Unfair Competition and Counterfeiting

What is unfair competition?

Unfair competition arises when a business engages in dishonest practices to divert market share or clients from a competitor. Such conduct, which violates the principles of fair commercial conduct, may include product imitation, theft of confidential information, commercial disparagement, and organized boycott. The matter is governed by Article 2598 of the Italian Civil Code and is internationally recognized under the Paris Convention of March 20, 1883.

The difference between unfair competition and counterfeiting

Counterfeiting occurs when unfair competition also involves the infringement of industrial property rights, such as patents, registered trademarks, or copyright. In these cases, the violation extends beyond commercial misconduct to include a direct breach of exclusive rights.

Common forms of unfair competition

Frequent forms of unfair competition include:

• slavish imitation of names, trademarks, product designs, websites, or catalogs—causing confusion and diverting customers.
• Reference advertising or unauthorized association with a competitor’s reputation.
• Commercial disparagement through false and damaging statements.

Additional behaviors recognized by Italian courts include:

• Parasitic competition, systematically replicating a competitor’s business initiatives.
• Employee poaching, targeted recruitment of a competitor’s workforce.
• Organized boycott,pressure exerted on suppliers or partners to exclude a rival.
• Theft of confidential information, such as know-how, source code, client or supplier lists.
• Employee-driven competition involving misappropriated trade secrets.
• Misleading conduct such as false claims of “Made in Italy” or misuse of CE markings may also fall under the scope of unfair competition as forms of deceptive commercial practice.

How to act against unfair competition or counterfeiting

In many cases, a cease-and-desist letter may effectively stop the infringing behavior and lead to damage compensation. However, in more serious or urgent situations, it may be necessary to pursue judicial remedies, especially to preserve evidence or act by surprise.

For clear online violations involving trademarks, patents, designs, or copyrighted works, Canella Camaiora® handles direct notifications to the platforms hosting the infringing content (e.g., Amazon, Alibaba).

It is also possible to file a customs intervention request with the Italian Customs Agency to block suspect shipments.

When do unfair competition or counterfeiting become criminal offenses?

Unfair competition and counterfeiting frequently give rise to criminal liability. The Italian Criminal Code punishes a range of offenses, including unlawful competition with threats or violence (Art. 513-bis), commercial fraud (Art. 515), and the sale of industrial products with misleading marks (Art. 517).

These are situations where commercial misconduct escalates into violations of economic public order, resulting in liability that extends beyond civil damages.

That is why proactive market surveillance and timely response are essential. In legal protection, proactivity is the true key to success.