ARTICLE
14 August 2024

Unfair Competition – Imitation And Cancellation Of Trademarks In Uzbekistan

This article explores the characteristics of unfair competition cases in Uzbekistan arising from the imitation of trademarks and addresses the legal grounds for the cancellation of trademark registrations ...
Uzbekistan International Law
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This article explores the characteristics of unfair competition cases in Uzbekistan arising from the imitation of trademarks and addresses the legal grounds for the cancellation of trademark registrations in instances where a product has been marketed prior to the official registration of the trademark.

Legal Framework

"The primary legislation governing competition in Uzbekistan is the Law of the Republic of Uzbekistan 'On Competition.' According to the Law, any actions that create confusion with the goods, services, or activities of another business are strictly prohibited. This encompasses the use of identical or similar trademarks, packaging, or overall trade dress that could mislead consumers. Moreover, this prohibition is in alignment with the provisions of the Paris Convention for the Protection of Industrial Property, which mandates member states to prevent acts of unfair competition, including those that result in confusion with the established trademarks or commercial identifiers of another entity."

Imitation of Trademarks

Imitation involves the use of signs, labels, or other commercial designations similar to those of a competitor, which can mislead consumers regarding the origin of the products. This practice is particularly problematic as it can undermine brand value and consumer trust, leading to significant financial losses for the original trademark owner.

In Uzbekistan, the Committee for the Development of Competition and Consumer Protection (Antitrust committee) plays a crucial role in addressing issues related to trademark imitation. The Committee can initiate investigations based on complaints from businesses or consumers and impose sanctions on entities found guilty of unfair competition. These sanctions can include fines, orders to cease the infringing activity, and compensation for damages incurred by the affected business.

To strengthen their position against imitation, businesses should maintain thorough documentation of their trademark use. This includes keeping records of advertising campaigns, sales data, and any other evidence that can demonstrate the continuous use and market presence of the trademark. Such documentation can be invaluable in legal disputes and investigations by the Competition Committee.

Cancellation of Trademarks

Cancellation of a trademark may occur if it is found that a product has been used in the market prior to the registration of the trademark by another entity, i.e. in respect to homogenous goods. According to Uzbek law, trademark rights are typically granted based on the principle of first-to-file. However, if it is proven that a trademark was used in commerce prior to its registration by another party, the rightful owner may seek the cancellation of the registered trademark.

The process of trademark cancellation involves filing a application with the Committee for the Development of Competition and Consumer Protection. The rightholder must provide evidence demonstrating the prior use of the trademark in the market. This evidence can include sales invoices, advertising materials, and other documentation showing the continuous and substantial use of the trademark. Once the application is submitted, the Committee reviews the application and issues a decision regarding the claim. If the Committee finds the claim to be valid, the trademark owner can then proceed to seek a formal declaration from the court or the IP Agency to invalidate the wrongfully registered trademark certificate.

Opportunities for Unregistered Trademark Owners

The current legal landscape in Uzbekistan offers a significant opportunity for businesses that do not possess registered trademarks but whose rights are being infringed upon. The protection against unfair competition ensures that businesses can seek legal recourse even without formal trademark registration.

Businesses can leverage the unfair competition provisions to protect their brand identity and market share. By demonstrating the prior use and reputation of their trademark on the territory of Uzbekistan, businesses can prevent competitors from exploiting their goodwill. This approach not only safeguards their interests but also maintains fair market practices.

Conclusion

Uzbekistan's legal framework provides reliable mechanisms to address unfair competition, particularly concerning the imitation and cancellation of trademarks. Businesses operating in Uzbekistan should be aware of their rights and the avenues available for protecting their trademarks, even if they are not formally registered. Active enforcement of these laws by the relevant authorities ensures a fair and competitive market environment, promoting business growth and consumer confidence.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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