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It's Certainly Not Contaminated By Cheese
Allowing potential publishers to review a manuscript, for example, does not allow them to resell even their copy, under the first sale doctrine, even if there is no demand that the copy be returned.
a non-sale contest and impose various conditions. In the WSJ article it
indicates that the students are buying the book.
I see no reason why it would be copyright infringement for a potential publisher reviewing a manuscript to sell the particular copy they were given. It's a copy owned by the recipient (absent some contract or other promise saying otherwise), and is freely alienable. As we saw in the UMG v. Augusto case, just asserting that industry practice requires the recipient to act in a certain way doesn't affect the first sale analysis.
As for the original question regarding A Writer's Reference, I think it presents an even easier case than Augusto. The student owns the book, and can sell it; the label notice does not affect who has title to the physical object, and thus doesn't affect first sale.
If the book was sold underneath a shrinkwrap license containing a term prohibiting resale, the story would be only a little different. In that case, if a student resold the book, I think the publisher would have a non-frivolous breach of contract claim against the student (though I think such a contract term should probably be voided on public policy grounds). But they would not, in my view, have a copyright claim against the student, since the sale would be shielded by the first sale doctrine.
Joe Gratz
(counsel for Augusto, but speaking only for himself)
What if the University wrapped the book in plastic, and used a wrap-license that prohitibed re-sale? I.e., the "buyer" was only buying a license, not a copy?
But, they are generally accepted as ethical if the underlying clause is more or less enforceable even if the drafter actually doesn't really think he or she would ever want to go to the trouble of enforcing it.
Does the first-sale doctrine only apply to hardcopies of copyright protected works?
I personally abhor the notion of "licensing" something which is inherently a "sale".
Interestingly, a very similar issue has recently arisen in my own practice... where a producer (of a play), wants to provide the actors copies of their performances on DVD, but wants to prohibit them from selling or giving the DVD to others. I've concluded that once a copy leaves the copyright holder's control, it can be sold, transferred, etc., but not copied, displayed, performed, or used as source for a derivative work.
Consider contract rather than copyright as the means of enforcing the theater company's norms.
(And consider whether the theater company's license to produce the play permits videotaping and distribution of copies to actors at all. Many such licenses don't.)