Circuit prohibits import of gray market goods; the 9th Circuit rules first sale doctrine can't limit import ban

Article Abstract:

The US Court of Appeals for the 9th Circuit ruled in L'Anza Research, International, Inc. v. Quality King Distributors, Inc. that importing copyrighted products without authorization constituted infringement, a blow to the gray market. The court ruled that the statute's permission to the owner to "sell or otherwise dispose of" legally made copies did not include the permission to import such copies. Using copyright law to exclude gray market goods provides more certainty than using trademark law and also gives the holder with a better chance of success. The L'Anza case will accelerate the gray market's consideration as a copyright issue.

International trade regulation

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Gray market becomes less of an IP gray area; after 'L'anza,' distributors are free to reimport U.S.-made goods meant to be sold abroad

Article Abstract:

The Copyright Act can be a powerful weapon against parallel importation since the products' collateral material is often protected by copyright even when the products themselves are not. and this law has been used in gray market analysis for the last decade. The United States Court of Appeals for the 9th Circuit in L'anza Research International, Inc. v. Quality King Distributors, Inc. found any unauthorized importation of copyrighted materials acquired abroad to be an infringement, and the Supreme Court acknowledged that its reversal would be significant for gray-market importation in many areas.

International trade

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Courts help clear up legal haze regarding gray market goods

Article Abstract:

Two 1992 federal cases have given US copyright and trademark owners greater protection against gray marketers. Lever Bros Co v US uses the trademark laws to help bar gray market imports and BMG Music v Perez uses the Copyright Act for that purpose. Lever Bros ruled that Section 42 of the Lanham Act barred foreign goods with a US trademark but physically different from the US mark goods. BMG Music held that Section 109(a) of the Copyright Act of 1976, the first-sale doctrine, was not a defense to Section 602(a) forbidding US importation of copies obtained abroad.

Laws, regulations and rules, Copyright, Copyrights, Trademarks

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