Federal Circuit Revives Dawgs' Lanham Act Claim Against Crocs Over False Patented Croslite Material Ads

The U.S. Court of Appeals for the Federal Circuit has revived Dawgs Footwear's false advertising claim under Section 43(a)(1)(B) of the Lanham Act against Crocs, Inc. Crocs had initially sued Dawgs for patent infringement, and Dawgs counterclaimed, alleging that Crocs misled consumers by falsely advertising that its Croslite shoe material was patented when it was not. The District Court had granted summary judgment to Crocs, referencing the Supreme Court's decision in Dastar Corp. v. Twentieth Century Fox Film Corp. (2003) and the Federal Circuit's own precedent in Baden Sports, Inc. v. Molten Corp. (2009), holding that there was no Lanham Act violation. However, the Federal Circuit reversed this decision on October 3, stating that Crocs' false statement about its patented material linked to the tangible characteristics and qualities of its products, potentially misleading consumers in violation of the Lanham Act.