Unfair competition is the French legal answer to commercial conduct that harms a competitor through fault, even when no IP right is infringed. Grounded in Article 1240 of the French Civil Code, it covers parasitism (free-riding on a competitor’s investments), denigration, commercial confusion, customer poaching, mass employee poaching, trade secret violation, identity theft and packaging or website imitation. Used alongside counterfeiting, it often unlocks the full recovery of damages.
Reviewed by Nathalie Dreyfus, European Trademark and Patent Attorney. Last updated: June 2026.
Counterfeiting protects an IP right. Unfair competition protects loyalty in commercial life. When a competitor copies your IP and adds insulting marketing, mimics your packaging trade dress, or poaches a team of key employees, counterfeiting alone leaves money on the table. Cumulative claims based on facts distinct from the IP infringement multiply leverage and damages.
Three reasons unfair competition is a strategic complement. First, it captures conduct outside the strict scope of the IP right, such as commercial parasitism on marketing investment. Second, it provides relief even when the IP right is found invalid or limited. Third, French courts increasingly award substantial damages for parasitism, recognising the long-term value of investment in distinctive commercial signs.
Article 1240 of the French Civil Code (formerly Article 1382) is the general tort liability provision used by French courts to ground unfair competition and parasitism claims. Three conditions: fault, damage, causation.
Source: Article 1240 of the French Civil Code.
Articles L.151-1 and following of the French Commercial Code, transposing EU Directive 2016/943, protect trade secrets and provide civil remedies including injunctions, damages and confidentiality measures during litigation.
Source: Articles L.151-1 and following of the French Commercial Code.
French case law confirms that counterfeiting and unfair competition can be pursued cumulatively in the same action, provided the unfair competition claim is based on facts distinct from the IP infringement.
Source: Cour de cassation, commercial chamber, settled case law.
French case law on parasitism punishes free-riding on a competitor’s investments and reputation, even in the absence of confusion. Notably applied to packaging copy, marketing imitation and brand-adjacent SEO.
Source: Cour de cassation, commercial chamber, e.g. Com. 24 March 2021.
Free-riding on a competitor’s reputation, marketing efforts or investments without reciprocation. Packaging imitation, SEO on a competitor’s brand keywords, free-riding on a successful campaign.
Public disparagement of a competitor or its products, including via online reviews, comparative advertising and press campaigns when they cross the line of legitimate criticism.
Reproduction of a competitor’s trade dress, website design, store concept or product lookalike, even outside the strict scope of trademark or design protection.
Aggressive solicitation of a competitor’s clients in breach of fair business practice, and mass hiring of a competitor’s key staff causing operational disruption.
Illicit acquisition, use or disclosure of a competitor’s confidential business information under Articles L.151-1 and following of the French Commercial Code.
Surveillance, competitive intelligence, evidence consolidation.
Targeted notices for parasitism, denigration, confusion or trade secret violation.
Litigation under Article 1240 of the Civil Code, with damages and injunctions.
Cumulative claims of counterfeiting and parasitism for maximum damages.
Protection orders, evidence preservation, sealed file procedures.
NDAs, non-compete clauses, internal policies, awareness training.
Article 1240 of the French Civil Code (general tort liability). Plaintiff must prove fault, damage and causation. A rich body of case law from the Cour de cassation has developed standards for parasitism, denigration, confusion and customer or employee poaching, anchoring the action without requiring an IP right.
Parasitism is free-riding on a competitor’s investments, reputation or marketing without permission. Unlike counterfeiting, it does not require an IP right and does not require risk of confusion. It is particularly used against packaging copy, brand-adjacent SEO and imitation of successful commercial campaigns.
Yes. French case law allows cumulative claims, provided the unfair competition action is based on facts distinct from the IP infringement (e.g. distinct packaging copy, marketing imitation, denigration). Cumulative claims increase total damages awarded.
Article 1240 of the French Civil Code underpins a full compensation approach: courts assess the actual damage suffered, including lost sales, lost margin, moral harm to brand image and the costs of remedial action. For parasitism, courts often look at the unjust advantage obtained by the free-rider, in particular the investments saved, sometimes by analogy with the royalties that would have been paid under a license.
Yes, if their conduct exceeds simple competition. Mass departure, takeover of a client portfolio, use of trade secrets or breach of a non-compete clause can trigger unfair competition action against the employee and the new employer.
Depends on the parties. Unfair competition between merchants is heard by the Tribunal de Commerce. When tied to IP infringement, the Tribunal Judiciaire de Paris (JIPC) hears the entire dispute. Strategic court selection is part of the early advisory work.
