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Federal Judge Rules Against Reseller of preowned digital music

FindLaw – Adam Ramiriz: “A federal judge has declared a unique website enabling the online sale of pre-owned digital music files unlawful. “The first sale defense is limited to material items, like records, that the copyright owner put into the stream of commerce,” ruled U.S. District Judge Richard Sullivan. This is bad news for ReDigi, which launched in October, 2011 with a bold idea: If the “first sale” doctrine in copyright law permits the re-selling of acquired copyrighted material, let’s create an online market for “used” digital music. Judge Sullivan’s ruling has, for now, dampened the idea of reselling of digital goods. If it holds up, the ruling could mean digital sales venues would have to get the permission of right holders. Stay tuned for updates on this evolving area of the law.”

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