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Supreme Court To Consider First Sale of Imports

Animaether passes along a legal tale that "doesn't involve the kind of cutting-edge issues that copyright lawyers usually grapple with in the digital age [and] sounds like the kind of lawsuit that should have been resolved 200 years ago," yet still "is very much a product of the Internet-driven global economy." "Can copyright owners assert rights over imported goods that have already been sold once? That is the issue before the Supreme Court in Costco Wholesale Corp v. Omega, S.A. (backstory here). What's at stake is the ability of resellers to offer legitimate, non-pirated versions of copyrighted goods, manufactured in foreign nations, to US consumers at prices that undercut those charged by the copyright holders."

19 of 259 comments (clear)

  1. Free market, right? by rolfwind · · Score: 4, Insightful

    What's good for the goose must be good for the gander, no?

    1. Re:Free market, right? by Anonymous Coward · · Score: 5, Insightful

      The only free market in America is hookers and blow. Just kidding, there is no free market in America.

    2. Re:Free market, right? by fuzzyfuzzyfungus · · Score: 5, Insightful

      Of course not. When a corporation needs cheap labor/materials/lax laws/no taxes, then "Free Trade" is what makes the world go round.

      If you wish to engage in a little arbitrage of your own, then "grey market" is about the most polite term. It is Vital to uphold Safety Standards and Preserve Market Stability, after all...

    3. Re:Free market, right? by countertrolling · · Score: 5, Insightful

      Actually you're right. Contraband is the perfect example, the epitome, of the free market. Totally unregulated.

      --
      For justice, we must go to Don Corleone
    4. Re:Free market, right? by fuzzyfuzzyfungus · · Score: 3, Insightful

      Quite the contrary. Black markets often suffer from relatively weak, corrupt, or inconsistent governance(gang warfare isn't going to find its way into the dictionary under "due process" any time soon); but they virtually always have nontrivial regulatory systems.

      They tend toward being somewhat decentralized, socially structured, and based on direct violence(rather than centralized, bureaucratic, and based on potential violence); but they are definitely there.

    5. Re:Free market, right? by timeOday · · Score: 5, Insightful

      "Free market" is an oxymoron in the first place (when taken to the logical extreme of "totally unregulated", anyways). It's like asking what basketball would be like without any rules; it wouldn't be basketball. Without property rights, and contract enforcement, and currency, the forces of supply and demand still exist but can't develop into anything like the byzantine sophistication of Wall Street. So you can't just wish all the complexities away. This case is ultimately about a conflict of property rights - ownership of intellectual property vs ownership of the media holding copies of the intellectual property.

    6. Re:Free market, right? by digitalunity · · Score: 4, Insightful

      This is what bothers me most. Free trade is only good when corporations can take advantage of emerging economies. But when it comes to selling their wares in emerging economies for 5% of what they charge in the US or Europe, well that is just people being unfair.

      Perfect discrimination is the epitome of regulated trade. They can't have it both ways. Either free trade is good and we should embrace it, or it isn't and we should close the borders.

      Personally, I think a company should have zero control of a product after it's been sold, other than to prevent said consumer from reproducing copyrighted portions of that product. This simple rule would render mod chips legal across board(at least for those designed to remove region coding, as opposed to those that allow you to use CDR media), as well as the used market for all games, even those with online content.

      I also think we need a national law spelling out what software publishers may not put in a EULA. Too bad the legislators would name it something like "Consumer Rights Enforcement Act" and it would be 100% pro-corporations.

      --
      You can't legislate goodness. Let each to his own destiny, by will of his freely made choices.
  2. Copyright weirdness by girlintraining · · Score: 4, Insightful

    Well, this was pretty clear 200 years ago: Property was real and tangible. Copyright existed to protect the authors of works from publishers and printing presses using their work without paying for it. Fast forward 200 years and now we have copyright being applied to something that's intangible, can be copied for effectively zero cost, and has been hob-cobbled together to encompass intangible things like phrases, lines of code, even the "likeness" or "appearance" of something is not copyrightable. Given this vast expansion of the definition of copyright (for better or for worse, depending on who you ask), of course there's going to come a day when the tangible thing -- a legitimate CD purchased through legitimate channels could be declared illegal because it's being used incorrectly.

    Copyright no longer covers just possession of a thing -- it's now been expanded to include the use of a thing as well, and that latter definition is what's causing most of the problems.

     

    --
    #fuckbeta #iamslashdot #dicemustdie
  3. Global economy baby ! by aepervius · · Score: 5, Insightful

    You decide to outsource your programmer in bengladore, your sale rep in ireland, your telephonic support in china ? Welllll we decide to buy our game from import from the global market. Too bad they undercut your local monopoly price. Global market baby. You outsource our job, we outsource our buying. Fair is fair.

    --
    C. Sagan : A demon haunted world:
    http://www.amazon.com/gp/product/0345409469/
    visit randi.org
    1. Re:Global economy baby ! by Killer+Orca · · Score: 3, Insightful

      And here is the answer people, Costco found a way to keep their prices low and still buy products legitimately; but the manufacturer cries foul because of copyright of all things? No, no, It was sold to a U.S. distributor, don't act like you didn't know it wasn't going to be sold in the U.S. and claim First Sale doctrine violation.

  4. Re:Why does this even need to be discussed? by Locke2005 · · Score: 4, Insightful

    Free market is free market. Once you sell something, you should have zero authority to dictate where it is shipped to and resold (with the exception of munitions, of course). Oh, and we should be able to import prescription drugs at much lower prices from other countries too!

    --
    I've abandoned my search for truth; now I'm just looking for some useful delusions.
  5. Bit by bit towards corporate feudalism by unity100 · · Score: 4, Insightful

    in which you will buy everything, but own nothing ...

  6. Rediculous interpretation of law by Locke2005 · · Score: 4, Insightful

    So, if I live in England, legally buy an Omega watch there, then legally immigrate to the US, it is now a copyright violation to resell that watch on eBay?!? This flies in the face of common sense!

    --
    I've abandoned my search for truth; now I'm just looking for some useful delusions.
  7. Re:How does copyright come into play here? by pem · · Score: 5, Insightful
    The only reason copyright comes into play is because Omega copyrighted this logo for the _specific_ reason of trying to use copyright as a legal market segmentation tool.

    If ever there was a rationale for "misuse of copyright", this is it.

  8. Re:Sorry, but copyright does control imports by Trepidity · · Score: 4, Insightful

    The fact that the Supreme Court took the case suggests that it isn't black-letter law, doesn't it?

  9. Re:Sorry, but copyright does control imports by jmorris42 · · Score: 3, Insightful

    No, it is an indicator of a worse problem. We used to have the Rule of Law. Now we have the Rule of Men. Problem is what I wrote above is so self evidently correct that this case shouldn't have made it into a courtroom at all. In a sane world, any competent attorney would have explained the law, charged the client for an hour and that would have been that. But because both sides correctly understand the bizarro reality we actually live in they are rolling the dice; since justice is now whatever a judge says and their views are randomly distributed.

    The difference is when you have the Rule of Law the laws are knowable and mostly predictable. Courts are mostly occupied with determining the facts of the particular case and then applying the law to them. The occasional case will test an unexpected corner of the law but it an exception. Now the written laws mean little and judges apply their opinions of 'justice' to cases and their rulings are thus mostly unknowable beforehand. This of course means everyone take a try at court as soon as they have nothing left to lose.

    --
    Democrat delenda est
  10. Copyright holders should control the market? by erroneus · · Score: 3, Insightful

    It has long been held as illegal to engage in price fixing. Region coding for DVDs, for example, is most often used for the purpose of controlling initial distribution (which is their right) to release certain things in certain areas at certain times (which is not their right entirely). Once something is legally sold, they no longer own the rights to anything about it excepts for its duplication which includes various forms of duplication such as public playback or performance. But to individually sold items are no longer under the control of the publisher and the disc or tape or book can be transported and sold anywhere else. All of this is established in precedent or is otherwise understood as common law. You can buy a book, sell a book or even lend a book. Why this wouldn't apply to DVDs or other media defies logic. To make this truly the case, they will have to redefine copyright law to disallow someone to resell that which they have bought. This would be a very bad move for copyright holders as fewer people would be interested in buying something they couldn't later liquidate if some unfortunate event occurs in the future. Instead, people would do only rental and, of course, illegal copying.

    Copyright holders have long wanted to be able to control the resale of their goods. Take, for example, the diamond trade -- they really have it the way they want it. Diamonds are super expensive new but if you try to sell one, you will find you will not get much for it... and further, you will find their prices "used" as more than inexpensive. (Wanna buy an engagement ring? Go to a pawn shop.... seriously) But law all around the planet have made this sort of control over the market illegal. This is why DeBeers cannot operate in the U.S. and many other countries legally. If copyright holders want that level of control, they will find themselves unable to operate legally in the very countries they do business. It's conceivable that they would simply buy laws that exclude their own products, but buying laws are a tricky thing and subject to constitutional rules.

  11. Research happens outside the US too by sjbe · · Score: 4, Insightful

    Regulate the US Market and its bye bye medical research.

    While it is true that the US does a good bit of the heavy lifting in medical research, it is FAR from true that all medical research depends on the US. Many medical companies and research institutions exist and are headquartered outside the US including some of the biggest pharmaceutical companies. Plenty of research goes on across the world without the US being involved.

    Please note that I'm not dismissing your general thesis completely - price controls are something to be approached with great caution. However it is not fair to say that all price regulation is a bad idea. Access to medicine is a moral issue as much as it is an economic one. Many medicines are sold for profit margins that are hard to justify to anyone with a conscience. It's fine for drug companies to make a profit, a handsome profit even. But resources for medical care are finite and just because a drug company is able to charge a lot doesn't always mean they should.

  12. Re:Why does this even need to be discussed? by Myopic · · Score: 3, Insightful

    Next time don't ask a rhetorical question unless you already know that the answer is not devastating to your argument.

    Drug company advertising budgets are greater than drug company research budgets, both in total.