Description
LML4802 May/June Exam Memo | Due 29 May 2025. All questions fully answered with referencing. SECTION A: COMPETITION LAW
SECTION A1: PUBLIC COMPETITION LAW
QUESTION 1
1.1 Starlink is a US-based company wholly owned by SpaceX and is a provider of satellite internet services. Starlink has operations in over 100 countries and has been eager to enter the South African market without success. In an effort to comply with South African laws in relation to shareholding and the composition of ownership of a telecommunications company, Starlink initiated a move to acquire 70% of Vodacom Ltd. This will enable Starlink to enter the South African market if all formalities and legal requirements are complied with.
Conduct focused research on the companies guided by various provisions of merger control and the market in which they operate. Thereafter, identify and classify the type of merger, apply the relevant factors considered for evaluation of the merger, and, as the competition commission, make a recommendation in relation to the merger. You must not discuss the procedure and notification provisions of the merger regulations. (10)
1.2
The US President has recently adjusted import tariffs against many countries, including South Africa. South Africa exports 4% of its total agricultural products to the US. You are now approached by the Farmers Association of South Africa (FAMA) as they may face challenges with regard to surplus produce once the new tariffs are implemented. They are also worried that they don’t want to contravene the competition laws as they try to coordinate the operation of their members. Explain to FAMA to make them understand the implications of these tariffs from a competition law perspective in South Africa and how they can be exempted from the provisions of the Competition Act. (10)
1.3 The Minister of the Department of Communication and Digital Technologies issued a Government Gazette regarding the exclusivity period of the South African Post Office (SAPO) in relation to the reserved postal services. Write a report from a competition law perspective in relation to the exclusivity of reserved postal services in the light of the universal obligations placed on SAPO. (10) 1.4 Discuss whether the regulation of prices through an independent body can ensure that the Competition Act realises its goals and objectives. For example, the prices of petrol are already regulated. Therefore, would it be appropriate to extend price regulation to other industries? Identify the market/industry and discuss the benefits and disadvantages of price regulation in that market. Do not discuss the market that already has an independent body to determine prices (e.g electricity). (10)
[40]
SECTION A2: PRIVATE COMPETITION LAW
QUESTION 2
2.1 X is the proprietor of the FLIGHTLINE travel agency situated in Johannesburg. X commenced operating her business in January 1995. X has not registered any trademark in respect of her business operations. X uses the name FLIGHTLINE together with a drawing of a “smiling travel bag” on all her stationery and in advertisements. This logo also appears in the window displays and on the walls of her travel agency, which have been painted in a distinctive lime-green colour. The FLIGHTLINE travel agency specialises in budget tours and has acquired a reputation for offering high-quality, inexpensive holidays both in South Africa and abroad. To expand her market, X plans to open a further travel agency in Cape Town under the same name. But an enquiry reveals that B has opened a travel agency in Cape Town under the name FLITELINE TRAVEL six months earlier. B has adopted a similar logo and trade dress for her Cape Town travel agency to that used by X.
Advise X whether she can prevent B from using the name FLITELINE TRAVEL and a similar get-up in relation to her Cape Town travel agency under the private law of competition. (10)
2.2 Thandi is a manufacturer of cosmetic products, which she markets under the mark SUPASTAR. The SUPASTAR cosmetics utilize a recipe that Thandi obtained during a visit to a remote tribe on the Virgin Islands. James, a chemist in the employ of Thandi, was instrumental in adapting the Virgin Island formula for use in Thandi’s SUPASTAR cosmetics. James subsequently leaves Thandi’s employ to start his own cosmetic manufacturing business. Shortly thereafter, Thandi discovers that James is using the same recipe in his competing cosmetic products.
Advise Thandi whether there are any grounds on which she can institute action against James under the private law of competition. (10)
2.3 Mr Zondi is the South African publisher and owner of a travel magazine called TRAVELTIPS, which is widely available across Europe, America, and South Africa. Curtis, a local publisher, launches a new South African magazine called TRAVEL&TRIPS in competition with Mr Zondi.
In the first issue of TRAVEL&TRIPS, Curtis states that his magazine contains more accurate travel information and prices, is printed on better paper, and offers better travel packages than Mr Zondi’s TRAVELTIPS magazine. Mr Zondi ascertains that all these allegations are false and/or misleading.
Advise Mr Zondi whether there are any grounds on which he can institute an action against Curtis under the private law of competition. (10)
[30]
SECTION B: TRADEMARKS LAW
QUESTION 3
3.1 Straus AG is a German manufacturer of beer, which it markets under the mark FRESHUP. Straus AG markets its FRESHUP products worldwide through a chain of national distributors in different countries. In South Africa, Straus AG’s products are marketed by Matanzi Ltd, Straus AG’s authorised distributor. Although Straus AG’s mark FRESHUP has not been registered as a trademark in South Africa, it has acquired a reputation. It has become well-known in South Africa through sales, advertising, and promotion by Matanzi Ltd. Straus AG has become aware that Moyo Ltd, a local manufacturer, is marketing a range of beer under the mark FRESHSIP. Moyo Ltd has also applied for the registration of the mark FRESHSIP in class 32 in respect of beer.
(a) If Straus AG wishes to rely on its unregistered trademark FRESHUP to prevent Moyo Ltd from using the mark FRESHSIP in South Africa in relation to beer, what sections of the Trademarks Act 194 of 1993 can it use, and what will Straus AG need to prove in order to be successful? (10)
(b) If Straus AG is successful in preventing Moyo Ltd from using its trademark, what order can it request to deal with Moyo’s infringing beer bottles and labels? (5)
(c) Straus AG manufactures beer in various countries. Advise Straus AG whether it can prevent Matanzi Ltd from importing beer that it has manufactured in China into South Africa, rather than the German beer which Straus AG provides to Matanzi Ltd for sale in South Africa. (5)
[20]
QUESTION 4
Dube (Pty) Ltd is a South African manufacturer of insecticides, which it markets under the trademark TOXEX, registered in class 5. TOXEX is a well-known mark in South Africa. Dube (Pty) Ltd hears that Dumisani Ltd, another South African manufacturer, has started marketing a range of insecticides under the mark TOXDEX.
4.1 Advise Dube (Pty) Ltd whether Dumisani Ltd’s use of the TOXDEX mark in relation to insecticides constitutes an infringement of Dube Pty Ltd’s mark TOXEX. Identify the section of the Trade Marks Act 194 of 1993 on which you would rely and substantiate your answer. (5)
4.2 Would your answer in 4.1 differ if Dumisani Ltd was using the mark TOXDEX in South Africa in relation to engine oil rather than insecticides? Give full reasons for your answer. (5)
[10]
TOTAL: [100]
Reviews
There are no reviews yet.