The US Supreme Court recently vacated a Tenth Circuit decision that awarded $96 million in trademark damages to Hetronic International Inc. Abitron Germany GmbH convinced the High Court that Hetronic’s award was erroneous. According to some attorneys, this decision could restrict brand owners trying to enforce their trademark rights in a global marketplace.
Justice Sonia Sotomayor agreed that Hetronic’s award should be revoked, but spilt with the majority, arguing that the focus of the Lanham Act was consumer confusion.
Finnegan partner Mark Sommers told Bloomberg Law that practitioners hoped for clarity, but the court ultimately left things “murkier,” especially in an age of digital commerce.
“When you read this decision, you step back and ask, ‘How am I supposed to apply this to a myriad of facts?” Mark said. “There are a number of different ways marks could appear in U.S. commerce and cause a likelihood of confusion. The concern is likelihood of confusion could be created but the party behind the goods is able to enjoy safe harbor.”
Read “US Trademark Law’s Global Reach Curtailed by Supreme Court”
