Commercial Torts

Passing-off and other commerical torts in Israel

In 1999 the Commercial Torts Law was enacted in Israel. In this legislation Israel's parliament (Knesset) has defined a list of commercial torts concerning trade conduct in Israel:

Passing-off:

A tort that occurs when a good or a service is provided in a manner that is meant to lead the customer to associate that good or service to others.

To prove this tort the plaintiff must prove:

1. The creation of association between that good or service and the good or service of the plaintiff.

2. Reputation the plaintiff has among the potential costomers.

Fallacious description:

Publication of information by someone who knows (or should have known) that the information is false, concerning a business, profession, property or service - be it his own or belonging to others.

Unfair intervention:

Prevention or disturbance to access of customers, agents or employees to a business.

Accroachment of a trade secret:

A trade secret is defined as business information of any kind, which is not in the public domain, and cannot easily be retrieved by others.

Remedies:

The law empowers the courts to issue writs, interlocutory injunctions, receivership, rewards and even statutory compensation (without having to prove damages) of up to 100'000 Israeli Shekels (some 20'000 USD at the current exchange rate).

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