Unfair competition of a trademark in Peru

*LEGISLATIVE DECREE No.1044 APPROVING THE LAW ON SUPPRESSION OF UNFAIR COMPETITION:

Article 1. Purpose of the Law This Law shall suppress any act or conduct of unfair competition, the real or potential effect of which is to impact or prevent the appropriate functioning of the competitive process.

Through Application No.103-2003/CCD of September 18, 2003, our law firm filed an action before the Commission of Defense of the Unfair Competition on behalf of our client Araya Industrial Co. Ltd. , from Japan against Motorrepuestos Señor Cautivo E.I.R.L. from Peru. The First Administrative Instance, that is the Commission of Defense of the Unfair Competition as well as the Court of Defense of the Competition and Intellectual Property – Defense of the Competition Division through the Resolution No.132-2003 of December 4, 2003, declared FOUNDED this action and therefore punished Motorrepuestos Señor Cautivo E.I.R.L.

Sanctions obtained for acts of unfair competition in Peru

First : PUNISH to Motorrepuestos Señor Cautivo E.I.R.L. with a fine equivalent to 15 tax units (US$15,000 approximately).

Second : Record the accused in the transgressor register.

Third : ORDER the DEFINITIVE and IMMEDIATE CESSATION of the trade of products, which have been the object of this action.

Fourth : IMMOBILIZE all the compromising products as a complementary measure.

Fifth : Order the DEFINITIVE CONFISCATION of the counterfeited rims for bicycle tires under the trademark ARAYA.