Thursday, July 11, 2013

NY judge casts doubt on resale of digital music

9:40 AM | Posted by ProJ | | Edit Post

judge said that the "second-hand" Capitol Records Service violated right "to reproduce, but experts suggest the problem is not resolved

The legality of the sale of digital music in the same way as an old book or CD has been questioned after a New York court ruled that the act is a violation of the law of copyright. A federal judge in New York, Richard Sullivan, ruled that the resale company ReDigi digital music had violated the rights of Capitol Records "for reading.

"Right now, there is no future for the resale of digital music, but do not think this is the last word," said Christopher Jon Sprigman, a professor of law is co-author of The Imitation Economy.

Capitol Records filed a lawsuit against ReDigi in January 2012, instigating a challenge for the protection of the first sale doctrine - which gives owners copies of the ability to sell products or provide a product legally for booksellers, libraries and video rental stores exist.

ReDigi, which launched in October 2011, allows people to sell digital music files to less than that to which they were acquired. To resell the software for downloading digital music users that determines if your music is eligible for sale. People can not sell music purchased from iTunes and ReDigi, and can not sell the music ripped from CDs or other sharing sites downloaded files. The software keeps running scans on the computer of the user, to ensure that users retain the digital music files have been sold. People caught violation of this rule their account suspended

The court ruled that ReDigi is not protected by the first sale and resale music ReDigi, the file must be uploaded to the servers of the company in Arizona - which requires an unauthorized file reconstruction technique. Sprigman said: "Yes, it is to make a copy, but only in the driest sense, more formally to make a copy"
  • Sprigman said ReDigi process was "fairly reliable" and provides a way to make transactions of digital goods without giving rise to the proliferation of copies of a product. "From the economic base that is no different to the book that sits in your library and put it in a used bookstore," he said.
  • If the resale of digital music became a thriving industry, the music industry is likely to see an increase in the competition - as the book industry has seen an increase in second-hand bookstores. "Capitol Records did not want the price of digital music to be disciplined," said Sprigman. "In other words, you do not want the competition."
Amazon, which includes the sale of used books in the course of its business, recently patented an electronic marketplace that allows the resale of digital goods. The move caused an outcry from those who fear that the money directly to the music industry and book.

Judge Sullivan said in his summary that its decision does not preclude the resale of digital works and that people could always sell a product that contains a musical recording, "whether of a computer hard drive, iPod, or other storage device in which the file was originally downloaded. "While admitting that it presents obstacles for resale, he said he was in Congress, not the court, to determine whether it was an archaic way of thinking.



"The first sale defense does not cover more than covers the sale of cassette recordings of vinyl records in a bygone era," he wrote.
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