Deutsche Grammophon Gesellschaft GMBH v. Metro-SB-Grossmarkte GMBH & Co. Ltd.
European Communities Court of Justice
[1971] ECR 487, [1971] CMLR 631, 2 IIC 429 (1971)
- Written by Sarah Holley, JD
Facts
Deutsche Grammophon Gesellschaft GMBH (DG) (plaintiff) manufactured records that it sold in numerous markets. DG sold records in the German Federal Republic through retailers and wholesalers. DG sold records in other European countries through licenses granted to its parent corporation or one of its subsidiaries. All of the retailers signed a written agreement to observe DG’s fixed prices. DG’s subsidiary, Polydor DS, Paris (Polydor), sold records in France pursuant to one such license. These records were sold in France and reached Hamburg, where Metro-SB-Grossmarkte GMBH & Co. Ltd. (Metro) (defendant) was reselling them at less than GB’s fixed price. When Metro refused to sign an agreement to observe GB’s fixed prices, GB brought suit against Metro, seeking an injunction pursuant to its German intellectual-property right to restrain Metro from selling the protected goods. Under German intellectual-property law, it was clear that a sale either by the holder or someone with his consent within the German Federal Republic would exhaust his right; he could not control subsequent sales. It was not clear, however, whether a sale outside the German Federal Republic, such as France, would do so. The Hamburg Court of Appeal referred the question to the Court of Justice of the European Communities.
Rule of Law
Issue
Holding and Reasoning ()
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