AN IMPROVEMENT OF LEGAL REGULATION OF MISUSE OF BUSINESS REPUTATION OF ECONOMIC ENTITIES

The development of fair competition directly depends on the effectiveness of regulation, the application of organizational, legal and economic development measures and the stimulation of competition by fair and conscientious methods that have developed in society due to the rules of ethics, business customs, as well as the level of legal culture and consciousness of citizens. For the implementation of fairness in the market economy, it is necessary to ensure effective control by the antimonopoly authorities and the introduction of effective mechanisms to protect against unfair competition. Protection against unfair competition is the activity of the state, its competent authorities and officials, which are endowed with appropriate powers, regulated by law. Among the offenses provided for by the Law of Ukraine “On Protection against Unfair Competition”, an important place is occupied by such a type of illegal use of the business reputation of a business entity, which implies that the business entity commits actions aimed at mixing the activities of an unfair competitor and a business entity that has an appropriate business reputation in the market. Such actions negatively affect both the relevant participants in market relations, in particular, consumers of goods and services and producers of such goods, and the market as a whole. Business reputation is an important component of doing business, which gives a subjective assessment, a person’s beliefs about a brand, company, goods or services. This is the formation in the mind of a person of a perception that depends on the activities of a particular subject in the market. A positive business reputation of an enterprise, or its goodwill, is a necessary component of a company's success; it affects both the place of the enterprise in the market and the value of this company in the market in the event of a sale. In addition, the business reputation determines the efficiency of activities, attractiveness for investors, partners, customers and the demand for the products that the company offers. However, a frequent occurrence is the misuse of someone else’s business reputation, which harms the rules of economic competition and is an offense both in terms of competition law and legislation on the protection of intellectual property rights. Improving the legislative regulation of this issue should be aimed at real protection of business entities, consumers and business in general and have a preventive nature.