Vernor v. Autodesk, Inc.
United States Court of Appeals for the Ninth Circuit
621 F.3d 1102 (2010)
Autodesk, Incorporated (Autodesk) (defendant) created AutoCAD software, with Release 14 accompanied by a software license agreement (SLA) stating Autodesk retained title to copies, users obtained only a nontransferable license, and imposing restrictions including bans on renting, leasing, or using the software outside the Western Hemisphere. One Autodesk customer licensed 10 copies of Release 14 and, after upgrading, sold several copies to Timothy Vernor (plaintiff), who resold used goods on eBay. When Vernor listed a Release 14 copy, Autodesk filed DMCA takedown notices alleging copyright infringement; Vernor filed DMCA cross-notices, and after several such cycles eBay suspended his account, though it was reinstated after his cross-notice. Vernor then sued for declaratory judgment that his sales were protected by the first-sale doctrine; the district court granted Vernor's motion for summary judgment, and Autodesk appealed.
Whether, under copyright law, determining whether an authorized user of a copyrighted work is a licensee or owns a copy of the work depends on the contents of the use agreement.