A company that deals in urban renewal included the words "Europe Israel" in its name, similar to another company that deals in the same field, and which CEO moved to the first company. The second company contended to a tort of passing off intended to ride on its reputation.
The Court accepted the claim. Passing off is a case in which a dealer causes in bad faith an asset or service it provides to be considered the property or service of another dealer. There are two elements to the tort of passing off: The existence of reputation of the dealer with respect to which the passing off was committed and the existence of a reasonable concern that the passing off may create a deception among the public. The latter is reviewed under the sight and sound test, including if the similarity is principle or redundant, the type of goods and the type of customers test, and the other circumstances of the matter. Here, the plaintiff company has been engaged in the field of activity for many years and is highly ranked in the field, and thus has a reputation. Regarding the sight and sound test, the name may be misleading, when the various elements in the name constitute only a secondary differentiation; Regarding the type of goods, both companies provide services in exactly the same field; Regarding the other circumstances of the matter, the fact that the CEO of the company previously served as the CEO of the company in respect of which the passing off was committed, indicates a lack of good faith. In addition, in several cases, there was an actual misleading. Therefore, the deed amounts to passing off.