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Unfair competition

Definition : Unfair competition

Competition must adhere to a certain business ethics, and any disloyalty contrary to this ethics will engage the tort liability of its author under Article 1240 of the Civil Code. In any case, the sanction of an unfair act will be subject to the three conditions required for engaging tort liability: A fault, which in this case consists of any process contrary to commercial practices and professional honesty, regardless of the intention to harm. A prejudice, which in this case involves any suffered damage causing commercial disruption. A causal link, typically inferred from the fault and the damage. An action for unfair competition can be pursued either as a primary action or in addition to an infringement action. (Source: Article 1240 of the Civil Code)

In any case, punishment for an unfair act will be subject to the three conditions required to trigger tort liability. A fault, which in this case will consist of any breach of trade practices and professional honesty, regardless of intent to harm. A prejudice, which in this case consists of any damage suffered that causes a commercial disturbance. A causal link, generally inferred from the fault and the damage.

An action for unfair competition can be brought either as a principal action or as a complement to an action for counterfeiting.

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