Why Unfair Competition Rules Dictate

Original Language Title: Por la cual se dictan normas sobre competencia desleal

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LAW 256
1996 (January 15)
Official Gazette No. 42,692, dated 18 January 1996.
By establishing rules on unfair competition dictate. Summary

Term Notes
THE CONGRESS OF COLOMBIA,
DECREES: CHAPTER I.


GENERAL PROVISIONS ARTICLE 1o. OBJECT. Without prejudice to other forms of protection, this Act is to ensure free and fair economic competition by prohibiting acts and conduct of unfair competition, to the benefit of all those involved in the market and in accordance with the provisions of paragraph 1o. Article 10 bis of the Paris Convention, approved by Act 178 of 1994
Article 2.
. OBJECTIVE SCOPE OF APPLICATION. Behaviors under this Act shall be considered acts of unfair competition provided they make in the market and the purposes of competition.
The COMPETING purpose of the act is presumed when the latter, the circumstances in which it is performed, is revealed objectively suitable for maintaining or increasing market share of the user or a third party.

ARTICLE 3. SUBJECTIVE SCOPE. This Act will apply both to merchants and any other participants in the market.
The application of the law may not be made subject to the existence of a competitive relationship between the perpetrator and the taxable person in the act of unfair competition.

ARTICLE 4. TERRITORIAL SCOPE. This Act will apply acts of unfair competition whose main effects are taking place or are called to have them in the Colombian market.

The 5th ITEM. CONCEPT OF COMMERCIAL PERFORMANCE. Commercial benefits may include acts and operations of market participants related to the delivery of goods and products, the provision of services or performance of positive or negative events, capable of valuable consideration, which constitute the specific activity and effective compliance with a legal duty.

ARTICLE 6o. INTERPRETATION. This Act shall be construed in accordance with the constitutional principles of economic activity and free private initiative within the limits of the common good; and economic and free and fair competition but responsible.
CHAPTER II. ACTS OF UNFAIR COMPETITION


ARTICLE 7. GENERAL PROHIBITION. They are prohibited acts of unfair competition. The market participants must respect in all their actions the principle of commercial good faith.
In accordance with the provisions of paragraph 2o. Article 10 bis of the Paris Convention, approved by Act 178 of 1994, is considered to constitute unfair competition any act or event that takes place on the market the purposes of competition, where contrary to healthy commercial customs, at the beginning of the commercial good faith, to honest practices in industrial or commercial, or when directed to affect or affect the freedom of choice of the purchaser or consumer or market functioning COMPETING matter.

Article 8. ACTS OF DIVERSION OF GUESTS. any conduct which has the purpose or effect is to divert the clientele of activity, performance or commercial establishments outside whenever contrary to healthy commercial customs or honest practices in industrial or commercial matters is considered unfair.

Article 9. ACTS OF DISRUPTION. any conduct which has the purpose or effect of disrupting the company internally, the commercial benefits or other people's property is considered unfair.

ARTICLE 10. ACTS OF CONFUSION. In accordance with the provisions of paragraph 1 of paragraph 3 of Article 10a of the Paris Convention, approved by Act 178 of 1994, it is considered unfair conduct that has the purpose or effect of creating confusion with activity, commercial benefits or the establishment of others.

ARTICLE 11. ACTS OF DECEPTION. In accordance with the provisions of paragraph 3 of paragraph 3 of Article 10a of the Paris Convention, approved by Act 178 of 1994, it is considered unfair conduct that has the purpose or effect of inducing the public to error on the activity, commercial services or establishment of others.
The use or dissemination of indications or incorrect or false allegations are presumed unfair, the omission of true and any other practice that, given the circumstances it occurs, is likely to mislead the people it is addressed or reached on activity, commercial facilities or the establishment of others, as well as the nature, mode of manufacture, characteristics, suitability for employment or the amount of products.


ARTICLE 12. ACTS OF disrepute. In accordance with the provisions of paragraph 2 of paragraph 3 of Article 10 bis of the Paris Convention, approved by Act 178 of 1994, are considered unfair use or dissemination of indications or incorrect or false statements, failure of the true and any other practice which has the purpose or effect of discrediting the activity, services, establishing business relations or a third party, unless they are accurate, true and relevant.

ARTICLE 13. ACTS OF COMPARISON. Notwithstanding the provisions of Articles 11 and 13 of this Act, are considered unfair public comparison of the activity, the commercial benefits or own or other establishment with a third party when such a comparison using indications or wrong or allegations false , or omit true. Likewise, any comparison considered unfair to extremes that are not similar, nor testable relates.

ARTICLE 14. ACTS OF IMITATION. Imitation of commercial services and foreign business initiatives is free, unless they are protected by law.
However, the exact and meticulous imitation of the services of a third party shall be deemed unfair when generating confusion about the commercial origin of the provision or involves taking unfair advantage of the reputation of others.
The inevitable existence of the mentioned risk of confusion or exploitation of another's reputation excludes the disloyalty of practice.
Also be deemed unfair systematic imitation of benefits and business initiatives of a competitor is found when such a strategy designed to prevent or hinder his claim in the market and exceeds what under the circumstances, can be regarded as a natural response market.

ARTICLE 15. OPERATION OF THE REPUTATION OF OTHERS. It is considered unfair exploitation in their own or another benefit from the advantages of industrial, commercial or professional reputation acquired by another in the market.
Without prejudice to the provisions of the Penal Code and international treaties, shall be deemed unfair unauthorized non distinctive signs or names of false or misleading origin even if they are accompanied by an indication about the true origin of the product use or expressions such as "model", "system", "type", "kind", "gender", "make", "imitation" and "like".

ARTICLE 16. VIOLATION OF SECRETS. It is considered unfair disclosure or exploitation, without authorization of the owner, trade secret or any other kind of business secrets to which they have gained legitimate access but reserve duty, or illegitimately, as a result of some of the behaviors expected in the following paragraph or Article 18 of this Law.
you will likewise considered unfair, acquiring secrets through espionage or similar procedures, without prejudice to other rules provide for penalties.
The actions concerning the violation of secrets to proceed without it being necessary that the conditions referred to article 2. of this Act.

Editor's Notes
ARTICLE 17. BREACH CONTRACTUAL INDUCTION. Induction is considered unfair to workers, suppliers, customers and others forced to violate the basic contractual obligations they have undertaken with competitors.
The induction regular termination of a contract or use in their own or another benefit of a foreign unfair contractual infringement only qualify when, as known, is aimed at the expansion of an industrial or business sector or accompanied by circumstances such as deception, intended to eliminate a competitor from the market or similar.

ARTICLE 18. VIOLATION OF RULES. It is considered unfair effective realization in the market for a competitive advantage over competitors gained by the violation of a legal rule. The advantage is to be meaningful.
ARTICLE 19. UNFAIR
exclusivity agreements. It is considered unfair agreeing on supply contracts exclusivity clauses, where such clauses have as their object or effect of restricting access of competitors to the market, or monopolizing the distribution of products or services, except the liquor industries while they are owned of local authorities. Effective Jurisprudence


CHAPTER III.
ACTION ARISING FROM UNFAIR COMPETITION

ARTICLE 20. ACTIONS. Against acts of unfair competition may stand the following:

1. declaratory and action. The affected by acts of unfair competition may take action to judicially declare the illegality of acts performed and therefore the offender will be ordered to remove the effects of such acts and compensate the damage caused to the plaintiff. The applicant may at any time during the process, that precautionary measures enshrined in Article 33 of this Law practice.
2. preventive action or prohibition. The person who thinks they may be affected by acts of unfair competition, action will have to ask the judge to avoid making unfair conduct that has not yet been perfected, or the ban but has not yet produced any harm.
ARTICLE 21.
legal standing. In accordance with the provisions of Article 10 of the Paris Convention, approved by Act 178 of 1994, any person who participates or demonstrate their intention to participate in the market, whose economic interests are adversely affected or threatened by acts of unfair competition, is standing to bring actions provided for in Article 20 of this law.
The measures referred to in Article 20 may also be exercised by the following entities:
professional associations and guilds when they are seriously affected the interests of its members.
Associations, according to its statutes, whose purpose is consumer protection. Legitimizing be subject in this case that the act of unfair competition affects pursued seriously and directly the interests of consumers.
Attorney General's Office on behalf of the nation, for those unfair acts that seriously affect the public interest or conservation of an economic order of free competition.
The legitimation is presumed when the act of unfair competition affecting an economic sector as a whole, or a substantial portion thereof.
ARTICLE 22.
PASSIVE LEGITIMATE. The actions provided for in Article 20 shall proceed against any person whose conduct has contributed to the realization of the act of unfair competition.
If the act of unfair competition is performed by workers or other employees in the exercise of their duties and contractual duties, the actions provided for in Article 20 of this Law shall be directed against the employer.

ARTICLE 23. PRESCRIPTION. Shares of unfair competition prescribed in two (2) years from the time the legitimated had knowledge of the person who performed the act of unfair competition and in any case, within three (3) years from time of completion of the act.
CHAPTER IV. PRELIMINARY PROVISIONS


ARTICLE 24. PROCESSING. Effective Notes

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ARTICLE 25. TERRITORIAL JURISDICTION. Effective Notes

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ARTICLE 26. PETITION AND DECREE OF PROCEEDINGS PRELIMINARY CHECKING. Effective Notes

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ARTICLE 27. PRACTICE AND APPRAISAL OF THE PRELIMINARY any inspection. Effective Notes

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ARTICLE 28 CERTIFICATION OF PRELIMINARY PROCEEDINGS. Effective Notes

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ARTICLE 29. TERM FOR FILING THE CLAIM. Effective Notes

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ARTICLE 30. CLAIM OF AFFECTED BY prelim. Effective Notes

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ARTICLE 31. PRECAUTIONARY MEASURES. Verifying the performance of an act of unfair competition, or the imminence thereof, the judge, at the request of legitimated person and under the responsibility of it, may order the temporary cessation of it and enact other precautionary measures are appropriate.
The measures provided for in the preceding paragraph shall be given precedence. In case of serious and imminent danger they may be adopted without hearing the other party and may be issued within twenty-four (24) hours following the submission of the application.
If the measures are requested prior to filing the lawsuit, also be competent to adopt the judge of the place where the act of unfair competition produces or can produce effects.
However, once presented the original proceedings, the court hearing it will be the only competent in all matters concerning the measures taken.
The precautionary measures, the provisions of this article shall be governed in accordance with the provisions of Article 568 of the Commercial Code and Articles 678-691 of the Code of Civil Procedure.


ARTICLE 32. SPECIALIST ON PROBATION. Effective Notes

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ARTICLE 33. EFFECTIVE DATE. This Law governs from its promulgation and repealing Article 10 of Law 155 of 1959; Articles 75 to 77 of Decree 410 of 1971, Articles 975 and 976 of the Commercial Code and other rules that are contrary.

The President of the honorable Senate, JULIUS CAESAR
Tulena WAR.
The Secretary General of the honorable Senate,
PUMAREJO PEDRO VEGA.
The President of the honorable House of Representatives,
Rodrigo Rivera Salazar.
The Secretary General of the honorable House of Representatives, DIEGO VIVAS
TAFUR.
REPUBLIC OF COLOMBIA - NATIONAL GOVERNMENT
published and execute.
Given in Bogota, DC, 15 January 1996.

Ernesto Samper Pizano Minister of Economic Development, RODRIGO MARIN BERNAL



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