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In the 1907 case of Scribner v. Straus et al., trading as R.H. Macy & Company, the U.S Supreme Court addressed a copyright dispute involving book sales at discounted prices. The plaintiff, Charles Scribner's Sons, was a publishing company that had exclusive rights to sell certain copyrighted books in the United States and sought to prevent Macy's from selling these same books at lower prices than those set by them. They argued that this practice constituted an infringement on their copyright protections under existing law. The defendants (Macy’s) acquired legitimate copies of these books abroad where they were sold for less and imported them into America for resale purposes without altering or reproducing any content within the books themselves. The court ruled in favor of Straus et al., stating that once a copy of a work is legally purchased, its subsequent sale does not constitute copyright infringement regardless if it is sold below suggested retail price - essentially affirming what came to be known as "first-sale doctrine". This decision established important precedent regarding limitations on control over distribution by copyright holders after initial sale.
The dissenting opinion in the Scribner v. Straus case, delivered by Justice Harlan, argued that Macy's department store had violated copyright laws by selling imported copies of copyrighted books at a lower price than domestically produced versions. He contended that this practice was not only unfair to American publishers and authors but also undermined the intent of Congress when it passed copyright legislation. Harlan believed that Congress intended to protect domestic industries from foreign competition and provide incentives for creativity and innovation within the U.S., which he felt were threatened by Macy's actions. Furthermore, he disagreed with the majority’s interpretation of “importation” under existing law, arguing instead for a broader understanding encompassing any introduction into U.S commerce regardless if sold or given away.