In a closely watched case about the copyright rights of foreign companies, a federal appeals court has struck down Swiss watchmaker Omega S.A.’s attempt to use U.S. copyright law to block Costco Wholesale Corp.’s sale of its luxury watches.
The case, which began when Omega sued Costco for selling 43 of its Seamaster watches with a copyrighted globe design at below market prices, resulted in a split decision by the U.S. Supreme Court in 2010. Costco had obtained the watches through the “gray market”—that is, from an unauthorized distributor that purchased them through third parties.
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