Writing for the Court of Appeals for the Ninth Circuit, Judge Kim Wardlaw affirmed the district courts decision requiring Omega to pay Costco nearly $400,000 in attorney’s fees for misusing their copyright to thwart the First Sale Doctrine.  Omega had initially sued Costco for importing watches into the United States without their permission in alleged violation of the Copyright Act.  The decision in Wiley v. Kirtsaeng barred Omega’s claim because there would be no international exhaustion of the First Sale Doctrine.  As ORI has always held, once the rights’ holder has been paid, their downstream control of the good ceases.  This is another major victory for owners’ rights and we congratulate Costco and commend all those who worked on this important case.  You can read the opinion here.

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