Kevin Tottis

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SCOTUS Adopts International Copyright Exhaustion in Kirtsaeng

Tuesday, in Kirtsaeng v. John W. Wiley and Sons, Inc., the Supreme Court held 6-3 that the first sale doctrine of Section 109(a) of the Copyright Act trumps a copyright owner’s right under Section 602(a)(1) to bar importation of copies when they were made and sold outside the United States. The Court appropriately rejected a cramped geographic reading of “lawfully made under this title,” but largely gutted the right of copyright owners under Section 602(a)(1) to bar importation of copies. Along the way, the Court unequivocally adopted international copyright exhaustion without a lick of statutory support or evidence of Congressional intent. Given the Court’s willingness to find international exhaustion even in the face of statutory language limiting parallel imports under the Copyright Act, it wouldn’t be surprising to see the Court fully embrace international patent exhaustion in the future, since there’s even less statutory basis to bar its adoption.

Refocusing Kirtsaeng Analysis on Extra-Territoriality Principles

The parties and amici have filed over 25 briefs in this case, almost none of which address or even consider whether the actual right granted under Section 109(a)—to “sell or otherwise dispose of” copies—applies outside the United States; instead, they have focused almost exclusively on Section 109(a)’s “lawfully made under this title” preamble, resulting in unsatisfactory readings of the Copyright Act as a whole. As the American Intellectual Property Law Association has urged the Supreme Court in its amicus filing, applying long-standing extra-territoriality principles to the actual right created by Section 109(a) handily harmonizes both Sections 109(a) and 602(a)(1). It also avoids damage to the rest of the Act caused by undue emphasis on the prefatory “lawfully made under this title” language.