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A common foreign client is simultaneously in discussion with Company A and Company B in India. The so called client states that Company B product is a copy of Company A's product during the demo session of Company A. The only loop the client had was that Company A employee who presented the demo of Company B's product a week before.

Actually the said employee had already quit from company A but the company A's website had the photo & details of former employee who is now associated with Company B. The so called client takes demo with Company B and later finds ex employee's details in Company A's website and told the company A that their employee had given demo of Company A's product under the domain name of Company B.

In this case, except the demo session the client didn't have access to live application of Company B but he is very much confident about his allegation.

In this case, except the demo session the client didn't have access to live application of Company B's product, the so called client didn't state its similar or identical but very confident that Company B's product is the copy of Company A's product.

What action can Company B take against the foreign client if they're innocent.

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  • Quite a few things beyond defamation law at issue here. Also employee duty of loyalty, trade secret law, copyright, interference with contract, etc. Also, does the foreign client believe that what it is saying is true? Did the foreign client tell anyone other than the company that told it?
    – ohwilleke
    Commented Apr 12, 2021 at 22:00
  • Hi @ohwilleke - The client can say it is somewhat similar or identical considering the fact that that the client had a demo with both the solution. Moreover the Company B has proper documentation and official paper for their product. Here employee doesn't commit any violation in regards to duty of loyalty, trade secret law, copyright, interference with contract, etc.
    – Venkatesh J
    Commented Apr 13, 2021 at 3:20
  • @ohwilleke - Not sure if the client has told others but there is a possibilities to share a word of mouth. It is understood that people generally say it is similar or identical but the client is very much sure and confident in stating that Company B's product is a copy of Company A's product without having any hand-on experience. In this case what action the Company B take against the client? considering the fact there is no violation have been made from the ex-employee part. So, whether the client has the responsibility to prove the accusation.
    – Venkatesh J
    Commented Apr 13, 2021 at 3:45

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Defamation is communication of a falsehood to a third-party damaging another's reputation.

Company A and Company B know the truth and they're the only ones the statement appears to have been made to, so there is unlikely to be any defamation liability on the part of the client.

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  • Hi Ohwilleke, Thanks for your kind reply. I modified the question's title - leaving apart defamation, is there is any possibility to sue against foreign client for the false statement? Because it challenges the Company B's Brand and reputation.
    – Venkatesh J
    Commented Apr 13, 2021 at 4:00
  • @VenkateshJ No, there is no such tort and you'd have to sue in the country of the customer anyway.#
    – Trish
    Commented Apr 13, 2021 at 9:24
  • @VenkateshJ It only challenges Company B's brand and reputation if it is shared with third parties.
    – ohwilleke
    Commented Apr 13, 2021 at 17:57

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