The Supreme Court recently ruled in Abitron Austria GmbH v. Hetronic International, Inc. that Lanham Act (Act) remedies for trademark infringement do not extend to infringing conduct that takes place outside the United States, regardless of whether the activity creates a likelihood of confusion within the United States — and in the process vacated $96 million of a $115 million jury verdict in favor of Hetronic.

Hetronic is a United States manufacturer that builds radio remote controls for construction equipment. Abitron was originally one of Hetronic’s licensed distributors abroad. But it reverse-engineered Hetronic’s products and started selling them in Europe — still under Hetronic’s trademark. Hetronic sued under the Act’s sections 1114(1)(a) and 1125(a)(1), both of which prohibit using a mark in commerce in a way that is likely to cause confusion.