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PROPERTY RIGHTS

civil forfeiture

Civil forfeiture allows the government (typically the police) to seize — and then keep or sell — any property that is allegedly involved in a crime or illegal activity. Owners need not ever be arrested or convicted of a crime for their cash, cars, or even real estate to be taken away permanently by the government.

Costco Wholesale Corp. v. Omega, S.A.

Issues

If a United States corporation resold foreign-manufactured goods obtained through a third party importer, may the reselling United States corporation defend on the grounds that the first sale doctrine applies and thus they are not liable for copyright infringement after the first sale of the goods?

 

Costco Wholesale Corporation sold watches manufactured in Switzerland by Omega S.A. without Omega’s prior authorization. Omega sued under the Copyright Act, claiming the sale of the watches was an infringement of their United States copyright. Costco defended on the grounds of the first sale doctrine, which currently provides a defense for reselling goods manufactured in the United States that are resold by retailers or distributors. Costco claims that the doctrine applies to foreign-manufactured goods as well. The district court granted Costco’s motion for summary judgment, but the Ninth Circuit reversed the ruling. The Supreme Court must now decide whether the  first sale  doctrine applies to goods manufactured abroad. The Court’s decision will influence copyright law, property rights, and the ability of retailers to resell goods.

Questions as Framed for the Court by the Parties

Whether the Ninth Circuit correctly held that the first sale doctrine does not apply to imported goods manufactured abroad.

Omega is a corporation that manufactures high-end watches in Switzerland. See Omega v. Costco Wholesale Corporation, 541 F.3d 982, 983 (9th Cir.

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intellectual property

Intellectual property (I.P. or IP) is a type of property encompassing the products of original human thought. Common examples of intellectual property include: the contents of a book, designs of an invention, computer software, company logos, and music. 

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