{"id":5500,"date":"2024-11-13T08:43:32","date_gmt":"2024-11-13T08:43:32","guid":{"rendered":"https:\/\/www.jpkarsenty.com\/?p=5500"},"modified":"2024-11-21T09:02:32","modified_gmt":"2024-11-21T09:02:32","slug":"parasitism-french-supreme-court-clarifies-the-notion-of-individualized-economic-value-to-be-proved-by-the-victim","status":"publish","type":"post","link":"https:\/\/www.jpkarsenty.com\/en\/parasitism-french-supreme-court-clarifies-the-notion-of-individualized-economic-value-to-be-proved-by-the-victim\/","title":{"rendered":"PARASITISM &#8211; CLARIFICATIONS FROM THE COURT OF CASSATION ON THE CONCEPT OF \u201cINDIVIDUALIZED ECONOMIC VALUE\u201d THAT MUST BE PROVEN BY THE VICTIM"},"content":{"rendered":"\n<p><strong><em>Cass. Com., 26 June 2024, n\u00b0 23-13.535\u00a0: Maisons du Monde c.\/ Auchan\u00a0;<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Cass. Com., 26 June 2024, n\u00b0 22-17.647\u00a0et 22-21.497 :\u00a0 Decathlon c.\/ Intersport<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>IMPACT:<\/em><\/strong> <em>In two rulings delivered on the same day, the Court of Cassation reaffirmed that in parasitism cases, the claimant must demonstrate both the individualized economic value they invoke and the defendant\u2019s intent to follow in their footsteps.<\/em><\/p>\n\n\n\n<p><em>Furthermore, it clarified the contours of individualized economic value, emphasizing that \u201cseeking cost savings to the detriment of a competitor is not inherently wrongful,\u201d thereby increasing the evidentiary burden for the claimant.<\/em><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><em>1. Facts of the cases<\/em><\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>In the case Maisons du Monde v. Auchan, <\/strong>the latter had marketed cups and bowls featuring \u201cvintage\u201d images designed by contracted companies. Maisons du Monde (MDM) sued Auchan for unfair competition and parasitism, claiming that these products reproduced a design similar to its Pub 50\u2019s board, created in 2010 by its style research department. Following the rejection of its claims by the Rennes Court of Appeal\u2014already on remand after cassation\u2014a further appeal was filed..<\/p>\n\n\n\n<p><strong>In the case Decathlon v Intersport, <\/strong>Decathlon marketed the \u201cEasybreath\u201d snorkeling mask, protected by a community design, while Intersport sold a similar mask under the Tecnopro brand, supplied by the German company Phoenix Group.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"113\" height=\"158\" src=\"https:\/\/www.jpkarsenty.com\/wp-content\/uploads\/2024\/11\/Image1-5.png\" alt=\"\" class=\"wp-image-5511\" style=\"width:250px;height:auto\"\/><\/figure>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"169\" height=\"347\" src=\"https:\/\/www.jpkarsenty.com\/wp-content\/uploads\/2024\/11\/Image2-6.png\" alt=\"\" class=\"wp-image-5513\" srcset=\"https:\/\/www.jpkarsenty.com\/wp-content\/uploads\/2024\/11\/Image2-6.png 169w, https:\/\/www.jpkarsenty.com\/wp-content\/uploads\/2024\/11\/Image2-6-146x300.png 146w\" sizes=\"auto, (max-width: 169px) 100vw, 169px\" \/><\/figure>\n<\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"has-text-align-center\"><em>EasyBreath \u2013 Decathlon<\/em><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"has-text-align-center\"><em>Tecnopro \u2013 Intersport<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<p>The Court of Cassation reviewed these cases to reaffirm the criteria for parasitism, ultimately upholding the ruling in the Decathlon case while rejecting the claims in the Maisons du Monde case..<\/p>\n\n\n\n<p>The Court aimed to give these rulings broad visibility as they are published in the Bulletin and will be discussed in the Court of Cassation&#8217;s Annual Activity Report. This aligns with a broader judicial trend to better define the concept of parasitism, as indicated by <a href=\"https:\/\/www.cours-appel.justice.fr\/paris\/la-reparation-du-prejudice-economique\"><em>the Paris Court of Appeal\u2019s January 2024 publication on compensating parasitism-related damages.<\/em><\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><em>2. Reaffirming the criteria for parasitism<\/em><\/strong><\/p>\n\n\n\n<p>In both rulings, the Court of Cassation reiterated several principles:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>the principle of free trade, <\/strong>stressing that \u201cideas are free to be used, and merely adopting and adapting a concept implemented by a competitor does not, in itself, constitute an act of parasitism&#8221;.<sup data-fn=\"60ed95a2-9a79-47b3-9f72-4f5fc92dbb1e\" class=\"fn\"><a id=\"60ed95a2-9a79-47b3-9f72-4f5fc92dbb1e-link\" href=\"#60ed95a2-9a79-47b3-9f72-4f5fc92dbb1e\">1<\/a><\/sup><\/li>\n\n\n\n<li><strong>the traditional definition <\/strong>of parasitism which is \u201ca form of unfairness, constitutive of fault under Article 1240 of the Civil Code, whereby an economic operator seeks to benefit unduly from another&#8217;s efforts, expertise, acquired reputation, or investments&#8221;<sup data-fn=\"c6f48d4c-cec6-4784-9095-1cb6aea350d7\" class=\"fn\"><a id=\"c6f48d4c-cec6-4784-9095-1cb6aea350d7-link\" href=\"#c6f48d4c-cec6-4784-9095-1cb6aea350d7\">2<\/a><\/sup>. <\/li>\n\n\n\n<li><strong>the evidence burden for the claimant<\/strong>: \u201c<em>identifying the individualized economic value he is claiming\u201d and \u201cthe willingness of a third party to placing himself in the wake of another <\/em>\u201d<sup data-fn=\"3aa95e8c-9302-4c36-be8e-b677e4d6a7fb\" class=\"fn\"><a id=\"3aa95e8c-9302-4c36-be8e-b677e4d6a7fb-link\" href=\"#3aa95e8c-9302-4c36-be8e-b677e4d6a7fb\">3<\/a><\/sup>.<\/li>\n\n\n\n<li><strong>the notion of individualized economic value, which <\/strong>\u201c<em>cannot be inferred solely from the product\u2019s longevity and commercial success.<\/em>\u201d<sup data-fn=\"72ebec74-fbb8-4771-96da-8058ab9c092f\" class=\"fn\"><a href=\"#72ebec74-fbb8-4771-96da-8058ab9c092f\" id=\"72ebec74-fbb8-4771-96da-8058ab9c092f-link\">4<\/a><\/sup>.<\/li>\n<\/ul>\n\n\n\n<p>The Court added a clarification in the Decathlon case, noting that \u201c<em>seeking cost savings at a competitor\u2019s expense is not inherently wrongful but is part of free trade and competition, provided it respects fair commercial practices<\/em>\u201d. This clarification reinforces the claimant\u2019s evidentiary burden, ruling out reliance solely on demonstrating cost savings resulting from the defendant\u2019s adoption of an idea or concept.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><em>3.<\/em><\/strong> <strong><em>The application of parasitism criteria by the Supreme Court to the cases<\/em><\/strong><\/p>\n\n\n\n<p>After reaffirming the principles of parasitism, the Court of Cassation undertook a highly fact-specific analysis of the cases to ensure proper application of the principles, offering various examples of evidence necessary to establish individualized economic value.<\/p>\n\n\n\n<p><strong>In Maisons du Monde v. Auchan<\/strong>, MDM argued that its Pub 50&#8217;s board represented a unique combination of visual elements evoking the 1950s, supported by promotional efforts.<\/p>\n\n\n\n<p>However, the Court of Cassation dismissed the appeal, citing insufficient proof of an identified and individualized economic value based on several indicators it detailed at length :<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the absence of slavish copy by Auchan of the Pub 50&#8217;s board created by MDM, as the images used were \u201ccomposed of various royalty-free photos available online.\u201d<\/li>\n\n\n\n<li>The limited sales period of the Pub 50\u2019s board, which was \u201cnever prominently featured as emblematic of the \u2018vintage\u2019 collection.\u201d<\/li>\n\n\n\n<li>The reuse of a style that the plaintiff was neither uniquely exploiting nor characteristic of its brand.<\/li>\n\n\n\n<li>The plaintiff\u2019s lack of intellectual property rights over the design elements in question, surprising given parasitism\u2019s distinct legal basis.<\/li>\n\n\n\n<li>The absence of any adaptation of the Pub 50\u2019s board to other products.<\/li>\n\n\n\n<li>The mundane combination of preexisting images freely accessible online, which was never promoted as emblematic of the brand\u2019s universe.<\/li>\n<\/ul>\n\n\n\n<p>The Supreme Court thus provides numerous examples of how to characterize an individualized economic value which, in their absence, are indicators that should lead to the exclusion of the existence of parasitism.<\/p>\n\n\n\n<p><strong>In Decathlon v. Intersport<\/strong>, the Court rejected Decathlon\u2019s claims of design infringement, noting that the mask\u2019s features were dictated by technical requirements, and its claims of unfair competition due to lack of consumer confusion.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>However, parasitism allowed Decathlon to prevail, with the Court identifying several factors proving individualized economic value:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The significant renown of the Easybreath mask, supported by over \u20ac3 million in advertising investments and \u20ac73 million in sales between 2014 and 2018.<\/li>\n\n\n\n<li>Three years of design and development work costing \u20ac350,000.<\/li>\n\n\n\n<li>The innovative nature of Decathlon\u2019s approach, with no evidence that \u201cequivalent products existed in the French market when the Easybreath mask was launched.\u201d<\/li>\n<\/ul>\n\n\n\n<p>The Court also considered the defendant\u2019s perspective, highlighting that Intersport and its economic partner:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u201cProvided no evidence of product development efforts or associated costs.\u201d<\/li>\n\n\n\n<li>Launched their mask \u201cduring a period when Decathlon was still airing advertising campaigns.\u201d<\/li>\n<\/ul>\n\n\n\n<p>The Court further noted that the intent to follow in a competitor\u2019s footsteps was evident from \u201cthe striking resemblance of the Decathlon mask,\u201d the \u201clink between the two masks due to their overall appearance,\u201d and the timing of Intersport\u2019s product launch coinciding with Decathlon\u2019s advertising efforts.<\/p>\n\n\n\n<p>As a result, Intersport and Phoenix were jointly ordered to pay Decathlon \u20ac100,000 in damages. However, no injunction was issued given the Easybreath mask\u2019s three-year market presence without competing versions being introduced.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<ol class=\"wp-block-footnotes\"><li id=\"60ed95a2-9a79-47b3-9f72-4f5fc92dbb1e\">1re Civ., 22 June 2017, pourvoi n\u00b0 14-20.310 <a href=\"#60ed95a2-9a79-47b3-9f72-4f5fc92dbb1e-link\" aria-label=\"Jump to footnote reference 1\">\u21a9\ufe0e<\/a><\/li><li id=\"c6f48d4c-cec6-4784-9095-1cb6aea350d7\">Com., 16 February 2022, pourvoi n\u00b0 20-13.542 ; Com., 10 July 2018, pourvoi n\u00b0 16-23.694 ; Com., 27 June 1995, pourvoi n\u00b0 93-18.601 <a href=\"#c6f48d4c-cec6-4784-9095-1cb6aea350d7-link\" aria-label=\"Jump to footnote reference 2\">\u21a9\ufe0e<\/a><\/li><li id=\"3aa95e8c-9302-4c36-be8e-b677e4d6a7fb\">Com., 26 June 2024, pourvoi n\u00b0 23-13.535 ; Com., 20 September 2016, pourvoi n\u00b0 14-25.1316\u00a0; Com., 3 July 2001, pourvoi n\u00b0 98-23.236, 99-10.406 <a href=\"#3aa95e8c-9302-4c36-be8e-b677e4d6a7fb-link\" aria-label=\"Jump to footnote reference 3\">\u21a9\ufe0e<\/a><\/li><li id=\"72ebec74-fbb8-4771-96da-8058ab9c092f\">Com., 5 July 2016, pourvoi n\u00b0 14-10.108 <a href=\"#72ebec74-fbb8-4771-96da-8058ab9c092f-link\" aria-label=\"Jump to footnote reference 4\">\u21a9\ufe0e<\/a><\/li><\/ol>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cass. Com., 26 June 2024, n\u00b0 23-13.535\u00a0: Maisons du Monde c.\/ Auchan\u00a0; Cass. Com., 26 June 2024, n\u00b0 22-17.647\u00a0et 22-21.497 :\u00a0 Decathlon c.\/ Intersport IMPACT: In two rulings delivered on the same day, the Court of Cassation reaffirmed that in parasitism cases, the claimant must demonstrate both the individualized economic value they invoke and the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"[{\"content\":\"1re Civ., 22 June 2017, pourvoi n\u00b0 14-20.310\",\"id\":\"60ed95a2-9a79-47b3-9f72-4f5fc92dbb1e\"},{\"content\":\"Com., 16 February 2022, pourvoi n\u00b0 20-13.542 ; Com., 10 July 2018, pourvoi n\u00b0 16-23.694 ; Com., 27 June 1995, pourvoi n\u00b0 93-18.601\",\"id\":\"c6f48d4c-cec6-4784-9095-1cb6aea350d7\"},{\"content\":\"Com., 26 June 2024, pourvoi n\u00b0 23-13.535 ; Com., 20 September 2016, pourvoi n\u00b0 14-25.1316\u00a0; Com., 3 July 2001, pourvoi n\u00b0 98-23.236, 99-10.406\",\"id\":\"3aa95e8c-9302-4c36-be8e-b677e4d6a7fb\"},{\"content\":\"Com., 5 July 2016, pourvoi n\u00b0 14-10.108\",\"id\":\"72ebec74-fbb8-4771-96da-8058ab9c092f\"}]"},"categories":[10],"tags":[],"class_list":["post-5500","post","type-post","status-publish","format-standard","hentry","category-veille-juridique"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>PARASITISM - CLARIFICATIONS FROM THE COURT OF CASSATION ON THE CONCEPT OF \u201cINDIVIDUALIZED ECONOMIC VALUE\u201d THAT MUST BE PROVEN BY THE VICTIM - JP Karsenty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.jpkarsenty.com\/en\/parasitism-french-supreme-court-clarifies-the-notion-of-individualized-economic-value-to-be-proved-by-the-victim\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PARASITISM - CLARIFICATIONS FROM THE COURT OF CASSATION ON THE CONCEPT OF \u201cINDIVIDUALIZED ECONOMIC VALUE\u201d THAT MUST BE PROVEN BY THE VICTIM - JP Karsenty\" \/>\n<meta property=\"og:description\" content=\"Cass. 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