Unfair Competition and Free Riding

The law firm's intervention in unfair competition and free riding

What is unfair competition?

Acts of unfair competition

Free riding

Sanctions and remedies

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.

How to react to an act of unfair competition

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.

Frequently asked questions

What is the difference between unfair competition and infringement?

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.

Can you take action without quantified financial loss?

Yes. The damage may be moral, commercial or reputational, and the judge assesses it in light of all the circumstances.

My former employee has set up a competing company: can I take action?

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.

Does free riding require direct competition?

No. Two companies in different sectors may be involved if one benefits from the reputation or investments of the other.

Contact the law firm

The law firm's contact details are at the bottom of the page. See also all of the law firm's practice areas.

Contact Alexandre Mochon

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