Ortho-Tain, Inc. v. Colorado Vivos Therapeutics, Inc., 2024 WL 3925408, No. 20 C 4301 (N.D. Ill. Aug. 23, 2024)
Ortho-Tain sued defendants (including a bunch of former
employees); I’ll focus only on the Lanham Act claims alleging that they falsely
took credit for favorable results achieved by Ortho-Tain’s orthodontic
appliance products used to treat various conditions such as sleep disordered
breathing. Basically, dentists working as paid presenters showcased case
studies of several pediatric patients who had achieved favorable results using
Ortho-Tain’s orthodontic appliances. Defendant Vivos sponsored similar
presentations, as well as a “parent webinar,” using the same exact case studies.
The slides displayed the name “Vivos” and the presenters attributed the
favorable results to Vivos’ products, not Ortho-Tain.
This could not be brought as a §43(a)(1)(A) claim because of
Dastar. There was neither forward nor reverse passing off of the devices
themselves, only of the results: “the connection between the favorable results
and appliances is an intangible idea or concept.” It wasn’t about the source of
the tangible good sold in the marketplace.
But (a)(1)(B) also exists! The presentations were plausibly “commercial
advertising or promotion” even if described as “seminars” and “continuing
education courses.” The Seventh Circuit has said that face to face
communication isn’t “commercial advertising or promotion” [though query whether
that makes any sense if there’s a repeated script]. It sufficed at the pleading
stage for Ortho-Tain to allege that the Vivos “course” was presented via online
broadcast and live to in-person attendees on at least 26 occasions; another
event was a multi-date online recorded presentation that thousands of medical
professionals registered for; and the parent webinar was made available online.
And Ortho-Tain plausibly alleged falsity, or at least
misleadingness. “If not explicit, the clear inference to be drawn by attendees
was that the case studies showed results achieved by Vivos’ products.” In
addition, and more controversially, Vivos statements about creating
“revolutionary technology” and the “first-ever hope for a lasting solution to
the problem of sleep apnea” were not “mere puffery.” “In the context of a
scientific field made of up highly educated individuals, it is reasonable to
infer at the pleading stage that ‘revolutionary’ and ‘first-ever’ carry
specific meanings as to the novel nature or method of the appliance being
described.”
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