In the 1910 case of American Land Company v. Zeiss, the U.S Supreme Court ruled in favor of Zeiss, a German corporation that manufactured optical instruments. The dispute arose when American Land Company (ALC), an Illinois-based company, registered "Zeiss" as its trademark and began selling spectacles under this name. When Carl Zeiss Stiftung (the original German company) sought to enter the US market, ALC sued them for trademark infringement. The court held that although ALC had registered "Zeiss" first in America, it was not entitled to exclusive use because it had knowingly appropriated a foreign firm's established trade name with intent to deceive consumers into thinking they were buying genuine Zeiss products. The court found such conduct amounted to fraud which could not be protected by law. Therefore, despite being later registrants in America, Carl Zeiss Stiftung retained their right over the brand name due to their prior international reputation and goodwill associated with it.

In the dissenting opinion for American Land Company v. Zeiss, it was argued that the majority's decision to uphold a lower court ruling denying an injunction against false advertising was incorrect. The dissenting justices believed that the defendant had knowingly and intentionally misled potential customers with fraudulent claims about their product, which they felt should be punishable by law regardless of whether or not actual harm could be proven. They also disagreed with the majority's interpretation of "unfair competition," arguing that this case did indeed constitute such behavior because it involved deception and misrepresentation intended to lure away customers from competitors. Furthermore, they contended that allowing such practices would undermine public trust in business transactions and create an environment where dishonesty is rewarded over honesty and integrity.