The law firm acts for claimants and defendants alike, in Paris and throughout France, in unfair competition and free riding disputes:
Alexandre Mochon regularly acts in these disputes, in preventive advice as well as in proceedings, for companies and entrepreneurs. See his background.
Unfair competition refers to commercial practices contrary to honest commercial usage that are liable to harm a competitor. It does not require an intent to harm: a wrongful act is enough to engage the liability of its author.
Its basis is tort liability under Article 1240 of the French Civil Code. An action requires three conditions to be met:
The action is time-barred after five years from the day the victim knew or should have known of the facts. Unfair competition is often linked to intellectual property: a copied trademark, or the imitation of a product or its packaging.
Imitation consists in reproducing a competitor's distinctive elements (trade name, logo, packaging, website, offer) so as to create confusion in the minds of customers. It differs from infringement, which requires the violation of an intellectual property right: an unfair competition action can be brought even without any registration.
Disparagement consists in discrediting a competitor, its products or its services by spreading information liable to damage its image.
Disorganisation aims to disrupt the operation of a competing business (mass poaching of staff, misappropriation of files, breach of trade secrets). Diversion of customers consists in improperly capturing a competitor's customers by unfair means.
A former employee who joins a competitor or sets up their own business may incur liability if they breach a valid non-compete clause, misappropriate customer files or use confidential information. Their new employer may also be held liable if it organised or facilitated such conduct.
Free riding is an autonomous concept: it refers to the conduct of an operator who, without necessarily creating confusion, follows in the wake of another to benefit from its investments, reputation or know-how at no cost. It does not require a situation of direct competition.
Acts of free riding may include:
Free riding often complements an intellectual property action, where registered rights do not cover all the elements copied; the two actions can be combined.
Damages: they compensate the harm suffered (loss of profit, loss of customers, damage to image, investments exploited at no cost).
Cessation of the unfair acts: the victim may obtain an end to the practices complained of, where appropriate under a penalty payment.
Urgent measures: in urgent cases (a competing website going live, a disparagement campaign, poaching of staff), the interim relief judge may order provisional measures: removal of content, a ban on approaching certain customers.
Evidence is at the heart of the action. Evidentiary material should be secured without delay: time-stamped screenshots, a bailiff's report, written statements, correspondence, traffic reports.
The lawyer then assesses the strength of the case and defines the appropriate strategy: formal notice, summary proceedings or proceedings on the merits.
Infringement requires the violation of a registered intellectual property right (trademark, design). Unfair competition applies even without a registered right, as soon as a wrongful act causes damage. The two actions are often combined.
Yes. The damage may be moral, commercial or reputational, and the judge assesses it in light of all the circumstances.
It depends on the facts. Setting up a business in the same sector is in principle lawful. Action is possible in the event of misappropriation of customer files, poaching of staff or breach of a valid non-compete clause.
No. Two companies in different sectors may be involved if one benefits from the reputation or investments of the other.
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