Ca_Law

case_law | United States Federal

Abitron Austria GmbH v. Hetronic Int’l, Inc.

Summary

Applying the presumption against extraterritoriality, two provisions of the Lanham Act that prohibit trademark infringement—15 U. S. C. §1114(1)(a) and §1125(a)(1)—are not extraterritorial and extend only to claims where the infringing “use in commerce” is domestic.

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  • #1

    PRELIMINARY PRINT Volume 600 U. S. Part 1 Pages 412–446 OFFICIAL REPORTS OF THE SUPREME COURT June 29, 2023 REBECCA A. WOMELDORF reporter of decisions Page Proof Pending Publication NOTICE: This preliminary print is subject to formal revision before the bound volume is published. Users are requested to noti…

  • #2

    (a) The presumption against extraterritoriality refects the longstand- ing principle “that legislation of Congress, unless a contrary intent ap- pears, is meant to apply only within the territorial jurisdiction of the United States.” Morrison v. National Australia Bank Ltd., 561 U. S. 247, 255. The presumption “se…

  • #3

    tains that the Lanham Act's defnition of “commerce”—“all commerce which may lawfully be regulated by Congress,” § 1127—rebuts the pre- sumption against extraterritoriality. But this Court's repeated holding that “ `even statutes . . . that expressly refer to “ foreign commerce' ” when defning “commerce” are not ex…

  • #4

    quirement; rather, it is simply a necessary characteristic of an offending use. Because Congress has premised liability on a specifc action (a particular sort of use in commerce), that specifc action would be the conduct relevant to any focus on offer today. WesternGeco, 585 U. S., at ––– – –––. In sum, § 1114(1)…

  • #5

    Trademark Association by Lawrence K. Nodine; for Three Intellectual Property Law Professors by Timothy R. Holbrook, pro se; for Louis Pah- low by Paul F. Enzinna; and for Guido Westkamp by William J. Cooper. Briefs of amici curiae urging affrmance were fled for the American Bar Association by Deborah Enix-Ross, Me…

  • #6

    Hetronic sought damages under these provisions for Abi- tron's infringing acts worldwide. Throughout the proceedings below, Abitron argued that Hetronic sought an impermissible extraterritorial applica- tion of the Lanham Act. But the District Court rejected this argument, and a jury later awarded Hetronic approx…

  • #7

    European Community, 579 U. S. 325, 335–336 (2016). Applying the presumption against extraterritoriality in- volves “a two-step framework.” Id., at 337. At step one, we determine whether a provision is extraterritorial, and that determination turns on whether “Congress has affrma- tively and unmistakably instructe…

  • #8

    2 As we have noted, courts may take these steps in any order. See, e. g., Yegiazaryan v. Smagin, 599 U. S. 533, 542, n. 2 (2023). Page Proof Pending Publication Cite as: 600 U. S. 412 (2023) 419 Opinion of the Court (concluding that a claim was a foreign application of the Se- curities and Exchange Act because t…

  • #9

    effect despite lacking an express statement of extraterritori- ality.” Id., at 340. Our decision in RJR Nabisco illustrates the clarity required at step one of our framework. There, we held that the Racketeer Infuenced and Corrupt Organi- zations Act could have extraterritorial application in some circumstances b…

  • #10

    cause the provision refers to “all” commerce Congress can regulate. See Kiobel, 569 U. S., at 118 (“[I]t is well estab- lished that generic terms like `any' or `every' do not rebut the presumption against extraterritoriality”). And the mere fact that the Lanham Act contains a substantively simi- lar defnition tha…

  • #11

    likely to and did cause consumer confusion in the United States. 4 Id., at 286–287; accord, e. g., id., at 286 (“His opera- tions and their effects were not confned within the territo- rial limits of a foreign nation”); id., at 288 (“[P]etitioner by his `own deliberate acts, here and elsewhere, brought about for…

  • #12

    the way Congress described, with no need for any actual confusion. Under step two of our extraterritoriality stand- ard, then, “use in commerce” provides the dividing line be- tween foreign and domestic applications of these Lanham Act provisions. III Resisting this straightforward application of our prece- den…

  • #13

    both domestic and foreign activity, the question is whether “ `the conduct relevant to the statute's focus occurred in the United States.' ” Nestlé, 593 U. S., at ––– – –––. If that “ `conduct . . . occurred in the United States, then the case involves a permissible domestic application' of the statute `even if o…

  • #14

    the “ `focus' ” alone, which (as we have said) “can be `conduct,' `parties,' or `interests' that Congress sought to protect or regulate.” Post, at 439; see WesternGeco, 585 U. S., at –––. As a result, almost any claim involving exclusively foreign conduct could be repackaged as a “domestic application.” And almos…

  • #15

    jois & Co. v. Katzel, 260 U. S. 689, 692 (1923). This principle has long been enshrined in international law. Under the Paris Convention for the Protection of Industrial Property, July 14, 1967, 21 U. S. T. 1583, T. I. A. S. No. 6923, a “mark duly registered in a country of the Union shall be regarded as independ…

  • #16

    This tension has not been lost on other sovereign nations. The European Commission gravely warns this Court against Page Proof Pending Publication 428 ABITRON AUSTRIA GmbH v. HETRONIC INT'L, INC. Opinion of the Court applying the Lanham Act “to acts of infringement occurring . . . in the European Union” and outs…

  • #17

    between foreign and domestic applications” of these provi- sions. Ante, at 428. The Court has no need to elaborate today upon what it means to “use [a trademark] in com- merce,” § 1127, nor need it discuss how that meaning guides the permissible-domestic-application question in a particular case. I write separate…

  • #18

    “use[d] in commerce” wherever and whenever those goods are in commerce, because as long as they are, the trademark “identif[ies] and distinguish[es] . . . the source of the goods.” § 1127. Such a use is not free-foating; the trademark is being used by the “person” who put that trademark on the goods “to identify …

  • #19

    fxed to them overseas continue “to identify and distinguish” the goods from others in the (now domestic) marketplace and to “indicate the source of the goods.” Ibid. So the German company continues to “use [the mark] in commerce” within the meaning of the Act, thus triggering potential liabil- ity under § 1114(1)…

  • #20

    course of trade” domestically. § 1127. But, in the internet age, one could imagine a mark serving its critical source-identifying function in domestic commerce even absent the domestic physical presence of the items whose source it identifes. See, e. g., 5 J. McCarthy, Trademarks and Unfair Competition § 29:56 (5t…

  • #21

    corporation that marketed watches under the registered U. S. mark “Bulova,” sued Sidney Steele, a U. S. citizen and resident of Texas with a watch business in Mexico City. Id., at 281, 284. Upon discovering that the mark “Bulova” was not registered in Mexico, Steele obtained the Mexican regis- tration of the mark…

  • #22

    2 See, e. g., Trader Joe's Co. v. Hallatt, 835 F. 3d 960, 969 (CA9 2016); McBee v. Delica Co ., 417 F. 3d 107, 111 (CA1 2005); International Cafe, S. A. L. v. Hard Rock Cafe Int'l (U. S. A.), Inc., 252 F. 3d 1274, 1278 (CA11 2001); Aerogroup Int'l, Inc. v. Marlboro Footworks, Ltd., 152 F. 3d 948 (CA Fed. 1998); Ni…

  • #23

    does not “mean literally all commerce occurring abroad”). The Court has also explained “that generic terms like `any' or `every' do not rebut the presumption.” Kiobel v. Royal Page Proof Pending Publication 436 ABITRON AUSTRIA GmbH v. HETRONIC INT'L, INC. Sotomayor, J., concurring in judgment Dutch Petroleum Co …

  • #24

    felt where [the mark owner] resides.” Ibid. The Govern- ment, as amicus curiae supporting neither party, offers a middle ground. In its view, the focus of the statute is con- sumer confusion. See Brief for United States as Amicus Curiae 14 (United States Brief). Accordingly, “[w]here such effects are likely to oc…

  • #25

    United States (in accord with the Government's view here), not the location of the original sale of the infringing product or the location of the trademark owner's business (contrary to petitioners' and respondent's views here). The Court's precedent also supports the view that an ap- plication of a statute can b…

  • #26

    of this new framework, concluding that it is unnecessary to discern the focus of the Lanham Act because “the conduct relevant to any potential focus” that “the parties have prof- fered” must be “use in commerce,” since that is conduct men- tioned in the statute. Id., at 422–423. 3 In other words, under the Court…

  • #27

    States.” Ante, 418–419, 424. In those cases, however, the Court frst concluded (or assumed without deciding) that the focus of the provision at issue was conduct, and only then proceeded to consider whether the relevant conduct occurred domestically. In WesternGeco, for example, the Court con- sidered the extrate…

  • #28

    discern congressional meaning and “preserv[e] a stable back- ground against which Congress can legislate with predictable effects” to protect domestic interests, Morrison, 561 U. S., at 261, including those of U. S. trademark owners and consumers. 4 Relying on RJR Nabisco, Inc. v. European Community, 579 U. S. 325…

  • #29

    it turns to abstract policy considerations. According to the majority, the focus of the Lanham Act cannot center on con- sumer confusion, despite Steele and the statute's clear tex- tual clues, because any focus other than conduct is too uncer- tain and “would create headaches for lower courts.” Ante, at 425. The…

  • #30

    does not “mean literally all commerce occurring abroad,” but it includes “commerce directly involving the United States,” including “commerce between the United States and a for- eign country”). 6 Plaintiffs must also generally show, for ex- ample, that their “injuries are proximately caused by viola- tions of t…

  • #31

    sumer confusion”). In other words, applying the Lanham Act to domestic consumer confusion promotes the benefts of U. S. trademark rights in the territory of the United States. The Court's approach, by contrast, would absolve from lia- bility those defendants who sell infringing products abroad that reach the Unit…

  • #32

    thereby avoiding legal authority”). To be sure, the Court today does not address whether a defendant operating abroad who sells goods that reach the United States can be held liable under the Lanham Act pursuant to contributory liability principles. See Tr. of Oral Arg. 7–8, 20–21. Still, today's decision signifca…

  • #33

    United States and can prove all elements necessary to es- tablish liability under the Act. 15 U. S. C. §§ 1114(1)(a), 1125(a)(1)(A). Because the courts below did not apply that test, I agree vacatur and remand is required. The Court's opinion, however, instructs the court on remand to apply a test that is not sup…