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Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Australia | Publication | April 2023
Earlier this month, the High Court of Australia ultimately rejected trade mark infringement and misleading/deceptive conduct claims by Allergan (owner of the injectable BOTOX®) against Self Care’s anti-wrinkle skincare products PROTOX and INHIBOX (marketed under the slogan ‘instant Botox® alternative’). The case has been running for 6 years.
Allergan relied on the overwhelming reputation of its brand BOTOX. It argued that PROTOX was a deceptively similar trade mark and that use of the slogan (‘instant Botox® alternative’) constituted infringing use of BOTOX.
The High Court overturned the previous decision of the Full Federal Court favourable to Allergan by ruling that:
Allergan also argued that the slogan misrepresented to consumers that the effects of skincare INHIBOX were not only comparable to those of BOTOX but would also last for a similar period. The High Court disagreed, concluding that the reasonable consumer would likely believe it too good to be true that the effects of a topical cream would be both instant and as long lasting as those of a pharmaceutical injection.
For brand owners, trade mark reputation has long been a double-edged sword, which either reinforced or mitigated differences between the trade marks under comparison in infringement proceedings. The High Court’s decision reinforces the value of registered trade mark rights and their power, irrespective of reputation – even a small brand will now be able to prevent a famous infringer on the basis of its trade mark registration alone rather than having to probe ephemeral issues, such as reputation in the marketplace.
Otherwise, reputation remains a relevant consideration in passing off suits, actions for misleading/deceptive conduct under the Australian Consumer Law and trade mark oppositions. These actions are all still available to be deployed by brand owners in protecting their trade marks.
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Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
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On February 2, 2024, the Belgian Presidency of the Council of the European Union confirmed that the Committee of Permanent Representatives had signed the Artificial Intelligence (AI) Regulation, referred to as the AI Act. Approval by the EU Parliament followed on 13 March 2024, and the AI Act is likely to appear in the EU’s Official Journal around May 2024. The AI Act aims to establish a stringent legal framework governing the development, marketing, and utilisation of artificial intelligence within the region, thereby marking a significant advancement in the regulation of this burgeoning domain.
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The private credit market and direct lending have grown and diversified immensely in the past decade, offering alternative sources and terms of debt compared to those historically provided by the syndicated leveraged loan and public issuance markets. Consequently, they are fast becoming pivotal components in the capital ecosystem, so much so that the Bank of England consider that the private credit market is currently responsible for approximately $1.8 trillion of debt issuance, which is four times its size in 2015. This growth has been particularly pronounced in Europe and the US but there has also been significant activity in Asia.
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