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And to all the libertarians present: This would be even worse if things were totally unregulated.
Why is this bad?
There is no innovation; everyone is just copying everyone else. And this is with current regulations. Without them, even more blatant copying trying to capitalize on others success would be much more prevalent. Not to mention all the false advertising and straight up scams.
To copy another one of my comments
I don't see how selling a similar looking chicken burger means there's no innovation. Innovation in how the end product looks is just one form of innovation, and there are many more. Innovation in marketing, innovation in management practices, innovation in ingredients and sourcing, innovation in kitchen effiency, innovation in customer interaction, innovation in franchising and corporate structure, innovation in restaurant design, innovation in niche capitalization, innovation in novel products to attract groups, and I'm sure many more I can't think of.
Look at 3d printers as a simple example, for a long time they followed a similar Průša style design, but the innovation was in the manufacturing.
I also don't see copying as a bad thing really?