Non-competitor can get false advertising damages

In Lexmark Int’l, Inc. v. Static Control Components, Inc., (U.S., No. 12-873, 3/25/14), the U.S. Supreme Court recently determined that a company can assert a false advertising claim against a non-competitor under Section 43(a) of the Lanham Act if it can “show economic or reputational injury flowing directly from the deception wrought by the defendant’s advertising.” The Court noted that the Lanham Act’s statement of purpose includes “protect[ing] persons engaged in [protected commerce] against unfair competition.” The Court described that relief would require “an injury to a commercial interest in sales or business reputation proximately caused by the defendant’s misrepresentations.” 

The Court decided that this was properly alleged by Static Control, who claimed that Lexmark’s false claims caused Static Control to lose sales and suffer damage to its business reputation.

Permanent link to this article:

Leave a Reply

Your email address will not be published.