Costco Wholesale Corp. v. Omega S.A. (08-1423)

argument 08-1423

Costco Wholesale Corp. v. Omega S.A.

Supreme Court of the United States 57 min 4 speakers 8 chapters transcribed 5 days ago official recording ↗
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What is the central dispute in Costco Wholesale Corp. v. Omega S.A. and how does it relate to the first‑sale doctrine?

John G. Roberts 0:03
You'll hear argument first this morning in case zero eight fourteen twenty three, Costco Wholesale Corporation versus Omega. Mr Angler?
Kannon K. Shanmugam 0:13
Mr Chief Justice, and may it please the court. This case is a repeat of Quality King V Lanza with only one pertinent difference. Both cases involve goods not authorized for importation into the United States. Both cases involve arguments that the first sale doctrine must be narrowly construed lest the Copyright Act's importation ban, Section six hundred two A be given less than its supposedly intended scope. The only difference is place for manufacture of goods. Quality can involve US manufactured goods, this case involves goods made in Switzerland. According to the Ninth Circuit in Omega, Congress intended to treat foreign manufactured goods better in this respect than goods made in the United States.
Kannon K. Shanmugam 0:54
It is wildly implausible that Congress had any such intent. From seventeen ninety to eighteen ninety one. Foreigners were categorically ineligible to hold US copyrights. From eighteen ninety one to nineteen eighty six. United States discriminated against foreign manufacturing of copyrighted goods. through a series of so called manufacturing clauses, including Section six hundred one of the nineteen seventy six Act. If Congress intended to make the first sale doctrine discriminate in favour of foreign manufacturing, At the same time. One would expect some note to be taken of that fact in the legislative history, but none is. Yet the Ninth Circuit held that Congress in nineteen seventy six altered the long established first sale doctrine
Kannon K. Shanmugam 1:37
to make it uniquely favourable to foreign manufacturing of copyrighted goods and did so through the obscure phrase lawfully made under this title. in Section one hundred nine. No one in all the briefs in this case has identified a single reason why Congress would have wanted to do so. Moreover, the words lawfully made under this title are used elsewhere in the Copyright Act. And they never mean what the Ninth Circuit said they mean in Section one hundred nine. Most instructive is the very next section after section one hundred nine, section one hundred and ten. which governs educational use of copyrighted works and was enacted contemporaneously with one hundred nine. In describing the kinds of works teachers may show students in their classroom,
Kannon K. Shanmugam 2:21
without fear of copyright liability. Congress referred to works lawfully made under this title. Our briefs have pointed out the absurdity. Of construing the phrase in section one hundred ten to mean made in the United States. And it's very revealing. how respondent Mitsumiki have tried to answer that point. Omega says lawfully made under this title means either made in the United States. or authorized for distribution in the United States. That argument gives up any pretense
Elena Kagan 2:51
You clarify for me. what your exact meaning is Their your blue brief and your reply brief appear to give two different meanings.
Kannon K. Shanmugam 3:03
Your blue
Elena Kagan 3:04
your reply belief suggests that if Omega grants foreign reproduction and distribution rights, but retains US rights that the first sale doctrine would allow Omega to bar importation.
Kannon K. Shanmugam 3:17
If it grants exclusive foreign distribution.
Elena Kagan 3:21
Why does it matter? Because your blue brief says that lawfully made means anything that was made with Omega's consent or authority. So why why the difference at all?
Kannon K. Shanmugam 3:33
It matters, Your Honor, because of the underlying rationale, the first sale doctrine. and the underlying rationale of the import ban in Section six hundred two. The purpose of the first sale doctrine is to make sure that the copyright owner gets one and only one recompense for each copy, for each lawfully made copy.
Elena Kagan 3:53
So if he sells his rights to a foreign distri a manufacturer and distributor. He gets paid for those rights. Why should he now have any additional rights to bar that authorized copy. From being imported into the United States. Yes, Your
Kannon K. Shanmugam 4:17
Honor.
Elena Kagan 4:19
I I don't understand what
Kannon K. Shanmugam 4:22
The reason is to give effect to the examples given in the legislative history of Section six hundred two.
Elena Kagan 4:27
Not you mean to the examples in the legislative history or the examples in Quality King?

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