Wednesday, May 5, 2010

Are foreign first sales "First Sales" under Copyright Law?

An interesting article about the case between Costco and Omega watches regarding the sale of watches featuring the Omega logo, manufactured in Switzerland, and sold by Costco in the U.S.:
http://www.theiplawblawg.com/archives/151235-print.html.

Many of us may have recently heard about this case, particulary if you heard Professor Gomulkiewicz's interview on NPR a few weeks back. It raises interesting questions about the first sale doctrine and the issue of parallel imports. Though I believe that the 9th Circuit decision is correct (even though I am as big a fan of Costco as the next person), I also think the results of this case create a problem for the future because I manufacturers may simply circumvent the problem by making sure that all their manufacturing is done abroad so as to ensure that its first sale is always made to a foreign manufacturer.

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