Tuesday, April 02, 2013

UPDATE 1-Capitol wins digital records lawsuit vs ReDigi start-up.

UPDATE 1-Capitol wins digital records lawsuit vs ReDigi start-up. Jonathan Stempel and Alistair Barr. Reuters. Apr 1, 2013.

U.S. District Judge Richard Sullivan ruled in the case Capitol Records LLC v. ReDigi Inc, U.S. District Court, Southern District of New York, No. 12-00095.
  • ReDigi was not authorized to allow listeners to use its platform to buy and sell "used" digital music tracks originally bought from Apple Inc's iTunes website.
  • This will profoundly affect any digital re-sale marketplace [and digital preservation] by limiting what can be sold as "used" or by forcing sellers to obtain copyright holders' approval before transacting business.
  • ReDigi's service "infringes Capitol's reproduction rights under any description of the technology" 
  • The service "does not deserve protection under the theory of fair use."
  • "It is beside the point that the original phonorecord no longer exists. It matters only that a new phonorecord has been created."
  • "Because it is therefore impossible for the user to sell her 'particular' phonorecord on ReDigi, the first sale statute cannot provide a defense."
Related articles:
Think you own your downloads? Court deals blow to 'used' digital goods market.
Judge rules digital music cannot be sold 'second hand'
Reselling Digital Goods Is Copyright Infringement, Judge Rules

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