Like many Supreme Court cases, though, there's more than meets the eye. It's not merely a question of whether the Thai-born Kirtsaeng will have to cough up his profits as a copyright infringer; the case is a long-awaited rematch between content companies seeking to knock out the "first sale" doctrine on goods made abroad (not to mention their many opponents). That makes Wiley v. Kirtsaeng the highest-stakes intellectual property case of the year, if not the decade. It's not an exaggeration to say the outcome could affect the very notion of property ownership in the United States. Since most consumer electronics are manufactured outside the US and include copyrighted software in it, a loss for Kirtsaeng would mean copyright owners could tax, or even shut down, resales of everything from books to DVDs to cellphones.
"First sale" is the rule that allows owners to resell, lend out, or give away copyrighted goods without interference. Along with fair use, it's the most important limitation on copyright. So Kirtsaeng's cause has drawn a wide array of allies to his side. These include the biggest online marketplaces like eBay, brick-and-mortar music and game retailers, and Goodwill—all concerned they may lose their right to freely sell used goods. Even libraries are concerned their right to lend out books bought abroad could be inhibited.
John Wiley and Sons, the textbook publisher suing Kirtsaeng, has its share of backers as well, including the movie and music industries, software companies, and other book publishers. Those companies argue differential pricing schemes are vital to their success, and should be enforced by US courts. Nearly 30 amicus briefs have been filed in all.
Supporters of Kirtsaeng are mobilized, following an alarming—but not precedential—loss in an earlier case, Omega v. Costco. On a call with reporters this week, librarians and lawyers for pro-Kirtsaeng companies painted a stark picture of what might happen should he lose the case. If the appellate court ruling against Kirtsaeng is allowed to stand, they suggest copyright owners could start to chip away at the basic idea of "you bought it, you own it."
"This case is an attempt by some brands and manufacturers to manipulate copyright law, to control the distribution and pricing of legitimate, authentic goods," said eBay's top policy lawyer, Hillary Brill. "When an American purchases an authentic item, he shouldn't have to ask permission from the manufacturer to do with it what he wants."
Without "first sale" doctrine in place, content companies would be allowed to control use of their goods forever. They could withhold permission for resale and possibly even library lending—or they could allow it, but only for an extra fee. It would have the wild effect of actually encouraging copyrighted goods to be manufactured offshore, since that would lead to much further-reaching powers.
"When we purchase something, we assume it's ours," said Overstock.com general counsel Mark Griffin. "What is proposed by [the content companies] is that we change the fundamental notion of ownership rights."
by Joe Mullin, ARS Technica | Read more:
Photo: Aurich Lawson / Thinkstock
