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A Primer on Patent and Copyright Misuse

Earlier this month the United States District Court for the Eastern District of California extended the copyright misuse doctrine to the benefit of Costco, finding that an overzealous manufacturer of watches was attempting to use a copyright on a small logo stamped onto its watches to prohibit the resale of lawfully purchased watches by Costco. See Costco Prevails in First Sale Case Thanks to Copyright Misuse http://ipwatchdog.com/2011/11/15/costco-prevails-in-first-sale-case-thanks-to-copyright-misuse/id=20449/ .

Misuse defenses, such as copyright misuse and patent misuse, have historically be applied sporadically at best. This may be because misuse has been frequently found only when there is an underlying Antitrust violation. That is, however, not a prerequisite. A misuse defense is really about the unjustified extension of either a copyright or patent beyond the legitimate boundaries of the property right.

by Gene Quinn

Full Story: http://ipwatchdog.com/2011/11/17/antitrust-law-basics-a-primer-on-patent-and-copyright-misuse/id=20458/

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