Omega’s decade long battle with Costco has ended with a decision that it cannot sue the discounter for selling its watches at 35 per cent below its preferred price.The Swiss luxury watchmaker said Costco had infringed its copyright by selling its Seamaster brand watch at $1,299 in the US, when Omega’s selling price was $1,999. Costco was able to do so by sourcing the watches on the grey market, from a company which bought watches to be sold abroad. Omega reportedly sold these watches at cheaper prices in Paraguay.

Copyright expired

The case went all the way to the Supreme Court, where it stumbled on a legal issue.  It was then heard by a federal appeals court, which ruled that Omega could not sue Costco over products it sold to foreign distributors.  The court said that Omega’s right to control importation and distribution of its copyrighted product expired after the authorised first sale abroad.