Knowledge (XXG)

Abitron Austria GmbH v. Hetronic International, Inc.

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319:. In their complaint, International alleged that Abitron's sale of radio controls violated International's U.S. registered trademarks, unregistered trademarks, and trade dress. Of Abitron's roughly $ 90 million "worldwide" sales, about $ 88 million (97%) were "purely foreign" – that is, sales of goods in foreign countries by foreign vendors to foreign buyers to be used in foreign countries. International also accused Abitron of $ 2 million in sales of products that "could have ended up in" the U.S. For example, this included sales to foreign buyers who used the radio controls in cranes that may have later reached the United States. Lastly, International accused Abitron of roughly $ 240 thousand of sales to U.S. customers, though the majority of those sales were to either International or one of its affiliates. 31: 290:, after which reorganized as respondent, Hedtronic International, Inc. This sale did not include the German company Hedtronic Steuersysteme, which had since been renamed Hedtronic Deutschland. Heckl sold Hedtronic Deutschland to Hedtronic Germany in 2010. Hetronic Germany was owned by Albert Fuchs and HydronicSteuersysteme GmbH, an Austrian company later renamed Hetronic Central Eastern Europe (HCEE). 363:
first step of the test, the court considered whether the defendants were U.S. citizens. If so, then the Lanham Act applies extrateritorially without further inquiry. If not, then the court proceeds to the second step of the test, which asks whether " the defendant’s conduct had a substantial effect on U.S. commerce.”
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barred Abitron from introducing evidence that their "purely foreign" sales caused no consumer confusion among U.S. buyers. When a witness for respondents testified to domestic consumer confusion, petitioners were prevented from cross-examining this witness from clarifying that these examples involved
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Hetronic Germany and HCEE later reorganized as petitioners, Abitron Germany and Abitron Austria. Petitioners informed customers of the reorganization and new name – and their dissociation with other “Hetronic locations” like respondent – in letters sent on stationary containing “Hetronic Germany” and
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In the 1980s, German engineer Max Heckl founded Hetronic Steuersysteme GmbH. (HS), a German company. In 2000, Heckl would go on to form Hedtronic International, Inc. (HII), a U.S. company. HS and HII entered into an agreement that provided, among other things, that HS (and its two co-developers) were
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implied some extraterritorial applications of the Lanham Act, but that many relevant details were still unclear. Other Courts of Appeals had developed tests for determining when the Act should apply extraterritorially, but instead developed its own two-step test for the purposes of this case. At the
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A jury awarded International roughly $ 90 million for violations of the Lanham Act, an amount equal to what International asserted Abitron's profits amounted to. This was despite the fact that a vast majority of these profits occurred outside the United States, and a great majority of the involved
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Hetronic Germany and Hydronic-Steuersysteme licensed the “Hetronic” name from respondent (the reorganized Hectronic International, Inc.) and acted as its distributors. By this point, Fuchs was still unaware of the research and development agreement stating that Hetronic Steuersysteme (and its
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At step one, the court concluded that petitioners were not U.S. citizens. At step two, however, the court concluded that petitioner's acts had a “substantial effect on U.S. commerce”, and that the Lanham Act should thus apply extraterritorially. Moreover, it held that the Act applied
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Understanding themselves to be in possession of the relevant trademarks, Abitron began competing against respondent (International). Abitron considered vying for the U.S. market, but the vast majority of Abitron's business remained in Germany and Austria.
358: (1952), which stated that the Lanham Act applied to conduct “consummated in a foreign country by a citizen and resident of the United States,” where the U.S. defendant took “essential steps” “in the United States.” The Tenth Circuit held that 391:. Oral arguments were held on March 21, 2023. On June 29, 2023, the Supreme Court vacated the Tenth Circuit's judgment and remanded for further proceedings in a unanimous decision that fractured 5–4 on the reasoning. 133:
Whether the court of appeals erred in applying the Lanham Act extraterritorially to petitioners' foreign sales, including purely foreign sales that never reached the United States or confused U.S. consumers.
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Applying the presumption against extraterritoriality, §1114(1)(a) and §1125(a)(1) of the Lanham Act are not extraterritorial and extend only to claims where the infringing use in commerce is domestic.
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successor, Hetronic Germany) owned the intellectual property rights for the distributed products, as distinct from the "Hedtronic" trademark. Respondent later terminated this agreement.
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of Abitron's foreign conduct. The Tenth Circuit did, however, restrict the injunction to only “countries in which currently markets or sells its products.”
561: 571: 576: 283:“sole owner” of “all” intellectual property developed by any party, including “designs, product descriptions, trade marks, trade names.” 331:
products never reached the United States. The District Court enjoined Abitron from using International's marks anywhere in the world.
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affirmed in part. It decided not to limit the damages or the injunction to Abitron's solely U.S. sales. The court rested heavily on
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Petitioners sough summary judgment on the grounds that the Lanham Act did not apply extraterritorially to foreign sales. The
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Abitron petitioned the Supreme Court to hear its case on January 21, 2022. On November 4, 2022, the Court granted
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In 2006, HS sold the "Hetronic" mark to HII. In 2008, Heckl would sell HII to the U.S. electronics company
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of petitioners’ foreign sales, based on the 3% that may have reached the U.S. The Court suggested that if
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foreign conduct confused U.S. consumers, then the Act should apply to
274:. The Court decided whether or not the Act applies to foreign sales. 324:
United States District Court for the Western District of Oklahoma
421:"Justices to consider international reach of U.S. trademark law" 30: 401:
List of United States Supreme Court cases by the Roberts Court
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Hetronic International, Inc. v. Hetronic Germany GmbH, et al.
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Hetronic International, Inc. v. Hetronic Germany GmbH, et al.
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Abitron Austria GmbH, et al. v. Hetronic International, Inc.
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Sotomayor (in judgment), joined by Roberts, Kagan, Barrett
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United States Supreme Court cases of the Roberts Court
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Abitron Austria GmbH v. Hetronic International, Inc.
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United States Court of Appeals for the Tenth Circuit
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Abitron Austria GmbH v. Hetronic International, Inc.
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Alito, joined by Thomas, Gorsuch, Kavanaugh, Jackson
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Abitron Austria GmbH v. Hetronic International, Inc.
247: 239: 231: 223: 218: 147: 137: 127: 112: 107: 97: 87: 69: 59: 49: 42: 23: 8: 298:“Hetronic Central Eastern Europe” marks. 20: 412: 480:"Hetronic Int'l v. Hetronic Ger. Gmbh" 119:, No. CIV-14-650-F (W.D. Okla. 2020), 315:International sued Abitron under the 18:2023 United States Supreme Court case 7: 36:Supreme Court of the United States 14: 562:United States Supreme Court cases 512:___ (2023) is available from: 270:case regarding provisions of the 572:United States trademark case law 439:"Hetronic Int'l v. Hetronic Ger" 123:, 10 F.4th 1016 (10th Cir. 2021) 29: 577:2023 in United States case law 1: 266:, 600 U.S. 412 (2023), was a 544:Supreme Court (slip opinion) 268:United States Supreme Court 593: 535:Oyez (oral argument audio) 456:Steele v. Bulova Watch Co. 345:Steele v. Bulova Watch Co. 252: 152: 142: 132: 28: 367:extraterritorially to 306:Lower Court Decisions 211:Ketanji Brown Jackson 45:Decided June 29, 2023 43:Argued March 21, 2023 102:Opinion announcement 98:Opinion announcement 445:. October 29, 2021. 288:Methode Electronics 128:Questions presented 486:. August 21, 2021. 163:Associate Justices 427:. March 20, 2023. 327:non-U.S. buyers. 259: 258: 203:Amy Coney Barrett 584: 548: 542: 539: 533: 530: 524: 521: 515: 488: 487: 476: 470: 453: 447: 446: 435: 429: 428: 417: 335:Court of Appeals 148:Court membership 33: 32: 21: 592: 591: 587: 586: 585: 583: 582: 581: 552: 551: 546: 540: 537: 531: 528: 522: 519: 513: 497: 492: 491: 478: 477: 473: 454: 450: 437: 436: 432: 419: 418: 414: 409: 397: 385: 337: 313: 308: 280: 201: 199:Brett Kavanaugh 189: 179:Sonia Sotomayor 177: 167:Clarence Thomas 44: 38: 19: 12: 11: 5: 590: 588: 580: 579: 574: 569: 564: 554: 553: 550: 549: 517:Google Scholar 496: 495:External links 493: 490: 489: 471: 448: 430: 411: 410: 408: 405: 404: 403: 396: 393: 384: 381: 336: 333: 312: 311:District Court 309: 307: 304: 279: 276: 257: 256: 250: 249: 245: 244: 241: 237: 236: 233: 229: 228: 225: 221: 220: 216: 215: 214: 213: 164: 161: 156: 150: 149: 145: 144: 140: 139: 135: 134: 130: 129: 125: 124: 114: 110: 109: 105: 104: 99: 95: 94: 89: 85: 84: 71: 67: 66: 61: 57: 56: 51: 50:Full case name 47: 46: 40: 39: 34: 26: 25: 17: 13: 10: 9: 6: 4: 3: 2: 589: 578: 575: 573: 570: 568: 565: 563: 560: 559: 557: 545: 536: 527: 518: 511: 507: 503: 499: 498: 494: 485: 481: 475: 472: 468: 465: 461: 457: 452: 449: 444: 440: 434: 431: 426: 422: 416: 413: 406: 402: 399: 398: 394: 392: 390: 383:Supreme Court 382: 380: 378: 374: 370: 364: 361: 357: 354: 350: 346: 342: 334: 332: 328: 325: 320: 318: 310: 305: 303: 299: 295: 291: 289: 284: 277: 275: 273: 269: 265: 264: 255: 251: 246: 242: 238: 234: 230: 226: 222: 219:Case opinions 217: 212: 208: 204: 200: 196: 192: 188: 184: 180: 176: 172: 168: 165: 162: 160: 157: 155:Chief Justice 154: 153: 151: 146: 141: 136: 131: 126: 122: 118: 115: 111: 106: 103: 100: 96: 93: 92:Oral argument 90: 86: 82: 81: 76: 72: 68: 65: 62: 58: 55: 52: 48: 41: 37: 27: 22: 16: 501: 483: 474: 469: (1952). 455: 451: 442: 433: 424: 415: 388: 386: 376: 372: 368: 365: 359: 344: 338: 329: 321: 314: 300: 296: 292: 285: 281: 262: 261: 260: 248:Laws applied 206: 194: 191:Neil Gorsuch 182: 175:Samuel Alito 170: 159:John Roberts 120: 116: 108:Case history 78: 53: 15: 240:Concurrence 232:Concurrence 187:Elena Kagan 556:Categories 425:SCOTUSblog 407:References 389:certiorari 317:Lanham Act 278:Background 272:Lanham Act 254:Lanham Act 60:Docket no. 70:Citations 500:Text of 484:casetext 443:casetext 395:See also 224:Majority 88:Argument 235:Jackson 138:Holding 64:21-1043 547:  541:  538:  532:  529:  526:Justia 523:  520:  514:  458:, 209: 207:· 205:  197: 195:· 193:  185: 183:· 181:  173: 171:· 169:  508: 462: 360:Steel 351: 113:Prior 77:412 ( 510:U.S. 464:U.S. 353:U.S. 339:The 80:more 75:U.S. 73:600 506:600 467:280 460:344 377:all 373:any 369:all 356:280 349:344 558:: 504:, 482:. 441:. 423:. 347:, 83:)

Index

Supreme Court of the United States
21-1043
U.S.
more
Oral argument
Opinion announcement
John Roberts
Clarence Thomas
Samuel Alito
Sonia Sotomayor
Elena Kagan
Neil Gorsuch
Brett Kavanaugh
Amy Coney Barrett
Ketanji Brown Jackson
Lanham Act
United States Supreme Court
Lanham Act
Methode Electronics
Lanham Act
United States District Court for the Western District of Oklahoma
United States Court of Appeals for the Tenth Circuit
344
U.S.
280
List of United States Supreme Court cases by the Roberts Court
"Justices to consider international reach of U.S. trademark law"
"Hetronic Int'l v. Hetronic Ger"
344
U.S.

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