On second thought – Ninth Circuit reverses course on the first sale doctrine

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Abstract: Costco customers often enjoy significant discounts on copyrighted products. This is good for them, but not so good for the copyright holder. Unfortunately for those copyright holders, a recent ruling by the U.S. Court of Appeals for the Ninth Circuit leaves them vulnerable to the “gray market” that makes some of these discounts possible. This article explores the case that pitted the big-box chain against a Swiss watch manufacturer. Omega S.A. v. Costco Wholesale Corp., No. 11-57137, Jan. 20, 2015 (9th Cir.) Kirtsaeng v. John Wiley & Sons, Inc., No. 11-697, March 19, 2013 (Supreme Court)