Posts Tagged: "extraterritoriality"

Federal Circuit Clarifies WesternGeco Approach to Foreign Damages

In a lengthy, precedential opinion authored by Judge Taranto, the U.S. Court of Appeals for the Federal Circuit (CAFC) on Wednesday, March 27, affirmed a district court’s decision invalidating the claims of two of Trading Technologies’ (TT’s) patents as being patent ineligible under Section 101 and also clarified the application of a 2018 Supreme Court ruling on foreign damages. Harris Brumfield, as Trustee for Ascent Trust, is the successor to TT, which sued IBG LLC in 2010 for infringement of four patents: U.S. Patent Nos. 6,766,304; 6,772,132; 7,676,411; and 7,813,996. All of the patents’ specifications describe “assertedly improved graphical user interfaces for commodity trading and methods for placing trade orders using those interfaces.”

Recapping Abitron at the High Court: The Long Arm of the…Lanham Act?

Can the Lanham Act apply to the conduct of foreign entities occurring entirely outside the United States and, if so, what is the test? The Supreme Court will soon decide this issue in Abitron v. Hetronic, potentially resolving a long-standing circuit split where six different tests presently co-exist. It will mark the first time since the Court’s 1952 ruling in Steele v. Bulova Watch Co. that it has spoken on extraterritoriality as it relates to the Lanham Act. Steele found that the Lanham Act does apply to a U.S. citizen using a registered U.S. trademark on spurious Bulova watches, many of which were bought by U.S. citizens in Mexico and brought back to the United States. Steele did not address whether the defendant’s U.S. citizenship, or his sourcing of parts from U.S. suppliers, were necessary conditions to subject matter jurisdiction. Enter Hetronic.

Justices Seek Abitron Parties’ Help in Articulating Bounds of Extraterritorial Application of Lanham Act

The U.S. Supreme Court today heard oral arguments in Abitron Austria GmbH v. Hetronic International, Inc., which asks the Court to consider whether the U.S. Court of Appeals for the Tenth Circuit erred in applying the Lanham Act extraterritorially to Abitron’s foreign sales, “including purely foreign sales that never reached the United States or confused U.S. consumers.” The Justices struggled with the appropriate reach of the Lanham Act and whether reversing the Tenth Circuit would require overruling Steele v. Bulova Watch Co., 344 U.S. 280, 282-285 (1952), but overall seemed to be considering the need for a new or narrowed test to account for the realities of modern commerce.

Extraterritorial Application of the Computer Fraud and Abuse Act

Intangible assets today make up nearly 84% of enterprise value for companies listed on the S&P 500. This material growth in intellectual property as an asset on U.S. company balance sheets has placed increased demands on the office of General Counsel. Protecting intangible assets against computer theft and pursuing litigation against wrongdoers has become a major and timely concern, especially in the context of an increasingly virtual world due to the global pandemic. A recent brazen and sophisticated computer intrusion into the records of over 145 million Americans launched from computer hackers based in China led to criminal prosecutions under the Computer Fraud and Abuse Act (CFAA).

Supreme Court Holds Patent Owners May Recover Lost Profits for Infringement Abroad

In WesternGeco LLC v. ION Geophysical Corp., the U.S. Supreme Court held that patent owners may recover lost foreign profits under §271(f)(2) when the infringing party exports parts from the United States for assembly in foreign countries, so long as the relevant infringing conduct occurred in the United States.