In a decision handed down by the Paris Commercial Court on 10 October 2016, which has been appealed by XELTYS before the Paris court of appeal, XELTYS has been held liable for having committed unfair competition and parasitism acts against CAVIUS, since it is offering for sale the smoke detectors XELTYS TANA (also known as SIMTO SIRIUS).
As a result of this contradictory proceedings, during which claims and objections from both CAVIUS and XELTYS have been reviewed, the Court held that XELTYS’s mini detectors XELTYS TANA and SIMTO SIRIUS include the main features of CAVIUS’ mini-detector (references 2001-TK001 and 2002-TK001) and thus that the global similarity between these products causes a likelihood of confusion for the consumers.
The court further rules that XELTYS “is resolutely free-riding CAVIUS’ coattails […] by copying the promotional arguments put forth by CAVIUS […] as well as the same promotional images underlining the height of its detector” and “seems to have been strongly inspired by the technical design of CAVIUS’ detector”.
As a consequence, the Court has:
- prevented XELTYS to manufacture, import, hold, supply, market the smoke detectors XELTYS TANA (also known as SIMTO SIRIUS), whatever the name that may be used to designate them,
- ordered XELTYS to recall whole the products at issue from any market channels, and in particular by contacting the retailers,
- ordered XELTYS to pay a compensation for the commercial damages that result from the unfair competition and parasitism acts,
- ordered the court order to be published on the homepage of XELTYS’ website without interruption for one month,
- ordered XELTYS to pay to CAVIUS € 15.000 under article 700 of the French procedure code,
- refused to order the provisional enforcement.
The sentences should not be enforced, pending the decision of the Court of Appeal.