Protection against unfair competition

Competition between entrepreneurs is beneficial to the economy and thus to society as a whole. Like sport, competition has its own rules, the violation of which we call unfair competition. A competitor commits unfair competition if he acts contrary to the good practices of competition and his conduct is liable to cause injury to other competitors or consumers.

Thus, the purpose of protection against unfair competition is to ensure that the person concerned is not further threatened or violated, or that the defective situation is eliminated. Next to that compensation for the damage caused may also be claimed.

The conduct in unfair competition is determined by the fulfillment of some of the defined “factual bases”, which describe the most frequent infringements of competitors (e.g. deceptive advertising, comparative advertising, breach of trade secrets etc.), in other cases introduced by the case-law, or by the general fulfilment of the 'general clause', i.e. (albeit potentially) damaging conduct contrary to the good morals of competition.

As a rule, the actions of a competitor who, when offering his product, violates any regulation, thereby gaining an unjustified advantage over other competitors, is also harmful.

In court, the person whose right has been threatened or infringed by the unfair competition may, in particular, demand against the violator that unfair competition be held abstained, or to removed a faulty condition. Furthermore, it may require reasonable satisfaction, compensation for damages and the granting of unjust enrichment.

A frequent and effective tool of protection is the design Preliminary measurethat can ensure immediate (albeit temporary) protection of rights.

After that, it is necessary to administer as well Restraining action in order to permanently prevent the violator from acting, or not to carry out the threatened action (however, it must be a real and immediate threat against which the court may intervene as a precautionary measure). The defective state must then continue at the time of the judgment (except in situations where there is a risk of repetition of the defective act). Disposal lawsuit it is then applied in a situation where it is not possible to successfully sue with a delaying action. The aim of this lawsuit is then to eliminate a defective condition that arose in the past.

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Co je dobré vědět o této oblasti?

What is maladministration?

The definition of “maladministration” is quite broad, but in general it can be described as a violation of binding rules prescribed by legal norms for the conduct of a public authority in its activities, to which it is obliged and authorized on the basis of generally binding legislation. However, in the case of maladministration, this is not an illegal decision, but the procedure of the authority, which was subsequently reflected in its decision. It is often an unreasonable length of proceedings, where, although the decision given is legal in itself, the time until it is issued is contrary to procedural rules or reasonableness and the parties are therefore entitled to compensation for delays in the proceedings.

What is an illegal decision of the authority?

The right to compensation for damage caused by an unlawful decision has the parties (including omissions) in which a decision was issued, as a result of which they suffered property or non-property damage. However, it is not enough just to disagree with the decision or to seek its annulment or to declare it incorrect at the next instance. Compensation can only be claimed if the decision has been annulled or changed for illegality after it has become legal (or if the decision is non-final but enforceable).

Should I oppose the lawsuit if I recognize the claim?

Even if you accept the claim, it is better to prevent a court decision on it, for example, by paying the debt earlier or by agreeing with the claimant, as the court will usually also impose an obligation on you to pay the costs of the plaintiff's proceedings. However, the plaintiff often has the will to agree to withdraw the action in exchange for at least partial or earlier payment of the debt. It always makes sense to at least attempt an extrajudicial action.

How to claim damage caused by the state?

A claim for compensation for damage caused by the state is applied in a different procedure than a normal claim. The first step is to apply for compensation to the competent authority, often the ministry. If the Office does not grant compensation within 6 months of the submission of the application, judicial enforcement may be initiated. In such proceedings, the injured party is partially advantaged, for example, by a reduced court fee and substantially lower costs in the event of failure.

Where do I file a lawsuit? And where's the appeal?

To file an action, it is necessary to designate a court of substantive and local jurisdiction. The district court (district court in Prague) is usually competent in the case. Local jurisdiction is usually determined according to the defendant's place of residence or domicile in the case of a legal entity.

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JUDr. Vít Kučera, MBA
Vít has extensive experience in representing clients before domestic and foreign courts, especially in commercial disputes. He specializes in preliminary measures, which he also deals with in his publishing activities. Since 2013 he also serves as an arbitrator of the Football Association of the Czech Republic.
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Mgr. Martin Tůma, Ph.D.
Martin mainly deals with commercial cases, including disputes arising from unfair competition, damages or insurance claims. He likes to look for simple solutions to (seemingly) complex problems. He also deals with construction law, in connection with which he represents clients in negotiations with administrative authorities and before the courts.
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Mgr. Kateřina Obertová
Kateřina has been involved in litigation since the beginning of her long legal practice, during which she dealt mainly with disputes arising from civil and commercial law contracts, as well as cases concerning family law or property ownership. In advocacy, he bases himself on clarity and empathy, with which he tries to offer functional and practical solutions to clients.
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JUDr. Ing. Vít Švestka
Vít is a lawyer specializing in solving problems in the field of tax law before the tax authorities and the courts. He also acts as a tax advisor and thus can provide additional valuable advice and experience on how to reduce the risk of initiating proceedings at all. Vít also deals with corporate disputes. In addition to his legal education, he also holds a degree from the University of Economics in Prague, where he also participates in teaching and publishing activities.
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Mgr. Marie Timoščuková
Marie is an expert in labor law. Therefore, he also has extensive experience in representation in labor disputes in the field of labor law, from both sides of the “barricade”, that is, on the part of both employers and employees. Thus, it has not only successfully defended the validity of the dismissal, but also obtained many illegally withheld bonuses to employees.
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Mgr. Vojtěch Adámek
Vojtěch is an experienced lawyer specializing mainly in disputes over claims arising from contracts, including settlement of parties after termination of contracts, debt collection and disputes over compensation for damage (damages). He considers understanding the client's needs and finding effective and pragmatic solutions together, including extrajudicial termination of disputes, as the key to success.
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