Bayer AG (defendant) was a German company that held the rights to the mark “Bayer” for pharmaceutical products in Germany and for the majority of the rest of the world. The rights to the mark in the United States were owned by Sterling Drug (plaintiff). Sterling sued Bayer in the United States, alleging that Bayer had infringed on its rights to the mark and had violated the agreement governing those rights. The district court held that Bayer had violated Sterling’s trademark and contract rights and enjoined Bayer from using the mark in the United States, and abroad in any way that might make its way to American consumers. Bayer appealed, arguing that the injunction’s extraterritorial application interfered with its rights under foreign laws.