First Sale Doctrine for the movie Excalibur HD-DVD: Hit Movies is an online retailer and legal owner of the physical copies of movies it sells, rents and exchanges such as the movie Excalibur HD-DVD. The promotion and advertisement of all movies, such as Excalibur HD-DVD DVD, advertised for sale or rental through the display of copies of box covers, including titles, actors names, producers, and the use of excerpts, synopses and previews of the movies is protected under the "first sale doctrine". 17 U.S.C. § 109 (a). The first sale doctrine protects the buyer's Hit Movies interest in goods it has purchased for resale and rental of such DVD movies and videos as Excalibur HD-DVD Movie. Under the doctrine, once the copyright/trademark owner has sold its goods, such as the video movie Excalibur HD-DVD, it has exhausted its copyright/trademark rights in those goods and can no longer dictate how or where the buyer uses or redistributes those goods. The "first sale doctrine" protects retailers, such as Hit Movies, in the promotion, advertisement, rental and sale of copyrighted works.

Fair Use Doctrine for the movie Excalibur HD-DVD: Hit Movies is an online retailer and legal owner of the physical copies of movies sold, rented and exchanged on its various websites. The promotion and advertisement of movies, such as the film Excalibur HD-DVD, through the display of copies of box covers, including titles, actors names, producers, and the use of excerpts, synopses and previews of DVD films and videos such as Excalibur HD-DVD Video is protected under the "fair use doctrine". 17 U.S.C. § 107 and the First Amendment. The "fair use doctrine" is grounded in the First Amendment rights to free speech and permits Hit Movies to use trademark and copyright materials, without the owners' permission, in a equitable and fair manner. The "fair use doctrine" serves the public interest in the reception and dissemination of information, in order to assist the consuming public in finding purchasing and/or renting authentic product such as the movie Excalibur HD-DVD.