Unfair competition: A new employer can be held liable without proof of knowledge

In a ruling of 6 September 2026, the French Supreme Court, Commercial Division, ruled that the mere presence of confidential information belonging to the former employer on a new employee’s work computer amounts to appropriation by the new employer. 

An employee had resigned and joined a competitor. He had taken confidential with regards to his past employer’s customers and its price quotation templates with him and had downloaded it onto his new work computer. 

The previous employer, suspecting such misappropriation of information, sent a court bailiff to confirm this misappropriation and, having done so, sued the competitor and the ex-employee. 

The Court of Appeal held that the employee’s possession of these files was proven, but there was no proof that the new employer had had knowledge of such misappropriation or had in any way used such information for its benefit. 

The French Supreme Court quashed that ruling and adopted a very strict position, namely that the new employer was held liable without proof that it knew of the files or used them. 

Key Action Points for Human Resources and In-house Counsel 

Ensure you have clear procedures in place when recruiting from a competitor.