Saturday, March 23, 2013

Landmark decision by the US Supreme Court for Resell of Copyrighted Content


In the case of Kirtsaeng v. John Wiley and Sons, the US Supreme Court ruled that American IP owners cannot stop imports and re-selling of copyrighted content that is lawfully sold outside of the US. It marks a major victory for American consumers since it allows them to shop worldwide for content that is covered by IP.

It means that a legal purchaser of a copyright-protected item may dispose of that property anyway he/she sees fit. The court ruled in favor of an immigrant scientist from Thailand., Supap Kirtsaeng,  imported textbooks that were lawfully printed overseas by a U.S. publisher. He then sold those printed textbooks on eBay.

The Supreme Court explained in it ruling that products are nowadays easily bought and sold outside of the US. Customers therefore enjoy a wider choice as well as lower prices for items that companies, libraries, used bookstores and retailers can import to the US, without the need to verify if any there is any US IP for further sale. To quote the Supreme Court: “A geographical interpretation would subject many, if not all, of them to the disruptive impact of the threat of infringement suits.”

This decision preserves the rights that the first-sale doctrine protects manufacturers, retailers, libraries, consumers, and the public at large.

The Supreme Court’s decision could potentially also impact digital content as well as is pharmaceuticals. As a result, people could opt for buying drugs abroad where prices are lower.

The Kirtsaeng case shows us legal eagles that copyright monopoly must be limited to its constitutional purpose. As the Supreme Court stated: “American law … has generally thought that competition, including freedom to resell, can work to the advantage of the consumer”.