Copyright in the digital age

Exhaustion

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Key Facts
  • The legal concept of exhaustion has many applications in different areas of law.
  • In intellectual property law, exhaustion means the consumption of property rights after the first lawful sale.
  • Copyright law regulates exhaustion in the distribution right in accordance with Section 17 UrhG.
  • The exclusive distribution right expires after the first sale.
  • There are three types of exhaustion: national, regional and international.
  • In procedural law, exhaustion describes the full use of all legal remedies up to the constitutional complaint.
  • Digital technologies require a redefinition of exhaustion concepts for digital goods.

Legal definition and principles

The legal concept of exhaustion is used in various areas of law and describes different legal mechanisms. In intellectual property law, exhaustion refers to the consumption of property rights as soon as a protected object has been lawfully placed on the market. In procedural law, exhaustion describes the complete exhaustion of all available legal remedies.

In copyright law, exhaustion is concretized in the distribution right pursuant to Section 17 UrhG. It occurs when the rights holder sells a work or reproduction with his consent. The sale extinguishes the exclusive distribution right for this specific work.

Exhaustion in intellectual property law

The principle of exhaustion in intellectual property law aims to strike a balance between the interests of the rights holder and the interests of trade. After the first lawful sale of a good, further disposals can take place without the consent of the original owner.

A distinction is made between:
– National exhaustion
– Regional exhaustion
– International exhaustion

Exhaustion under procedural law

In procedural law, exhaustion describes the full use of all legal remedies. In the case of a constitutional complaint, all legal channels must first be exhausted before recourse can be made to the Federal Constitutional Court.

Digital transformation

Digital technologies pose new challenges to traditional concepts of exhaustion. Especially for digital goods such as e-books or software licenses, exhaustion concepts need to be rethought.

 

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