting parties.

Parties who engage in unfair competition may be subject to fines and to payment of compensation to the injured parties. Offending goods may also be subject to destruction if the offensive markings cannot otherwise be removed.

The statute of limitations for initiating an action for unfair competition is six months from discovery of the unfair act.

It is hoped that this new law will provide additional means whereby intellectual property owners, including owners of trade dress, may enforce their rights in Ukraine.