Wednesday, November 16, 2011

Costco scores victory on "copyright misuse" in ongoing war with Omega

Costco has won a victory notable battle in its long war with Omega over the parallel importation of  Omega watches, which Costco sold at about a 40% discount.

A U.S. district court judge has ruled that Omega's use of a copyrighted stamped design on the back of the watch - one purpose of which Omega conceded was to control importation - constituted copyright misuse.

Here's the summary judgment  ruling,

Canadian IP, trade and competition lawyers will recall that the Supreme  Court of Canada opened the door to a similar conclusion someday in the Kraft v. Euro Excellence case, in which I acted for the Retail Council of Canada. Look at the reasons from Justice Bastarache and Justice Fish on misuse and trade control respectively.


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