Re: Controlling Distribution of Disney Tapes

From: Lee Tien <tien[_at_]well.com>
Date: Sat, 21 Sep 1996 13:22:37 -0800

On 8/15/96, Richard Hopkins <rhopkins[_at_]activision.com> wrote:
>
> Controlling Distribution of Disney Tapes
>
> Does anyone know how Disney keeps stores from selling "old" videotapes
> such as "The Little Mermaid"? I was told by a friend that Disney only
> sells to "authorized" distributors and as part of an agreement with
> Disney all unsold merchandise must be returned upon the last day that
> Disney makes the tapes available to the public.
>
> What stops someone from buying 500 copies of The Little Mermaid from
> The Price Club or another source and then waiting until six months
> after the "availability" date to sell the tapes? Stores sell used
> CDs all the time, why not used Little Mermaids?
>
> Wouldn't the first sale doctrine apply here? Or does Disney argue
> that the tapes are sold via a license which forbids resell? If Disney
> can get away with this, what use is the first sale doctrine?

Stores *do* sell "old" videotapes like Little Mermaid. Two days ago, at a local used CD/record/video store, I saw several copies of "out of distribution" Disney videos for sale.

And as you might expect, they cost a bundle, at least $150. There's a big collectors' market out there.

Lee

Lee Tien
<tien[_at_]well.com> Received on Sat Sep 21 1996 - 20:25:56 GMT

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