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Supreme Court Upholds First Sale Doctrine

langelgjm writes "In a closely-watched case, the U.S. Supreme Court today vindicated the first-sale doctrine, declaring that it "applies to copies of a copyrighted work lawfully made abroad." The case involved a Thai graduate student in the U.S. who sold cheap foreign versions of textbooks on eBay without the publisher's permission. The 6-3 decision has important implications for goods sold online and in discount stores. Justice Stephen Breyer said in his opinion (PDF) that the publisher lost any ability to control what happens to its books after their first sale abroad."

16 of 648 comments (clear)

  1. will not stop the publishers from making DMCA requ by Anonymous Coward · · Score: 5, Insightful

    will not stop the publishers from making DMCA requests / filling strikes that can cost you $35 a pop.

  2. First banning NSLs, now this? by Anonymous Coward · · Score: 5, Funny

    I think I speak for every politician and lobbyist when I ask "Who the hell are these nine impostors, and what have they done with the real Supreme Court justices?"

  3. E-books by balsy2001 · · Score: 5, Insightful

    I wouldn't be surprised to see a bigger push towards e-books. That is a way around the "problem" for the publishers.

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    1. Re:E-books by Sique · · Score: 5, Informative

      It won't be for long. The E.U. high court's decision to allow the resale of used software (Usedsoft vs. Oracle) stated that giving a permanent license for an one-time payment concludes a sale, and the First Sale doctrine applies. Just because you name your EULA in a fancy manner, it doesn't change that it covers a sale. At least for the E.U., all ebook providers thus have to implement the infrastructure to allow a resale of used ebooks.

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      .sig: Sique *sigh*
  4. Re:When will this apply to medicines? by alen · · Score: 5, Funny

    you can already resell your Oxycontin scripts on the street. i know of people who may or may not make $1000 a month doing so.

    but copyright is the least of your problems

  5. Re:Goodness! Did sanity just prevail?! by Zcar · · Score: 5, Insightful

    They're not supposed to rule in favor of consumers. Or corporations. They're supposed to rule in "favor" of the law, regardless of which side is popular. The why of a ruling is more important, often, than which side wins and the "right" ruling can be made for the wrong reasons.

  6. Wow by onyxruby · · Score: 5, Insightful

    This may be one of the most important decisions this court has gotten right in years. This was absolutely huge because of the implications of what would have happened if it had gone the other way. This is critical in terms of the idea of actually owning what you buy, without this manufactures could simply make things out of country and avoid first sale rights. This could have affected pretty much every aspect of Americans daily life and is a good first step in restoring Intellectual Property sanity.

    It's funny how property rights have historically been a right wring agenda item until they are shown to be just as important to the left as well...

  7. Re:will not stop the publishers from making DMCA r by pollarda · · Score: 5, Insightful

    There will be a huge push now for electronic books under the guise of "convenience" but what it really comes down to is that they will want to "license" the book rather than sell it. At the same time, the electronic versions will simply continue to make the publishers less and less relevant especially for new titles.

  8. Re:Goodness! Did sanity just prevail?! by ThorGod · · Score: 5, Insightful

    You say that, but given some of their more recent decisions this latest decision is still shocking.

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  9. Re:Why did this need to go to the supreme court? by Jane+Q.+Public · · Score: 5, Insightful

    "Seriously? Reselling a physical product you bought legally needed the highest court in the land to adjudicate?"

    Yes, it did. BUT, you're wrong about one thing. It isn't the "physical product" that is at issue here. it's the copyrighted work.

    This has BIG implications for copyrighted works. In essence, it upholds the 100-year-old rule that says publishers' "terms" bedamned: if you bought it, it's YOURS. You can sell it, burn it, or whatever you want.

    Although lower courts have upheld First Sale Doctrine re: copyrighted software for resale on Ebay and Amazon, it was reaffirmed here by the Supreme Court.

    So unless you have an existing contract with the publisher when you buy software, you can pretty much ignore their "license agreement". You bought it, it's yours. Once you have paid for it, you can do whatever you want with it, regardless of any "license agreement" inside the box or in a popup window. But you still can't legally distribute copies without the copyright holder's permission.

  10. Re:Broad Application by PhrstBrn · · Score: 5, Informative

    DMCA + DRM anti-circumvention clauses makes it a gray area in some places. Cosmetic mods are fine, things that might affect how Xbox DRM works, probably a DMCA violation.

  11. Re:Seriously? 6-3??? by Antipater · · Score: 5, Informative

    Legally it wasn't so clear-cut. The case hinged on the wording of the Copyright Act, which grants first-sale doctrine to copies "lawfully made under this title [the Act]." The crucial debate was over the word under. Wiley alleged, and the lower courts agreed, that "under" meant "under the jurisdiction of": since the books were produced outside the US, they were made outside the jurisdiction of the Copyright Act and thus not made under the Act. Kirtsaeng alleged that "under" meant "corresponding to the rules set forth in" and thus the doctrine applied. SCOTUS held with Kirtsaeng.

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    Everything is better with chainsaws.
  12. Private property rights by roman_mir · · Score: 5, Interesting

    Many here do not understand event the definition of capitalism:
    private ownership and operation of property
    that's all it is.

    Denying people's right to private ownership and operation of property is denying capitalism. It's a good thing that this judge went in the right direction, but what is troubling is that this was ever even a question: can people own property?

    Can people own and operate private property? Can you sell your own stuff that you made or bought? Isn't that a strange thing to ask in a society that is supposedly capitalist? But of-course it is not a strange thing to ask, because the society is no longer capitalist. Capitalism really exists as a concept in a free market economy, because capitalism in fact requires individual freedom. Denying freedom to the individuals will automatically deny capitalism and what do you have when you do not have capitalism because you do not have freedom?

    Well, you may still end up with some people owning and operating private property but not all people being able to do it, because the governing principles changed to deny all people equal protection against government intervention by law.

    It is when you do not have equal treatment of people in the context of their relationship with their government by law when you really no longer have free market but you also lose the principles of capitalism for most people.

    Again: capitalism is ownership and operation of private property. This is a basic fundamental right, all other rights are only an extension of this one right. If you have no right to own and operate private property, you will not be able to have resources, you will not even be allowed to own and operate your own body. And that's true even today, look at this lack of capitalism, lack of free market and thus lack of freedom even to do what you want with your own body. All these government officials telling you what you must or are not allowed to do, eat, smoke, drink, ingest, who you can and cannot have sex with, etc.

    Unfortunately it is now news when a judge actually protects individual freedoms in a rare case of outbreak of common sense or decency or something like that, it's no longer the rule, it's the exception.

  13. Re:Your Textbooks: Now Printed in China by anagama · · Score: 5, Interesting

    It's funny -- there are all kinds of incentives for big business to move jobs offshore, or import cheap labor, but when the general public makes use of the same process, they complain. And they got 3 judges on their side, including a "liberal" judge (Ginsburg) and a lieralish judge (Kenedy) and of course Scalia. Expect a legislative solution to be purchased soon so that this "egregious" decision can be fixed and we can go back to falling wages and increasing corporate profits.

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    What changed under Obama? Nothing Good
  14. Re:6-3? by larry+bagina · · Score: 5, Insightful

    If only they wrote a dissenting opinion. I guess we'll never know what they were thinking!

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  15. Re:will not stop the publishers from making DMCA r by IndustrialComplex · · Score: 5, Insightful

    Guise of convenience? I'm pretty sure they really are more convenient...

    Electronic copies can be more convenient. But currently, they are not. Why are they not more convenient? Well let me see if I can find a source... Oh yes here it is:

    I can easily break the DRM on my books so that I have backups...

    If you notice, this person here has to run cracking software just to get their files to play nicely and not destroy itself if this person tries to do the basic tasks of backup or use on an 'unauthorized device'.

    You see, they can be more convenient, but they are not. The eBook market is a minefield of incompatibility and artificial restriction. It takes away huge capabilities present in real books, and offers it back in a crippled/reduced capacity and calls it a 'bonus feature'.

    Want to give your book to a friend? Hand it to them. Done.

    Want to give your eBook to a friend? Well, first lets understand what format of eBook you have, which vendor did you purchase it from. Depending on the vendor, and their software, you might be able to lend it, but only once, or not at all. I'm not sure. Oh wait, your friend is using this specific type of software right? Oh he isn't? Well, guess you can't lend it to him. So he wants to use the software, hope he agrees to all the terms and conditions associated with the use of such software.

    Am I exaggerating? A little... No wait, I'm not exaggerating at all, it really is a mass of incompatible formats, competing ecosystems, overly-limited 'rights', and flawed laws which make even your simple 'remove the DRM' action illegal (depending on how cranky a prosecutor is on a given day)

    eBooks SHOULD be more convenient, but right now they certainly are not.

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