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Passing off

Passing off is a common law tort originating in England, recognized as early as the reign of Elizabeth I, that prevents one trader from misrepresenting their goods or services as those of another, thereby protecting the claimant's established goodwill from damage or dilution.^[1]^[2] To succeed in a passing off claim under UK law, the claimant must prove three core elements: goodwill, which refers to the attractive force or reputation attached to their business, goods, or services in the mind of the purchasing public within a specific geographic area or market; misrepresentation, involving a false representation by the defendant that leads or is likely to lead the public to believe the defendant's goods or services are those of the claimant, often through similar get-up, packaging, or branding; and damage, encompassing actual or probable harm to the claimant's goodwill, such as loss of sales, reputational injury, or dilution of distinctiveness.^[3]^[4]^[2] Unlike registered trade mark infringement under the Trade Marks Act 1994, passing off is an unregistered right derived entirely from case law, with no statutory codification, making it a flexible but evidentiary-heavy remedy that complements other intellectual property protections in the absence of a dedicated unfair competition law in the UK.^[3]^[4] It applies not only to traditional trade marks but also to extended forms, such as character merchandising, false endorsements by celebrities, or collective reputation of product types (e.g., "Swiss chocolate" or "Greek yogurt"), as established in landmark cases like Reckitt & Colman Products Ltd v Borden Inc. (the "Jif Lemon" case) and Fage UK Ltd v Chobani UK Ltd.^[3]^[2] Successful claimants may obtain remedies including injunctions to halt the misrepresentation, damages for quantifiable losses or an account of the defendant's profits, and orders for the delivery up or destruction of infringing materials, though defenses such as prior consent, lack of goodwill, or honest concurrent use may apply.^[3]^[4] While primarily a UK doctrine, passing off has influenced similar protections in other common law jurisdictions like Australia, Canada, and India, adapting to local contexts without direct statutory equivalence.^[5]^[6]

Fundamentals

Definition and Purpose

Passing off is a common law tort that arises when one trader misrepresents their goods, services, or business as those of another, thereby causing confusion among consumers and potential harm to the original trader's interests.^[7]^[8] This action enforces unregistered trade interests without reliance on statutory protections, focusing on the deception inherent in passing off inferior or unrelated products under the guise of an established reputation.^[9] The primary purpose of passing off is to protect the goodwill associated with a trader's reputation and prevent unfair competition that exploits consumer confusion.^[7]^[8] By addressing gaps in formal trademark registration systems, it ensures that businesses cannot free-ride on the established market position of others, thereby safeguarding both commercial integrity and public trust in product origins.^[9] This tort complements but does not replace statutory trade mark law, applying particularly where no registration exists.^[8] At its core, passing off operates solely under common law principles, unbound by legislation, and extends protection to a wide array of unregistered indicia such as names, logos, packaging (get-up), and even product shapes that signify origin to consumers.^[7]^[9] It first gained recognition during the reign of Elizabeth I in the 16th century as a means to safeguard traders' reputations against deceitful practices, evolving from earlier concepts of fraud in commerce.^[1]

Relation to Trade Mark Law

Passing off serves a complementary role to registered trade mark law by providing protection for unregistered marks and signs that may not qualify for registration, such as descriptive terms that lack inherent distinctiveness under statutory criteria.^[10] For instance, terms like "Jif Lemon" for a lemon-shaped container were ineligible for trade mark registration due to descriptiveness but successfully protected via passing off to prevent consumer confusion with a rival product.^[11] This fills a critical gap where trade mark law requires proof of distinctiveness for eligibility, allowing businesses to safeguard goodwill built through use without formal registration.^[12] Key differences between the two lie in their legal foundations and requirements: trade mark protection under statutes like the UK's Trade Marks Act 1994 demands registration to confer a statutory monopoly right, granting the proprietor exclusive use across the territory without needing to prove actual confusion or damage in every case.^[13] In contrast, passing off is a common law tort that necessitates evidence of established goodwill, a misrepresentation leading to confusion, and resultant damage, making it more evidentiary but applicable to unregistered rights.^[10] Trade marks also offer streamlined enforcement and potential criminal sanctions, whereas passing off relies on civil remedies and is geographically limited to the area of goodwill.^[12] Despite these distinctions, overlaps exist in their aim to prevent misrepresentation and protect commercial reputation, with both mechanisms addressing likelihood of confusion between marks.^[12] Passing off, however, extends broader protection, such as against dilution of goodwill without requiring registration or proof of direct competition, as seen in cases where unregistered signs erode brand distinctiveness through association.^[14] Statutory interactions underscore passing off's independence: in the UK, section 2(2) of the Trade Marks Act 1994 explicitly preserves the common law of passing off unaffected by the Act, allowing it to operate alongside registered rights or challenge invalid registrations based on prior goodwill.^[13] Similarly, in Australia, section 230 of the Trade Marks Act 1995 maintains the law of passing off intact, except in limited scenarios involving registered marks where damages may be restricted if the defendant acted innocently.^[15] This ensures passing off remains a viable common law tool in both jurisdictions. Passing off particularly addresses gaps in trade mark law by covering non-traditional marks, such as product shapes that fail registration due to functional or non-distinctive characteristics under statutory bars.^[14] For example, the distinctive lemon shape in the Jif case was protected through passing off despite not meeting trade mark registrability thresholds, preventing imitation that could mislead consumers.^[11] This broader applicability ensures ongoing protection for innovative or shape-based branding ineligible for monopoly rights.^[10]

Historical Development

Origins in English Common Law

The tort of passing off emerged in English common law as early as the reign of Elizabeth I, referring to the act of a trader surreptitiously representing inferior goods or services as those of a more reputable competitor to deceive customers and divert trade. This concept developed amid growing market competition, where marks, names, or get-up were used to build customer loyalty, but without formal registration systems, leading to disputes resolved through judicial intervention rather than statutory monopolies. Early references trace back to cases involving fraudulent imitation, laying the groundwork for the tort as a remedy against commercial deceit.^[16] A foundational milestone in the doctrine's recognition came in Blanchard v. Hill (1742), often regarded as the first clear common law case addressing trademark misappropriation akin to passing off. In this Chancery proceeding, the plaintiff, a card manufacturer, sought an injunction against the defendant for using a similar mark on playing cards, arguing it confused the public and harmed his business. Lord Chancellor Hardwicke denied relief on the facts but acknowledged the principle that using another's mark with intent to deceive constituted actionable fraud, distinguishing it from mere property rights in marks and emphasizing protection against misrepresentation. This case built on earlier precedents like Loveridge v. Heale (1720) and highlighted the tort's roots in equity to prevent injury from imitation without granting exclusive property rights.^[17]^[18] The doctrine expanded in the 19th century, particularly through Perry v. Truefitt (1842), which articulated the core principle of passing off in a manner that influenced subsequent jurisprudence. Here, the plaintiff, a vendor of a hair restorative called "Medicated Mexican Balm," sued the defendant for selling a competing product under the same name, claiming it misled customers into believing it was his own. Master of the Rolls Lord Langdale granted an injunction, ruling that "a man is not to sell his own goods under the pretence that they are the goods of another man," thereby establishing misrepresentation as the tort's essence and shifting focus from strict fraud to protection of business goodwill against imitation of names or descriptions. This decision marked a pivotal judicial development, extending relief beyond physical marks to descriptive terms and reinforcing the tort's role in safeguarding trade reputation.^[19]^[20] Passing off evolved purely as a judge-made doctrine under English common law, deriving from the ancient torts of deceit and fraud without any statutory foundation, to address commercial harms where no monopoly was warranted. Courts, particularly in equity, granted injunctions and damages to prevent traders from injuring rivals through deceptive practices, viewing it as an extension of general principles against fraud rather than a specialized intellectual property right. This judicial origin allowed flexibility in adapting to new commercial realities.^[21]^[22] The 19th-century context, coinciding with the Industrial Revolution, accelerated the tort's development as rapid urbanization, mass production, and expanded trade intensified competition and imitation risks. Traders increasingly relied on distinctive names, labels, and packaging to differentiate products in burgeoning markets, prompting courts to invoke equity principles—such as specific performance and injunctions—to curb passing off without stifling innovation. This era saw a surge in cases, reflecting the need for judicial safeguards in an economy shifting from artisanal to industrial scales.^[21]^[16]

Key Cases and Evolution

The landmark case of Reckitt & Colman Products Ltd v Borden Inc 1 WLR 491, commonly known as the "Jif Lemon" case, established the foundational three-part test for passing off in English law. In this dispute, Reckitt & Colman, producers of lemon juice in distinctive lemon-shaped plastic containers, successfully claimed that Borden Inc.'s similar packaging misrepresented its product as originating from Reckitt & Colman, leading to consumer confusion. The House of Lords articulated the criteria as follows: first, the claimant must demonstrate goodwill or reputation attached to the goods or services within the relevant market, representing the attractive force that brings customers; second, there must be a misrepresentation by the defendant to the public (whether or not deliberate) that leads to the public believing the defendant's goods or services are those of the claimant; and third, the claimant must suffer or likely suffer damage as a result, such as loss of sales or dilution of reputation.^[23] This test refined earlier formulations by emphasizing likelihood of deception over actual fraud, providing a structured framework that balanced protection of commercial interests with free competition.^[2] Building on this foundation, the doctrine evolved in the late 20th and early 21st centuries to address emerging commercial contexts, including endorsements and European influences. In Irvine v Talksport Ltd EWHC 367 (Ch), the High Court extended passing off to protect a celebrity's image and implied endorsement, ruling that Talksport's use of a doctored photograph of Formula 1 driver Eddie Irvine holding a radio implied his endorsement of the station, eroding his exclusive control over his reputation. The court held that no common field of activity between claimant and defendant was required, provided goodwill in the claimant's persona was established and misrepresentation caused damage, such as devaluation of endorsement opportunities.^[24] This decision broadened passing off beyond traditional goods to intangible personal reputation, influencing protections for influencers and public figures. EU jurisprudence, as seen in Procter & Gamble Co v Office for Harmonisation in the Internal Market (Trade Marks and Designs) (Case C-383/99 P) ECR I-6251, indirectly shaped UK passing off by harmonizing standards on distinctiveness and descriptiveness for trade dress and get-up, ensuring that passing off claims aligned with EU-wide principles on non-descriptive marks like "Baby-Dry" for nappies, which informed UK assessments of misrepresentation in packaging.^[25] Post-Brexit developments up to 2025 have highlighted overlaps between passing off and trade mark law while adapting to digital commerce. In Sky Ltd v SkyKick UK Ltd UKSC 36, Sky's passing off claim against SkyKick's use of the "SKYKICK" mark for cloud-based services was rejected by the High Court for lack of misrepresentation and damage, a decision upheld by the Court of Appeal; the Supreme Court focused on bad faith in trade mark registrations, clarifying that broad specifications do not automatically invalidate on bad faith grounds unless intent to misuse is shown, influencing post-Brexit UK practice by diverging slightly from EU precedents on registration breadth while reinforcing passing off as a complementary remedy for unregistered rights. In the digital era, Getty Images (US) Inc v Stability AI Ltd EWHC 2863 (Ch) addressed e-commerce misrepresentation through AI-generated content, where Getty alleged passing off via Stability AI's Stable Diffusion model creating images mimicking Getty's style. The High Court declined to address the passing off claim, deeming it redundant to its findings on trade mark infringement, but noted Stability's potential liability under trade mark law for outputs generating Getty's watermarks.^[26]^[27] Over the 20th and 21st centuries, passing off has shifted from narrow protection against imitation of trade names in direct competition—rooted in fraud prevention—to broader safeguarding of reputation and goodwill across non-competing fields and digital spaces. Early 20th-century cases focused on tangible trade name deception, but mid-century expansions, culminating in the Reckitt test, emphasized market goodwill as the core protectable interest.^[28] By the 21st century, as in Irvine and digital rulings like Getty, the doctrine adapted to reputation dilution via endorsements and AI, with courts prioritizing consumer perception in online liabilities for platforms hosting misrepresentative content, ensuring passing off remains a flexible tool against modern unfair competition.^[29]

Core Elements

Establishing Goodwill

Goodwill is a fundamental element in the tort of passing off under English law, defined as the attractive force that brings in custom to a business, representing an intangible property right attached to the goods or services of a trader that indicates their origin to the public.^[30] This reputation must be substantial, not merely trivial, and localized to a specific geographical area where the business operates, as passing off protects only the goodwill existing within the jurisdiction.^[31] The classic formulation originates from House of Lords jurisprudence, emphasizing that goodwill arises from the public's association of particular qualities with the claimant's business.^[32] To establish goodwill, the claimant bears a heavy evidential burden, requiring proof of a customer base or reputation in the relevant market through concrete evidence such as sales records, advertising expenditures, market surveys, and testimonials demonstrating public recognition.^[33] For instance, in opposition proceedings before the UK Intellectual Property Office, evidence like turnover figures and promotional activities has been deemed sufficient to show substantial goodwill when the mark has been used consistently for several years.^[34] Goodwill is inherently territorial; a business with a strong reputation abroad but no actual customers or sales in the UK cannot claim protection, as confirmed by the Supreme Court in Starbucks (HK) Ltd v British Sky Broadcasting Group plc UKSC 31, where mere trans-border reputation without local custom was insufficient.^[35] Similarly, in the earlier Athlete's Foot Marketing Associates Inc v Cobra Sports Ltd, the court held that a US-based trader's lack of UK customers precluded any goodwill, despite international fame.^[36] Special cases extend goodwill beyond traditional trading. For non-trading entities like charities, goodwill can attach if the organization's name or mark attracts public support or donations, treating such support as analogous to custom; legal commentary affirms that charities may invoke passing off to protect their reputation from misrepresentation.^[37] Celebrities and individuals can also claim goodwill in their personal attributes, such as image or endorsement style, where it generates commercial value; in Rihanna v Topshop, the High Court recognized the singer's goodwill in her image rights, allowing protection against unauthorized merchandise use that implied endorsement.^[38] Challenges arise when terms are descriptive, as they lack inherent distinctiveness and require stronger evidence of secondary meaning—public association with the claimant—to establish protectable goodwill.^[39] In the digital era, proving goodwill increasingly involves social media metrics, such as follower counts and engagement rates, as supplementary evidence of reputation; for example, in Ynny v KMS (2023), the Court of Appeal considered online marketing and sales data, including social media promotion, to confirm goodwill in a skincare brand, highlighting how digital presence bolsters traditional proofs like turnover.^[40]

Misrepresentation

Misrepresentation is the second essential element of a passing off claim under English common law, requiring the claimant to demonstrate that the defendant's conduct has created a false representation to the relevant public that the defendant's goods or services originate from, or are otherwise connected with, the claimant. This misrepresentation must occur at the point where the public makes purchasing decisions, such as at the point of sale, and it need not be deliberate or fraudulent to be actionable.^[30] Misrepresentations in passing off can take various forms, including direct imitation of the claimant's trade marks, names, logos, or devices, as well as imitation of the overall "get-up" or trade dress, such as packaging, labeling, or product shape that has acquired distinctiveness. Indirect misrepresentations may also arise from suggestive elements, like similar color schemes, slogans, or marketing materials that imply an association without exact copying, provided they are likely to mislead consumers about trade origin. For instance, the use of packaging that closely resembles the claimant's in layout and design has been held to constitute such imitation when it evokes the claimant's brand in the mind of the average purchaser.^[2]^[3] The threshold for misrepresentation is not proof of actual deception but a likelihood of confusion among a substantial portion of the relevant public, assessed objectively from the perspective of the ordinary consumer. Courts consider factors such as the degree of visual, phonetic, or conceptual similarity between the parties' marks or get-up; the nature and overlap of the markets for the goods or services; the classes of persons who deal with them; and any evidence of actual confusion, though the latter is not required. This likelihood must relate to the misrepresentation of trade origin or connection, distinguishing passing off from mere descriptive use.^[30]^[41] Intent is irrelevant to establishing misrepresentation; even an innocent or honest adoption of similar features can give rise to liability if it creates the requisite likelihood of confusion. A seminal illustration is Reckitt & Colman Products Ltd v Borden Inc 1 WLR 491 (the "Jif Lemon" case), where the House of Lords upheld a claim of passing off against Borden for marketing lemon juice in opaque plastic lemon-shaped containers that imitated Reckitt & Colman's long-established distinctive get-up, despite the shape being arguably descriptive of the product; the imitation was deemed a misrepresentation because the get-up had acquired secondary meaning associating it exclusively with Reckitt & Colman in consumers' minds.^[42] In contemporary contexts, passing off principles have extended to digital misrepresentations, such as online advertisements that replicate the claimant's branding in sponsored search results or display ads, potentially leading to initial interest confusion where users are diverted under a false impression of affiliation. Similarly, the registration or use of domain names incorporating the claimant's mark can amount to misrepresentation if they suggest an unauthorized connection, as seen in disputes resolved through the Nominet Dispute Resolution Service or courts where domain holders exploit goodwill for commercial gain. Emerging applications include virtual goods and environments in the metaverse, where unauthorized use of branded avatars, digital assets, or non-fungible tokens (NFTs) mimicking a claimant's trade dress may constitute passing off by implying endorsement or origin in virtual marketplaces, though UK courts have yet to issue landmark rulings on these as of 2025, relying instead on traditional tests adapted to digital realms.^[4]^[43]^[44]

Damage or Likelihood of Damage

The third element of a passing off claim requires the claimant to demonstrate that the defendant's misrepresentation has caused, or is likely to cause, damage to the claimant's goodwill.^[30] This damage can manifest in various forms, including the erosion of goodwill through dilution of brand uniqueness, loss of sales diverted to the defendant due to consumer confusion, and reputational harm arising from the association with inferior or dissimilar goods or services.^[3] In cases involving deliberate imitation of distinctive get-up or branding, courts often presume damage without requiring specific proof, as the intent to deceive implies a substantial risk to the claimant's commercial interests.^[11] Courts typically infer the likelihood of damage from the risk of confusion established in the misrepresentation element, rather than demanding evidence of actual loss, particularly in strong cases where the claimant's goodwill is well-recognized.^[5] For instance, in the seminal House of Lords decision in Reckitt & Colman Products Ltd v Borden Inc 1 WLR 491, the court held that the defendant's imitation of the claimant's lemon-shaped container for lemon juice created a likelihood of damage by deceiving consumers into believing the products shared a common origin, thereby threatening the claimant's market dominance without needing quantified losses.^[45] Actual damage need not be proven if the potential for harm to goodwill is clear, allowing quia timet actions to prevent future injury.^[46] Quantifying damage involves assessing factors such as impact on market share, brand dilution, and the extent of confusion, often through expert evidence on lost profits or diminished endorsement value.^[47] In classical passing off, this focuses on individual claimant harm, while extended passing off addresses collective damage to a class of producers, as seen in Erven Warnink BV v J Townend & Sons (Hull) Ltd AC 731, where misrepresentation of "advocaat" diluted the shared goodwill of genuine producers.^[48] Courts may award damages based on the claimant's lost revenue or an account of the defendant's profits attributable to the misrepresentation, emphasizing restoration of the claimant's position.^[5] Post-2000 cases have evolved to emphasize prospective damage in dynamic markets, recognizing intangible harms like reduced future licensing opportunities. In Irvine v Talksport Ltd EWHC 367 (Ch); EWCA Civ 423, the Court of Appeal assessed damage to Formula 1 driver Eddie Irvine's endorsement goodwill from unauthorized use of his image, awarding £25,000 based on likely erosion of his market value rather than proven sales loss.^[46] Recent litigation in the 2020s increasingly incorporates econometric evidence and consumer surveys to model damage, such as probability of confusion impacting market share, as in the 2025 Irish High Court passing off claim involving Yoplait's get-up, where survey data supported inferences of reputational dilution in competitive food markets.^[49]

Variations

Classical Passing Off

Classical passing off refers to the traditional form of the tort where a defendant misrepresents their own goods or services as those of the claimant by imitating the claimant's trade marks, names, or get-up (trade dress), thereby deceiving the public into believing there is a connection with the claimant. This applies primarily to individual traders or businesses protecting their specific reputation, rather than broader group or class protections. The scope is limited to scenarios where the imitation leads consumers to directly associate the defendant's offerings with the claimant, without extending to indirect or associative harms.^[41] To succeed in a classical passing off claim, the claimant must establish all three core elements: goodwill in their business, a misrepresentation by the defendant likely to deceive the public, and resulting damage or likelihood of damage to that goodwill. Goodwill arises from the public's recognition of the claimant's distinctive name, mark, or get-up as specifically linked to their goods or services. Misrepresentation occurs through the defendant's imitation, such as copying packaging or labels, without requiring proof of intent. Damage follows from the erosion of the claimant's reputation or lost sales due to the deception. Examples include name squatting, where a defendant registers a domain name identical or confusingly similar to the claimant's trade name to divert customers, as in British Telecommunications plc v One in a Million Ltd 1 WLR 903, where registrations like "bt.com" were held to constitute passing off by enabling future misrepresentation.^[50] Historically, classical passing off forms the foundation of the tort, originating in English common law during the 19th century and serving as the basis for most early cases, such as the landmark formulation in Reckitt & Colman Products Ltd v Borden Inc 1 WLR 491 (the Jif Lemon case), where the defendant's lemon-shaped container for lemon juice was enjoined for imitating the claimant's distinctive get-up. This narrower scope distinguishes it from extended or reverse variations, requiring proof of direct consumer association rather than mere quality implications or disassociation. In developments during 2025, claims of classical passing off have been raised in cases involving AI-generated imitations of get-up, such as where AI tools produce images replicating a claimant's distinctive visual style or watermark, potentially leading to misrepresentation of origin. For instance, in Getty Images v Stability AI, passing off claims were advanced alongside trade mark and copyright allegations due to AI outputs mimicking Getty's protected get-up, including watermarks; however, the High Court judgment of 4 November 2025 ( EWHC 2863 (Ch)) declined to address passing off, finding limited trade mark infringement while rejecting secondary copyright claims, leaving the passing off issues unresolved pending potential appeal.^[41]^[27]

Extended Passing Off

Extended passing off is a development of the common law tort of passing off that safeguards the collective goodwill attached to a descriptive term denoting a specific class or type of product, rather than the goodwill of an individual trader. In this form, the claimant acts as a representative of the class of producers sharing that reputation, protecting against misrepresentations that associate inferior or non-qualifying goods with the established class name, such as "Champagne" for sparkling wine produced exclusively in the Champagne region of France or "Swiss watches" for timepieces meeting certain standards of precision and origin. This protection arises where the term has acquired a secondary meaning denoting particular qualities, origin, or characteristics shared by the class, preventing dilution of the collective reputation through unauthorized use.^[51] The foundational case for extended passing off is J Bollinger SA v Costa Brava Wine Co Ltd Ch 262, where producers of Champagne successfully enjoined the defendants from marketing Spanish sparkling wine as "Champagne" or "Spanish Champagne," arguing that such use misrepresented the product's geographical origin and quality, thereby damaging the exclusive reputation of true Champagne. The court recognized that multiple traders could collectively assert goodwill in a shared descriptive term, extending the tort beyond individual brand protection to encompass class-based harms. This decision established that for a claim to succeed, the misrepresentation must lead to actual or likely damage to the class's goodwill, such as reduced sales or erosion of perceived quality.^[52] The doctrine was further refined in Erven Warnink BV (t/a Bols) v J Townend & Sons (Hull) Ltd AC 731, commonly known as the Advocaat case, where the House of Lords upheld a claim by Dutch producers of advocaat—a specific liqueur made from eggs, spirits, and brandy—against a cheaper imitation made from fortified wine and sold under the same name. The court articulated that extended passing off requires proof of a misrepresentation as to the nature, qualities, or geographical origin of the goods, made by a trader to prospective customers in a manner calculated to injure the business or goodwill of the class, resulting in actual damage. Unlike classical passing off, this form emphasizes harm to the collective reputation of the product type, not just source confusion.^[52] To establish extended passing off, claimants must demonstrate a distinctive class reputation for the product term, typically through evidence of widespread recognition and association with specific attributes; a misrepresentation by the defendant that their goods belong to that class; and resultant damage, such as diminished sales for genuine producers or tarnishment of the class's prestige. The class must be clearly defined and share uniform qualities, and the claimant must show standing as a representative of that group. Damage is often inferred from the inferior nature of the defendant's product, which risks devaluing the shared goodwill.^[53] Post-Brexit developments have highlighted challenges in applying extended passing off to geographical indications (GIs) across the UK and EU. In EUIPO v Indo European Foods Ltd (C-801/21 P) ECLI:EU:C:2024:531, the Court of Justice of the European Union ruled on 20 June 2024 that pre-Brexit UK rights based on extended passing off must be considered in EU trade mark oppositions under Article 8(4) EUTMR if the application was filed before the UK's withdrawal on 31 January 2020. The case involved an opposition to an EU trade mark for "BASMATI" rice, where opponents relied on UK extended passing off to protect the term's association with specific long-grain aromatic rice from India and Pakistan. The CJEU annulled the EUIPO's prior dismissal, emphasizing that such rights, as non-registrable but enforceable under UK law, retain relevance for EU proceedings initiated pre-Brexit, ensuring continuity for GI protections amid diverging regimes. This decision underscores ongoing tensions in post-Brexit GI enforcement, where the UK maintains sui generis GI schemes while extended passing off continues to supplement protection for unregistered indications like "Scotch whisky."^[54]

Reverse Passing Off

Reverse passing off, sometimes referred to as inverse passing off, arises when a defendant falsely represents the claimant's goods, services, or creations as their own, often by obscuring or removing the claimant's branding, labels, or attribution. This practice, akin to "palming off," misleads consumers into believing the defendant's offerings originate from or are endorsed by the defendant rather than the claimant.^[55]^[56] The elements of reverse passing off mirror those of classical passing off under English common law: the claimant must demonstrate established goodwill or reputation in the relevant market, a misrepresentation by the defendant that deceives the public into associating the goods or services with the defendant, and actual or likely damage to the claimant's goodwill as a result.^[57] The key distinction lies in the direction of the misrepresentation, which focuses on false attribution or denial of the claimant's origin rather than imitation of the claimant's marks.^[55] A landmark UK case illustrating reverse passing off is Bristol Conservatories Ltd v Conservatories Custom Built Ltd RPC 455, where the defendant included unauthorized photographs of the claimant's custom-built conservatories in its sales brochure, implying they were examples of the defendant's workmanship. The Court of Appeal upheld the finding of passing off, emphasizing that such appropriation of the claimant's designs and reputation constituted actionable misrepresentation without needing to prove consumer confusion over trade names. In the software sector, ScanSafe Ltd v MessageLabs Ltd EWHC 2015 (Pat) addressed reverse passing off when the defendant, after terminating a white-label agreement, marketed its new internet monitoring software as an upgraded version of the claimant's product, misleading customers about continuity and origin. The High Court granted a limited interim injunction, requiring the defendant to issue clarifying statements to prevent ongoing deception.^[58] Reverse passing off frequently intersects with copyright protection, particularly in fields like software development, industrial designs, and digital media, where defendants repackage or reattribute protected works as original creations. For example, in digital content scenarios, unauthorized reproduction of artwork or code without crediting the source can trigger claims, as seen in emerging disputes over non-fungible tokens (NFTs) where creators allege misattribution of their digital assets to boost sales.^[55] In the United States, this concept parallels actions under Section 43(a) of the Lanham Act (15 U.S.C. § 1125(a)), which prohibits false designations of origin and has influenced common law developments in jurisdictions like the UK by providing statutory clarity on false attribution claims.

Defences

In passing off actions, consent serves as a defence where the claimant has granted express or implied permission for the defendant's use of a mark, get-up, or similar indicia, thereby precluding a successful claim if the defendant reasonably relied upon that permission. Express consent typically arises through formal mechanisms such as licensing agreements, written approvals, or contractual arrangements authorizing the use. Implied consent, on the other hand, may be inferred from the claimant's conduct, including ongoing commercial dealings without objection or affirmative acknowledgments that suggest approval. For instance, in cases involving supply chains, a claimant may implicitly consent to a supplier distributing products bearing the mark directly to end-users if no restrictions are imposed and the arrangement proceeds without challenge. In the modern digital context, consent can also be implied via email correspondences, social media interactions, or online communications where the claimant explicitly or tacitly endorses the use, provided such interactions demonstrate clear reliance by the defendant. However, consent must be unequivocal and voluntary; mere inaction or ambiguous statements do not suffice to establish this defence.^[59] Acquiescence operates as an equitable defence rooted in estoppel, arising when the claimant, with full knowledge of the defendant's infringing use, delays taking action for a substantial period, thereby encouraging the defendant to continue and invest in the use to their detriment, rendering it unconscionable for the claimant to later enforce rights. Unlike simple laches or delay, which alone do not bar passing off claims, acquiescence demands more: the claimant's conduct must convey a representation—through standing by or encouragement—that the use is permissible, leading the defendant to alter their position in reasonable reliance. The duration of delay is not statutorily fixed but must be significant, often spanning several years, with courts assessing factors such as the claimant's intent, the extent of the defendant's investment, and whether the claimant had "clean hands" in monitoring their rights. A landmark illustration is Electrolux Ltd v Electrix Ltd 71 RPC 23, where the Court of Appeal emphasized that acquiescence requires proof of the claimant's awareness of the misrepresentation, a prolonged inaction that induces belief in non-objection, and resultant prejudice to the defendant; mere knowledge and delay without affirmative encouragement were insufficient to estop the claimant. This defence fails if the defendant's initial adoption of the mark was dishonest or fraudulent, as equity does not aid those with unclean hands. In contemporary applications, acquiescence may extend to digital infringements, such as online sales or domain uses, where the claimant's prolonged awareness—via monitoring tools or notifications—without intervention could estop enforcement, though courts scrutinize the context for genuine reliance.^[60]^[61]

Prior Rights and Other Defences

In passing off claims under UK common law, defendants may invoke prior rights as a defence where they possess earlier-established goodwill or a registered trade mark that predates the claimant's rights, thereby negating the claimant's exclusive entitlement to the relevant mark or get-up.^[62] For instance, section 11(3) of the Trade Marks Act 1994 provides that a registered trade mark is not infringed by the use of an earlier right that has been continuously exercised in relation to goods or services of a non-deceptive character, which extends analogously to passing off by prioritizing the defendant's pre-existing goodwill. This defence underscores the principle that passing off protects only against misrepresentation of existing goodwill, not against legitimate prior uses that do not cause confusion.^[63] Honest concurrent use serves as a related factor in assessing passing off, rather than a standalone defence, where both parties have independently and innocently developed similar goodwill in the same mark without knowledge of the other.^[64] In the 2023 Court of Appeal decision in Match Group LLC v Muzmatch Ltd, the court clarified that honest concurrent use is integrated into the infringement analysis under section 10(2) of the Trade Marks Act 1994, weighing the extent of overlap in use, duration, and absence of bad faith to determine if misrepresentation or damage arises; this approach applies similarly in passing off to avoid disrupting established market practices.^[65] The defence requires proof of genuine parallelism in trade, with no intent to deceive, as affirmed in earlier cases like Victoria Plum Ltd v Victorian Plumbing Ltd (2016), where concurrent advertising use was scrutinized for honesty.^[66] Beyond prior rights, other defences in passing off include the absence of confusion, where the defendant's use does not mislead consumers as to origin or affiliation, directly undermining the misrepresentation element.^[3] Descriptive necessity permits the use of terms that are essential to identify the nature or quality of goods or services, provided such use is honest and non-deceptive, as it aligns with public interest in accurate product description without appropriating goodwill.^[9] Parody offers limited protection in the UK, lacking a statutory defence equivalent to copyright's fair dealing exception; courts may consider it under general principles if it clearly signals non-affiliation and avoids dilution, but success depends on no likelihood of confusion, as seen in cases where humorous takes on marks were upheld only if transformative and non-commercial in intent.^[67] In the United States, passing off—often pursued under section 43(a) of the Lanham Act—features a stronger nominative fair use defence, allowing defendants to refer to the claimant's mark to identify the claimant's goods or services accurately, without implying endorsement, as long as the use is necessary, non-excessive, and unlikely to confuse.^[68] This doctrine, articulated in cases like New Kids on the Block v News America Publishing (1992), permits comparative advertising or referential uses that facilitate consumer choice, contrasting with the UK's more restrictive approach by explicitly balancing free speech interests.^[69]

Remedies

Injunctive and Interim Relief

In passing off actions, courts may grant permanent injunctions to halt ongoing or future misrepresentations that threaten a claimant's goodwill. These injunctions are equitable remedies designed to prevent the defendant from continuing activities that lead to consumer confusion, such as using similar branding or get-up. For instance, in cases where a defendant's product packaging closely mimics the claimant's, a permanent injunction can prohibit further sales or distribution of the infringing goods.^[3]^[33] Interim relief, including interim injunctions, provides urgent protection before a full trial, particularly when there is a risk of immediate damage to the claimant's reputation or market position. The principles governing interim injunctions in the UK stem from the House of Lords decision in American Cyanamid Co v Ethicon Ltd AC 396, which established a structured test: first, whether there is a serious question to be tried; second, whether damages would be an adequate remedy for either party; and third, where the balance of convenience lies, often favoring preservation of the status quo. In passing off contexts, this test is applied with consideration of irreparable harm, such as erosion of goodwill that cannot be quantified or compensated monetarily, and the public interest in avoiding consumer deception. These injunctions are commonly sought in time-sensitive scenarios, like impending product launches where misrepresentation could cause lasting confusion.^[70]^[71]^[72] A specialized form of interim relief is the Anton Piller order (now termed a search order), which authorizes the claimant's representatives to enter the defendant's premises to search for and seize evidence of passing off, such as infringing materials or records, to prevent their destruction. Originating from Anton Piller KG v Manufacturing Processes Ltd Ch 55, these orders are granted ex parte in intellectual property disputes, including passing off, where there is a strong prima facie case, evidence of serious potential damage (e.g., to goodwill), clear indication of incriminating items on the premises, and a real risk that the defendant will destroy them absent intervention. They often overlap with trade mark enforcement, allowing seizure of counterfeit goods, but require safeguards like independent supervision to protect the defendant's rights.^[73]^[72] In modern practice, expedited injunctions have become essential for addressing online passing off, where misrepresentations spread rapidly via e-commerce platforms. UK courts can issue orders against internet service providers or platforms to block access to infringing websites, drawing on precedents from intellectual property cases that extend to unregistered rights like passing off under common law principles, such as in Cartier International AG v British Sky Broadcasting Ltd EWCA Civ 658.^[72]^[74]^[75]

Damages and Additional Remedies

In passing off cases, successful claimants may seek damages to compensate for actual losses suffered due to the defendant's misrepresentation, or alternatively, an account of profits as an equitable remedy to disgorge the defendant's ill-gotten gains from the infringement. Actual damages are typically calculated based on the claimant's lost sales or diminished goodwill, often requiring expert evidence to quantify the economic impact, as established in the landmark case of Reckitt & Colman Products Ltd v Borden Inc (No 1) 1 WLR 491, where the court awarded damages reflecting the claimant's market harm. An account of profits, by contrast, focuses on the defendant's unjust enrichment, tracing revenues attributable to the passing off without deducting overheads unless directly linked.^[3]^[2] The availability of damages hinges on the defendant's state of mind: where passing off involves negligent or intentional misrepresentation, claimants can recover tortious damages akin to those in deceit, including foreseeable economic losses. However, if the infringement is innocent—meaning the defendant had no knowledge of the claimant's goodwill—remedies are generally limited to injunctive relief and do not extend to monetary damages. Courts assess culpability through evidence of the defendant's awareness or reasonable inquiries, ensuring that only blameworthy conduct triggers full compensatory awards. Beyond monetary remedies, courts may order the delivery up and destruction of infringing goods to prevent further harm, alongside publicity orders requiring the defendant to issue corrective advertisements at their own expense, as seen in Philip Warren & Son Ltd v Lidl Great Britain Ltd EWHC 2372 (Ch).^[3] Successful claimants are also entitled to costs awards, which can include indemnity costs for egregious cases, covering legal fees and disbursements to restore the claimant as far as possible. In digital contexts, courts increasingly assess broader goodwill erosion using economic loss models adapted to intangible harms.^[76]

International Perspectives

Common Law Jurisdictions

In common law jurisdictions, the doctrine of passing off serves as a fundamental tort to protect unregistered trademarks and goodwill against misrepresentation, with its core principles originating from English common law and adapting to local statutory frameworks across countries. This action typically requires proving three elements: goodwill or reputation in the plaintiff's goods or services, a misrepresentation by the defendant leading to confusion, and resultant damage to the plaintiff. While the doctrine remains consistent in emphasizing consumer protection from deception, variations arise in integration with statutory laws, such as trade mark acts and consumer protection statutes, reflecting national priorities in intellectual property enforcement. In the United Kingdom, passing off constitutes the primary common law remedy for protecting unregistered trade marks, allowing traders to safeguard their goodwill without relying on statutory monopoly rights. The doctrine evolved through seminal cases like Reckitt & Colman Products Ltd v Borden Inc (1990), establishing the "classic trinity" of goodwill, misrepresentation, and damage as the test for liability. Following the enactment of the Trade Marks Act 1994, which implemented EU harmonization directives for registered marks, passing off has complemented statutory infringement claims by addressing gaps in unregistered rights, particularly in scenarios involving non-traditional marks or international goodwill. Courts continue to apply it flexibly, as seen in recent disputes over domain names and online misrepresentation, underscoring its enduring role alongside the 1994 Act's provisions for absolute grounds of refusal and infringement remedies. Australia and Canada adopt a similar three-part test for passing off, mirroring the UK model while integrating it with broader consumer and competition laws. In Australia, the test—encompassing goodwill, misrepresentation, and damage—protects against deceptive conduct, often overlapping with section 18 of the Australian Consumer Law under the Competition and Consumer Act 2010, which prohibits misleading or deceptive conduct in trade or commerce. This statutory overlap has expanded passing off's application, enabling claims for extended forms like trade dress protection in cases such as Conagra Inc v McCain Foods (Aust) Ltd (1992), where get-up was central to misrepresentation. In Canada, passing off is codified under section 7(b) of the Trade-marks Act, requiring proof of goodwill, deception due to misrepresentation, and actual or potential harm, as affirmed in Ciba-Geigy Canada Ltd v Apotex Inc (1992). Canadian courts emphasize transborder reputation, allowing claims for foreign goodwill spilling over into the domestic market, though they distinguish it from depreciation of goodwill under section 22 of the Act. The United States provides a statutory parallel to passing off through section 43(a) of the Lanham Act (15 U.S.C. § 1125(a)), which addresses false designations of origin, encompassing both forward and reverse passing off, but it operates outside pure common law traditions. Reverse passing off, where a defendant misrepresents the plaintiff's goods as their own—such as by removing or altering branding—forms a key subset, as clarified in Dastar Corp v Twentieth Century Fox Film Corp (2003), where the Supreme Court limited claims to tangible goods' origin rather than ideas or copyrights. Unlike the common law tort in other jurisdictions, section 43(a) requires proof of consumer confusion in commercial advertising or promotion, with standing limited to competitors suffering competitive injury, and it does not extend to nominative fair use defenses as robustly as in trademark infringement. In India, passing off has expanded significantly through case law, adapting English principles to the local context under the Trade Marks Act, 1999, which codifies it alongside infringement for registered marks. Courts have broadened its scope to unregistered marks, emphasizing phonetic similarity and anti-dissection rules, as in the landmark pharmaceutical case Cadila Health Care Ltd v Cadila Pharmaceuticals Ltd (2001), where the Supreme Court held that deceptively similar marks in medicines pose public health risks, warranting stricter scrutiny even without direct evidence of confusion. This expansion is evident in the rapid growth of passing off actions against pharmaceutical counterfeits, driven by the sector's vulnerability; for instance, in 2025, the Delhi High Court awarded ₹3.34 crore in damages to Johnson & Johnson against Medserve Healthcare for distributing counterfeit surgical products under similar branding, highlighting risks to patient safety and the need for exemplary remedies. Such cases underscore India's judicial trend toward proactive enforcement amid rising counterfeit incidents, estimated to affect 10-20% of the pharma market. Recent trends in 2025 reflect ongoing harmonization efforts within the Commonwealth, where passing off's common law foundations promote consistency across member states, including adaptations in trade agreements to align goodwill protection standards. Expansions in India continue with increased focus on digital and cross-border misrepresentations, while in African common law jurisdictions like South Africa, Nigeria, and Ghana, the doctrine has gained traction for unregistered rights enforcement. In South Africa, courts apply a five-element test including wrongful and intentional misrepresentation causing damage, as reinforced in 2025 rulings protecting local brands against imported counterfeits. Similarly, Nigeria's Trademarks Act recognizes passing off for unregistered marks, with recent cases like Dike Geo Motors Ltd v Allied Signal Inc (2024) affirming its viability post-registration disputes, and Ghana's common law framework complements statutory protections against unfair competition in pharmaceuticals. These developments indicate a broader Commonwealth push toward unified IP resilience against global counterfeiting threats.

Civil Law Comparisons and Global Trends

In civil law jurisdictions, protections akin to the common law tort of passing off are typically embedded within broader unfair competition frameworks, emphasizing general principles of fair trade rather than a specific requirement for established goodwill or reputation. In France, unfair competition is governed by Article L. 442-6 of the Code de Commerce and Article 1240 of the Civil Code, which prohibit acts such as imitation, disparagement, free-riding on a competitor's reputation, and disruption of business relations that cause harm through misleading practices or exploitation of others' efforts.^[77]^[78] These provisions allow competitors or professional associations to seek civil remedies like injunctions and damages without needing to prove consumer confusion tied to goodwill, focusing instead on tortious liability for dishonest commercial conduct.^[79] Similarly, in Germany, the Act against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb, UWG) provides robust safeguards against practices that mislead consumers or exploit competitors' achievements, such as product imitation leading to confusion or unauthorized use of comparative advertising.^[80]^[81] Unlike passing off, the UWG's general clause in Section 3 prohibits any commercial practice contrary to honest market customs, enabling enforcement by competitors, trade associations, or consumer groups through civil actions, with penalties including fines up to €2,000,000 for violations.^[80] This approach prioritizes market integrity and consumer protection over the proprietary nature of reputation, allowing for broader application in B2B and B2C contexts.^[82] The European Union's Unfair Commercial Practices Directive (2005/29/EC) harmonizes these civil law protections across member states by banning misleading actions and omissions that distort consumer behavior, including false claims about product origins that could parallel passing off scenarios.^[83] Implemented in national laws like the French and German frameworks, the directive's blacklist of prohibited practices—such as falsely claiming endorsement or imitating competitors—extends beyond goodwill to cover aggressive commercial tactics, with remedies focused on cessation orders and compensation.^[84] Post-Brexit, the UK has diverged by retaining its implementation through the Consumer Protection from Unfair Trading Regulations 2008 but no longer being bound by evolving EU interpretations, potentially allowing greater reliance on common law passing off for unregistered rights while amending regulations independently to address domestic priorities like digital advertising.^[85]^[86] Globally, the World Intellectual Property Organization (WIPO) and World Trade Organization (WTO) frameworks under Article 10bis of the Paris Convention—incorporated into the TRIPS Agreement—mandate minimum standards for suppressing unfair competition, including acts of passing off goods or services as those of another through misleading indications of origin.^[87]^[88] This has influenced over 170 member states to enact laws protecting against confusion-inducing practices, promoting harmonization while allowing flexibility for local adaptations, with TRIPS enforcement mechanisms addressing disputes through WTO panels to ensure compliance.^[89] In Asia, these standards have driven expansions in unfair competition laws; for instance, China's Anti-Unfair Competition Law (AUCL), amended in 2025, explicitly prohibits passing off registered trademarks and broader acts causing market confusion, such as counterfeit endorsements or data misuse in digital platforms, reflecting a rise in enforcement actions amid e-commerce growth.^[90]^[91] Emerging global challenges in enforcing these protections stem from digital borders and e-commerce jurisdiction, where cross-border online sales complicate attributing harm and applying territorial laws, leading to enforcement gaps in developing economies.^[92] Similarly, the 2025 World Investment Report discusses how digital FDI flows contribute to divides in global investment.^[93]

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An operator may not adopt the following unfair means to carry to transactions in the market and cause damage to competitors: (1) passing off the registered ...
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https://www.slaughterandmay.com/insights/new-insights/china-strengthens-digital-market-regulation-with-revised-anti-unfair-competition-law/
[92]
[PDF] Report on global competition issues of digital markets and ecosystems
Enforcement actions relevant to digital platforms and competition. From April 2024 through May 2025, competition authorities around the world have launched or.
[93]
[PDF] Digital Economy Report 2024 - UNCTAD
This report calls for more comprehensive data on the environmental impact of digitalization, and digital policy frameworks that advance the Sustainable ...
[94]
[PDF] World Investment Report 2025 - UNCTAD
Mar 18, 2025 · The World Investment Report 2025 delivers a sobering message: global foreign direct investment fell by 11 per cent in 2024, to $1.5 trillion.