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ARTICLE · 11 FEBRUARY 2011

When The First Sale Is Not A First Sale

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The Supreme Court of the United States recently decided a copyright case involving Swiss watchmaker Omega and retail giant Costco.

CanadaIntellectual Property
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Article by Jeilah Y. Chan1

The U.S. Supreme Court Copyright Decision of Omega, S.A. v. Costco Wholesale Corporation

The Supreme Court of the United States recently decided a copyright case involving Swiss watchmaker Omega and retail giant Costco.

In a 4-4 split, with no reasons, the Supreme Court affirmed the Omega, S.A. v. Costco Wholesale Corporation decision of the Ninth Circuit Court (541 F. 3d 982 (9th Cir. 2008)).

Omega's Complaint

The facts of this copyright case were not in dispute. Omega manufactured watches in Switzerland and sold them globally through a network of authorized distributors and retailers. Costco was not one of them. However, the Omega watches managed to end up in Costco stores in California, selling for less than the suggested retail price for authorized resellers in the United States.

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