The outcome of Costco Wholesale Corp. v. Omega S.A. is certain to reverberate almost as much among patent practitioners as it does among their colleagues who specialize in copyright law. Here’s why: In issuing its ruling in Costco, the 9th U.S. Circuit Court of Appeals ruled that the first-sale doctrine — which bars copyright holders from using infringement lawsuits to stifle secondary markets, such as used book stores or other resellers — doesn’t apply if that “first sale” occurred abroad.
Now, Costco and other big retailers — together with internet retailers, libraries, and public interest groups — are complaining that if the U.S. Supreme Court allows the 9th Circuit ruling to stand, secondary markets of all types — retailers who buy internationally, libraries, video game stores — might be held hostage by copyright holders.
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