I don't recall the Japanese term, but from what I understand, it translates to "breaking the rice bowl." (Jun, any help here?)
Back in the '70s and early '80s, I've heard there was quite a lot of this going on within the Chicago martial arts community. I haven't heard about any recent occurances.
When I lived in Colorado in the early '80 my kenpo instructor, having just opened up his school, was challenged by a tae kwon do instructor down the street. There was a face-off, and the TKD guy backed down after a few tense minutes. There then ensued a very strong rivalry in local tournaments.