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DainBramaged

(39,191 posts)
Tue Mar 19, 2013, 03:18 PM Mar 2013

Just WOW; Supreme Court upholds first-sale doctrine in textbook resale case

The importation of copyrighted goods made abroad has been an increasingly contentious issue in recent years. Easy access to Internet resale markets like eBay and Amazon have made it possible for a new breed of entrepreneurs to buy low and sell high in a wide array of areas. The Supreme Court handed these resellers a major victory today, issuing a decision [PDF] that makes it clear that the "first sale" doctrine protects resellers, even when they move goods across national boundaries.

Those upstarts have peeved a lot of corporations, and some of them used copyright law to fight back. Textbook maker John Wiley & Sons sued a Thai student-entrepreneur named Supap Kirtsaeng, who had been buying cheaper (but non-pirated) versions of various textbooks in his home country, bringing them to the US, and selling them to his fellow students stateside on eBay. The price differentials were so big that there was quite a bit of money to be made; at trial, the publishing company's lawyers hammered home the fact that they had counted up $1.2 million in receipts over the life of Kirtsaeng's business.

Wiley argued those profits should be barred by copyright law. Their right to control prices abroad was actually part of their copyright grant, they argued. The textbook company won a jury verdict against Kirtsaeng, which was upheld by the US Court of Appeals for the 2nd Circuit, and Kirtsaeng appealed to the Supreme Court, arguing that his business was protected by the "first sale" doctrine.

Today's decision vindicates the "first sale" doctrine, which allows the owner of a particular copy of a work to do whatever she wants with it after purchasing it. It overrides first sale losses in both the 9th and 2nd Circuits and makes it clear that digital commerce can flourish in the Internet era, even when it crosses borders.

http://arstechnica.com/tech-policy/2013/03/thai-student-protected-by-first-sale-supreme-court-rules/


May it spread to music and video next

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Just WOW; Supreme Court upholds first-sale doctrine in textbook resale case (Original Post) DainBramaged Mar 2013 OP
Very interesting. sadbear Mar 2013 #1
Are you saying Clarence disagreed with Tony??? HERVEPA Mar 2013 #3
This decision was all kinds of weird, huh? sadbear Mar 2013 #4
More likely some big media corp paid Fat Tony under the table n2doc Mar 2013 #14
Interestingly, Thomas and Scalia often disagree about protections of commercial speech Recursion Mar 2013 #13
Thomas does disagree with Scalia, including on big cases. dairydog91 Mar 2013 #42
they have disagreed on 1st amendment(usually porn) cases JI7 Mar 2013 #49
I was quite surprised by the ruling Ichingcarpenter Mar 2013 #2
Wow indeed. The infinite profitability model needs to stand aside. freshwest Mar 2013 #5
Good. Note that Breyer and Ginsburg split their votes: AnotherMcIntosh Mar 2013 #6
They did rule for the outrageous $ penalty to that women Ichingcarpenter Mar 2013 #9
this shows how overpriced texts are Sanity Claws Mar 2013 #7
I think the business model is set Johonny Mar 2013 #16
I've bought books this way through college Indianademocrat91 Mar 2013 #31
Great news. Next up: cheap drugs imported from Canada??? reformist2 Mar 2013 #8
Only if you want to buy used drugs. marybourg Mar 2013 #12
+1. lol. n/t eggplant Mar 2013 #18
I don't get it dreamnightwind Mar 2013 #58
The whole issue is that they HAD been bought once, legally, at retail, in Europe. marybourg Mar 2013 #60
So they're "used" by definition if not in practice. dreamnightwind Mar 2013 #63
Well, no-one's going to come to your house and check marybourg Mar 2013 #64
Good. If they are dumping books cheap in Thialand and gouging us then fuck 'em. n/t lumberjack_jeff Mar 2013 #10
Excellent. I was rooting for that kid. Nye Bevan Mar 2013 #11
This is going to piss Amazon off, big time. dixiegrrrrl Mar 2013 #15
Does this apply to digital media? Nye Bevan Mar 2013 #19
Well, why would it apply ONLY to one format? dixiegrrrrl Mar 2013 #23
The DMCA is not a terribly logical piece of legislation. AtheistCrusader Mar 2013 #27
The difference is the digital version is not sold. It's licensed. jeff47 Mar 2013 #37
"it's hard to declare there has been an actual sale" jberryhill Mar 2013 #53
When you buy a book, you are granted a license for the text. You don't "own" it-- Romulox Mar 2013 #82
You're confusing ownership with copyright. jeff47 Mar 2013 #83
No, I'm not. You own a book like you own a CD-ROM. You license the software/text. Romulox Mar 2013 #84
Again, you're confusing what is owned jeff47 Mar 2013 #85
No. You don't own the text of a book anymore than you own software on a CD-ROM. Romulox Mar 2013 #86
interesting note...Apple and Amazon each are prepping "used" ebooks Spike89 Mar 2013 #45
The first sale doctrine applies to the transfer of the specific copy that was lawfully obtained onenote Mar 2013 #46
First sale doctrine would encompass digital media, provided it's unencumbered by DRM (DMCA). X_Digger Mar 2013 #29
I think they aren't aware of the implications. hootinholler Mar 2013 #20
Yep..first place my brain went... dixiegrrrrl Mar 2013 #24
There are no implications. onenote Mar 2013 #48
Help walk me thru this, if you would.. dixiegrrrrl Mar 2013 #62
This is why the Register of Copyrights testified today that Congress needs to comprehensively update onenote Mar 2013 #71
I predict a new sort of digital evil on the horizon Duer 157099 Mar 2013 #81
Thomas made an extremely rare correct ruling. Dawson Leery Mar 2013 #17
Garth Brooks? sadbear Mar 2013 #22
And why does that principle not also apply to buying drugs in Canada for use here? BlueStreak Mar 2013 #21
Pharmaceutical companies NewJeffCT Mar 2013 #25
The ruling did not address the price mark-up, only the right to resell the book. djean111 Mar 2013 #28
Even so, doesn't the "first sale" ownership argument apply? BlueStreak Mar 2013 #32
Maybe because medicine is different from books? WinkyDink Mar 2013 #35
The first sale doctrine is a specific statutory provision of copyright law onenote Mar 2013 #38
As far as I know, there has never been a copyright issue with ca drugs X_Digger Mar 2013 #41
Not about the pricing Spike89 Mar 2013 #47
The point of books is that the fabrication cost is not a significant part of the value (anymore) Recursion Mar 2013 #79
I think the same can be said of most drugs BlueStreak Mar 2013 #80
AWKWARD- either you side with Antonin Scalia or you side with Clarence Thomas! Nye Bevan Mar 2013 #26
A case in point of why Guilt by Association is a Logical Fallacy. nt stevenleser Mar 2013 #36
Interesting, not always a clear case imo. Babel_17 Mar 2013 #30
If this ruling had gone the other way, Nye Bevan Mar 2013 #33
Maybe people in Third-World nations could be paid more? WinkyDink Mar 2013 #39
+1 jberryhill Mar 2013 #54
Doesn't make me think twice, no. X_Digger Mar 2013 #43
The trouble is you can't have one without the other starroute Mar 2013 #44
I had always assumed that inexpensive export versions would be handled... JVS Mar 2013 #75
Thank God! Corporations want to own things EVEN AFTER THEY SELL THEM. WinkyDink Mar 2013 #34
I think it's the culture of "licensing" Union Scribe Mar 2013 #59
I think when Amazon zapped some book from Kindles it showed who owns the downloads! WinkyDink Mar 2013 #69
"May it spread to music and video next" Pullo Mar 2013 #40
Not new, I did this twenty years ago. Sen. Walter Sobchak Mar 2013 #50
This has some rather wide implications. talkingmime Mar 2013 #51
Well, EA's humiliating Sim City 5 launch kind of proved WHY that's a Bad Idea Occulus Mar 2013 #65
This is embarassing, but I still have a machine that runs the first Sim City. talkingmime Mar 2013 #66
Not at all. Occulus Mar 2013 #67
My C=64 still works too! I know 6510/6502 machine code inside out!!! talkingmime Mar 2013 #68
My son used to buy some of his undergrad math textbooks that way (plus explanations) frazzled Mar 2013 #52
K&R Good. idwiyo Mar 2013 #55
I'm liking it. n/t leeroysphitz Mar 2013 #56
Here is the Actual Opinion, Ginsberg, Kennedy and Scalia dissented happyslug Mar 2013 #57
The underlying question of exhaustion has implications for our trade negotiations Recursion Mar 2013 #78
"May it spread to music and video next" Orrex Mar 2013 #61
Isn't SCOTUS considering an unlocked cellphone case this term? n/t Bolo Boffin Mar 2013 #70
Yes, my beautiful daughter filled me in DainBramaged Mar 2013 #73
You can't mean they actually sided with the little guy for once? liberal_at_heart Mar 2013 #72
The "little guy" was importing hundreds of textbooks to sell at a profit Recursion Mar 2013 #74
No, the little guy is really us. djean111 Mar 2013 #76
Except for those of us who are authors Recursion Mar 2013 #77
Does anyone know if this applies to complimentary copies as well. aikoaiko Mar 2013 #87

sadbear

(4,340 posts)
4. This decision was all kinds of weird, huh?
Tue Mar 19, 2013, 03:29 PM
Mar 2013

At least who was on each side. The article said that Ginsberg is a strong advocate for copyright protections and that makes sense. She wrote the dissent. Kennedy can go any way. But Scalia, who knows? Maybe some obscure Founding Father wrote something about it that only in Fat Tony's mind is still relevant today.

n2doc

(47,953 posts)
14. More likely some big media corp paid Fat Tony under the table
Tue Mar 19, 2013, 03:48 PM
Mar 2013

Or hired a relative. The guy exemplifies corruption.

Recursion

(56,582 posts)
13. Interestingly, Thomas and Scalia often disagree about protections of commercial speech
Tue Mar 19, 2013, 03:48 PM
Mar 2013

Thomas is less willing to give commercial speech protections from socially- and culturally-based restrictions than Scalia is.

dairydog91

(951 posts)
42. Thomas does disagree with Scalia, including on big cases.
Tue Mar 19, 2013, 05:43 PM
Mar 2013

There's a First Amendment video games case in which Scalia wrote the majority, joined by Ginsburg, Sotomayor, Kagan, and Kennedy, with Roberts/Alito concurring and Breyer/Thomas dissenting. Maybe somebody spiked the Supreme Court orange juice that morning.

JI7

(89,249 posts)
49. they have disagreed on 1st amendment(usually porn) cases
Tue Mar 19, 2013, 06:03 PM
Mar 2013

with Thomas usually ruling in favor of it while Scalia against.

Ichingcarpenter

(36,988 posts)
2. I was quite surprised by the ruling
Tue Mar 19, 2013, 03:24 PM
Mar 2013

considering the court.
The three negative opinions didn't surprise though and which justices voted no.

Its good news and gives hope.

 

AnotherMcIntosh

(11,064 posts)
6. Good. Note that Breyer and Ginsburg split their votes:
Tue Mar 19, 2013, 03:33 PM
Mar 2013
"The 6-3 opinion was authored by Justice Steven Breyer, perhaps the justice most skeptical of intellectual property rights. The dissent was authored by Justice Ruth Ginsburg, who has long favored powerful copyright privileges. Justices Antonin Scalia and Anthony Kennedy also joined the dissent."

http://arstechnica.com/tech-policy/2013/03/thai-student-protected-by-first-sale-supreme-court-rules/

Ichingcarpenter

(36,988 posts)
9. They did rule for the outrageous $ penalty to that women
Tue Mar 19, 2013, 03:40 PM
Mar 2013

for file sharing in almost the same week.

that's why this ruling surprised me.

Sanity Claws

(21,847 posts)
7. this shows how overpriced texts are
Tue Mar 19, 2013, 03:35 PM
Mar 2013

Why are the books so much more expensive here than abroad? They resellers were able to make so much money because the books sold here and abroad were the same; the only difference was the price.

Johonny

(20,846 posts)
16. I think the business model is set
Tue Mar 19, 2013, 04:00 PM
Mar 2013

to make money selling new books to a captive American audience of students who basically can not say no to a book the teacher is telling them they need to pass a course. The books are often needlessly "updated" when enough used ones come on the market. Basically it says that the current model for their companies will only be so profitable so long as they have a large middle class of American desperate to spend crazy $$ on education. In other words it is the same model that most colleges use to justify incredible tuition rate increases that go vastly beyond the rate of inflation.

Indianademocrat91

(390 posts)
31. I've bought books this way through college
Tue Mar 19, 2013, 05:25 PM
Mar 2013

I'm in my junior year in college now and can personally attest to this. New US Finance book was 220, same book International edition was 45. No difference in style or content, US was hardback, Int was paper. Ive bought international anytime I can and then sell them on Amazon and make 70-90 dollars everytime. I've paid for my next semesters books doing this and being a poor college kid, it has been invaluable. Buying new US textbooks is not smart financially.

dreamnightwind

(4,775 posts)
58. I don't get it
Wed Mar 20, 2013, 05:18 AM
Mar 2013

Buy them cheap over there, sell them for a profitable mark-up over here. Used has nothing to do with it, correct?

The difference might be that the drugs are protected by a patent, whereas the media in this case was protected by a copyright. I have no expertise here, just thinking it through.

marybourg

(12,631 posts)
60. The whole issue is that they HAD been bought once, legally, at retail, in Europe.
Wed Mar 20, 2013, 12:49 PM
Mar 2013

Now the owner wants to re-sell it, just as you might want to re-sell a textbook you had once bought.

The copyright holder only gets a cut of the first sale. The owner gets to make all the decisions about any subsequent sale. The court said that the fact that these books were cheaper overseas and the first buyer bought them there should make no difference. NPR had a good explanation; other media might not have.

dreamnightwind

(4,775 posts)
63. So they're "used" by definition if not in practice.
Wed Mar 20, 2013, 03:59 PM
Mar 2013

I think I got confused by the "used drugs' remark you made. They wouldn't, of course, actually be used drugs, there would just be another party that had purchased and presumably taken delivery of them before re-selling them. Re-retail, I guess.

That said, I'm still thinking this ruling would not apply to drugs, only to copyright, and perhaps more narrowly to copyrighted works that are physically transferred, rather than digital works that are licensed.

marybourg

(12,631 posts)
64. Well, no-one's going to come to your house and check
Wed Mar 20, 2013, 04:12 PM
Mar 2013

whether you're actually using the product. But clearly you'd have to be a "retail" buyer, not a wholesaler. Retail often means paying sales taxes, while wholesale implies you buy tax exempt. Wholesalers always buy for re-sale. And while drugs are not copyrighted, they sometimes (often? I don't know) contain copyrighted packaging and materials specific to a given country. So how much this case has to do with the importation of drugs from another country for one's own use or for re-sale. Well

Nye Bevan

(25,406 posts)
11. Excellent. I was rooting for that kid.
Tue Mar 19, 2013, 03:43 PM
Mar 2013

Once I have bought something it is mine, and I should have the right to resell it without lining some corporation's pockets some more.

dixiegrrrrl

(60,010 posts)
15. This is going to piss Amazon off, big time.
Tue Mar 19, 2013, 03:56 PM
Mar 2013

Amazon is claiming that the Kindle book you bought from them cannot be shared with anyone else,
that you cannot give/sell the mobi file to me, for instance.
But you can give me a hardbacked book you bought off Amazon.
and a music dvd
but not an mp3?

Anyhow, has lots of implications, esp. for torrents.

dixiegrrrrl

(60,010 posts)
23. Well, why would it apply ONLY to one format?
Tue Mar 19, 2013, 04:26 PM
Mar 2013

Would it apply only to textbooks?
To hardcopy books but not to audio books?
Or not to digital copies of books?

And why would first sale be limited to just books?
For decades records could be shared, and before that sheet music.
So why is the format of the first sale content any different?

jeff47

(26,549 posts)
37. The difference is the digital version is not sold. It's licensed.
Tue Mar 19, 2013, 05:39 PM
Mar 2013

While we consider it a sale, if you read the fine print you're just licensing it. With no physical transfer of an object, it's hard to declare that there has been an actual sale.

 

jberryhill

(62,444 posts)
53. "it's hard to declare there has been an actual sale"
Tue Mar 19, 2013, 06:45 PM
Mar 2013

That's the crux of the problem. One way out is through a system of secure digital ID's which are not "ID's of a person" but unique electronic ID's which are persistent and to which rights can be assigned, sold, transferred etc., such that "this ID owns this thing".

Unfortunately, the discussions of a standard for this sort of electronic "title" system get bogged down in "OMG, the government is going to assign us all an ID" when, again, the "electronic ID" doesn't need to be "John Doe's ID" but just "an ID" which John Doe can securely control.

Romulox

(25,960 posts)
82. When you buy a book, you are granted a license for the text. You don't "own" it--
Thu Mar 21, 2013, 09:39 AM
Mar 2013

for example, buying a best seller doesn't give you the right to make copies of the text and sell them on--a right the "owner" of the text clearly has.

So the "own"/"license" distinction doesn't hold up.

jeff47

(26,549 posts)
83. You're confusing ownership with copyright.
Thu Mar 21, 2013, 10:40 AM
Mar 2013

You own the book. You can sell that book to anyone else.

You don't have copyright. You can't make new copies of the book and sell them.

"e-Book" sellers declare that you don't even own the book (or in this case, the file that is the book). When it involves a physical object (a book made of paper), it is settled law that you own that physical object. With e-books, that isn't settled. So the publishers are declaring you don't own it.

Romulox

(25,960 posts)
84. No, I'm not. You own a book like you own a CD-ROM. You license the software/text.
Thu Mar 21, 2013, 12:46 PM
Mar 2013

"You don't have copyright. You can't make new copies of the book and sell them."

"Owning" the text is the same things a holding the copyright. When you buy a book, you own the physical media. You don't own the text.

It's no different from code on a CD-ROM. In both cases, copyright covers the actual creative content.

jeff47

(26,549 posts)
85. Again, you're confusing what is owned
Thu Mar 21, 2013, 01:58 PM
Mar 2013
You own a book like you own a CD-ROM. You license the software/text.

Nope.

In the case of both a book and a CD-ROM, you own one copy of the software/text, and you can resell that one copy.

You can't make new copies. You lack the right to make copies. Also called copyright.

"Owning" the text is the same things a holding the copyright.

Not according to the law. You can own a copy of the text without owning the copyright to the text. Those are two separate things.

It's no different from code on a CD-ROM. In both cases, copyright covers the actual creative content.

Copyright controls whether or not you have the right to make copies. You can own a copy without having the right to make more copies. Similarly, you can own the right to make copies of the content without owning a copy of the content (which would make it impossible to copy, but that's not a legal barrier).

Romulox

(25,960 posts)
86. No. You don't own the text of a book anymore than you own software on a CD-ROM.
Thu Mar 21, 2013, 06:10 PM
Mar 2013

Copyright covers both the words of a story and the lines of computer code. It's the same body of law.

You own the physical media, either the book or the CD-ROM. In both case, the copyrighted content is licensed to you, for your personal use only.

The distinction you posited, upthread:

The difference is the digital version is not sold. It's licensed.


is incorrect, inasmuch as there is no difference. You "own" text in the same way you "own" lines of code--you don't. In both cases you have a license to use it for a limited purpose.

Spike89

(1,569 posts)
45. interesting note...Apple and Amazon each are prepping "used" ebooks
Tue Mar 19, 2013, 05:46 PM
Mar 2013

Independantly, they are both pursuing patents and legal arguments allowing them to sell "used" ebooks (shutting out authors and publishers). It is complicated and makes my head hurt when trying to decide who "wins" in this scenario and just how a digital file can become (and be recognized) as used.

onenote

(42,700 posts)
46. The first sale doctrine applies to the transfer of the specific copy that was lawfully obtained
Tue Mar 19, 2013, 05:47 PM
Mar 2013

The problem with claiming that the first sale doctrine applies to sharing digital files is that you aren't sharing "that" copy. You are making a new copy and sharing it. So don't get too excited about the implications of this decision for file sharing cases -- there aren't any.

X_Digger

(18,585 posts)
29. First sale doctrine would encompass digital media, provided it's unencumbered by DRM (DMCA).
Tue Mar 19, 2013, 05:03 PM
Mar 2013

That's the fly in the ointment.

dixiegrrrrl

(60,010 posts)
24. Yep..first place my brain went...
Tue Mar 19, 2013, 04:28 PM
Mar 2013

Handled correctly, and I have no doubt it will be...this could be the end of media file sharing issues.

onenote

(42,700 posts)
48. There are no implications.
Tue Mar 19, 2013, 05:55 PM
Mar 2013

This is actually a narrow decision involving an issue of statutory construction as applied to a specific set of facts involving the geographic scope of the first sale doctrine.

The issue vis a vis the application of the first sale doctrine to digital media turns on other questions -- namely whether the doctrine, which by its express terms applies to the sale or other disposition of "a particular" lawfully made copy of a work by the owner of "that copy." In other words, if you have a book, you can sell the book. You can't make a copy of the book and sell it. The issue with digital media is that, for the most part, when you transfer a file, you aren't transferring the "copy" that you lawfully obtained (i.e., the digital file you downloaded to your Kindle). You are transferring a copy of that file.

There are issues that arise with respect to the transfer of ownership of a kindle or iPod and the answer there ought to be that if you're transferring the device with the original files saved on the device, then you should be within the first sale doctrine. But this case doesn't say anything about that issue from what I can ascertain from a very quick scan.

dixiegrrrrl

(60,010 posts)
62. Help walk me thru this, if you would..
Wed Mar 20, 2013, 01:26 PM
Mar 2013

I have a Nook
I download an ebook into my Nook, which is connected to the puter.
I read the book in my Nook.
when I am done, I can erase the book, dump it into the "trash" file. It is gone, no copy remains.
or
I can drag n drop the ebook file, the same one I downloaded, onto a thumb drive and hand it to you so you can read the book.
Which brings to mind 2 questions:
if the original file I downloaded stays on the Nook, which I hand to you, does that meet the doctrine?

If the original file I downloaded and them moved to a thumb drive, does that meet the doctrine?

Because with drag n drop, the actual .epub file is moved into the Nook or into the thumb drive
whereas if I burn to a disc, I burn a copy.

Whadda think?

onenote

(42,700 posts)
71. This is why the Register of Copyrights testified today that Congress needs to comprehensively update
Wed Mar 20, 2013, 07:47 PM
Mar 2013

the 1976 Copyright Act and the DMCA. There are no clear answers. Of course, a rewrite could take decades based on historical precedent and probably will protect the rights of copyright owners above those of copyright users.

Anyway, I believe the argument would be that if you take a file from your nook and "move" it to a thumb drive, but the file remains on your nook, then you've created a new copy and the first sale doctrine wouldn't apply (unless you could argue that you had a lawful right to create the new copy). Even if the process of "moving" the file from your nook to the thumb drive resulted in the file no longer being available on the nook, it might be argued that you didn't really "move" the old file, but instead created a new one. I'm not a techie, so I have no idea if that argument is right or not.

BTW, I'm not suggesting that these are the "right" answers from a standpoint of what is in the public interest. But I think these are the answers the courts are likely to give under the current law.

Finally, on further reflection I should amend my "no implications" statement. It may well serve to encourage copyright owners to try to use end user "licenses" even more than they already do for digital media.



Duer 157099

(17,742 posts)
81. I predict a new sort of digital evil on the horizon
Thu Mar 21, 2013, 08:53 AM
Mar 2013

Some sort of lock that allows digital files to be moved but not copied. A digital shredder, so that it is impossible (hah, yeah, tell that to the hackers) to "copy" a file but instead you can only move it. The bits are wiped clean from the source.

Not saying it won't be circumvented, but I can foresee this sort of thing. Sort of like how they build into some DVD-Rs the inability to copy DRM DVDs. So, ultimately the default setting for everything will be set to only able to "move" stuff, not copy it. You'll have to buy special pricey software to enable digital info to be copied. Wait for it.

 

BlueStreak

(8,377 posts)
21. And why does that principle not also apply to buying drugs in Canada for use here?
Tue Mar 19, 2013, 04:22 PM
Mar 2013

Be consistent SCOTUS.

If it is wrong for textbook makers to artificially jack up the prices in the US market, then it is wrong for the drug makers to do the same thing.

 

djean111

(14,255 posts)
28. The ruling did not address the price mark-up, only the right to resell the book.
Tue Mar 19, 2013, 04:59 PM
Mar 2013

Don't know if the ruling only applies to reselling books, but I doubt they cared about the pricing.

 

BlueStreak

(8,377 posts)
32. Even so, doesn't the "first sale" ownership argument apply?
Tue Mar 19, 2013, 05:32 PM
Mar 2013

How is a pharmacist in Canada any different than this fellow who bought books overseas and repatriated them to the US at a lower price?

onenote

(42,700 posts)
38. The first sale doctrine is a specific statutory provision of copyright law
Tue Mar 19, 2013, 05:40 PM
Mar 2013

Not sure why it would inherently have any relevance for non-copyright law issues.

X_Digger

(18,585 posts)
41. As far as I know, there has never been a copyright issue with ca drugs
Tue Mar 19, 2013, 05:41 PM
Mar 2013

It's an FDA issue, not a copyright issue.

Spike89

(1,569 posts)
47. Not about the pricing
Tue Mar 19, 2013, 05:51 PM
Mar 2013

It is all about the rights to sell used books from overseas. There was absolutely nothing in the ruling about pricing. Overseas editions are often printed in the country they are for sale in and mostly done cheaper (hardcover vs. paperback) lower paper quality, etc. The books are sold for less than the US versions. The case came about because a guy discovered he could buy a new book in Thailand (making it legally used) then ship it here and sell it for a profit. The publishers didn't like it.

It is the right decision IMHO, but it isn't the same as reimportation of drugs.

Recursion

(56,582 posts)
79. The point of books is that the fabrication cost is not a significant part of the value (anymore)
Thu Mar 21, 2013, 08:35 AM
Mar 2013

Blame Gutenberg. That's why laws that make little sense when applied to horseshoes or fedoras have been applied to books for a long time.

 

BlueStreak

(8,377 posts)
80. I think the same can be said of most drugs
Thu Mar 21, 2013, 08:45 AM
Mar 2013

They spend far more money on marketing than on production of most drugs.

There is a big R&D cost, and that is often greater than the production costs as well.

Babel_17

(5,400 posts)
30. Interesting, not always a clear case imo.
Tue Mar 19, 2013, 05:23 PM
Mar 2013

I can think of a hypothetical that might make people think twice.

Suppose I have to pay an author 1,000,000 dollars for his book.

Printing, etc., costs another 200,000 dollars

I project I can sell 100,000 copies at an average price of 15 dollars so I forge ahead.

But my plan is to sell the book in the US and other developed countries for 20 dollars a piece and in countries with low standards of living I would sell it for just over cost.

I'm thrilled when overseas orders pile up in higher than expected numbers but I'm dismayed when the books I shipped overseas come back to the US for sale. I'm dismayed because they are being sold cheaper than I am selling them.

There goes my pricing model.

As a publisher I will have to offer the author less money next time and/or strictly limit sales to less fortunate countries.
One could say I did a bad job of setting up distribution. But then again, everything has its costs. Also, in the actual case of this man, we aren't talking about students reselling books, but rather an individual injecting himself into the distribution channel, yes?

I'm a strong supporter of consumer's rights. If an individual buys a book they rightly have an expectation to be able to freely dispose of it at any time. And I'm not amused at how students have to buy books by their teachers. This court case though, I'm not so certain of what is what.

Nye Bevan

(25,406 posts)
33. If this ruling had gone the other way,
Tue Mar 19, 2013, 05:35 PM
Mar 2013

corporations would have every incentive to shift all of their manufacturing operations outside the US. Because then they would profit not only from the first sale but could profit from every subsequent sale.

X_Digger

(18,585 posts)
43. Doesn't make me think twice, no.
Tue Mar 19, 2013, 05:43 PM
Mar 2013

It's not in the government's interest to prop up your particular business model.

starroute

(12,977 posts)
44. The trouble is you can't have one without the other
Tue Mar 19, 2013, 05:44 PM
Mar 2013

If the first sale doctrine had been overturned, it would have become impossible to resell anything manufactured abroad without getting permission.

You couldn't sell your foreign-made car to anyone else without getting multiple permissions.

You couldn't resell that British paperback you bought at a specialty bookstore because there was no US edition. Or that import CD of your favorite obscure group.

And US publishers and manufacturers would have started moving operations overseas so that their products sold in the US market would no longer be covered by first sale.

It may seem that the individual in this case was taking advantage of the system -- and he probably was -- but the alternative would have been to break the system entirely.

JVS

(61,935 posts)
75. I had always assumed that inexpensive export versions would be handled...
Thu Mar 21, 2013, 07:38 AM
Mar 2013

with a delayed release date

Union Scribe

(7,099 posts)
59. I think it's the culture of "licensing"
Wed Mar 20, 2013, 05:28 AM
Mar 2013

Instead of buying a thing, we're now often told we're just buying licenses to see/use/hear things that are always theirs. Of all the mp3s and ebooks I've bought, I wonder if I actually own any of them.

But yeah, applying that idea to a physical object is even more absurd. But I think that's their mindset now, like you said.

 

Sen. Walter Sobchak

(8,692 posts)
50. Not new, I did this twenty years ago.
Tue Mar 19, 2013, 06:21 PM
Mar 2013

I bought textbooks from Singapore, Thailand and the Philippines and sold them when I was done with them for three or four times what I paid for them.

 

talkingmime

(2,173 posts)
51. This has some rather wide implications.
Tue Mar 19, 2013, 06:22 PM
Mar 2013

There's a strong movement in the publishing industry, books, music, videos, games, etc. to consider "sales" to mean "rental" rights. It stretches into electronics as well. The industries want to make it illegal to sell any product they created to a third party. It's a rather disturbing development on multiple levels.

Occulus

(20,599 posts)
65. Well, EA's humiliating Sim City 5 launch kind of proved WHY that's a Bad Idea
Wed Mar 20, 2013, 04:25 PM
Mar 2013

They're taking a total wash- if everyone redeems it, almost a total and complete loss on most copies- regarding prepurchased copies of Sim City 5. Those people, of whom I an one, get one of a choice of several top-shelf AND lesser-priced titles, across a couple, three genres, FREE.

I chose Battlefield 3, a game I would not have purchased, but was interested in at release. I think it's still $60, so in my case, a wash for EA, and I get a 2-for-1 on top-shelf games.

I really hope several people at the top of several industries paid attention to that entire fiasco. It should be instructive to them on how NOT to do DRM.

 

talkingmime

(2,173 posts)
66. This is embarassing, but I still have a machine that runs the first Sim City.
Wed Mar 20, 2013, 04:35 PM
Mar 2013

It's a 486, and not even close to my oldest machine. Should I hide now?

Occulus

(20,599 posts)
67. Not at all.
Wed Mar 20, 2013, 04:40 PM
Mar 2013

I still have my first computer: a C-64. Last time I bothered hooking it up, it worked.

Speaking of old hardware, do you happen to know where I can get a joystick that works with the Atari 2600?

I still have that, too. Baby's First Console, right?

 

talkingmime

(2,173 posts)
68. My C=64 still works too! I know 6510/6502 machine code inside out!!!
Wed Mar 20, 2013, 04:43 PM
Mar 2013

I still remember the hex codes for it. The only difference was that the 6510 in the C=64 used memory values 00 and 01 as input/output and control codes. The 6502 in the Apple II did no such thing. Other than that they were identical.

frazzled

(18,402 posts)
52. My son used to buy some of his undergrad math textbooks that way (plus explanations)
Tue Mar 19, 2013, 06:31 PM
Mar 2013

He's finishing up his PhD in mathematics now. But he only bought the cheap international editions when he knew he didn't want to keep the books. He said they were printed on really cheap, flimsy paper, but they were fine if you just needed them for a course that wasn't in your area, and you didn't need it for more than a quarter or two. The price differential was substantial, but so was the quality.

I think we're talking about the same thing here.

Note, however, that we're NOT talking about unauthorized versions of these texts, which exist and should truly should be off-limits. If publishers and authors can't maintain copyright and earn some amount of money on them, there won't be any new textbooks (no one will want to write or publish them), and then there will be a general complete meltdown of intellectual progress and teaching. We're just talking about reselling authorized versions from abroad.

Why do they cost so much more here? Probably because of (a) waaaayyyy cheaper printing abroad, using the cheapest of labor and materials and (b) much less demand here in the US for certain types of textbooks (say, physics and math). Sorry, but millions of students are using these kinds of advanced books in the sciences and math in Asia, but they are a quite limited market here. It's all about supply and demand.

 

happyslug

(14,779 posts)
57. Here is the Actual Opinion, Ginsberg, Kennedy and Scalia dissented
Tue Mar 19, 2013, 09:34 PM
Mar 2013

Last edited Tue Mar 19, 2013, 11:41 PM - Edit history (4)

http://www.supremecourt.gov/opinions/12pdf/11-697_d1o2.pdf

BREYER, J., delivered the opinion of the Court, in which ROBERTS, C. J., and THOMAS, ALITO, SOTOMAYOR, and KAGAN, JJ., joined.

KAGAN, J., filed a concurring opinion, in which ALITO, J., joined.

GINSBURG, J., filed a dissenting opinion, in which KENNEDY, J., joined, and in which SCALIA, J., joined except as to Parts III and V–B–1.

The key is that the Common Law Rule known as the "First Sale Rule" is incorporated in 17 U.S.C. § 109 (a):

17 U. S. C. §109(a)“Notwithstanding the provisions of section 106(3), the owner of a particular copy or phono-record lawfully made under this title . . . is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of that copy or phonorecord.”


And that interacts with a ban on importing books published overseas:

17 U. S. C. §602(a)(1)’s Reads as follows:

“Importation into the United States, without the authority of the owner of copyright under this title, of copies or phonorecords of a work that have been acquired outside the United States is an infringement of the exclusive right to distribute copies or phonorecords under section 106, actionable under section 501.”


In Quality King Distributors, Inc. v. L’anza Research Int’l, Inc., 523 U. S. 135 (1998), the US Supreme Court had ruled that 17 U.S.C. §602(a)(1)’s prohibited an overseas publisher from selling books printed overseas in the US, when the publisher only had permission to sell the books in his own country.

What the copyright holder wanted in this case was to expand Quality King Distributors, Inc. v. L’anza Research Int’l, Inc., 523 U. S. 135 (1998) to include someone who just bought the book. This is what the US Supreme Court rejected, saying that the 17 U. S. C. §602(a)(1) being a codification of the Common Law First Sale Rule, and that u]Quality King Distributors, Inc. v. L’anza Research Int’l, Inc., 523 U. S. 135 (1998) does NOT apply in this case, for this case involves a BUYER of the book, not someone who had agreed to PUBLISH the book.

In her dissent, Ginsberg holds that the books, being published overseas, is NOT subject to US Copyright laws, and thus the First Sale Doctrine does NOT apply to them, for the violation of the Copyright law is NOT that they were purchased overseas, but the violation was the mere IMPORTATION of said books into the US. Since the violation was the Importation of the book, there have been no prior first sale, and thus the first sale doctrine does not apply.

JUSTICE KAGAN, Concurred with the Majority, but in her concurrence she wanted to restrict Quality King Distributors, Inc. v. L’anza Research Int’l, Inc., 523 U. S. 135 (1998) in that that decision implied a restriction on the First Sale Rule, that Kagan wanted to more clearly restrict. In that decision, the restriction was clearly Dicta, and everyone admits that, but Ginsberg wants to say since they was no dissent it is binding on the court.

The position of Justice Ginsberg was made fun of by Justice Breyer in his Majority opinion in the following sentence:

Is the Court having once written dicta calling a tomato a vegetable bound to deny
that it is a fruit forever after?


Breyer goes on and say Dicta is Dicta, it is a comment made by the court based on what was presented to it, but since it was NOT needed to decide the case is just a comment NOT holding by the Court.

Side note: The case Breyer is referring to when he points out the Supreme Court ruled Tomatoes to be a Vegetable not a Fruit is a 1893 case regarding tariffs. Under the 1883 Tariff an importer of Vegetables had to pay a tariff, while an importer of fruit did not. An importer of Tomatoes were charged the Tariff, which he paid and then sued the Government for a refund on the grounds Tomatoes were Fruits not Vegetables and thus not subject to the Tariff. The Trial Court ruled that the difference between Vegetable and Fruits is up to common knowledge NOT technical definitions. The Supreme Court ruled the same. While in common usage Fruits contain Seeds, while Vegetables do not that is NOT how many people consider Tomatoes and other similar products. While technically tomatoes have seeds and thus technically it is a fruit, but when actually used by people, the seeds are ignored and tomatoes are used as a vegetable and considered a vegetable by most people. The Court ruled that the Tariff used the words Fruits and Vegetables NOT in a technical way, but as most people consider fruits and Vegetables. Given that finding and that most people used Tomatoes like they used Vegetables and called it a Vegetable it was a Vegetable, even through it contains seeds and thus was technically a fruit.

Now Breyer called the ruling that Tomato were a Vegetable Dicta, that brings up what is "Dicta"? The US Supreme Court Ruling in 1893 just said Tomato were Vegetable for that is what most people consider Tomatoes. If you view the 1893 ruling as to being restricted to a rule that common usage of words over come technical definitions of those same words, then the finding that a Tomato was a Vegetable was Dicta can be justified. On the other hand, if you believe it was important for the Court to decide, if Tomatoes were a Fruit or Vegetable under the 1883 Tariff Act then how can it be Dicta?

Dicta is defined as "an opinion by a court on a question that is directly involved, briefed, and argued by counsel, and even passed on by the court, but that is not essential to the decision".

Thus, while Breyer calls the ruling that Tomato are vegetables "dicta", it was an essential element in the case where that decision was made thus it can NOT be dicta. The finding may no longer be relevant due to changing in the underlying law, but it was NOT dicta when written and the underlying change in the law does NOT make it Dicta today.


For that 1893 Case see:
https://supreme.justia.com/cases/federal/us/149/304/case.html

Recursion

(56,582 posts)
78. The underlying question of exhaustion has implications for our trade negotiations
Thu Mar 21, 2013, 08:33 AM
Mar 2013

Because if Scalia is wrong and Thomas is right, we've just negotiated ourselves into a very unfortunate corner.

Orrex

(63,208 posts)
61. "May it spread to music and video next"
Wed Mar 20, 2013, 12:52 PM
Mar 2013

It already applies to music and video. If you buy a copy of a film or a song, you can sell that copy of the film or song. However, you can't sell additional copies of that film or song.

I've resold many CDs over the years, taking advantage of first-sale doctrine even before this court case.


Of course, that has nothing at all to do with file-sharing or piracy.

Recursion

(56,582 posts)
74. The "little guy" was importing hundreds of textbooks to sell at a profit
Thu Mar 21, 2013, 07:27 AM
Mar 2013

Textbooks which were marked "Not For Resale in the US"

 

djean111

(14,255 posts)
76. No, the little guy is really us.
Thu Mar 21, 2013, 07:54 AM
Mar 2013

The pricing was not important, the guy was not important, the rule of law was decided, and amazingly enough, it favored us, the little guys.
Be different if the ruling just cited textbooks.

Recursion

(56,582 posts)
77. Except for those of us who are authors
Thu Mar 21, 2013, 07:59 AM
Mar 2013

The legal issues here are kind of interesting, and we seem to have just undermined our own stance in trade negotiations.

aikoaiko

(34,169 posts)
87. Does anyone know if this applies to complimentary copies as well.
Thu Mar 21, 2013, 06:22 PM
Mar 2013

They often have lots of "No Resale" types of words stamped on them.
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