Exhausting consumer use
Two different lawsuits are currently underway that attempt to support the notion that users should be able to do what they want with the particular instantiation of intellectual property that they buy, a principle that is under attack through the use of “licenses” at the point of of a product’s sale.
In patent law the principle is called exhaustion, and it says that the patent is “exhausted” upon the first sale of a product; the consumer is free to use, repair or resell the particular product they bought, although they can not manufacture copies or new inventions that incorporate or imitate the product. Dissatisfied with this rule, many manufactures are trying to place various labels on their products to control uses of the product in the hands of consumers. In “Quanta v. LG Electronics,” a manufacturer’s use of a label claiming the product is “not for resale” is being challenged. The Electronic Frontier Foundation is supporting that challenge, and more information can be found here on their website “Deeplinks” blog.
As the EFF points out, these challenges to unfettered consumer use have had growing success recently. Lexmark has been able to “condition” its sale of printer cartridges with a “single use only” label that could make a consumer who refills the cartridge liable for breach of contract. This, and the “not for resale” label on software CDs at issue in the LG case, turn patent law upside down, and cost consumers money. Numerous “friends of the court” are asking the Supreme Court to revive the doctrine of patent exhaustion.
In copyright, a similar fight is going on to preserve the right of consumers to use the copy of a copyrighted work that they buy as they wish. In this arena the principle is called the First Sale doctrine, but its definition is exactly the same – the distribution and display rights in copyrighted material are exhausted after the first sale of the book, artwork, etc. In “Vernor v. Autodisk, Inc.,” a purchaser is claiming that a software distributor should not be allowed to prevent an eBay sale of the particular copy of the software he bought by using that same “license” provision that forbids resale. The issue is whether a manufacturer can convert a transaction that looks exactly like a sale – the exchange of money for a product that the consumer carries away – into a licensing transaction merely by shrink-wrapping a license agreement into the box. Courts have largely upheld these unilateral licenses, but there has been a split of opinion, as William Patry explains in a blog post here. Public Citizen, representing Mr. Vernor, argues that the first sale doctrine should preempt this provision of the so-called license.
These parallel cases in copyright and patent law show a concerted attempt to control how consumers can use the specific copies of intellectual property they purchase legally. This is not about defending themselves from unauthorized copying, since the law already does that; it is an attempt to choke off a secondary market that has been allowed for centuries. I called this a copyright coup in an earlier post, and I can only hope the courts will not allow it.
Policy on Electronic Course Content
For help deciding whether course content in Blackboard or some other digital form is fair use or requires copyright permission, consult this policy document adopted by the Academic Council in February 2008.
Search the Scholarly Communications Blog
Categories
- Authors' Rights
- Copyright in the Classroom
- Copyright Information Notes
- Copyright Issues and Legislation
- Data
- Digital Rights Management
- Fair Use
- international IP
- Libraries
- Licensing
- Open Access and Institutional Repositories
- Open Access topics
- Public Domain
- Scholarly Publishing
- Technologies
- Traditional Knowledge
- Uncategorized
- User Generated Content
Archives
Recent Comments
- ATG Article of the Week: Fair Use Ferment | Against-the-Grain.com on Fair Use ferment
- Entrance Exam on Fair Use ferment
- John E. Miller on Fair Use ferment
- La comunità scientifica si ribella contro lo strapotere delle case editrici | Enrica Garzilli | Il Fatto Quotidiano on Why boycott Elsevier?
- russ on Fair Use ferment
Recommended Readings- A State Law Approach to Preserving Fair Use in Academic Libraries"By David R. Hansen" Posted by klsmith to myblog contracts copyright on Thu Sep 15 2011 […]
- Canada's Orphan Works Regime: Unlocatable Copyright Owners and the Copyright Board"Article by Jeremy De Beers and Mario Bouchard form the Oxford University Commonwealth Law Journal, Winter 2010" Posted by klsmith to myblog Canada "orphan works" copyright on Thu Sep 15 2011 […]
- Print or Perish: Authors' attitudes towards electronic-only publication of law journals"Duke Law Librarian Dick Danner and colleagues report on a study about how authors feel if their articles (in law journals) were no longer available on paper" Posted by klsmith to publication digital myblog on Mon Aug 08 2011 […]
- Copyright in the Age of YouTube | ABA Journal - Law News Now"Details how DMCA is rapidly become out-of-date as digital technology changes." Posted by klsmith to myblog technology digital copyright on Thu Jan 29 2009 […]
- A State Law Approach to Preserving Fair Use in Academic Libraries


As Duke University’s first Scholarly Communications Officer, Kevin Smith’s principal role is to teach and advise faculty, administrators and students about copyright, intellectual property licensing and scholarly publishing.
RSS Feed 






