Are there any special rules for unfair competition in the entertainment industry?
In North Carolina, unfair competition is governed by the North Carolina Unfair and Deceptive Trade Practices Act (or NCUDTPA). This act applies numerous restrictions on certain behaviors of businesses, including unfair competition. As it relates to the entertainment industry, the act is slightly different. Under the NCUDTPA, it is illegal for any business to falsely advertise its services as being better or superior to its competitors, regardless of industry. This also includes promising a customer something that the business cannot deliver, such as “the best show in town.” It is also against the law to take someone else’s creative ideas or expressions without permission. If a key element of your show is found to be similar to another’s, you could be sued for copyright violation. This includes using another’s imaginary characters, dialogue, and themes without authorization. The entertainment industry is also subject to antitrust laws. This means that acts such as price fixing, which is when two or more competitors agree to charge the same prices, or bid rigging, which is when two or more competitors agree to not bid on a certain contract, are illegal. Overall, the NCUDTPA, along with antitrust laws, generally governs unfair competition in the entertainment industry. It is important to be aware of the law and familiarize yourself with it in order to avoid potential violations.
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