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."
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