Claim for damages for unfair competition

[Key issue] “Unfair competition” pursuant to Article 2, paragraph (1), item (ii) of the Unfair Competition Prevention Act.

Court stated in the decision “…Article 2, paragraph (1), item (ii) of the Unfair Competition Prevention Act does not require an act of unfair competition to be the ‘creation of confusion with another person’s goods or business.’  This is because the purport of item (ii) of the same paragraph is in preventing free riding by use of the customer attracting power of a famous indication of goods, etc., as well as in preventing the source-identifying function and the quality guarantee function from being harmed due to dilution.  As such, if an indication which is identical or similar to another person’s famous indication of goods, etc. is used in a manner that accomplishes the functions of indicating the source of goods and of distinguishing said goods from the goods of other persons, such use is acknowledged as the use as an indication of goods, etc., and whether or not confusion is created among consumers as to the source shown by said indication does not directly affect this point.”