LaRiviere, Grubman & Payne, LLP

Supreme Court Agrees to Hear Gray-Market Goods Case

By LGP

The US Supreme Court has agreed to hear a copyright case involving “unauthorized” sales of legitimate (non-counterfeit) Omega watches that were made in Switzerland for sale in Europe but imported by Costco for sale within the United States. At issue is whether the “first sale doctrine” prohibits Omega from suing Costco for copyright infringement, and whether an earlier Supreme Court decision called Qualtiy King needs refinement. The first sale doctrine bars a copyright owner from restricting downstream sales of copyrighted articles, where the first sale was legitimate.

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