Bobbs-Merrill Co. v. Straus
Encyclopedia
Bobbs-Merrill Co. v. Straus, , was a United States Supreme Court
decision concerning the scope of rights accorded owners of a copyright
. This was a case of first impression concerning whether the copyright laws permit an owner to control a purchaser's subsequent sale of a copyrighted work. The court stated the issue as:
The case centered around the publisher setting additional terms not specifically stated in the statute and claiming that the work was licensed and not sold. The Court's ruling established what came to be known as the "first-sale doctrine
", which was later codified as § 109(a) of the Copyright Act of 1976
.
sold a copyrighted novel, The Castaway by Hallie Erminie Rives
, with the notice, "The price of this book at retail is $1 net. No dealer is licensed to sell it at a lower price, and a sale at a lower price will be treated as an infringement of the copyright" printed immediately below the copyright notice. The defendants, R.H. Macy & Co.
, purchased large lots of books at wholesale and sold copies of the book at retail at the price of 89 cents a copy.
The court did not hold that a contract
or license
imposed on the first sale could not create an obligation. In this case, there was no contract between the owner and the original purchaser, and there was not privity of contract
between the owner and any third party.
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
decision concerning the scope of rights accorded owners of a copyright
Copyright
Copyright is a legal concept, enacted by most governments, giving the creator of an original work exclusive rights to it, usually for a limited time...
. This was a case of first impression concerning whether the copyright laws permit an owner to control a purchaser's subsequent sale of a copyrighted work. The court stated the issue as:
- "Does the sole right to vend (named in 4952) secure to the owner of the copyright the right, after a sale of the book to a purchaser, to restrict future sales of the book at retail, to the right to sell it at a certain price per copy, because of a notice in the book that a sale at a different price will be treated as an infringement, which notice has been brought home to one undertaking to sell for less than the named sum?"
The case centered around the publisher setting additional terms not specifically stated in the statute and claiming that the work was licensed and not sold. The Court's ruling established what came to be known as the "first-sale doctrine
First-sale doctrine
The first-sale doctrine is a limitation on copyright that was recognized by the Supreme Court of the United States in 1908 and subsequently codified in the Copyright Act of 1976,...
", which was later codified as § 109(a) of the Copyright Act of 1976
Copyright Act of 1976
The Copyright Act of 1976 is a United States copyright law and remains the primary basis of copyright law in the United States, as amended by several later enacted copyright provisions...
.
Facts
Bobbs-Merrill CompanyBobbs-Merrill Company
The Bobbs-Merrill Company was a book publisher located in Indianapolis, Indiana. Bobbs-Merrill was known for publishing such authors as Richard Halliburton, David Markson, Ayn Rand, James Whitcomb Riley, Walter Dean Myers, and Irma S. Rombauer. Bobbs-Merrill also published the early works of...
sold a copyrighted novel, The Castaway by Hallie Erminie Rives
Hallie Erminie Rives
Hallie Erminie Rives was a best-selling popular novelist and wife of the American diplomat Post Wheeler.She was born in Kentucky, the daughter of Stephen Turner Rives and Mary Ragsdale. Her father was from a prominent Virginia family. She was a distant cousin of the novelist and poet Amélie Rives...
, with the notice, "The price of this book at retail is $1 net. No dealer is licensed to sell it at a lower price, and a sale at a lower price will be treated as an infringement of the copyright" printed immediately below the copyright notice. The defendants, R.H. Macy & Co.
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...
, purchased large lots of books at wholesale and sold copies of the book at retail at the price of 89 cents a copy.
Holding
The court held first that the copyright statutes protect an owner's right to "multiply and sell" the work on their own terms. The statutory right to sell, however, did not also create a right to limit resale.The court did not hold that a contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
or license
License
The verb license or grant licence means to give permission. The noun license or licence refers to that permission as well as to the document recording that permission.A license may be granted by a party to another party as an element of an agreement...
imposed on the first sale could not create an obligation. In this case, there was no contract between the owner and the original purchaser, and there was not privity of contract
Privity of contract
The doctrine of privity in the common law of contract provides that a contract cannot confer rights or impose obligations arising under it on any person or agent except the parties to it....
between the owner and any third party.
See also
- Quality King Distributors, Inc. v. Lanza Research Intl,
- Bauer & Cie. v. O'DonnellBauer & Cie. v. O'DonnellBauer & Cie. v. O'Donnell, 229 U.S. 1 was a United States Supreme Court decision involving licensing terms on patented works.Bauer & Cie sold Sanatogen, a patented water soluble albuminoid, with this notice on each bag:...
, a similar ruling regarding patents - List of United States Supreme Court cases, volume 210