Bobbs-Merrill Co. v. Straus
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''Bobbs-Merrill Co. v. Straus'', 210 U.S. 339 (1908), was a
United States Supreme Court The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point o ...
decision concerning the scope of rights accorded owners of a
copyright A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...
versus owners of a particular copy of a copyrighted work. This was a
case of first impression A precedent is a principle or rule established in a previous legal case that is either binding on or persuasive for a court or other tribunal when deciding subsequent cases with similar issues or facts. Common-law legal systems place great value ...
concerning whether the
copyright law A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...
s 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 on 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 The first-sale doctrine (also sometimes referred to as the "right of first sale" or the "first sale rule") is an American legal concept that limits the rights of an intellectual property owner to control resale of products embodying its intellec ...
", which was later codified as § 109(a) of the Copyright Act of 1976.


Facts

Bobbs-Merrill Company The Bobbs-Merrill Company was a book publisher located in Indianapolis, Indiana. Company history The company began in 1850 October 3 when Samuel Merrill bought an Indianapolis bookstore and entered the publishing business. After his death in ...
sold a copyrighted novel, ''The Castaway'' by
Hallie Erminie Rives Hallie Erminie Rives (May 2, 1874 – August 16, 1956) was a best-selling popular novelist and wife of the American diplomat Post Wheeler. Biography She was born on May 2, 1874 in Hopkinsville, Kentucky, the daughter of Stephen Turner 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, Isidor and
Nathan Straus Nathan Straus (January 31, 1848 – January 11, 1931) was an American merchant and philanthropist who co-owned two of New York City's biggest department stores, R. H. Macy & Company and Abraham & Straus. He is a founding father and namesake f ...
representing 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.


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 A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tr ...
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 The doctrine of privity of contract is a common law principle which provides that a contract cannot confer rights or impose obligations upon any person who is not a party to the contract. The premise is that only parties to contracts should be ab ...
between the owner and any third party.


See also

*'' Quality King Distributors, Inc. v. Lanza Research Intl'', *'' Bauer & Cie. v. O'Donnell'', a similar ruling regarding patents *
List of United States Supreme Court cases, volume 210 This is a list of cases reported in volume 210 of '' United States Reports'', decided by the Supreme Court of the United States in 1908. Justices of the Supreme Court at the time of volume 210 U.S. The Supreme Court is established by ...


External links

* * {{USCopyrightActs United States Supreme Court cases United States Supreme Court cases of the Fuller Court United States copyright case law 1908 in United States case law