10-18-2012 11:44 PM
Actually I studied this for several hours last night. There's something called "First-sale doctrine", and generally speaking, the merchant's T&C restricting the resale of their merchandise is not legally enforceable. Unless it's something about books or CDs, in which case the situation will be more complicated and there are several lawsuits going on as the previous member had mentioned above.
Of course, I will consult with my lawyer before I really plunge into this business.
First sale doctrine only applies to goods that are manufactured and sold in US. Cases mentioned by previous member are when someone sold foreign good to US. Supreme Court has ruled that first sale doctrine does NOT apply to foreign good.
The kid that was mentioned sold books from Thailand to US. Does not get protection from first sale doctrine.
Costco got sued for selling watches originally from Switzerland. 9th Circuit Court hold Costco liable because watches were not manufactured in US, and Supreme Court affirmed the decision.
No, Supreme Court did not technically uphold nor overturn it, it was a rare 4-4 decision, though it was a de facto (very weak) affirmation, so it is only binding in Ninth Circuit jurisdiction, where Utah is not included. And it rules " the first sale doctrine provides no defense where unauthorized imports were genuine copies that were foreign-made and not previously sold in the United States with the authority of the copyright owner"
When you buy a laptop(most likely Made In China) with a label "not for resale" on Newegg and resale it on Ebay, first, it's not "unauthorized imports", second, it's "previously sold", third, I'm in Utah.
As for the textbook cases going on in Supreme Court, they're based on "unauthorised imports".
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