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The case involves textbooks, but it's not really about textbooks. Instead it's about what "made lawfully under this title" means in the context of first-sale of
by antiterra 14y ago
The case involves textbooks, but it's not really about textbooks. Instead it's about what "made lawfully under this title" means in the context of first-sale of physical items.
Under one interpretation, if you buy a book outside the US, your ability to resell it in the US without permission depends on whether or not the book was made in the United States.
Under the other interpretation, "lawfully made under this title" means more that the making of the item itself was within the legal construct of copyright. That is, not pirated or counterfeit.
This second interpretation is what the majority opinion espouses, and the dissenting opinion aligns with the first.
This may be unsatisfactory for people concerned with software or e-book licenses, but Omega v. Costco might have come out differently if this had been decided beforehand. In that case, Omega sued Costco for reselling watches because they registered a copyright* for a logo on the back of the watch. Omega claimed that Costco had no first-sale protection from copyright since the watches were not made in the US. The 9th circuit agreed, SCOTUS split 4-4 (Kagan self-recused) and the 9th circuit stood.
The majority opinion implies that it's perfectly fine to fly to a foreign country, purchase legitimately sold watches, toasters, electric kettles, and books and bring them home for sale. (Subject to applicable duties, etc.)
Yes, manufacturers will probably not just throw their hands up and give up on price discrimination. I have no idea what they will do. But the profits from Country X still might trump any loss of profit/image due to importation and resale in the US.
Scrambling chapters in textbooks might work, but then they lose some efficiency and flexibility, for example: the option of liquidating inventory to a low-margin market when a new edition comes out in the US at a higher profit margin.
* Generally brand logos are trademarked, but they can sometimes also be copyrighted. It's a little muddy, and arguments exist whether or not, say, Mickey Mouse could become/remain a trademark after the copyright protection expires.
EDIT: To clarify what I meant by "I have no idea what they will do": I am not entirely without ideas of approaches companies could take; the suggestions in other reply threads here are definitely candidates. I just don't think I can predict the specific action[s]. Maybe 'all of the above' for some, maybe the status quo for others.
- digikata 14y agoYou already have the answer to what a publisher might do in your post: lobby for the imposition of duties on imported copyrighted material (or a narrower description as fits the market they're trying to protect). I'm not agreeing with that approach, it just seems likely.
- roc 14y ago> "I have no idea what they will do." Stall. Send out some FUD. Maybe lobby for higher duties (as compared to tariff rates). But most of the goods that have sufficiently large price discrepancies are going to a digital manifestation anyway. So region-coding, DRM and the DMCA will (continue to) be the order of the day.
- tanzam75 14y ago> Maybe lobby for higher duties (as compared to tariff rates). Not sure I see the distinction. According to the WTO, "customs duties on merchandise imports are called tariffs."
- roc 14y agoI think the point would be to codify a distinction and change (increase) rates on customs duties accordingly.
- Shinkei 14y agoGreat analysis... so would you say this is generalizable to region coding issues? Because first-sale doctrine should protect my ability to buy a DVD in China and use it/sell it in the US. Would region-free players also be protected?
- antiterra 14y agoYou've gone a bit too far with the scope. This is about legitimately produced physical manifestations of works protected under copyright. Your average toaster is likely not protected by copyright, but if the toaster company engraves a poem onto the side, suddenly it may be. It's also only about the exhaustion of the distribution right of the specific item that was purchased. It has nothing to do with a right to copy or circumvent access/copy protection etc. Therefore, region free players have nothing to do with this whatsoever, unless, perhaps, they have a copyrighted work painted on them or something. As for DVDs: Theoretically, if you managed to find a legitimately produced DVD in China (made with the rights holder's permission) you could bring it back to the US and sell it. Whether or not you can legally play that DVD in the US on any particular player is an entirely different and more involved question involving a bunch of DMCA caselaw.