Sterling Drug, Inc. v. Bayer AG
United States Court of Appeals for the Second Circuit
14 F.3d 733 (1994)
Bayer AG (defendant), a German company, held the "Bayer" pharmaceutical trademark across most of the world, while Sterling Drug (plaintiff) held the U.S. rights to the mark under an agreement between the companies. Sterling sued Bayer in the United States, alleging Bayer had infringed Sterling's U.S. trademark and contract rights. The district court agreed, enjoining Bayer not just domestically but also from using the mark abroad in ways that might reach American consumers. Bayer appealed, arguing the extraterritorial reach of the injunction improperly interfered with its rights under foreign law.
Whether federal courts may apply the Lanham Act's protections extraterritorially against a foreign trademark holder to prevent infringement that reaches American consumers.