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They're pretty plainly putting it in as a clause of the contract for sale aren't they... not claiming that IP law allows them to unilaterally enforce this (whic
by gpm 3y ago
They're pretty plainly putting it in as a clause of the contract for sale aren't they... not claiming that IP law allows them to unilaterally enforce this (which is the point at which the first sale doctrine would come into play).
Thanks for the citation. It seems to be
1. A case prohibiting this sort of clause when selling to distributors while previously you claimed this sort of clause was only valid when selling to distributors. So I'm left wondering what the basis was for your previous post.
2. Overturned by Leegin Creative Leather Products, Inc. v. PSKS, Inc. Which instead introduces a "rule of reason" based approach for determining whether or not a contraint on resale is anticompetitive and prohibited.
3. Miles, and Leegin, both seem to be about manufacturers attempting to impose a minimum price on their goods. Tesla, strangely, instead seems to be attempting to impose a maximum price (hence the right of first refusal at a pre-defined price). As such the dicta in Leegin seems to suggest to me that attempting to impose a maximum price wouldn't violate the "rule of reason", but potentially only because it wasn't something the court considered at all, so it might violate another ruling.
- mike_d 3y agoI didn't intend to cite the case specifically as an analog, but the part I quoted as flavor as to how the law in general looks at nonpossessory interest in the sale of goods. When this is litigated it will no doubt be complex and touch many areas of IP law, antitrust laws, UCC, and contract law. The contract law angle is interesting because of good faith and fair dealing, which you could make the argument that resale of the vehicle is not material to the purpose of the transaction. I'd also love to see this blow up in Tesla's face when a lienholder takes possession of a Cybertruck and sells it at auction.