First-Sale

When Cornell student Supap Kirtsaeng asked his family back in Thailand to purchase and ship him locally published versions of his textbooks, he probably didn’t think that all of Hollywood would be watching.  Kirtsaeng’s initially innocent attempt to save a few bucks turned into full scale arbitrage as he began reselling these much cheaper textbooks via e-bay.  The US publisher of the same texts, Wiley and Sons, soon sued for copyright infringement.  The case is set for oral arguments on Monday and centers on the interpretation of the “first-sale doctrine”.   This law allows for purchaser of copyrighted material made in the US to sell or “otherwise dispose” of the content without the permission of the copyright owner.  Had Kirtsaeng’s textbooks been published in the US, he would have been in the clear.  However, the law also prohibits the importation of copyrighted materials from outside of the US without the consent of the copyright holder.  If the court sides with Kirtsaeng, Hollywood will face an all-new threat to the already floundering home video market.