Costco Argues Omega Engaged In Copyright Misuse

Law360, San Diego (July 15, 2011, 5:20 PM EDT) -- Following a U.S. Supreme Court split decision against Costco Wholesale Corp., the retailer urged a California federal court Thursday to find that Omega SA wrongly asserted its copyright as an anti-competitive tool to control importation of its noncopyrightable watches.

The dispute between the parties returned to the district court after the high court in December issued a 4-4 decision, letting stand the Ninth Circuit’s decision that the first-sale doctrine did not protect Costco from allegations it infringed Omega’s copyright by selling Swiss-made luxury watches in the U.S. without Omega's permission.

In its summary judgment motion, Costco claimed Omega’s conduct in using...

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