Legal Definitions - competitive injury

Competitive injury refers to an economic loss suffered by a business due to unfair competition from a rival. This can include a loss of sales or a disadvantage in the ability to compete with the rival. In legal terms, a plaintiff must show a competitive injury to bring a misappropriation action or to have standing to prosecute a false-advertising action under 15 USCA § 1125(a)(1)(B).

• A small coffee shop loses customers to a larger chain that opens up across the street and offers lower prices. This is a competitive injury.
• A company creates a new product and spends a lot of money on advertising, but a rival company copies the product and advertises it as their own. The original company suffers a competitive injury due to the loss of sales and reputation.

These examples illustrate how a business can suffer a competitive injury when faced with unfair competition from a rival. It can result in a loss of profits, customers, and reputation, which can be difficult to recover from.