After hearing arguments in December 2013, the Supreme Court has decided a three-way split amongst the United States Courts of Appeal regarding the appropriate test for prudential standing in Lanham Act false advertising claims, affirming a decision from the Sixth Circuit, Lexmark International, Inc. v. Static Control Components, Inc. The case involved a false advertising suit brought against Lexmark by a non-direct competitor. Lexmark created a microchip to be included in all of its printer toner cartridges; without this chip, the printer will reject the cartridge. Static Control created a Lexmark-compatible chip and sold its chip to Lexmark competitors (remanufacturers of toner cartridges). Lexmark responded by directing advertisements to Static Control’s customers, claiming that use of Static Control’s replica chip was illegal. This prompted Static Control to bring a false advertising claim against Lexmark.
