The Japanese were undercutting Swiss manufacturers with a glut of inexpensive but accurate and reliable watches, reducing Switzerland's global market share to 20%.

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In the Costco decision, the Ninth Circuit agreed with prior Supreme Court decisions that the first-sale doctrine applies to works manufactured in the U.S. But the Omega watches in question were made in Switzerland, far outside the reach of U.S. copyright law, and sold to authorized dealers in Latin America.

FORBES: Costco v. Omega Tests Power Of A Logo

In the early 1980s, the Swiss watch industry faced looming catastrophe as it failed to realize the importance of quartz watches, even though the quartz watch had been invented in Switzerland in 1967.

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