Federal Circuit Ruling: False Patent Claims Can Lead to Lanham Act Violations

In a recent Federal Circuit decision, Crocs, Inc. v. Effervescent, Inc., 2024 U.S.P.Q.2d 1757 (Fed. Cir. 2024), the court held that falsely claiming a product or product feature is patented can create a claim for false advertising under the Lanham Act.

In Crocs, the court reversed and remanded the United States District Court for the District of Colorado’s ruling that found Defendant Dawgs’ counterclaim for false advertising under Section 43(a)(1)(B) of the Lanham Act failed as a matter of law.

According to Dawgs, Crocs’ website falsely described Croslite, the primary material Crocs uses to make its footwear products, as “patented,” “proprietary,” and “exclusive.” Dawgs alleged it was damaged by these false advertisements because Crocs’ misrepresentations regarding the patented status of Croslite had a direct impact on consumers’ perceptions of the nature, characteristics, and qualities of the products.

The Federal Circuit agreed with Dawgs and found that Dawgs’ contentions raised valid concerns under Section 43(a)(1)(B) of the Lanham Act. The Federal Circuit emphasized that false claims related to product characteristics, such as patent status, could constitute actionable misleading advertising under the Lanham Act.

Conclusion: Businesses should be cautious in making claims about the patented status of their products that could potentially mislead consumers to avoid Lanham Act violations.