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Supreme Court Decisions

Controversial Issues on the Docket

Copyright Law

In Costco Wholesale Corp. v. Omega, S.A., No. 08-1423, the Court will examine the applicability of the “first sale doctrine” of the Copyright Act to imported goods. Under the “first sale doctrine” of Section 109(a) of the Copyright Act, a purchaser of certain copyrighted material may transfer goods without obtaining permission of the original copyright holder. Costco purchased Swiss-made Omega watches from foreign distributors, and then resold these goods at a below-market price in the United States. Omega claimed that its watches, which have a small copyrighted logo, are protected by Section 602(a) of the Copyright Act, which bans importation of copyrighted works without the owner’s permission. The Court’s decision could have far reaching effects on secondary markets of copyrighted goods, such as eBay and Amazon.

Editor's note: Of all the cases before the court this is one in MHO is total bull.  The mere sale of the watches in the instant matter by Omega to a distributor was on its face consent for the distributor to sell the goods for after all that is what a distributor does.  There was an implied warrant by Omega - Fitness for particular purpose. — Where the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment to select or furnish suitable goods,  an implied warranty that the goods shall be fit for such purpose. In this matter goods for resale in a foreign market.




 
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