OPTIONS INTERNATIONAL (SMC-PVT.) LTD. vs The COMPETITION COMMISSION OF PAKISTAN S

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OPTIONS INTERNATIONAL (SMC-PVT.) LTD. VS The COMPETITION COMMISSION OF PAKISTAN S. 1(3)---Distorting competition within Pakistan---Scope---Use of the "Starbucks" name and logo---Both the 'Starbucks" name and logo were registered abroad and in Pakistan---Matter before the Competition Commission ("Commission"), and then before the Competition Appellate Tribunal ("Tribunal"), was with regard to the use of the Starbucks name and logo by the appellant and selling its products under such name and style---Complaint from the proprietor of the said tradename and trademark, Starbucks Corporation USA (respondent No. 2), was received by the Commission which took action on it, and passed the penalty imposing order, which penalty was enhanced by the Tribunal---Counsel for appellant contended that the Competition Act, 2010 ('the Act') only applied to 'undertakings and all actions or matters that take place in Pakistan and distort competition within Pakistan', as stipulated in subsection (3) of section 1 of the Act, however since Starbucks Corporation USA (respondent No. 2) did not have any outlet in Pakistan, nor had authorized anyone to use its name, logo and products in Pakistan, therefore, the appellant was not in competition with the respondent No. 2, its authorized user(s) and/or its products---Validity---Said contention had no substance---Appellant had put itself forward by selling its own products under the international brand name Starbucks and by using its logo, which must have had the effect of distorting competition within Pakistan because a local vendor selling similar products, as those being sold by the appellant, would be at a serious disadvantage and not able to compete therewith since the unsuspecting public would believe, understand or perceive the same to be the genuine products of the respondent No. 2---Appeal was dismissed.

OPTIONS INTERNATIONAL (SMC-PVT.) LTD. vs The COMPETITION COMMISSION OF PAKISTAN S — 2024 PLD 899 SUPREME-COURT

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