Law.com Subscribers SAVE 30%

Call 855-808-4530 or email GroupSales@alm.com to receive your discount on a new subscription.

Supreme Court Rules on Standing In False Advertising Cases

By Tiffany R. Brown
May 02, 2014

Until the Supreme Court's recent decision in Lexmark International v. Static Control Components, Inc., 134 S.Ct. 1377, 2014 WL 1168967 (2014), courts were divided regarding the proper test to determine whether a plaintiff has standing to bring a false advertising claim under 15 U.S.C. '1125(a). Three separate approaches were previously applied among the circuits, the narrowest of which permitted only actual competitors to bring claims of false advertising, an approach that would have automatically barred Static Control from bringing a false advertising claim in this case, regardless of Lexmark's allegedly wrongful actions. The Supreme Court resolved the circuit split by rejecting the previously applied standards, and created a new, uniform “zone of interests” test for determining standing in false advertising cases brought under the Lanham Act.

In Lexmark, the Supreme Court granted certiorari to decide “the appropriate analytical framework for determining a party's standing to maintain an action for false advertisement under the Lanham Act.” The Supreme Court affirmed the Sixth Circuit's reversal of a district court's dismissal of Static Control's false advertising claim under the Lanham Act. In affirming the Sixth Circuit, the Supreme Court concluded that Static Control was within the class of plaintiffs authorized to sue under '1125(a) because: 1) its alleged injuries ' lost sales and damage to business reputation ' are the exact injuries and the sorts of commercial interests that the Lanham Act is designed to protect; and 2) Static Control adequately pleaded both that it had a commercial injury covered by the Act, and that such injury was proximately caused by Lexmark's misrepresentations.

Lexmark's Actions And the Parties' Relationship

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at customercare@alm.com or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Removing Restrictive Covenants In New York Image

In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?

Fresh Filings Image

Notable recent court filings in entertainment law.