Quality King Distributors Inc., v. L'anza Research International Inc.

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Quality King Distributors, Inc. v. L'anza Research International, Inc.
Seal of the United States Supreme Court.svg
Argued December 8, 1997
Decided March 9, 1998
Full case nameQuality King Distributors, Inc., Petitioner v. L'anza Research International, Inc.
Citations 523 U.S. 135 ( more )
118 S. Ct. 1125; 140 L. Ed. 2d 254; 1998 U.S. LEXIS 1606; 66 U.S.L.W. 4188; 45 U.S.P.Q.2d (BNA) 1961; Copy. L. Rep. (CCH) ¶ 27,750; 26 Media L. Rep. 1385; 98 Cal. Daily Op. Service 1651; 98 Daily Journal DAR 2291; 1998 Colo. J. C.A.R. 1216; 11 Fla. L. Weekly Fed. S 383
Prior history On writ of certiorari to the United States Court of Appeals for the Ninth Circuit
Holding
The copyright holder could not prevent re-importation of materials it had authorized.
Court membership
Chief Justice
William Rehnquist
Associate Justices
John P. Stevens  · Sandra Day O'Connor
Antonin Scalia  · Anthony Kennedy
David Souter  · Clarence Thomas
Ruth Bader Ginsburg  · Stephen Breyer
Case opinions
Majority Stevens, joined by unanimous
Concurrence Ginsburg

Quality King Distributors Inc. v. L'anza Research International Inc., 523 U.S. 135 (1998), was a decision by the United States Supreme Court over whether a copyright holder could restrict redistribution of material containing copyrighted content (authorized by the copyright holder) which is imported into the United States as so-called "grey market" goods.

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Copyright is a legal right, existing in many countries, that grants the creator of an original work exclusive rights to determine whether, and under what conditions, this original work may be used by others. This is usually only for a limited time. Copyright is one of two types of intellectual property rights, the other is industrial property rights. The exclusive rights are not absolute but limited by limitations and exceptions to copyright law, including fair use. A major limitation on copyright on ideas is that copyright protects only the original expression of ideas, and not the underlying ideas themselves.

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The United States of America (USA), commonly known as the United States or America, is a country comprising 50 states, a federal district, five major self-governing territories, and various possessions. At 3.8 million square miles, the United States is the world's third or fourth largest country by total area and is slightly smaller than the entire continent of Europe's 3.9 million square miles. With a population of over 327 million people, the U.S. is the third most populous country. The capital is Washington, D.C., and the largest city by population is New York City. Forty-eight states and the capital's federal district are contiguous in North America between Canada and Mexico. The State of Alaska is in the northwest corner of North America, bordered by Canada to the east and across the Bering Strait from Russia to the west. The State of Hawaii is an archipelago in the mid-Pacific Ocean. The U.S. territories are scattered about the Pacific Ocean and the Caribbean Sea, stretching across nine official time zones. The extremely diverse geography, climate, and wildlife of the United States make it one of the world's 17 megadiverse countries.

Contents

Opinion of the Court

The Supreme Court found that the copyright holder could not prevent re-importation of the products it had authorized for export from the United States.

This case did not address the importation of products made outside the United States under authority of the copyright holder. The Court addressed that issue in Kirtsaeng v. John Wiley & Sons, Inc. , 568 U.S. ___ (2013), holding that those sales were also qualifying "first sales", and that copyright holders could not restrict trafficking of those works after those sales.

Kirtsaeng v. John Wiley & Sons, Inc., 568 U.S. 519 (2013), is a United States Supreme Court copyright decision in which the Court held, 6-3, that the first-sale doctrine applies to copies of copyrighted works lawfully made abroad.

See also

The first-sale doctrine is a legal concept playing an important role in U.S. copyright and trademark law by limiting certain rights of a copyright or trademark owner. The doctrine enables the distribution chain of copyrighted products, library lending, giving, video rentals and secondary markets for copyrighted works. In trademark law, this same doctrine enables reselling of trademarked products after the trademark holder put the products on the market. The doctrine is also referred to as the "right of first sale," "first sale rule," or "exhaustion rule."

The following is a complete list of cases decided by the United States Supreme Court organized by volume of the United States Reports in which they appear. This is a list of volumes of U.S. Reports, and the links point to the contents of each individual volume.

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The United States Reports are the official record of the rulings, orders, case tables, in alphabetical order both by the name of the petitioner and by the name of the respondent, and other proceedings of the Supreme Court of the United States. United States Reports, once printed and bound, are the final version of court opinions and cannot be changed. Opinions of the court in each case are prepended with a headnote prepared by the Reporter of Decisions, and any concurring or dissenting opinions are published sequentially. The Court's Publication Office oversees the binding and publication of the volumes of United States Reports, although the actual printing, binding, and publication are performed by private firms under contract with the United States Government Publishing Office.

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A grey or gray market refers to the trade of a commodity through distribution channels that are legal but unintended by the original manufacturer or trade mark proprietor. Grey market products are products sold by a manufacturer or their authorized agent outside the terms of the agreement between the reseller and the manufacturer.

Bobbs-Merrill Co. v. Straus, 210 U.S. 339 (1908), was a United States Supreme Court decision concerning the scope of rights accorded owners of a copyright versus owners of a particular copy of a copyrighted work. This was a case of first impression concerning whether the copyright laws permit an owner to control a purchaser's subsequent sale of a copyrighted work. The court stated the issue as:

Does the sole right to vend secure to the owner of the copyright the right, after a sale of the book to a purchaser, to restrict future sales of the book at retail, to the right to sell it at a certain price per copy, because of a notice in the book that a sale at a different price will be treated as an infringement, which notice has been brought home to one undertaking to sell for less than the named sum?

Bauer & Cie. v. O'Donnell, 229 U.S. 1 (1913), was a 1913 United States Supreme Court decision involving whether a purchaser of a patented product bearing a price–fixing notice incurs guilt of patent infringement by reselling the product at a price lower than that which the notice commands. A divided Court (5-4) held that it was not.

United States v. Paramount Pictures, Inc., 334 U.S. 131 (1948), was a landmark United States Supreme Court antitrust case that decided the fate of movie studios owning their own theatres and holding exclusivity rights on which theatres would show their films. It would also change the way Hollywood movies were produced, distributed, and exhibited. The Supreme Court affirmed in this case that the existing distribution scheme was in violation of the antitrust laws of the United States, which prohibit certain exclusive dealing arrangements.

A parallel import is a non-counterfeit product imported from another country without the permission of the intellectual property owner. Parallel imports are often referred to as grey product and are implicated in issues of international trade, and intellectual property.

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Feltner v. Columbia Pictures Television, Inc., 523 U.S. 340 (1998), was a case in which the Supreme Court of the United States ruled that if there is to be an award of statutory damages in a copyright infringement case, then the opposing party has the right to demand a jury trial.

Sony Corp. of America v. Universal City Studios, Inc., 464 U.S. 417 (1984), also known as the “Betamax case”, is a decision by the Supreme Court of the United States which ruled that the making of individual copies of complete television shows for purposes of time shifting does not constitute copyright infringement, but is fair use. The Court also ruled that the manufacturers of home video recording devices, such as Betamax or other VCRs, cannot be liable for infringement. The case was a boon to the home video market, as it created a legal safe haven for the technology.

General Talking Pictures Corp. v. Western Electric Co., 304 U.S. 175 (1938), was a case that the Supreme Court of the United States decided in 1938. The decision upheld so-called field-of-use limitations in patent licenses: it held that the limitations were enforceable in a patent infringement suit in federal court against the licensee and those acting in concert with it—for example, a customer that knowingly buys a patented product from the licensee that is outside the scope of the license.

Quanta Computer, Inc. v. LG Electronics, Inc., 553 U.S. 617 (2008), is a decision of the United States Supreme Court in which the Court reaffirmed the validity of the patent exhaustion doctrine, and in doing so made uncertain the continuing precedential value of a line of decisions in the Federal Circuit that had sought to limit Supreme Court exhaustion doctrine decisions to their facts and to require a so-called "rule of reason" analysis of all post-sale restrictions other than tie-ins and price fixes. In the course of restating the patent exhaustion doctrine, the Court held that the exhaustion doctrine is triggered by, among other things, an authorized sale of a component when the only reasonable and intended use of the component is to practice the patent and the component substantially embodies the patented invention by embodying its essential features. The Court also overturned, in passing, the part of decision below that held that the exhaustion doctrine was limited to product claims and did not apply to method claims.

F. W. Woolworth Co. v. Contemporary Arts, Inc. nicknamed The Cocker Spaniel Case, 344 U.S. 228 (1952), is a United States Supreme Court case regarding copyright infringement. The Copyright Act of 1909 allows recovery of either the profits of the infringing company or of the damages suffered by the copyright holder as the legal remedies. When the actual damages cannot be determined, statutory damages can be levied instead. At issue, is whether the trial judge can impose statutory damages when the actual profits of the infringer are known.

Omega S.A. v. Costco Wholesale Corp., 541 F.3d 982, was a case decided by the Ninth Circuit Court of Appeals that held that in copyright law, the first-sale doctrine does not act as a defense to claims of infringing distribution and importation for unauthorized sale of authentic, imported watches that bore a design registered in the Copyright Office. It carried no precedential weight, and is contrasted with Kirtsaeng v. John Wiley & Sons, Inc.

<i>Euro-Excellence Inc v Kraft Canada Inc</i>

Euro-Excellence Inc v Kraft Canada Inc, 2007 SCC 37, [2007] 3 S.C.R. 20, is a Supreme Court of Canada judgment on Canadian copyright law, specifically on the issue of indirect infringement and its application to parallel importation. Kraft Canada sued Euro-Excellence Inc. for copyright infringement due to their importation of Côte d’Or and Toblerone chocolate bars from Europe into Canada. A majority of the court found that the copyright claim could not succeed, although they split on whether the claim failed due to the rights of an exclusive licensee or due to the scope of copyright law.

Penguin Books Ltd. v. India Book Distributors and Others, was a decision of the Delhi High Court issued in 1984. Penguin Books Ltd. of England brought a suit for perpetual injunction against the respondents, India Book Distributors of New Delhi, to restrain them from infringing Penguin's territorial license in 23 books, the subject matter of the suit.

Impression Products, Inc. v. Lexmark International, Inc., 581 U.S. ___ (2017), is a decision of the Supreme Court of the United States on the exhaustion doctrine in patent law in which the Court held that after the sale of a patented item, the patent holder cannot sue for patent infringement relating to further use of that item, even when in violation of a contract with a customer or imported from outside the United States. The case concerned a patent infringement lawsuit brought by Lexmark against Impression Products, Inc., which bought used ink cartridges, refilled them, replaced a microchip on the cartridge to circumvent a digital rights management scheme, and then resold them. Lexmark argued that as they own several patents related to the ink cartridges, Impression Products was violating their patent rights. The U.S. Supreme Court, reversing a 2016 decision of the Federal Circuit, held that the exhaustion doctrine prevented Lexmark's patent infringement lawsuit, although Lexmark could enforce restrictions on use or resale of its contracts with direct purchasers under regular contract law. Besides printer and ink manufacturers, the decision of the case could affect the markets of high tech consumer goods and prescription drugs.