Our sources have advised that Latvia has enacted a new Unfair Competition Law which took effect on January 1, 1998. The provisions summarized below may be of particular interest to our clients.

The definition of "unfair competition" includes any act that violates a law or fair business practice and that limits, distorts or restrains competition. Acts of unfair competition specifically include: the unauthorized use of another's name or trademarks that would mislead consumers about the identity of the unauthorized user; wrongful use of trademarks, trade dress or packaging which would mislead consumers as to the origin of the products; spreading false or inaccurate information concerning another party that could cause loss to that party; unauthorized disclosure or exploitation of trade secrets; use of false information in advertisements which could negatively influence consumer decisions; and the use of threats or bribes that could cause a competitor to lose his advantage in the marketplace.

The new law also forbids arrangements which would have the effect of restricting or distorting competition, such as agreements that result in price-fixing, production quotas, market partitioning, exclusion of competitors from the market, or acts which would abuse a dominant position within the marketplace, regarded as a 40 percent market share.

Parties who engage in unfair competition may be subject to fines.