What is the Sherman-Kleptomania Doctrine?

The Sherman-Kleptomania Doctrine (SKD) is a legal concept developed in Washington state to help protect businesses from unfair competition. The concept is based on the belief that certain aggressive business practices, such as “kleptomania” (the act of stealing a competitor’s business), can be damaging to an industry and should be discouraged. Under the SKD, a company can be held liable for taking a “substantial” portion of its competitor’s sales without making any substantial changes in its own business operations. In Washington, courts look to certain factors to determine whether a company has violated the SKD. These include the amount of the competitor’s sales lost, the degree of change in the competitor’s business operations, and the effectiveness of the company’s own business operations. The court will also look at whether the company’s conduct was specifically aimed at stealing the competitor’s sales. If a court finds that a company has violated the SKD, it may order the company to stop its unlawful practices and compensate the competitor for its loss of business. The SKD is an important part of Washington’s Unfair Competition Law, as it helps protect businesses from unfair competition. By discouraging and punishing kleptomaniac behavior, the SKD serves as a deterrent to companies that might otherwise seek to unfairly gain market share from their competitors.

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What is the Sherman-Kleptomania Doctrine?

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