THE TRANSFORMATION OF DIGITAL EXHAUSTION PRINCIPLES AND OPEN LICENSING REGIMES: STRIKING A BALANCE BETWEEN INNOVATION AND PROPRIETARY CONTROL
AUTHOR – SHALINI GIRI* & DR. SUKRITI YADAV**
* STUDENT AT AMITY UNIVERSITY UTTAR PRADESH LUCKNOW CAMPUS
** ASSISTANT PROFESSOR AT AMITY UNIVERSITY UTTAR PRADESH LUCKNOW CAMPUS
BEST CITATION – SHALINI GIRI & DR. SUKRITI YADAV, THE TRANSFORMATION OF DIGITAL EXHAUSTION PRINCIPLES AND OPEN LICENSING REGIMES: STRIKING A BALANCE BETWEEN INNOVATION AND PROPRIETARY CONTROL, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (2) OF 2026, PG. 157-168, APIS – 3920 – 0001 & ISSN – 2583-2344.
Abstract
This article takes as its premise that the digital economy has changed significantly enough that IP law and doctrine has been altered in some substantial fashion. The article begins with the statement that the first sale doctrine is a fundamental principle of IP law, but then delves into the problems created by the digital economy with respect to the use and dissemination of copyrighted materials and thereby the applicability of the first sale doctrine to digital products. In the analog world, this became an issue with respect to physical copies of movies, music and software and the issue of whether or not purchasing a copy meant that you could resell that copy. The issues in the digital economy are dramatically more complex, however, given the speed at which information can be distributed, the manner in which information and other materials are stored in the cloud, and the manner in which people access materials and pay for goods and services in a subscription based economy. Each of these factors raises significant doctrinal and conceptual issues concerning the first sale doctrine in the context of digital products.
The concept of digital exhaustion has evolved in response to the rapid evolution of technology and the differing judicial approaches to this concept that have been adopted in various Member States. The present article carries out a critical analysis of this evolution. The author analyses the competition between different sets of rules governing the exercise of copyright, focusing specifically on statutory limits on exclusive rights and on the principle of contractual freedom, through the prism of open access licensing, such as the Creative Commons licence. The author illustrates how, by choosing to apply a Creative Commons licence, the author of a work is able to modify on a voluntary basis the terms of authorization and to extend the category of beneficiaries by ensuring that the copyright reserved in respect of that work is fully preserved.
This project aimed at exploring through doctrinal analysis and comparative research the tensions between competing values such as innovation, competition, consumers and the legitimate interests of copyright holders as they are dealt with in the copyright legislation of each country. The project’s findings were that the new business models of digital distribution require a revolution in the copyright law on exhaustion and licensing as well as more refined and detailed categorisation of copyright ownership to achieve more transparency in digital transactions and greater harmonisation of copyright law. A calibrated approach is required to balance competing values in the fields of access to knowledge and the digital economy.