Friday, March 29, 2013

Supreme Court John Wiley Case

I've always understood the rule to be once you buy something from Disney (or it's retailers)  in USA it is yours to resell as you wish.  If you buy something from Disney overseas, you can import it and do with it as you wish, even resale.  What you cannot do in USA is buy from a factory in USA not authorized to make by Disney.  Nor can you in USA is buy from a factory in overseas not authorized to make by Disney.

So buy 100 Mickey Mouse watches from DisneyLand in Japan and bring them home?  No problem.  Buy 100 Mickey Mouse watches from a unauthorized dealer in Tsim Sha Tsui.  problem with US Customs.

So when an enterprising Thai student attending USA Community college noted the USA overpriced John Wiley Co (no relation) textbooks were the same but far cheaper in Thailand, and this student could arbitrage the difference between The thai price and selling cheap online in USA, this student made millions buying retail through authorized dealers in Thailand and reselling in USA.

They took it to the USA Supreme court.  The Supreme Court got this on right:


In rebutting the dissent and Wiley and in support of its decision adopting a non-geographical interpretation of §109(a), the Court had this to say about markets:
Wiley and the dissent claim that a nongeographical interpretation will make it difficult, perhaps impossible, for publishers (and other copyright holders) to divide foreign and domestic markets. We concede that is so. A publisher may find it more difficult to charge different prices for the same book in different geographic markets. But we do not see how these facts help Wiley, for we can find no basic principle of copyright law that suggests that publishers are especially entitled to such rights.


The right to sell onward something you legitimately bought is in common law.  John Wiley wanted to overturn common law with some serious sophistry:

Justice Ginsberg argued that the majority opinion embraces “international exhaustion” and does not adhere to Congress’ goal of protecting copyright owners “against the unauthorized importation of low-priced, foreign made copies of their copyrighted works.”  (Opinion pdf page 42).

See what's missing? Foreign John Wiley-made copies of John Wiley made books.

Had this gone the other way, John Wiley would have picked up yet another huge big business subsidy for enforcement of copyright law plus restrictions on sales that would further enrich Wiley by choking some competition.

There is much more here...

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