Unfair competition
THE LEGAL NATURE AND PURPOSE OF UNFAIR COMPETITION
Unfair competition regulations aim not only to protect the interests of competitors, but also to protect the trust that consumers (customers) and society in general have in a market that operates within the framework of fairness.
1. Violation of the Principle of Honesty (General Condition)
As stated in Article 54 of the Turkish Commercial Code, the existence of a competitive relationship is not a prerequisite for the existence of unfair competition. What is important is that the conduct affects "economic competition" and violates the "principle of honesty" (objective good faith).
2. Turkish Commercial Code Article 55: Application Examples
After providing a general definition, the legislator, in Article 55, listed the most common instances of unfair competition that lead to disputes, without being exhaustive:
- Defamation: Making false or misleading statements about competitors' personal lives, businesses, or products.
- Deceptive Advertising: Attempting to gain an advantage by providing false information about one's own situation or products.
- Confusion (Embezzlement): Taking measures that are likely to cause confusion with the goods, products, or business of another (e.g., imitation of trademarks or packaging).
- Disclosure of Trade Secrets: Obtaining competitors' manufacturing or business secrets by enticing employees or agents.
3. Sanctions Regime
Individuals or businesses subjected to unfair competition may file the following lawsuits in addition to the compensation rights you mentioned in your text:
- Declaratory Judgment: A lawsuit to determine whether an act is wrongful or not.
- Injunction (Cessation) Action: A lawsuit to stop ongoing unfair competition.
- Ref (Prevention/Restoration): Eliminating the consequences of unfair competition (e.g., destruction of misleading advertisements).
UNFAIR COMPETITION CASES
The situations listed in Article 55 of the Turkish Commercial Code have a structure that protects not only competitors but also customers and suppliers. These situations can be grouped under four main headings:
1. Deceptive Advertising and Sales Methods
This category includes behaviors aimed at gaining an unfair advantage by manipulating customer perception.
- Defamation: Making untrue, misleading, or unduly offensive statements about a competitor's goods, products, or business activities.
- Misleading Information: Making false claims about the quality, quantity, or source of one's own products, such as claiming to be the "best" or "cheapest."
- Usurpation of Title and Reputation: Violating the principle of honesty by falsely claiming to possess a diploma, award, or certificate that one does not actually have.
2. Confusion (Causing Mix-up)
The goal is to create the perception in the customer's mind that the product, brand, name, or packaging belongs to the same business or is related to another company, by creating a similarity.
- Key Criterion: In cases of confusion, not only visual similarity but also the likelihood of the customer becoming confused (likelihood of confusion) is taken into account.
3. Restricting the Customer's Freedom
Aggressive sales methods or misleading additional offers (gifts, raffles) are used to impair the customer's free will to make informed decisions.
- Concealing costs in installment sales or consumer loans, and exploiting the customer's financial situation, falls within this scope.
4. Violation of Terms of Employment and Enticement
Coercing or inciting another's employees or assistants to disclose confidential information or breach their contracts is one of the most serious forms of unfair competition.
THE ROLE OF FAULT IN UNFAIR COMPETITION AND THE CLASSIFICATION OF CASES
Unfair competition is, by its very nature, a violation of market order. Therefore, for an action to be classified as unfair competition, the perpetrator's intent (malice) or negligence (carelessness) is irrelevant; it is sufficient that the action violates the principle of good faith .
1. Cases Where Fault is Not Required (Objective)
The aim of these lawsuits is to restore the disrupted order in the market or to prevent further disruption.
- Declaratory Judgment: To determine whether an act constitutes unfair competition.
- Injunction (Cessation) Action: To end the ongoing violation.
- Restitution (Restoration) Lawsuit: A lawsuit aimed at eliminating the consequences of unfair competition (e.g., removing erroneous advertisements, deleting incorrect records).
2. Cases Requiring Fault (Subjective): Compensation Claims
For a penalty (compensation) to be imposed on the property of the perpetrator of an act of unfair competition, it depends on whether the perpetrator committed the act knowingly or without due diligence.
- Monetary Compensation: Compensation for the lost profits or actual damages suffered by the plaintiff.
- Moral Damages: Compensation for the distress and suffering caused by damage to commercial reputation.
LEGAL CONSEQUENCES AND LAWSUITS OF UNFAIR COMPETITION
Once unfair competition is identified, the legal system grants the victim a series of legal rights to restore their disrupted economic balance and prevent competitors from making unfair profits.
1. Legal Cases and Claims
According to Article 56 of the Turkish Commercial Code, the types of lawsuits that can be filed by those who have been subjected to unfair competition are as follows:
- Declaratory Judgment Action: This is a lawsuit filed by a court to determine whether an act constitutes unfair competition. It is usually filed together with other lawsuits.
- Injunction (Cessation) Action: This action seeks to end ongoing unfair competition practices.
- Restitution (Restitution) Action: This is a measure to eliminate the financial consequences of unfair competition. For example, the destruction of misleading packaging, the correction of false advertisements, or the removal of content from the internet.
- Compensation Claims:
- Monetary Compensation: This is compensation for actual damage and lost profits.
- Non-pecuniary damages: Claimed due to damage to the business's commercial reputation (Turkish Code of Obligations, Article 58).
2. Specific Sanctions for Perpetrators
In addition to compensation, the court may also order the following specific measures to remedy the consequences of unfair competition:
- Publication of the Verdict: The decision shall be published in newspapers or digital media, with the costs borne by the party engaging in unfair competition (critical for the restoration of commercial reputation).
- Destruction and Seizure: The seizure or destruction of tools used in unfair competition and goods produced unfairly.
3. Criminal Liability (Turkish Commercial Code, Article 62)
Unfair competition not only gives rise to liability for damages; it is also a crime. Those who intentionally commit the acts described in Article 55 of the Turkish Commercial Code are subject to legal action upon complaint:
- to up to two years in prison or to a fine.
- In cases of unfair competition offenses committed within the scope of the activities of legal entities, security measuresmay be applied.
ANALYSIS OF UNFAIR COMPETITION CASES
Unfair competition lawsuits are generally filed not in isolation, but as a chain of complementary claims.
1. Determination, Prohibition and Restitution (Restoration to the Original State) Cases
These three types of lawsuits are classified as "Eda Lawsuits" and aim to identify violations of the principle of good faith and to erase their traces in the market.
- Determination: This is when the judge confirms that the act in question violates the principle of good faith. It is usually a prerequisite for other types of lawsuits.
- Prevention: Stopping an ongoing violation or preventing a potential violation (danger).
- Ref (Elimination): This includes correcting false statements, stopping misleading advertising, and even, as stipulated by law, destroying equipment and goods if it is not otherwise possible to stop the violation
2. Compensation Claims (Material and Non-Material)
Claims for compensation depend on whether the perpetrator at fault (intentional or negligent).
- Special Calculation of Monetary Compensation: The law provides a significant advantage to the plaintiff here: When calculating the amount of compensation, the judge can consider not only the plaintiff's damages but also the profit the defendant may have gained from this unfair competition
- Moral Damages: This is awarded when the company's public credibility and commercial reputation have been severely damaged.
AUTHORITY TO SUE AND THE EFFECT OF THE DECISION
Paragraphs 2, 3, and 4 in your text demonstrate that unfair competition is not merely a matter between two competitors, but is viewed as a societal problem.
- The Role of Clients and Associations: Clients and professional organizations cannot claim monetary or non-monetary compensation (because proof of personal harm is required), but investigation, prohibition, and cessation of wrongdoing . This is a rule established for the "self-regulation" of the market.
- Spread of the Ruling (Immediate Effect): According to paragraph 4, a court's injunction stating that "the sale of this product constitutes unfair competition" binds not only the producer but also third parties (wholesalers, retailers, etc.) who possess the product for commercial purposes. This ensures that the product produced through unfair competition cannot survive on the market in any way.
UNFAIR COMPETITION LAWSUITS AND THEIR STRATEGIC ROLE
An action to determine unfair competition is a type of "declaratory action" where the plaintiff only requests the court to determine the existence of a factual or legal situation.
1. "Risk of Harm" Competency
The most important characteristic of a declaratory judgment lawsuit is that it is not a prerequisite for filing the lawsuit that damage has actually occurred.
- Strict Liability: According to Article 56 of the Turkish Commercial Code, anyone whose economic interests may be at risk of being harmed can file this lawsuit. This allows for the detection of unfair competition through "preventive" intervention before it fully permeates the market.
- Legal Interest: The plaintiff must have a current legal interest in filing this lawsuit. If the infringement is ongoing, it is generally preferred, for reasons of procedural economy, to file it together with an "Injunction" lawsuit.
2. Relationship with Intellectual Property Rights
The trademark and patent disputes you mentioned in your text are among the most common areas of unfair competition.
- Cumulative Protection: Counterfeiting a trademark constitutes both trademark infringement under the Industrial Property Law (IPL) and unfair competition under the Turkish Commercial Code ( TCC ) . A declaratory judgment action combines the protection provided by these two laws, offering the plaintiff a broader scope for proof.
3. The Definitive Evidential Value of the Decision
A final court ruling establishing unfair competition is binding on the judge in a subsequent compensation lawsuit.
- Establishing the Causal Link: Since the "wrongfulness of the act" is definitively established by the determination decision, only the "amount of damage" and "fault" are discussed in the compensation lawsuit. This speeds up the litigation process in complex commercial cases.
4. Academic Analysis: Statute of Limitations (Turkish Commercial Code, Article 60)
All unfair competition lawsuits, including declaratory judgment lawsuits, are subject to strict statutes of limitations
- Short period: One year from the date the birth of the right is learned .
- Long Period: Presumably, the right to sue expires after 3 years have passed since the act of unfair competition
- However, if the act also constitutes a crime requiring a longer statute of limitations under the Turkish Penal Code, then the criminal statute of limitations periods apply.
ANTI-UNFAIR COMPETITION LAWSUIT AND ITS ENFORCEABILITY
An action for injunction, being a type of "action for performance," requests an order from the court to compel the defendant to refrain from a specific action or to cease an action they are currently engaging in
1. The Concept of "Danger" and its Temporal Scope
As you stated in your text, an injunction action can be brought not only for existing violations but also for the threat of violation
- Future Impact: If a competitor is preparing, or shows signs of preparing, a campaign that violates the principle of fairness, the aggrieved party may request that the action not begin at all.
- No Retroactivity: An injunction does not rectify the consequences of unfair competition that has already occurred and ended (this is the subject of the Ref case); it only stops “present and future” unfairness.
2. Non-application of Statute of Limitations (Continuous Violation)
In unfair competition law, the statute of limitations is generally one year from the date of learning about it. However, there is a very critical exception in injunction proceedings:
- Continuous (Uninterrupted) Acts: If the act of unfair competition (for example, persistently defamatory content on a website) occurs repeatedly, the statute of limitations does not begin to run until the infringement ceases. This gives the victim the right to file a lawsuit against long-term infringements at any time.
3. Strict Liability and Enforceability
- No Fault Seeking: In an enforcement action, whether the defendant acted in bad faith or negligence does not affect the decision. The aim is to clean up the market, not to punish the offender.
- Execution of a Court Judgment: Unlike a declaratory judgment, a decision resulting from an injunction creates an "obligation not to act." If the defendant does not cease the wrongful act despite the court decision, sanctions such as forced cessation and imprisonment come into effect in accordance with the provisions of the Enforcement and Bankruptcy Law.
4. Academic Analysis: Its Relationship with Provisional Measures
In practice, a precautionary measure (Turkish Commercial Code, Article 61) is requested to prevent irreparable harm during the period until the injunction case is concluded
- The judge may, at the beginning of the case, temporarily order the cessation of unfair competition based on the "approximate proof" rule. An injunction action ensures that this temporary measure becomes permanent.
CASE FOR THE ELIMINATION OF FINANCIAL BENEFITS RESULTING FROM UNFAIR COMPETITION (REF'I)
A restitution lawsuit is an attempt to restore the disrupted economic and commercial order. Through this lawsuit, the plaintiff seeks not only the cessation of the infringement but also the elimination of the de facto situation created by the infringement
1. Correction of False and Misleading Statements
If unfair competition occurs through an advertisement that disparages a competitor or falsely praises oneself, simply stopping the advertisement is not sufficient.
- Public Disclosure: The court may order the truth to be published in the same media outlets, with the defendant covering the costs. This is the most effective "reference" method for correcting misconceptions in the minds of customers.
2. Destruction and Seizure: The "Inevitability" Criterion
The destruction of the vehicles and goods you mentioned in your text is subject to the "Principle of Proportionality" in our law, as it constitutes a serious interference with property rights.
- Primary Measures: If unfair competition stems solely from a label or packaging on the product, the court will first order the removal of the labels or the modification of the packaging.
- Last Resort (Ultima Ratio): Destruction is only ordered if the infringed product cannot be separated from its form (shape, mold) and there is no other way to prevent the infringement.
3. Cumulative Use of Ref'i and Men's Actions
- The Advantage of Filing Together: In practice, these two lawsuits are usually filed together as a "Registration-Prohibition-Rejection" trio. The prohibition lawsuit shuts off the tap, while the removal lawsuit cleans up the spilled water.
- Strict Liability: In a recourse action, the defendant's fault is not considered. The aim is to protect the victim's business from infringement.
LAWSUIT FOR FINANCIAL DAMAGES BASED ON UNFAIR COMPETITION
Monetary compensation aims to remedy the decrease in the victim's assets caused by unfair competition. The biggest difference between this case and the "Determination, Prohibition and Removal" cases we examined earlier fault .
1. Three-Step Method in Calculating Compensation
The plaintiff is responsible for proving the amount of damages suffered. To facilitate proof, the law authorizes the judge to consider the following options:
- Compensation for Actual Damages: The direct economic loss suffered by the victim.
- Lost Profit: The potential profit the plaintiff would have obtained if the unfair competition had not occurred.
- Restitution of Intervention Profits: As stated in your text; the benefit that the defendant could have obtained .
2. Causal Link and Difficulty of Proof
The biggest obstacle to obtaining monetary compensation is proving the link between "customer loss" and "unfair competition." A decline in sales in the market can be caused not only by unfair competition but also by economic crises or product quality. Therefore, expert examination determines the fate of the case.
LAWSUIT FOR NON-PECUNIARY DAMAGES BASED ON UNFAIR COMPETITION
Claims for moral damages arise when a business or trader's commercial reputation, honor, and professional standing are violated
1. An Academic Note on the Issue of Fault
Although your text states that "whether the defendant is at fault or not is irrelevant," the general consensus in Turkish legal doctrine and the practice of the Supreme Court the perpetrator's fault is also a requirement for awarding moral damages .
- Rationale: Article 58 of the Turkish Code of Obligations, which forms the basis of moral damages, is a general tort liability, and fault is a fundamental condition in tort liability. However, due to the nature of unfair competition, since the "faultless" commission of an act contrary to the principle of good faith is considered contrary to the ordinary course of life, fault is generally accepted as inherent in the act.
2. Measures that Substitute for or Supplement Compensation
The judge is not obligated to compensate for moral damages solely with money. As you quoted in your text:
- Condemnation Decision: The court's formal declaration that it has found the defendant guilty.
- Publication of the Decision: The publication of the decision in newspapers or digital media. For major brands, this announcement is often a form of intangible compensation far more valuable than monetary compensation.
THE CRIMINAL ASPECT AND SANCTION REGIME OF UNFAIR COMPETITION
Unfair competition offenses, as a rule, "Complaint-Dependent" offenses. This means that those entitled to file a lawsuit (competitors, customers, professional organizations) must file a complaint within the prescribed time limit.
1. The Mental Element of the Crime: Intent
As you stated in your text, for unfair competition to constitute a crime, the act intentionally .
- The Difference Between Civil and Criminal Cases: In civil cases (prohibition, refusal, determination), fault is not sought, or "negligence" is sufficient for monetary compensation; however, in criminal cases, the perpetrator must have known and intended to violate the principle of good faith.
- Special Circumstance (Article 62/d): If an employer learns of an employee's unfair competition and fails to stop it, this is punishable by law as "an act committed through negligent conduct."
2. Liability of Legal Entities (Turkish Commercial Code, Article 63)
In commercial life, unfair competition is usually committed under the umbrella of a company (legal entity). As a requirement of the principle of "personal responsibility" in criminal law:
- Imprisonment for Individuals: Board members, directors, or partners who make decisions constituting a crime shall be punished personally with imprisonment or a judicial fine.
- Security Measures for Legal Entities: Since a company's legal entity cannot be imprisoned, specific security measures (e.g., confiscation of profits obtained through unfair competition, prohibition of certain activities) are imposed.
3. Prosecution Procedure and Complaint Period
In cases of unfair competition, the complaint period is 6 months (Turkish Penal Code, Article 73). However, this period differs from the 1-year statute of limitations in civil cases, and if missed, the right to file a criminal case is forfeited.
JUDICIAL REMEDY IN UNFAIR COMPETITION CASES: JURISDICTION AND AUTHORITY
Procedural law rules deal not only with the substantive legal aspects of unfair competition, but also with ensuring that the case is filed in the right court at the right time.
1. Competent Court: Commercial Court of First Instance
According to Article 4/1-a of the Turkish Commercial Code, unfair competition cases "Absolute Commercial Cases".
- Specialized Court: These cases are heard in specialized Commercial Courts of First Instance.
- Exception (Intellectual Property): If the claim of unfair competition is intertwined with a trademark, patent, or copyright infringement (e.g., an infringement under the Industrial Property Law), the competent court the Intellectual and Industrial Property Rights Court .
2. Competent Court: Extended Optional Right
Since unfair competition is considered a tort (Turkish Code of Obligations, Articles 57 et seq.), the plaintiff is granted broad "optional jurisdiction" . The plaintiff can file their lawsuit in one of the following locations:
- General Jurisdiction: The court of the domicile of the defendant (or one of the defendants).
- Jurisdiction for Tort Cases: The court of the place where the act of unfair competition was committed.
- Damage-based jurisdiction: The court of the place where the damage occurred or is likely to occur.
- Claimant-Friendly Jurisdiction: The court of the injured party's (claimant's) place of residence.
3. Academic Analysis: The Situation in Lawsuits Filed by Consumers
Although there are debates in legal doctrine regarding the competent court when a consumer files a lawsuit due to unfair competition harming their economic interests , the generally accepted practice is that the case should be filed in the Commercial Court of First Instance, since unfair competition is considered an "absolute commercial lawsuit."
4. Mediation Requirement (Turkish Commercial Code, Article 5/A)
The most up-to-date procedural detail that needs to be added to your text Mediation.
- Condition for Filing a Lawsuit: If an unfair competition lawsuit seeks the payment of a sum of money (material or moral damages), it is mandatory to apply to a mediator before filing a lawsuit. * In lawsuits only seeking determination, injunction, or prevention (determination and prevention), mediation is not a condition for filing a lawsuit; however, it becomes part of the process when filed together with a claim for damages.
STATUTE OF LIMITATIONS AND TIME LIMITS IN UNFAIR COMPETITION CASES
For reasons of legal certainty, unfair competition lawsuits are not subject to unlimited time limits. The legislator, considering the fast pace of commercial life, has stipulated relatively short timeframes.
1. Statute of Limitations in Civil Cases (1 and 3 Years)
Article 60 of the Turkish Commercial Code provides for a two-stage process for civil lawsuits:
- Subjective Time Limit (1 Year): This period begins from the date the party entitled to file the lawsuit learns of the existence of this right (and the perpetrator).
- Objective Time Limit (3 Years): Begins from the date the right arises. Even if the person was unaware, the right to sue generally expires after 3 years from the date of the unfair competition act.
2. Complaint Period in Criminal Cases (6 Months)
As you stated in your text, unfair competition offenses are subject to complaint.
- The critical difference: The learning period, which is one year in civil cases, is set at six months for criminal complaints (Turkish Penal Code Article 73). Missing this deadline does not affect the right to file a civil lawsuit, but it closes the door to criminal sanctions.
3. The Effect of Criminal Statute of Limitations on Civil Cases
If the act of unfair competition constitutes a crime subject to a longer statute of limitations under the Turkish Penal Code (for example, if it is intertwined with aggravated fraud or breach of trust), then this longer criminal statute of limitations applies to the civil lawsuit. This gives the victim additional time to file a civil lawsuit.
4. Distinction of "Continuous Action" at the Beginning of Periods
The most debated issue in calculating the time limits is when the violation ended:
- Immediate Actions: The time limit starts immediately once a misleading statement is published.
- Continuous (Persistent) Offenses: If content constituting unfair competition remains online or a counterfeit sign is not removed, the statute of limitations does not begin to run because the infringement is renewed at any moment. Therefore, injunction and refusal lawsuits can be filed even many years later.
MEDIATION IS A MANDATORY CONDITION FOR FILING UNFAIR COMPETITION CASES
Article 5/A, added to the Turkish Commercial Code, established the institution of "mandatory mediation" in commercial disputes. Since unfair competition cases are considered absolute commercial cases, this rule also applies here. However, the limit of this obligation "the nature of the right claimed .
1. Cases Where Mediation is Mandatory (Monetary Claims)
If the outcome of the lawsuit involves a transfer of funds from the defendant's assets to the plaintiff's assets, mediation is a prerequisite for filing a lawsuit.
- Claims for Monetary Compensation: Requests for compensation for lost profits or actual damages.
- Claims for Non-Pecuniary Damages: A request for monetary compensation due to damage to commercial reputation.
- Claim for Restitution of Intervention Profits: Demanding the return of the defendant's unjust enrichment.
2. Cases Where Mediation is Not Mandatory (Non-Monetary Claims)
Lawsuits that do not focus on "money," such as those aimed at stopping or detecting unfair competition, can be filed directly to establish the principle of good faith.
- Declaratory Judgment: Establishing the facts of the case.
- Preventive Action: A lawsuit seeking to stop the act.
- Restitution (Restoration) Case: Correction of financial status, destruction, announcement.
3. Critical Application: The Situation in “Terraced” (Cumulative) Cases
In practice, unfair competition lawsuits often involve both injunctive relief and damages claims. How should the process be managed in this case?
- Court of Appeals and Doctrine Opinion: If a petition contains both a monetary claim (compensation) and a non-monetary claim (injunction), it is mandatory to go to mediation regarding the compensation claim.
- Strategic Error: If a "compensation + injunction" lawsuit is filed without first resorting to mediation, the court will dismiss the compensation claim on procedural grounds due to the lack of a prerequisite for the lawsuit, while continuing the proceedings based on the injunction claim. This situation causes the plaintiff to bear the burden of court costs and attorney fees.
4. Provisional Measures and Mediation
During the mediation process, the parties can also request interim measures from the court
- Urgent Intervention: While the mediation process is ongoing or even before it begins, it is possible to obtain an injunction from the court to prevent irreparable harm caused by unfair competition. After obtaining an injunction, paying attention to the deadlines for mediation and filing a lawsuit will prevent loss of rights.
GUIDE TO STARTING AN UNFAIR COMPETITION LAWSUIT IN ISTANBUL
To seek professional legal assistance in unfair competition disputes, the following methodology should be followed:
1. Evidence Collection and Preliminary Detection Process
Before filing a lawsuit, all digital and physical evidence (screenshots, invoices, counterfeit products, defamatory advertising texts) that proves the existence of the tort should be preserved.
- Notarized Verification: To prevent the removal of misleading content from the internet, having an "electronic verification" done through a notary increases the probative value of the case.
- Preliminary Expert Report: An expert lawyer can analyze the chances of success of a case by obtaining a technical opinion at the beginning of the proceedings.
2. Determining the Area of Expertise
Every lawyer has a different area of expertise. In unfair competition cases, especially in a city like Istanbul, which is the heart of commerce;
- of the Commercial Courts of First Instance ,
- Able to manage the relationship between the Turkish Commercial Code and the Industrial Property Law ,
- It is preferable to work with a lawyer who is familiar with the technical terminology of trademark and patent law.
3. Mediation and Provisional Measures Strategy
As you stated in your text, mediation is mandatory in compensation claims . However, while this process is ongoing, it may be necessary to apply to the court for a "Preliminary Injunction".
- An experienced lawyer registered with the Istanbul Bar Association can determine what concessions can be made at the mediation table or at what point filing a lawsuit would be more profitable.
4. Communication and Consulting
An appointment should be made through the Istanbul Bar Association's register (list of lawyers) or via reputable law firms (e.g., specialized teams like MG Law) for a face-to-face meeting. During this meeting:
- The chronology of the event must be described in full
- The limitation periods (1 and 3-year periods) should be checked
- Information should be obtained regarding potential litigation costs and trial duration.
XLII. WHY IS PROFESSIONAL SUPPORT ESSENTIAL?
Unfair competition cases cannot be resolved simply by knowing the law. These cases require market analysis, the interpretation of economic data, and the art of accurately explaining the principle of good faith to the court .
- Procedural Errors: Filing a lawsuit in the wrong court or skipping mediation can lead to the case being dismissed on procedural grounds months later.
- Burden of Proof: Calculating "lost profits" in monetary compensation claims is a highly technical process; an incorrect calculation could prevent you from receiving the compensation you are entitled to.