The initial distribution right for a product always lies with its manufacturer. This ensures that the author receives appropriate compensation for their value creation. Once the author has exercised this right—meaning they have agreed to the sale and received appropriate compensation, i.e., the purchase price—this right is considered exhausted pursuant to Section 69c No. 3 Sentence 2 of the German Copyright Act (UrhG). This applies both in Germany and across the entire internal market of the European Union and the European Economic Area (EEA) (EU-wide exhaustion).
From that point on, the product may be freely redistributed—explicitly “regardless of any content-related restriction of the granted right of use,” as stated in the headnote of the BGH ruling of July 6, 2000. However, the right of rental is not subject to exhaustion.
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