In a landmark decision on Tuesday, the U.S. Supreme Court ruled against the interests of copyright owners in favor of a Supap Kirtsaeng. The central issue addressed by the Supreme Court was the interpretation of “lawfully made” under the First-Sale Doctrine, codified in USC §109(a). Under U.S. Copyright law, the First-Sale Doctrine limits the distribution rights of copyright owners by enabling individuals to resell legally purchased copyrighted works after the rights holder put such works on the market. Justice Stephen Breyer authored the decision, which came down to a 6-3 vote. He stated: “We hold that the first-sale doctrine applies to copies of a copyrighted work lawfully made abroad.” Notably, Justices Antonin Scalia, Anthony Kennedy, and Ruth Bader Ginsberg dissented, calling the majority’s decision, “a bold departure from Congress’ design.”
Kirtsaeng moved to the U.S. from Thailand in 1997 to attend Cornell University. He asked his family and friends in Thailand to purchase foreign additions of English-language textbooks, which he then resold for profit in the U.S. The other party in this lawsuit, John Wiley & Sons Inc. (“Wiley”), a global publishing company that specializes in academic publishing, alleged that Kirtsaeng’s illegal importation of the material violated the exclusive rights belonging to the copyright owners and, therefore, he was not reselling copyrighted works that were first “lawfully made” under §109(a). Wiley’s proponents in the entertainment industry also argued that a ruling in favor of Kirtsaeng could affect territorial licensing agreements, the ability to compete oversees through the adaptation of pricing in accordance with the economic conditions of different nations, and even encourage piracy. Supporters of Kirtsaeng classify this decision as a consumer victory against international price discrimination.
Read more about this decision and access the full opinion here: http://www.hollywoodreporter.com/thr-esq/supreme-court-rules-entertainment-industry-429695
Or here: http://www.forbes.com/sites/ericgoldman/2013/03/20/the-supreme-courts-first-sale-ruling-will-spur-price-competition-in-the-short-run-but-enjoy-it-while-it-lasts/