Tabberone is pronounced tab ber won
not tay ber own
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Tabberone is pronounced tab ber won |
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Sebastian Intern., Inc. v. Consumer Contacts (PTY) Ltd, 847 F.2d 1093 (3d Cir. 1988)
Plaintiff, Sebastian International, is a California corporation which manufactures and markets personal care beauty supplies. The two items at issue were, WET and SHPRITZ FORTE, carry copyrights for the text and artistic content of their labels. Sebastian maintains that its marketing policy restricts retail sales to professional salons. This strategy is designed to establish Sebastian's image, enhance its reputation, and foster its commercial success. In 1986, Sebastian entered into an oral contract with defendant Consumer Contacts in which Consumer Contacts agreed to distribute Sebastian beauty products to professional hair styling salons in South Africa, but not elsewhere. Sebastian shipped four containers of WET, SHPRITZ FORTE and other products valued at approximately $200,000 to 3-D in Edenvale, South Africa in January 1987. Consumer Contacts then reshipped the unopened containers back to the US. Sebastian, alleging breach of contract copyright infringement, sought a preliminary injunction against distribution of the products. The district court concluded that the two Sebastian labels came within the purview of the Copyright Act and issued a preliminary injunction against infringement The 3rd Circuit Court of Appeals stated: This case comes to us in the guise of an alleged copyright infringement but, in reality, is an attempt by a domestic manufacturer to prevent the importation of its own products by the "gray market." We conclude that, having sold its goods with copyrighted labels to foreign distributors, the manufacturer is barred by the first sale doctrine from establishing infringement through an unauthorized importation. Consequently, we will vacate a preliminary injunction enjoining defendants from distributing within the United States, products that plaintiff had manufactured in this country and then exported. |
