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Donna Wentworth
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Ernest Miller
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About this weblog
Here we'll explore the nexus of legal rulings, Capitol Hill policy-making, technical standards development, and technological innovation that creates -- and will recreate -- the networked world as we know it. Among the topics we'll touch on: intellectual property conflicts, technical architecture and innovation, the evolution of copyright, private vs. public interests in Net policy-making, lobbying and the law, and more.

Disclaimer: the opinions expressed in this weblog are those of the authors and not of their respective institutions.

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In the Pipeline: Don't miss Derek Lowe's excellent commentary on drug discovery and the pharma industry in general at In the Pipeline

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June 1, 2004

First Sale Hurts Videogame Market Claims Gamespot Guest Columnist

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Posted by Ernest Miller

Gamespot is running a bizarre guest editorial complaining about the used console game market made possible by the First Sale doctrine (Second-Handed Compliment):

You know, Nintendo, Sony, and Microsoft must have a real love/hate relationship with stores that stock used games alongside their new games--stores like Electronics Boutique or GameStop. It's a pretty amazing concept when you stop to think about it. You can go to any number of these retailers and purchase, say, a used Xbox, used accessories, and used games. You can experience all the joys of the machine just the same as someone who bought it new and spent a few more dollars than you, except that you didn't give Microsoft, the game developers, or the game publishers a thin, red cent. [emphasis in original]

Luckily, he doesn't actually advocate repealing the First Sale doctrine, but would prefer that people not take advantage of it. Presumably the author, if or should he go to college, will buy only brand new textbooks and will not sell back the useless ones at the end of the semester. I imagine he also boycotts libraries out of principle.

I guess he doesn't take into account that profit margins for retailers of new games are razor thin. Without used game sales there wouldn't be as many Electronic Boutiques and GameStops. Used merchandise draws in customers who might also be something new when they buy/sell something old. A used market increases the value of the original merchandise. Suddenly, that $50 game looks like only $40 since I know I can sell for $10 when I'm finished with it. Nah ... first sale only hurts content producers.

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