Unfair competition and parasitism — businesses as victims and as defendants

Unfair competition lawyer Paris: protecting your economic value.

An unfair competition lawyer in Paris acts on confusion, disparagement, disorganisation and parasitism (parasitisme): unfair conduct is sanctioned through civil liability, never through a monopoly. Evidence must be captured immediately — bailiff's reports, timestamped screenshots — before the acts are erased.

The faster the evidence is captured, the stronger the case: a digital bailiff's report as soon as the facts are discovered, and an urgent application within forty-eight hours where urgency is established.

Unfair competition and parasitism · Paris

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Kohen Avocats, Paris 17

Unfair competition: what really decides the case

Reda Kohen, lawyer at the Paris Bar
Reda KohenLawyer at the Paris Bar

Business law · Paris 17th arrondissement

What an unfair competition and parasitism lawyer in Paris does

  • Paris Bar
  • Business law
  • Firm in Paris 17th

Lawyer at the Paris Bar — unfair competition, parasitism and urgent applications.

Open competition is the principle; fault begins with confusion, disparagement, disorganisation or parasitism. An urgent application (référé) under Article 873 of the French Code of Civil Procedure (Code de procédure civile) obtains cessation, removal or an interim payment within a short time; the action on the merits establishes fault and the amount of damages, within five years of knowledge of the facts. Poaching of employees is a fault only where it is massive, targeted and accompanied by underhand manoeuvres; breach of a non-compete obligation engages the liability of the employee and of the complicit new employer.

Send what you have, even if incomplete: the firm will prioritise and complete the file with you. In an emergency, call +33 6 46 60 58 22.

Official profile in the directory of French lawyers (CNB)Firm at 11 rue Margueritte, 75017 Paris

Four families of fault

Confusion with a competitor, public disparagement, disorganisation through the capture of employees or files, parasitism through the capture of value: each characterisation calls for its own evidence, under Articles 1240 and 1241 of the French Civil Code (Code civil).

Parasitism must be quantified

An individualised economic value is required: costed design work, documented investments — longevity or commercial success alone is not enough.

Presumed harm

Harm, even if only moral, necessarily follows from an act of unfair competition: the presumption eases the action, but the amount of damages still has to be built.

The faults

Confusion, disparagement, disorganisation, parasitism

Four rules shape unfair competition litigation.

  1. Parasitism captures an individualised economic value without paying for it: the Court upheld this for documented research and promotion investments (Cass. com., 26 June 2024, the Easybreath case, linked here) — but taking over a concept and developing variations on it is not enough (decision of the same day, linked here).
  2. Disparagement publicly spreads derogatory information about an identifiable competitor; objective criticism of a product remains lawful.
  3. Disorganisation: capture of files, procedures or key personnel; poaching of employees is a fault only where it is massive, targeted and accompanied by underhand manoeuvres.
  4. Harm necessarily follows from the unfair act, even if only moral, without relieving the claimant of proving its extent; compensation may be assessed by taking into account the undue advantage gained, adjusted according to the business volumes concerned (Cass. com., 12 February 2020, No. 17-31.614).

The procedural tempo is a choice: an urgent application on the ground of a manifestly unlawful disturbance (Article 873 of the Code of Civil Procedure) for cessation and an interim payment, an investigative measure under Article 145 to seize evidence before it disappears, an action on the merits for the amount of damages — with a five-year limitation period running from knowledge of the facts.

Your documents

Evidence first, characterisation second

Unfair acts are erased: immediate capture is what gives the case its value.

Position A

Victim

  • Digital and physical bailiff's reports, timestamped screenshots
  • R&D accounts, advertising invoices, documented investments
  • IT logs, backups of business e-mails
  • Statements from solicited clients, measured fall in turnover

Position B

Defendant company

  • Priority of its own developments
  • Freely available sources and objective differences between the products
  • Terms on which the employees were hired
  • Absence of captured files or data

Frequent mistakes: acting without a prior bailiff's report; over-characterising a simple lawful recruitment of staff; delaying while the acts are repeated.

Since 1 September 2025, an application based on Article 145 of the Code of Civil Procedure may be brought, at the applicant's choice, before the court that could hear the merits or the court of the place where the measure is to be carried out. Where it concerns real property, only the court of the place where the property is located has jurisdiction.

The firm also uses:

  • Article 145 application in futurum
  • Hour-to-hour urgent application
  • Non-compete clause and complicit third party
  • Expert assessment of harm

The method

How the firm supports you

The order of operations determines the strength of the case and the amount of damages.

Step 1

Capturing the evidence

Bailiff's reports, timestamped screenshots, archiving: immediately, before any formal notice.

Step 2

Legal classification

Confusion, disparagement, disorganisation or parasitism — choosing the appropriate evidential strategy.

Step 3

Article 145 application and formal notice

An investigative measure to seize the evidence under sequestration where necessary, then a quantified demand to cease.

Step 4

Urgent application or merits

Cessation subject to a daily penalty and an interim payment on an urgent application; action on the merits for fault and final damages before the commercial court.

The amount of damages is built up: investments captured, measured diversion of clients, undue competitive advantage to be restored.

The timetable

The timeline of an unfair competition action

From discovery of the facts to judgment.

  1. Discovery

    Day 0. Immediate capture: bailiff's reports, timestamped screenshots, archiving of web pages.

  2. Legal classification

    Weeks 1-2. Choice of characterisation and of evidential strategy.

  3. Article 145 application

    Weeks 2-6. Investigative measure in futurum if the evidence is at risk of disappearing, judicial sequestration.

  4. Formal notice

    Weeks 4-8. Quantified demand to cease, short window for an amicable settlement.

  5. Urgent application

    If urgent. Cessation subject to a daily penalty, removal, interim payment on account of harm (Article 873 of the Code of Civil Procedure).

  6. Merits

    Months 3-18. Writ of summons before the commercial court, possible expert assessment, judgment on fault and damages.

The checks

What the firm checks before acting

No writ of summons before these points have been checked.

  • Facts captured by a bailiff's report before the opponent is alerted.
  • A tenable characterisation: fault established beyond open competition.
  • For parasitism: individualised economic value, quantified investments.
  • For poaching of employees: massive, targeted, underhand manoeuvres established.
  • Damages: measured harm, undue advantage identified, causal link.
  • Five-year limitation period and the court's territorial jurisdiction.

Summary

Unfair competition law firm in Paris: situation, evidence and decision

The most frequent situations encountered by the firm in unfair competition and parasitism cases.

Situation

Competitor copies your flagship product

Likely characterisation: Parasitism if an economic value is established.

Essential document: R&D accounts, advertising invoices, commercial success.

Recommended decision: Action on the merits with a quantified claim for damages.

Situation

Derogatory LinkedIn post targeting your brand

Likely characterisation: Disparagement, as distinct from lawful criticism.

Essential document: Timestamped screenshot and digital bailiff's report.

Recommended decision: Formal notice, then an urgent application for removal subject to a daily penalty.

Situation

Competitor recruits your sales staff en masse

Likely characterisation: Disorganisation through organised mass poaching of employees.

Essential document: List of departures, dates, roles, sectors covered.

Recommended decision: Urgent application to obtain evidence and action on the merits for damages.

Situation

Former employee takes client file to a new business

Likely characterisation: Diversion of clients and unfair competition.

Essential document: IT logs, transfer e-mails, statements.

Recommended decision: Bailiff's report on the workstation, Article 145 application under the Code of Civil Procedure.

Situation

Employee bound by a non-compete clause joins a competitor

Likely characterisation: Breach of a valid clause and complicity of a third party.

Essential document: Employment contract, clause, financial compensation.

Recommended decision: Formal notice to the employee + action against the employer.

Situation

Your brand used as an AdWords keyword

Likely characterisation: Unfair competition through possible confusion.

Essential document: Timestamped Google screenshots, earlier INPI filing.

Recommended decision: Formal notice to stop the sponsored advertising.

Frequently asked questions

Your questions: unfair competition and parasitism

What is the difference between open competition and unfair competition?

Open competition is the principle: every player may win over customers, set its prices and copy ideas that are not protected by any exclusive right. Competition becomes unfair when it is accompanied by a fault within the meaning of Article 1240 of the Civil Code: sustained confusion with a competitor, disparagement, disorganisation through the capture of employees or files, parasitism through the capture of economic value. The sanction is civil liability, never a monopoly.

What are the conditions for establishing parasitism?

There are three cumulative conditions. First, an individualised economic value of the claimant must be identified: flagship product, know-how, reputation, documented investments. Second, the competitor's intention to follow in the claimant's wake, without consideration or risk-taking, must be shown. Third, compensable harm must be established. The Court of Cassation reiterates that longevity or success is not enough (Cass. com. 26 June 2024, the Decathlon and Maisons du Monde cases).

What is the difference between disparagement and lawful criticism?

Lawful criticism may target a product or a service in an objective framework, without spreading degrading allegations about an identifiable competing business. Disparagement targets a competitor by name with derogatory statements intended to divert its clients. The decisive criterion is the object: criticising a product remains permissible, whereas disparaging a business or its manager in order to capture its clients is a fault and engages the liability of its author.

Is poaching a competitor's employees always a fault?

No. Freedom to work allows an employee to leave their employer and a competitor to hire them. Poaching becomes unfair when it is massive, organised, targeted at key roles and accompanied by underhand manoeuvres: approaches made while the contract is still running, capture of files, systematic solicitation of identified clients. Established internal disorganisation of the competitor then opens an action for damages.

Is a non-compete clause imposed on an employee always valid?

No. To take effect, the clause must be limited in time, in space and in scope of activity, protect the employer's legitimate interests, and provide for effective and proportionate financial compensation paid to the employee. Without compensation, or with derisory compensation, the clause is null. Breach of a valid clause exposes the employee and engages the liability of the new employer as a complicit third party.

How can you protect your trade mark before any dispute?

Registering a trade mark with the INPI (the French intellectual property office) confers an enforceable exclusive right and makes defence easier through an infringement action. Without registration, notorious use may support an unfair competition action based on confusion, but the evidence becomes markedly more demanding. Monitoring competitors' filings, domain names and sponsored Google references is part of the minimum watch for a Paris SME.

When can you bring an urgent application for unfair competition?

An urgent application (référé) requires a manifestly unlawful disturbance or imminent damage. Article 873 of the Code of Civil Procedure allows the president of the court to order protective measures (cessation, removal, sequestration, daily penalty) or to award an interim payment where the obligation is not seriously contestable. An hour-to-hour urgent application is possible where urgency is established, sometimes within 48 hours. Its purpose is not to judge the merits, but to prevent the damage from worsening.

What is the limitation period for bringing an unfair competition action?

Five years from the day on which the right holder knew, or should have known, the facts enabling them to act, in accordance with Article 2224 of the Civil Code. For continuing practices, the starting point moves forward with each new act. The firm systematically checks the limitation period from the first reading of the documents so as not to bring an action that is doomed from the outset.

How is the harm caused by unfair competition quantified?

Several complementary methods apply. The loss of margin on the diverted turnover, calculated from cost accounting. The cost of restoring the business (replacement recruitment, response campaign). Damage to image, which is harder to objectivise. And, since Cass. com. 12 February 2020, No. 17-31.614, taking into account the undue advantage gained by the author of the practice, adjusted in proportion to the respective business volumes.

Is unfair competition limited to direct competitors?

No. Unfair competition may be invoked even where there is no direct competition, provided that the fault committed causes harm to the claimant business. This covers cases of parasitism through the capture of know-how in a neighbouring sector, or of disparagement by a commercial partner who is not a competitor in the strict sense.

Which court should hear an unfair competition action?

For disputes between traders or between commercial companies, the commercial court has jurisdiction. For disputes involving a non-trader or concerning mixed acts, the judicial court may hear the case. Territorially, the court of the defendant's registered office or of the place where the damage occurred has jurisdiction. In Paris, the Paris commercial court has a specialised chamber accustomed to unfair competition litigation.

What should you do if a former employee takes a client file to a competitor?

Build the evidence immediately: IT logs of transfers, backups of business e-mails, statements from the clients who were solicited. In its decision Cass. com. 7 December 2022, No. 21-19.860 (Foncia/Valhestia), the Court of Cassation reiterates that the mere possession of confidential information obtained during the performance of the employment contract constitutes an act of unfair competition, without any need to prove additional wrongful use.

Is using my trade mark as a Google AdWords keyword unfair?

European and French case law accepts keyword advertising that reproduces a competitor's trade mark, provided that the sponsored ad does not maintain confusion with the trade mark itself and allows a reasonably well-informed internet user to distinguish the products. If the ad misleads as to origin or suggests a commercial link that does not exist, an infringement action or an unfair competition action based on confusion becomes conceivable.

Can a formal notice sometimes settle the matter?

Often, yes. A detailed formal notice, which characterises the facts precisely, cites the relevant decisions and sets a short negotiation window, leads in a majority of cases to the end of the wrongful acts and to a settlement agreement. Court proceedings remain the weapon for cases where negotiation fails or the acts continue despite the formal notice.

What role does the bailiff play in an unfair competition case?

A central role. A digital bailiff's report fixes evidence that can be dated and relied on before the judge (website capture, e-mail, LinkedIn post, sponsored ad). A physical report fixes a shop layout, a display stand, a product. An Article 145 application under the Code of Civil Procedure authorises the bailiff to enter the defendant's premises to seize items before they disappear, under judicial sequestration until the adversarial hearing.

Let's discuss your unfair competition case.

Copied product, public disparagement, poached team: send the first evidence and the chronology of events. The firm replies within 24 business hours — capturing the evidence cannot wait.

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