Additional Intellectual Property Features
eAlert - Supreme Court Rules that a Non-Competitor has Standing to Assert False Advertising Claims
On March 25, the U.S. Supreme Court held that a company has standing to assert a false advertising claim against a non-competitor under the federal Lanham Act if it can "show economic or reputational injury flowing directly from the deception wrought by the defendant's advertising." In determining whether an interest is within a "zone of interest," a plaintiff "must allege an injury to a commercial interest in reputation or sales." The court noted that such occurs when "deception of consumers causes them to withhold trade from the plaintiff" (Lexmark Int'l, Inc. v. Static Control Components, Inc., U.S., No. 12-873, 3/25/14). In doing so, the court closed a significant split among various circuit courts by declining to adopt any of the existing alternate approaches.