What Is the First-Sale Doctrine?

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You may be granted exclusive rights as a copyright owner. However, you must understand that these rights may only extend so far, and the legal purchaser of your copyrighted work may be granted certain privileges of their own. Namely, an intellectual property law that has caused great confusion during copyright infringement disputes is the first-sale doctrine. Continue reading to learn more about the first-sale doctrine and how an experienced New Jersey copyright lawyer at The Ingber Law Firm can help you understand how it may apply to your case.

What is the first-sale doctrine for intellectual property?

As written in the United States Code, the first-sale doctrine holds that a party who knowingly purchases a copy of a copyrighted work from a copyright owner has the right to sell, display, or otherwise dispose of it, notwithstanding the interests of an owner. That is, without the copyright owner’s explicit permission. For example, a bookstore may sell a copy of a copyrighted book. Or, an individual may gift a copy of a purchased, copyrighted CD.

In other words, a copyright owner’s exclusive right to control the distribution of a particular copy is exhausted once that particular copy of a copyrighted work is sold or otherwise lawfully transferred. All the while, though, they may maintain the right to continue to make copies of their copyrighted work and sell these particular copies to interested purchasers.

As far as trademarks go, the first-sale doctrine means that a party who knowingly purchases an item bearing a trademark from a trademark owner has the right to resell it, notwithstanding the interests of an owner. This is not to say, though, that a purchasing party can wrongfully give the impression that they are affiliated with a trademark owner in any way.

How can the first-sale doctrine be applied to a copyright infringement case?

Essentially, a purchasing party’s ability to sell or transfer ownership of a copy of a copyrighted work without legal hurdles derives directly from the first-sale doctrine. So, it may be difficult for a copyright owner to have a successful copyright infringement claim against them when the first-sale doctrine is at play. However, like most intellectual property laws in place, there may be exceptions to this.

For example, the specific privileges offered to purchasing parties by the first-sale doctrine do not extend to those who have acquired possession of the copy of a copyrighted work by rental, lease, loan, or otherwise without acquiring legitimate ownership over it. So, in a licensing agreement, a copyright owner still maintains ownership over all their distributed copies of their copyrighted work. Therefore, a defendant (i.e., the purchasing party) cannot argue for the first-sale doctrine if this is the premise of the case.

If you have any further questions or concerns, please do not hesitate to contact a skilled Essex County, New Jersey intellectual property lawyer. Schedule your free initial consultation with The Ingber Law Firm today.