Business

High court considering global copyright issues

WASHINGTON — Supreme Court justices on Monday weighed copyright protections for publishers, creative artists, and manufacturers in a global marketplace in a case that has attracted the interest of Costco, eBay, and Google. The outcome has important implications for consumers and multibillion dollar annual sales online and in discount stores.

The court was about the only Washington institution open on Monday. The justices and spectators who braved the rain and wind saw a book publisher face off against a Thai graduate student in the United States who resold the publisher’s copyrighted books on eBay after relatives first bought nearly identical, cheaper versions abroad.

Advertisement

The court seemed to struggle with whether it matters where the books were produced and first sold.

The justices’ answer to those questions is of enormous interest to discount sellers like Costco and online business like eBay and Google that offer good prices on many products that were made abroad.

Publisher John Wiley & Sons won a copyright infringement lawsuit against the student, Supap Kirtsaeng. The high court is considering Kirtsaeng’s appeal, which argues that Wiley lost its right to control resale of the books once his relatives bought them legally.

Kirtsaeng used eBay to sell $900,000 worth of books published abroad by Wiley and others and made about $100,000 in profit. The international editions of the textbooks were essentially the same as the more costly American editions. A jury in New York awarded Wiley $600,000 after deciding Kirtsaeng sold copies of eight Wiley textbooks without permission.

The issue at the Supreme Court concerns what protection the holder of a copyright has after a product made outside the United States is sold for the first time. In this case, the issue is whether US copyright protection applies to items that are made abroad, purchased abroad, and then resold in the United States without the permission of the manufacturer. The high court split, 4-to-4, when it tried to answer that question in a case in 2010 involving Costco and Swiss watch maker Omega.

Advertisement

Justice Elena Kagan sat out the Costco case, but is taking part in the new dispute. She signed the government’s legal brief in the Costco case that took Omega’s side. The government is backing the publisher against Kirtsaeng, but it advocates something of a compromise in laying down a rule for other disputes.

The court already has rejected copyright claims over US-made items that were sold abroad and then brought back to the United States for resale.

The justices did not appear entirely comfortable with either side’s arguments, or the government’s middle ground.

E. Joshua Rosenkranz, Kirtsaeng’s lawyer, ran into skepticism from Justice Ruth Bader Ginsburg when he suggested that a ruling for Wiley would allow publishers and other copyright holders control over repeated resale of their products if only they made them abroad.

‘‘So a US manufacturer who wants to sell into the US market has this incentive to go and send jobs overseas. It’s an irresistible incentive if this court says the law is what Wiley says,’’ Rosenkranz said.

Ginsburg replied, ‘‘Has that ever happened?’’

Rosenkranz said he is sure it has, but could not come up with any specifics. On other hand, Theodore Olson, representing Wiley, struggled to satisfy justices who wondered whether Rosenkranz might be right.

Justice Breyer asked whether, without seeking permission, people could resell their foreign cars.

Quote Icon

Justice Stephen Breyer asked Olson whether, without seeking permission, people could resell their foreign cars, libraries could sell or lend books bought from foreign publishers, or museums could display paintings by Pablo Picasso. ‘‘Those are some of the horribles that they sketch. And if I am looking for the bear in the mouse hole, I look at those horribles, and there I see that bear. So I’m asking you to spend some time telling me why I’m wrong.’’

Loading comments...
You're reading  1 of 5 free articles.
Get UNLIMITED access for only 99¢ per week Subscribe Now >
You're reading1 of 5 free articles.Keep scrolling to see more articles recomended for you Subscribe now
We hope you've enjoyed your 5 free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com
Already a subscriber?
Your city. Your stories. Your Globe.
Yours FREE for two weeks.
Enjoy free unlimited access to Globe.com for the next two weeks.
Limited time only - No credit card required!
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.
Thanks & Welcome to Globe.com
You now have unlimited access for the next two weeks.
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.