U.S. Supreme Court Will Examine Costco Sale of Omega Watches
In a case that could have wide-ranging implications for so-called “gray-market” goods, the U.S. Supreme Court has agreed to decide whether manufacturers can use U.S. copyright law to prevent their foreign-made goods from appearing on web sites and store shelves at U.S. discounters such as Costco, Amazon, Target, and others. The case began in 2004 after Costco sold 43 Omega Seamasters for $1299, then about $700 below Omega’s MSRP. Omega originally sold the watches to authorized agents located outside the U.S. The agents sold the watches to unidentified parties who sold them to a U.S.-based company that sold them to Costco.Omega sued, claiming that Costco’s actions constituted copyright infringement. Omega claims copyright protection based on the fact that the “Omega Globe Design” logo engraved on the caseback is registered with the copyright office. Copyright law grants owners power to control the “first sale” of a protected work. After th

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