LAW OF THE AZERBAIJAN REPUBLIC

of June 2, 1995 No. 1049

About unfair competition

This Law establishes organization-legal bases of prevention and elimination of unfair competition, creates the legal soil for implementation of business activity by fair methods, provides responsibility of subjects of the market for application of methods of unfair competition by them.

The law extends to all subjects of the market operating in the territory (except the Alyatsky free economic zone) the Azerbaijan Republic.

Chapter I. General provisions

Article 1. Basic concepts

For the purposes of this Law the following basic concepts are used:

the competition - fight form between subjects of the market for optimum conditions of business activity in case of which their independent activities thoroughly limit possibilities of each of them to influence general condition of the goods circulation (products, works, services) in the market and stimulates production of the goods necessary for the consumer;

unfair competition - the actions of the subject of the market directed to achievement of benefit in business activity by application of the unfair methods contradicting the current legislation which can cause damage to other subjects of the market (competitors) or belittle their business authority;

illegal payments - the payments of material and intangible nature provided for bribery of officials of state bodies, persons holding executive positions in political parties, workers of subjects of media, management and employees of subjects of the market for achievement of unreasonable (unjustified) benefits in competitive struggle;

the competitor - the subject of the market capable to submit goods for the market of certain goods (interchangeable goods).

Other concepts used in this Law are applied as it is established by the Law of the Azerbaijan Republic "About anti-monopoly activities".

Article 2. The bodies exercising control of compliance with law about unfair competition

Control of compliance with law about unfair competition is exercised, within the powers, the central executive body pursuing the antimonopoly policy in the Azerbaijan Republic and other bodies, stipulated by the legislation.

Chapter II. Unfair competition

Article 3. Forms of unfair competition

In business activity treat forms of unfair competition:

copying of economic activity of the competitor;

discredit of economic activity of the competitor;

intervention in economic activity of the competitor;

unfair business activity;

unfair business behavior;

introduction of consumers in delusion.

Article 4. Copying of economic activity of the competitor

The following actions copying economic activity of the competitor are not allowed:

unauthorized copying of goods of the competitor, and also form of goods, its packaging and external design, except for those which appearance is caused by their technical function;

direct reconstruction of products of other business entity by violation of its patent licensing right;

illegal use of the trademark, geographical instructions, trade name, commodity brand, and also the name of other business entity, except as specified, when the subject of the same name uses own name as trade name with addition of any distinctive mark.

Article 5. Discredit of economic activity of the competitor

The following actions leading to discredit of economic activity of the competitor are not allowed:

distribution of the false and distorted information about the business authority and financial condition of other subjects of the market;

disclosure in the distorted type of data about scientific and technical and production capabilities of the competitor.

Article 6. Intervention in economic activity of the competitor

The following actions pursuing the aim of intervention in economic activity of the competitor are not allowed:

deliberate violation, failure and termination by illegal means of business relations of the competitor;

rendering impact by illegal funds for the competitor's workers for the purpose of their inducement to failure to carry out of the service duties.

Article 7. Unfair business activity

The following actions in business activity are not allowed:

illegal receipt, use and disclosure of data on scientific and technical, productive or trading activity of the subject of the market, including its trade secret;

rendering impact by illegal funds for acceptance and execution of economic decisions of the competitor for the purpose of receipt of unreasonable superiority over it;

sales of goods with forced additional assortment;

prediscretion in agreements of unreasonable unilateral benefits;

withdrawal of goods from economic circulation or their non-admission in turnover before date of the planned price increase, or on purpose to cause this increase.

Article 8. Unfair business behavior

The following actions in business behavior are not allowed:

violation of the market of the agreement on refusal of the competition or its certain form concluded with the partner (partner) and not creating essential restrictions for economic activity of subjects during certain time;

unreasonable appeals (addresses) to other subjects of the market for the purpose of termination of business contacts of the competitor or hindrance to establishment of such communications.

Article 9. Introduction of consumers in delusion

The following actions of subjects of the market directed to introduction of consumers in delusion are not allowed:

distribution of any data which can mislead consumers concerning origin, method of production, suitability to use, quality and other properties of goods, the identity of the entrepreneur or the characteristic of its economic activity;

use unfair, inexact and the hidden advertizing of goods of methods which influence liberty of choice of the consumer in case of their acquisition or in case of the conclusion of the transaction;

the incorrect comparison of goods capable to mislead the consumer and the legend of it of publicity as advertizing or information material;

supply of goods with inappropriate distinctive mark or marking for the purpose of introduction of the consumer in delusion of rather consumer and other important properties of goods;

concealment of discrepancy of goods to the appointment or requirements imposed to it.

Article 10. Inadmissibility of illegal payments in business activity

Illegal payments for the purpose of receipt of unilateral benefits in the competition are not allowed, namely:

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