Price Discrimination in the Textbook Market: An Analysis of the Post-Quality King Proposals to Prevent and Disincentivize Reimportation and Arbitrage

Authors

• Christine Ongchin, Benjamin N. Cardozo School of Law

Abstract

The note examines how the rise of the internet and legal developments, particularly the Supreme Court's decision in Quality King Distributors v. Lanza, have disrupted traditional price discrimination practices in the textbook industry. Historically, publishers engaged in third-degree price discrimination, charging higher prices in the U.S. market due to geographic isolation and limited arbitrage opportunities. However, the internet has facilitated reimportation and arbitrage, undermining this practice. The first sale doctrine under 17 U.S.C. § 109(a) further complicates efforts to prevent resale of cheaper, internationally purchased textbooks in the U.S. market. Publishers must now consider alternative strategies, such as contractual restrictions or ceasing foreign sales, to mitigate revenue losses.

Disciplines

Antitrust and Trade Regulation | Civil Rights and Discrimination | Intellectual Property Law | International Law | International Trade Law | Law

Recommended Citation

Christine Ongchin, Price Discrimination in the Textbook Market: An Analysis of the Post-Quality King Proposals to Prevent and Disincentivize Reimportation and Arbitrage, 15 Cardozo J. Int'l & Comp. L. 223 (2007).
Available at: https://larc.cardozo.yu.edu/cjicl/vol15/iss1/8