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Simple English definitions for legal terms
competitive injury
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A quick definition of competitive injury:
Competitive injury: When a business loses money or customers because of unfair competition from another business, it is called a competitive injury. This can happen when a rival company uses dishonest or illegal tactics to gain an advantage, making it harder for the injured business to compete. To prove a case of unfair competition or false advertising, the injured business must show that it suffered a competitive injury.
A more thorough explanation:
Competitive injury refers to an economic loss suffered by a business due to unfair competition from a rival. This can include a loss of sales or a disadvantage in the ability to compete with the rival. In legal terms, a plaintiff must show a competitive injury to bring a misappropriation action or to have standing to prosecute a false-advertising action under 15 USCA § 1125(a)(1)(B).
- A small coffee shop loses customers to a larger chain that opens up across the street and offers lower prices. This is a competitive injury.
- A company creates a new product and spends a lot of money on advertising, but a rival company copies the product and advertises it as their own. The original company suffers a competitive injury due to the loss of sales and reputation.
These examples illustrate how a business can suffer a competitive injury when faced with unfair competition from a rival. It can result in a loss of profits, customers, and reputation, which can be difficult to recover from.