Abstract
This chapter describes the origin and existence of the principle of exhaustion, generally and specifically for copyright laws, by referring to the first sale doctrine or doctrine of parallel imports. Internationally, Paris and Berne convention do not take any stand on the validity or invalidity of international exhaustion. The TRIPs agreement in Article 6 leaves it to each country to adopt any regime for exhaustion of intellectual property rights. Taking from the failure of TRIPs to address exhaustion, the chapter will analyze the controversy surrounding the provisions in the Copyright Act, 1957 and proposed amendments. The chapter would further elaborate on the recent shift in exhaustion regime followed in the United States as held by the US Supreme Court in Kirtsaeng v. John Wiley & Sons, Inc. case. Finally, the chapter would examine the most suitable approach for India in the digital age.
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- 1.
The Copyright Act, 1957 (Act 14 of 1957), s. 2(y).
- 2.
568 U. S.____(2013), at 17, citing Coke, (1628).
- 3.
568 U. S.____(2013).
- 4.
Supra note 2 at 17, citing Coke, (1628).
- 5.
210 U.S. 339 (1908).
- 6.
Id. at 350.
- 7.
Perzanowski and Schultz 2011.
- 8.
Id. at 894.
- 9.
Id. at 895.
- 10.
Id. at 896.
- 11.
Ibid.
- 12.
Id. at 897–900.
- 13.
Id. at 900.
- 14.
Basheer 2012 citing US v. Moore, 604 F.2d 1228.
- 15.
Supra note 14 at 337.
- 16.
Bonadio 2011.
- 17.
For instance, Australia and New Zealand permit parallel importation for copyrighted works. Australian legislation legislation in regard to parallel importation of copyrighted works differs in regard to the type of work. Abbott 1998.
- 18.
Abbott, 607 1998.
- 19.
Conley 2007.
- 20.
Id. at 190.
- 21.
DIRECTIVE 2001/29/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 22 May 2001 on the harmonisation of certain aspects of copyright and related rights in the information society, Article 28 says, “Copyright protection under this Directive includes the exclusive right to control distribution of the work incorporated in a tangible article. The first sale in the Community of the original of a work or copies thereof by the rightholder or with his consent exhausts the right to control resale of that object in the Community. This right should not be exhausted in respect of the original or of copies thereof sold by the rightholder or with his consent outside the Community”. Council Directive of May 14, 1991 on the Legal Protection of Computer Programs (91/250/EEC) states, “The first sale in the Community of a copy of a program by the rightholder or with his consent shall exhaust the distribution right within the Community of that copy, with the exception of the right to control further rental of the program or a copy thereof.”
- 22.
Christopher Heath, “Parallel Imports and International Trade”.
- 23.
Supra note 16.
- 24.
Supra note 16.
- 25.
Chiappetta 2000.
- 26.
Id. at 352.
- 27.
Id. at n99.
- 28.
Kirtsaeng v. John Wiley & Sons, Inc., 568 U. S. ____ (2013).
- 29.
Hereinafter Paris Convention.
- 30.
Hereinafter Berne Convention.
- 31.
Jerome H. Reichman, Ruth L. Okedijiet.
- 32.
Id. at 3, n15.
- 33.
Supra note 16.
- 34.
Supra note 25 at 345.
- 35.
Available at https://www.wto.org/english/docs_e/legal_e/27-trips_03_e.htm. (Last accessed on April 3, 2016).
- 36.
Exhaustion of Rights, available at http://www.iprsonline.org/unctadictsd/docs/RB_Part1_Nov_1.4_update.pdf. (Last accessed on April 12, 2016).
- 37.
The Brussels draft of the Agreement did not provide for limitation on the dispute settlement on the subject of exhaustion. However, later DSB’s power was precluded due to inability of the members to reach a consensus on the exhaustion issue. Available at http://www.iprsonline.org/unctadictsd/docs/RB_Part1_Nov_1.4_update.pdf. (Last accessed on April 12, 2016).
- 38.
Supra note 16.
- 39.
Available at https://www.wto.org/english/thewto_e/minist_e/min01_e/mindecl_trips_e.htm. The Doha Declaration on the TRIPs Agreement and Public Health was adopted on November 14, 2001 by the WTO Ministerial Conference. It has been argued that Paragraph 5 is only applicable to the public health sector as it is part of a declaration dealing exclusively with the protection of public health.
- 40.
World Intellectual Property Organization: Copyright Treaty [adopted in Geneva, Dec. 20, 1996].
- 41.
World Intellectual Property Organization: Performances and Phonograms Treaty [adopted in Geneva, Dec. 20, 1996].
- 42.
WIPO WCT, Article 6(2) states, “Nothing in this Treaty shall affect the freedom of Contracting Parties to determine the conditions, if any, under which the exhaustion of the right in paragraph (1) applies after the first sale or other transfer of ownership of the original or a copy of the work with the authorization of the author.” WPPT, Article 8(2) states, “Nothing in this Treaty shall affect the freedom of Contracting Parties to determine the conditions, if any, under which the exhaustion of the right in paragraph (1) applies after the first sale or other transfer of ownership of the original or a copy of the fixed performance with the authorization of the performer.”
- 43.
Supra note 25 at 356.
- 44.
Supra note 18.
- 45.
Ibid. Different forms here means works in tangible forms like printed books and intangible works like e-books.
- 46.
Article 1(1) states, “Members shall give effect to the provisions of this Agreement. Members may, but shall not be obliged to, implement in their law more extensive protection than is required by this Agreement, provided that such protection does not contravene the provisions of this Agreement.”
- 47.
North American Free Trade Agreement, 1994 between Canada, Mexico and the United States of America.
- 48.
The MERCOSUR is an agreement between Argentina, Brazil, Paraguay and Uruguay.
- 49.
Supra note 18.
- 50.
Jordan (2001) and Morocco (2004).
- 51.
Tightening TRIPs: The Intellectual Property Provisions of Recent US Free Trade Agreements. Available at http://www.cptech.org/ip/health/trade/worldbank02072005.pdf. (Last accessed on April 12, 2016).
- 52.
Here in after referred to as the Act.
- 53.
The Copyright Act, 1957 (Act 14 of 1957), Section 2(m) “infringing copy” means,–
-
(i)
in relation to a literary, dramatic, musical or artistic work, a reproduction thereof otherwise than in the form of a cinematographic film;
-
(ii)
in relation to a cinematographic film, a copy of the film made on any medium by any means;
-
(iii)
in relation to a sound recording, any other recording embodying the same sound recording, made by any means;
-
(iv)
in relation to a programme or performance in which such a broadcast reproduction right or a performer's right subsists under the provisions of this Act, the sound recording or a cinematographic film of such programme or performance, if such reproduction, copy or sound recording is made or imported in contravention of the provisions of this Act;
-
(i)
- 54.
Supranote 14 at 338.
- 55.
Ibid.
- 56.
Ibid.
- 57.
The Copyright Act, 1957 (Act 14 of 1957), ss. 14(1)(d)(ii) and (e)(ii) of the Act.
- 58.
ILR (1985) I Delhi 35.
- 59.
Id. at 40 para 10.
- 60.
Id. at 44 para 22 and 23.
- 61.
(2005) 6 Bom CR 198.
- 62.
2009 SCC OnLine Del 835.
- 63.
The Copyright Act, 1957 (14 of 1957), Section 51 (b)(iv) proviso: Provided that nothing in sub-clause (iv) shall apply to the import of one copy of any work for the private and domestic use of the importer.
- 64.
Supra note 62 at para 63 and 64.
- 65.
2010 (44) PTC 675 (Del).
- 66.
Id. at para 104.
- 67.
Supra note 14 at 343.
- 68.
Padmanabhan 2012.
- 69.
227th Report on Copyright (Amendment) Bill, 2010, Department—Related Parliamentary Standing Committee on Human Resource Development, p. 68, http://www.prsindia.org/uploads/media/Copyright%20Act/SCR%20Copyright%20Bill%202010.pdf. (Last accessed on April 12, 2016).
- 70.
Abraham 2011.
- 71.
Ibid.
- 72.
Ibid.
- 73.
Thomas Abraham’s rebuttal to ‘Why Parallel Importation of Books Should Be’, 2016.
- 74.
Basheer 2011.
- 75.
National Council of Applied Economic Research report on The Impact of Parallel Imports of Books, Films/Music and Software on the Indian Economy with Special Reference to Students, (Ministry of Human Resource Development, Copyright Division, Department of High Education, Government of India) pp. 108, http://copyright.gov.in/documents/parallel_imports_report.pdf. (Last accessed on April 3, 2016).
- 76.
210 U.S. 339 (1908).
- 77.
17 U.S.C. § 106(3).
- 78.
Ghosh 2014.
- 79.
17 U.S.C. § 109(b).
- 80.
PGS stands for Pictorial, graphic or sculptural work. 17 U.S.C. § 109(c).
- 81.
17 U.S.C. § 109(e).
- 82.
523 U.S. 135 (1998).
- 83.
Omega S.A. v. Costco Wholesale Corp., 541 F.3d 982 (9th Cir. 2008).
- 84.
Ibid.
- 85.
Costco Wholesale Corp. vs. Omega, 562 U.S.___ (2010). Although there are nine justices in the Court, Justice Kagan was not allowed to decide as she was involved in the case as Solicitor General.
- 86.
568 U. S.____(2013).
- 87.
https://www.gov.uk/eu-eea. (Last accessed on April 13, 2016).
- 88.
Ibid.
- 89.
Ibid.
- 90.
Supra note 78 at 56.
- 91.
https://ec.europa.eu/digital-single-market/en/eu-copyright-legislation. (Last accessed on April 2, 2016).
- 92.
Article 34, Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States. Article 36, The provisions of Articles 34 and 35 shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures possessing artistic, historic or archaeological value; or the protection of industrial and commercial property. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.
- 93.
[1988] ECR 2605.
- 94.
Supra note 78 at 56. Citing EMI Electrola v. Patricia, [1989] ECR 79 where Denmark did not allow the importation of videotapes of a copyrighted film from United Kingdom where such importation was allowed.
- 95.
Id.
- 96.
BerntHugenholtz 2012.
- 97.
Supra note 7 at 890, n2 and n3.
- 98.
Supra note 18.
- 99.
For instance, Kindle Store Terms of Use, available at https://www.amazon.in/gp/help/customer/display.html?nodeId=201014950. (Last accessed on April 14, 2016).
- 100.
Asay 2016.
- 101.
Capitol Records, LLC v. ReDigi Inc., 934 F. Supp. 2d 640, 655 (S.D.N.Y. 2013).
- 102.
See Vision of Digital India at http://www.digitalindia.gov.in/content/vision-and-vision-areas. (Last accessed on April 14, 2016).
- 103.
As stated in the Preamble to WCT and WPPT, available at http://www.wipo.int/treaties/en/text.jsp?file_id=295166 and http://www.wipo.int/wipolex/en/treaties/text.jsp?file_id=295477. (Last accessed on April 13, 2016).
- 104.
17 U.S.C. §§ 1201–1205 (2000).
- 105.
See 17 U.S.C. § 1201.
- 106.
Ibid.
- 107.
Supra note 7 at 903.
- 108.
Ibid.
- 109.
Ibid.
- 110.
Reis 2014.
- 111.
Supra note 100. It is contended that adoption of digital-first-sale-doctrine would decrease piracy.
- 112.
TRIPs Agreement, Article 7: Objectives—The protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations.
- 113.
TRIPs Agreement, Preamble, available at https://www.wto.org/english/tratop_e/trips_e/t_agm1_e.htm. (Last accessed on April 14, 2016).
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Gomber, A.J.S. (2017). First Sale Doctrine in the Digital Era. In: Sinha, M., Mahalwar, V. (eds) Copyright Law in the Digital World. Springer, Singapore. https://doi.org/10.1007/978-981-10-3984-3_12
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