Tuesday, March 19, 2013

Supreme Court on the "first sale" doctrine and copyrighted works lawfully made abroad

Kirtsaeng v. John Wiley & Sons, Inc., No. 11–697, here.

The questions:
"Putting section numbers to the side, we ask whether
the “first sale” doctrine applies to protect a buyer or other
lawful owner of a copy (of a copyrighted work) lawfully
manufactured abroad. Can that buyer bring that copy
into the United States (and sell it or give it away) without
obtaining permission to do so from the copyright owner?
Can, for example, someone who purchases, say at a used
bookstore, a book printed abroad subsequently resell it
without the copyright owner’s permission?", p. 6.

The answer:
"In our view, the answers to these questions are, yes. We
hold that the “first sale” doctrine applies to copies of a
copyrighted work lawfully made abroad."

Some competition scholar's highlights:

"The “first sale” doctrine is a common-law doctrine with
an impeccable historic pedigree", p. 18.
"American law too has generally thought that com­petition, including freedom to resell, can work to the ad­vantage of the consumer", p. 19.
"the Constitution’s language
nowhere suggests that its limited exclusive right should
include a right to divide markets or a concomitant right
to charge different purchasers different prices for the same
book, say to increase or to maximize gain...(T)o the contrary, Congress enacted a copyright law that
(through the “first sale” doctrine) limits copyright holders’
ability to divide domestic markets. And that limitation is
consistent with antitrust laws that ordinarily forbid mar­ket divisions.", p. 32.