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.

HK

US Supreme Court to Hear Costco v. Omega Parallel Import Case

The United States Supreme Court has granted certiorari (i.e. it will hear the appeal) in the case of 08-1423 COSTCO WHOLESALE CORPORATION V. OMEGA, S.A

The fact situation is identical for all intents and purposes to the Kraft v. Euro Excellence case, from Canada's Supreme Court - in which I was involved as counsel on behalf of the Retail Council of Canada and in which our arguments on the "hypothetical maker" issue carried the day.

All eyes will be on this US case, which will be a very important milestone in the never ending "grey" or :"gray" market and "parallel import" wars.

It could be heard later this year.

HK