Unfair competition laws are designed to protect consumers and businesses from unfair, deceptive business or trade practices. Unfair competition claims include trademark infringement, patent infringement, copyright infringement, misappropriation of trade secrets, and breach of restrictive covenants in employment agreements and contracts for the sale of businesses.
Unfair or deceptive trade practices usually target consumers and include misleading claims about the quality or characteristics of goods or services; bait and switch sales tactics; and the unauthorized substitution of an advertised or represented brand or quality of goods for a lesser brand or quality of goods. Most unfair competition laws are located in state statutes and court opinions (common law). But patent, copyright, and trademark laws that may be the source of unfair competition claims are located in federal statutes.
In Texas, unfair competition laws are in place to protect both consumers and businesses from deceptive and unethical practices. These laws encompass a range of issues including trademark infringement, patent infringement, copyright infringement, misappropriation of trade secrets, and violations of restrictive covenants in employment or business sale contracts. Texas follows both state statutes and common law precedents to address unfair competition. The Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) is a key state statute that prohibits false, misleading, or deceptive business practices, including bait and switch tactics and the unauthorized substitution of goods. Additionally, federal laws govern intellectual property rights, which are often at the heart of unfair competition claims. These federal statutes include the Lanham Act for trademarks, the Patent Act, and the Copyright Act. Texas businesses and consumers rely on this combination of state and federal laws to seek remedies against unfair competition.
