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In the recent past, lawsuit against false advertisement has been on the rise, and has resulted in unfair competition. Lanham Act was established to handle cases of false advertisement in the global markets. The act permits firms to file a private suit in the courts following false advertisement. The advertisement “just screw” is very false and misleading. It is unlawful for an advertiser to make statements which are harmful, false and misleading about the nature of business operations, quality of goods and services and other commercial activities. In this case, Nike can claim that the ads resulted in adverse economic effects. The company can claim that the false advertisement has resulted in loss of customers to the competitors hence has not been able to achieve the economic objectives. Nike Corporation can allege that the advertisement has eroded the entity’s reputation, and this might have long term negative economic effects. False advertisement gives rise to lawsuits. The best defense to false advertisement by Candies is to prohibit the case from running. It should appoint an experienced legal counsel who is very clear of all existing advertising before it is run.
The choice of the domain name has become an important business issue in the recent past. The domain name is registered by a firm or company to enable the internet users locates the site on the web very easily. When registering, a firm should choose a domain name that is distinctive from those that have been used by other firms. Using common domain name present numerous issues that might have direct negative effect on the business operations. From the case study, the two companies have used the same common domain names. Therefore, the domain owner is likely to experience negative effects that could have been avoided if the other company had not used it domain. It is difficult for the company to build up any special reputation. In addition, the company’s abilities to protect others during unfair competition are paralyzed.
According to the law, it offensive to pick a domain that is used as trademark of another firm, especially if it is widely known. Most laws around the world treat registration of company’s trademark using a domain name of another existing company amounts to trademark infringement, and this has adverse consequences. Therefore, the faulting company should pay the damages incurred by the owner. This is subject to dispute resolution procedures to enable the owner stop the other firms from cyber squatting the domain name.
According to the federal laws, it is unlawful for an advertiser to make false or misleading statements about the nature of the products or service that is being offered by the competitor. Following false advertisements, consumers will start to develop negative attitude.............
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