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Keywords

lawsuitlitigationattorneymotionpatenttrademark
lawsuitlitigationattorneymotionpatenttrademark

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Merck Eprova AG v. ProThera, Inc., 670 F.Supp.2d 201

Facts

Merck KGaA and its affiliate alleged that ProThera mislabeled a nutritional supplement, constituting false advertising and trademark infringement under various sections of the Lanham Act and New York law. Merck had previously licensed the Metafolin trademark to ProThera but terminated the license in 2006. Despite this, ProThera continued to use the Metafolin marks, prompting Merck to file the lawsuit in January 2008. Merck moved to disqualify ProThera's counsel, Frommer Lawrence & Haug LLP, due to their simultaneous representation of both parties in a related patent matter.

Merck KGaA and its affiliate alleged that ProThera mislabeled a nutritional supplement, constituting false advertising and trademark infringement under various sections of the Lanham Act and New York law. Merck had previously licensed the Metafolin trademark to ProThera but terminated the license in 2006. Despite this, ProThera continued to use the Metafolin marks, prompting Merck to file the lawsuit in January 2008. Merck moved to disqualify ProThera's counsel, Frommer Lawrence & Haug LLP, due to their simultaneous representation of both parties in a related patent matter.

Issue

Whether the law firm representing ProThera should be disqualified due to a conflict of interest arising from its simultaneous representation of Merck in a related patent prosecution.

Whether the law firm representing ProThera should be disqualified due to a conflict of interest arising from its simultaneous representation of Merck in a related patent prosecution.

Rule

The court applied the per se disqualification rule, which states that an attorney must be disqualified if they represent clients with directly adverse interests unless they can demonstrate no actual or apparent conflict in loyalties.

The court applied the per se disqualification rule, which states that an attorney must be disqualified if they represent clients with directly adverse interests unless they can demonstrate no actual or apparent conflict in loyalties.

Analysis

The court determined that Merck and Bayer were joint clients of the law firm, which established a conflict of interest when the firm also represented ProThera. The close relationship between the subject matter of the patent applications and the current litigation further supported the need for disqualification, as the firm could not adequately represent both clients without compromising the integrity of the legal process.

The court determined that Merck and Bayer were joint clients of the law firm, which established a conflict of interest when the firm also represented ProThera. The close relationship between the subject matter of the patent applications and the current litigation further supported the need for disqualification, as the firm could not adequately represent both clients without compromising the integrity of the legal process.

Conclusion

The court granted Merck's motion to disqualify ProThera's counsel, concluding that the simultaneous representation created an irreconcilable conflict of interest.

The court granted Merck's motion to disqualify ProThera's counsel, concluding that the simultaneous representation created an irreconcilable conflict of interest.

Who won?

Merck KGaA prevailed in the motion to disqualify ProThera's counsel because the court found that the law firm's simultaneous representation of both parties created a conflict of interest that warranted disqualification.

Merck KGaA prevailed in the motion to disqualify ProThera's counsel because the court found that the law firm's simultaneous representation of both parties created a conflict of interest that warranted disqualification.

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