-Business L-201-

-Tort Law Exam - - Indiana University-

Intellectual Property and Unfair Competition

Commercial Torts
Injurious Falsehood (product disparagement, slander of title, trade libel):
Involves the publication of false statements that disparage another’s business,
property, or title to property, and thus harm her economic interests
o (False statements that disparage either a person’s property rights in
land, things or intangibles, or their quality (leases, mineral rights,
trademarks, copyrights, corporate stock))
o (False statements that harm another’s economic interests)
o Elements and Damages
 Plaintiff must prove that the defendant made a false statement of
the sort just described, and that the statement was communicated to
a third party 
Degree of fault required for liability is unclear
o Restatement: Requires either knowledge that the
statement is false, or reckless disregard as to its
truth or falsity
o (Usually no liability for false statement that are
made negligently and in good faith)
 Plaintiff must prove that the false statement played a substantial
 part in causing him to suffer special damages 
Often relaxed where losses are difficult to prove
Damages for personal injury or emotional distresses
 are generally not recoverable 
Punitive damages and injunctive relief are sometimes
obtainable 
o Injurious Falsehood and Defamation
 Both claims are possible when the injurious falsehood implies 
something about the plaintiff’s character and affects his
overall reputation
o Interference with Contractual Relations: One party to a contract claims
that the defendant’s interference with the other party’s performance of the
contract wrongly cause the plaintiff to lose the benefit of that performance
(causing a party to repudiate it, or wholly or partly preventing that party’s
performance)
 Must be an existing contract 
  Defendant must have intended to breach 
 No liability for negligent contract interferences 
 Defendant only liable if his behavior was improper 
o Interference with Prospective Advantage

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