June 18, 2014
Managing Intellectual Property
On June 12, the U.S. Supreme Court ruled in favor of POM in POM Wonderful v. Coca-Cola, holding that Lanham Act false advertising claims are not preempted by the Federal Food, Drug and Cosmetic Act (FDCA) or related FDA regulations.
While there is speculation that the ruling will lead to increased litigation in the food and beverage industry, Finnegan partner Brett Heavner conveyed his skepticism to MIP, stating that the POM case was unique because Coke came up with an unusual defense of saying the Lanham Act was precluded. “I cannot imagine a food and beverage company that was concerned about a competitor that would say, 'I don't think I can file a Lanham Act suit because of the FDA regulations.' I just don't think they thought that way. I am not certain that that is something that has been argued very often in the past. I don't think it opens the floodgates.”
IP practitioners say this decision goes beyond the food and beverage industry, and could involve other categories of FDA-regulated products, such as dietary supplements, cosmetics, and tobacco products.
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