A leading plumbing equipment manufacturer initiated legal proceedings against its service provider and another company. The case involves claims of unfair competition and trade secret misappropriation.
The manufacturer discovered that the service provider, which designed and built a product necessary for business operations, had sold the same designs to another company. Consequently, the other company has been manufacturing and selling nearly identical replicas of the manufacturer’s product. These designs were based on confidential plans and moulds owned by the manufacturer.
Fasken, acting on behalf of the manufacturer, have instituted proceedings for injunctive relief and is seeking damages for lost profits. The claim is based on trade secret misappropriation, unfair competition, and a Quebec-specific tort known as “parasitisme” (parasitic competition).
This case is significant as it underscores the importance of protecting intellectual property and trade secrets in the manufacturing industry. The outcome could set a precedent in Quebec law regarding the enforcement of trade secret protections and the handling of unfair competition claims.
Fasken advised the manufacturer with a team that included Chris Semerjian (Litigation), Michael Shortt (Intellectual Property), Claudie Fréchette (Litigation), and Christophe Leduc (Litigation).
Jurisdiction
- Québec