Doesn't Omega's argument nullify their standing to begin with? Omega is arguing that "first sale doctrine doesn't apply since the watches weren't manufactured under US Copyright Law." If that is so, than other parts of US Copyright Law don't apply either.
To put it another way, if part of the US Copyright Law doesn't apply, then wouldn't all parts of the US Copyright Law not apply? Thus, there's nothing stopping someone from manufacturing an exact duplicate.
(layman's view of law here)
After all, you can't pick and choose what parts of a law you want to follow. Either it applies, or it doesn't.
We ran into a problem with Sprint wireless redirecting all DNS traffic to their servers. So instead of blocking it, their servers were/are masquerading as the server you're trying to reach, and responding as such.
We figured this out when we were trying to setup dynamic DNS. Any updates going to the server (over port 53) were never making it to the server, yet the client was establishing a connection, to what ended up being the Sprint servers.