{"ID":63524,"name":"Abitron Austria GmbH v. Hetronic International, Inc.","href":"https:\/\/api.oyez.org\/cases\/2022\/21-1043","view_count":0,"docket_number":"21-1043","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Abitron Austria GmbH, et al.","second_party":"Hetronic International, Inc.","timeline":[{"event":"Granted","dates":[1667538000],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55175"},{"event":"Argued","dates":[1679374800],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55233"},{"event":"Decided","dates":[1688014800],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55303"}],"lower_court":{"ID":14,"name":"United States Court of Appeals for the Tenth Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/14"},"facts_of_the_case":"\u003Cp\u003EHetronic International, Inc., a U.S. company, manufactures radio remote controls heavy-duty construction equipment. By agreement, Abitron, a foreign corporation, distributed Hetronic\u2019s products, mostly in Europe.\u003C\/p\u003E\n\u003Cp\u003EThe relationship deteriorated when Abitron decided that it, not Hetronic, owned the rights to Hetronic\u2019s trademarks and other intellectual property. Abitron began manufacturing products identical to Hetronic\u2019s and selling them under the Hetronic brand, mostly in Europe. Hetronic terminated their contractual relationship, but Abitron continued to manufacture and sell the products, making tens of millions of dollars.\u003C\/p\u003E\n\u003Cp\u003EHetronic sued Abitron, and a jury sitting in the Western District of Oklahoma awarded Hetronic over $100 million in damages based on infringement of Hetronic\u2019s trademarks. The district court entered a worldwide injunction barring Abitron from selling the infringing products. On appeal the U.S. Court of Appeals for the Tenth Circuit affirmed the court\u2019s conclusion that the Lanham Act applies extraterritorially but limited the court\u2019s injunction.\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes the Lanham Act permit the owner of a U.S.-registered trademark to recover damages for the use of that trademark when the infringement occurred outside the United States and is not likely to cause confusion in the United States?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003EThe Lanham Act extends trademark protection only to claims where the infringing \u201cuse in commerce\u201d is domestic. Justice Samuel Alito authored the majority opinion of the Court.\u003C\/p\u003E\n\u003Cp\u003EUnless Congress explicitly states otherwise, U.S. laws are generally presumed to apply only within the territorial jurisdiction of the United States. This presumption helps avoid conflicts with other countries and is premised on the idea that Congress typically legislates with domestic matters in mind. To apply the presumption against extraterritoriality, courts apply a two-step framework. First, a court must ask whether Congress has explicitly indicated that the statute should apply to foreign conduct. If not, then the second step is to ask whether the lawsuit seeks a permissible domestic or impermissible foreign application of the law.\u003C\/p\u003E\n\u003Cp\u003EApplying that two-step framework here, the Court concluded that the Lanham Act applies only to claims where the infringing use is domestic. First, neither \u00a7 1114(1)(a) nor \u00a7 1125(a)(1) explicitly indicates that the statute should apply to foreign conduct. They prohibit the use \u201cin commerce\u201d of protected marks that are likely to cause confusion. A mere reference to \u201cforeign commerce\u201d does not make a statute extraterritorial. Second, the focus of the statute is on the \u201cuse in commerce\u201d that is likely to cause confusion, which is domestic conduct.\u003C\/p\u003E\n\u003Cp\u003EJustice Ketanji Brown Jackson filed a concurring opinion to elaborate on what it means to \u201cuse a trademark in commerce.\u201d\u003C\/p\u003E\n\u003Cp\u003EJustice Sonia Sotomayor filed an opinion concurring in the judgment, in which Chief Justice John Roberts and Justices Elena Kagan and Amy Coney Barrett joined, arguing that while the majority reached the correct conclusion, in her view the Lanham Act extends to activities carried out abroad when there is a likelihood of consumer confusion in the United States.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":63564,"name":"Lucas M. 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