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Email To Ebay January 18, 2003

To: cswebhelp@ebay.com
Re: PS%S00415 PowerSeller #US A11 (KMM69160812V94947L0KM)

As I recall, the eBay rules require the VeRO member to take federal court action within two weeks. It has been over two weeks. What is happening here? Is Disney getting some sort of special treatment? ? After two weeks I am supposed to be able to relist those items and Disney is deliberately dragging their feet.

Disney is violating federal copyright and trademark laws when they terminate sales of fabric items made from their licensed and lawfully acquired fabric. The First Sale Doctrine protects the buyer of the fabric. The finished fabric products are not derivatives as defined by the federal courts.

"The whole point of the first sale doctrine is that once the copyright owner places a copyrighted item in the stream of commerce by selling it, he has exhausted his exclusive statutory right to control its distribution." Justice Stevens, delivering an opinion for a unanimous Supreme Court in the case QUALITY KING DISTRIBUTORS, INC. v. L'ANZA RESEARCH INT'L, INC (96-1470), 98 F.3d 1109, reversed.

Ask Precious Moments. They lost a case about this very thing. In Precious Moments vs La Infantil, 1997, (D.P.R.) 971 F.Supp. 66, the First Circuit Court specifically rejected the copyright claim where La Infantil was being accused with unauthorized use of copyrighted fabric, saying that "bedding items manufactured with lawfully acquired, authentic fabric with copyrighted design were not infringing derivative works."

While the VeRO program is supposed to protect the rights of the members, little is being done to prevent these same members from using the VeRO program to illegally control the secondary market.

Again, why the unusual delay? I'm following the procedures as outlined by eBay. Since when does Disney have a say in how this is handled?