Correct. It might also get you some bad press, just not worth it. That said, there are often many legitimate ways to craft content so that the keywords contained in a competitor's name are on the page.
I'd strongly agree with RCJ. I remember a case (about two years ago) when a competitor built them into meta tags on their site so that they came up when searching for that tradename. The competitor lost and had to remove the tradenames. Since then, I've always strongly advised against it.