Abitron Austria GmbH v. Hetronic International, Inc., 600 U.S. 412 (2023), was a United States Supreme Court case regarding provisions of the Lanham Act.
By this point, Fuchs was still unaware of the research and development agreement stating that Hetronic Steuersysteme (and its successor, Hetronic Germany) owned the intellectual property rights for the distributed products, as distinct from the "Hedtronic" trademark.
Understanding themselves to be in possession of the relevant trademarks, Abitron began competing against respondent (International).
[2] Petitioners sough summary judgment on the grounds that the Lanham Act did not apply extraterritorially to foreign sales.
The court rested heavily on Steele v. Bulova Watch Co., 344 U.S. 280 (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.”[3] The Tenth Circuit held that Steel implied some extraterritorial applications of the Lanham Act, but that many relevant details were still unclear.
Moreover, it held that the Act applied extraterritorially to all of petitioners’ foreign sales, based on the 3% that may have reached the U.S.
The Tenth Circuit did, however, restrict the injunction to only “countries in which [International] currently markets or sells its products.” Abitron petitioned the Supreme Court to hear its case on January 21, 2022.
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.