High Court Says Static Can Sue Lexmark For False Ads

Law360, New York (March 25, 2014, 3:05 PM EDT) -- The U.S. Supreme Court ruled Tuesday that Static Control Components Inc. had the right to sue Lexmark International Inc. for disparaging the company's microchips, rejecting several different tests circuit courts have used for standing under the Lanham Act's false advertising provisions.

In a unanimous ruling penned by Justice Antonin Scalia, the court said Static could sue Lexmark for telling customers that Static's chips — which are used by third-party companies to enable empty Lexmark printer cartridges to be refilled and resold — were illegal.

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