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Is Costco being sued because of its low prices and not because the designer merchandise is fake? Consumerist reports that luxury brands are steaming mad that Costco buys genuine designer products abroad (because they're cheaper there) and then resells the items in store for less than MSRP. The AP says the store's practices do not violate US Copyright laws. Consumerist says: "As you might imagine from all the region coding and other location based stuff that gets tacked on tot DVDs and software, this lawsuit is freaking out the entertainment industry. They don't want a ruling that would encourage retailers to buy their products overseas and sell them to U.S. consumers for huge discounts. The AP says the lawsuit stems from some Omega watches that were initially sold to an authorized distributor in Paraguay, but somehow ended up at Costco for about $700 cheaper than the suggested retail price." [Consumerist]