First Sale Doctrine and ERE

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OurLifeInc.
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Post by OurLifeInc. »

Any lawyers here? Seems like this decision could potentially have a profound affect on the ERE lifestyle.
http://www.dallasnews.com/sharedcontent ... 02a76.html
From the article:
The 9th U.S. Circuit Court of Appeals decided last month in the Vernor vs. Autodesk case that a software publisher can prohibit buyers of its software from reselling the program to other users.
"The first sale doctrine has been a major bulwark in providing public access by facilitating the existence of used book and record stores, video rental stores, and, perhaps most significantly, public libraries," R. Anthony Reese, a law school professor at University of California, Irvine, wrote in a 2003 article.
Legal analysts say the decision, if upheld by other courts, perhaps even the Supreme Court, could shut down garage sales, libraries, eBay Inc., Half Price Books and any other person or company that sells second-hand materials.


Maus
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Post by Maus »

Even if the ruling in Vernor is upheld, it hinged on the particular licensing agreement that those who first purchased Autodesk software agreed to abide by, including no resale. In other words, the ruling would not have retroactive effect and would not govern the millions of books, DVDs, CDs, LPs, etc. that were sold without such a license. It may means that, going forward, publishers and producers will include such a license in items where heretofore they did not exist, such as a mass-market paperback book. But Ebay and used book stores will have plenty of inventory to keep them fueled for years to come.


jacob
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Post by jacob »

I think this is part of a corporate drive to shift away from selling assets to selling services which can be resold over and over.
Once the market is saturated with goods, it simply doesn't make sense for a business to stay in business selling more stuff. You should think this would be a good thing since the market demand has been met and everybody can now go home and relax. However, not only are the want for demand apparently infinite, so is the want for supply.
In my philosophy I try to avoid as many service plans as I possibly can. The inability to buy media due to a clause like that would probably mean that I wouldn't buy it.
Rest assured that I would never insert something like that in my book. All I request is not to pirate it.


OurLifeInc.
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Post by OurLifeInc. »

Yes, I agree completely Jacob. It seems as though many businesses are looking at subscription based models nowadays. Just in the gaming example, I know companies like EA are trying to charge users a monthly fee to play online. Or they don't put everything in the game....when you get to certain levels you have to pay extra to unlock different features. All in an effor to get that recurring fee.
I am with you...I would likely not consume media if I was not able to get it second hand. I would hope that many consumers would do the same, alas I have little faith that they would!


jerry
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Post by jerry »

I vaguely remember that the case was complicated by the fact that the software was upgraded and part of the upgrade agreement was that the original copy would be destroyed. It was the "destroyed" copies that were being sold on ebay. If this is accurate, then I think the ruling was fair.
jerry


jacob
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Post by jacob »

If that was the case, I think so too.


Maus
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Post by Maus »

Here's the Vernor case:

http://caselaw.findlaw.com/us-9th-circuit/1537762.html
Vernor was a down-stream buyer from the original licensee, who had agreed to destroy Release 14 when it upgraded to Release 15. Instead the orignal licensee sold its copies of Release 14 to a third party, who resold them to Vernor.
So the lesson is, you have to know whether any software or game you purchase is subject to such a license. It's a good bet that it is. On the plus side, it's also a good bet that no hardcopy book is subject to a license. Though that may now change in the wake of this case.


OurLifeInc.
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Post by OurLifeInc. »

Interesting Jerry and Maus. I agree, the ruling is certainly fair given the circumstances.


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