The legal concept of parasitism refers to a form of unfair competition where a business or individual unjustly benefits from the efforts, reputation or investments of another without appropriate compensation and without adding significant value. In business, this practice often involves the unauthorized imitation or exploitation of a competitor’s products, services or brand image to gain economic benefit while creating consumer confusion or diluting the value of the original brand. It is a legal foundation different from, and often complementary to, trademark infringement.
Parasitism is generally sanctioned by courts when there is a lack of creative effort or innovation on the part of the one committing parasitic acts and a clear attempt to ride on the economic coattails of a business that has established brand identity or reputation. The victim of parasitism can bring legal action to seek remedies, often in the form of damages or injunctions against the parasitic activity.
This concept is not explicitly codified in all legal systems, but it is recognized in many countries through case law that defines and penalizes parasitic behavior as being contrary to fair and honest commercial practices. Parasitism undermines fair competition and can have detrimental economic consequences for businesses that invest in originality and quality.