Does the Lanham Act Apply in Other Countries?
The Lanham Act Internationally
The U.S. Supreme Court is poised to decide a significant trademark law question: whether and to what extent the Lanham Act applies to infringing conduct that occurs outside the United States. The outcome of Abitron Austria GmbH v. Hetronic International, Inc. could reshape how trademark owners pursue damages in cases involving global commerce.
The Dispute Behind Abitron v. Hetronic — Hetronic, a U.S.-based manufacturer, accused its former European distributor, Abitron, of reverse engineering its products and selling counterfeit goods under Hetronic’s trademarks after their licensing relationship ended. Although much of the alleged conduct occurred abroad, some infringing products reached U.S. consumers, leading a jury to award Hetronic more than $90 million in damages.
Extraterritorial Reach of the Lanham Act — On appeal, Abitron argued that the Lanham Act was not intended to apply to foreign conduct and that damages should be limited to sales occurring within the United States. The case centers on whether the statute satisfies the Supreme Court’s two-step test for extraterritorial application and whether domestic trademark law can reach foreign sales that affect U.S. commerce.
Why the Decision Matters — With global supply chains and cross-border commerce increasingly intertwined, the Court’s ruling could significantly impact trademark enforcement strategies and damage calculations. Depending on the outcome, trademark owners may face new limits, or gain expanded leverage, when pursuing infringement claims involving foreign defendants and overseas conduct.
For more information, see our blog post Does the Lanham Act Apply to Foreign Misconduct?
Klemchuk PLLC is a leading IP law firm based in Dallas, Texas, focusing on litigation, anti-counterfeiting, trademarks, patents, and business law. Our experienced attorneys assist clients in safeguarding innovation and expanding market share through strategic investments in intellectual property.
This article is provided for informational purposes only and does not constitute legal advice. For guidance on specific legal matters under federal, state, or local laws, please consult with our IP Lawyers.
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