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Le Case

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LE Case Costco Wholesale Corp. v. Omega, S.A. (08-1423)
By
Bolang Chen

1. The facts of the case:

Omega is a famous watch manufacturer company in the world. All of Omega watches are produced in Switzerland. Omega sells its products to all of the world through authorized wholesalers and retailers. Each of the Omega watches is engraved with the words "Omega Globe Design” on the back of it. And it means the copyright law in America protects the watch. Costco is a well-known wholesale warehouse store. They purchased Omega watches through an unknown third party company in the New York, and sold these watches in the United States, and the watches price was cheaper than many other American distributor's price. Many years ago, Omega gave Costco the authorization to sell the watches in the foreign market, but they did not give them a mandate for sale in the United States. So, Omega sued Costco to the US District Court for the Central District of California. Omega thought that Costco's behavior has constituted infringement. Although they authorized Costco to sell watches in foreign countries, they did not authorize them to sell in the United States. But Costco said that, according to the 109 (a), called the first sale doctrine. Because Omega allowed Costco to sell them products the first time, they cannot limit Costco to make importation, sales and other acts, which means that Omega has no right to stop Costco from selling their watch. The US District Court for the Central District of California ruled in favor of Costco without explanation

Omega appealed to the United States Court of Appeals for the Ninth Circuit. The Court’s final ruling claimed that Omega won. First, the judge considered this case did not apply

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