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.