7
Mar/08

Lanham Act Applied To Statements Made In Brazil


North American sub of Software AG enters into contract with US corporation and its Brazilian agent to provide support in Brazil for Software AG’s Brazilian customers. There was a dispute and the contract was terminated, leaving the Brazilian agent exposed in its support commitments. The Brazilian agent then made statements in Brazil to its customers that were allegedly false (essentially implying that it had Software AG’s continuing resources and support, when that was no longer the case).
The Southern District of NY applied the Vanity Fair three part test to exercise jurisdiction over the statements: (1) US citizenship of defendant (the Brazilian agent’s parent); (2) no conflict with foreign law (Brazil bars false statements as well); and (3) effect on US commerce (Software AG’s American sub was injured by the false statements).
Software AG, Inc. et al v. Consist Software Solutions, Inc. et al, 1:08-cv-00389-CM (SDNY Feb 21, 2008).
Comprehensive discussion by 43(B)log here.

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