Court bans digital music sales
A US court has ruled that owners of digital music files acquired from services like iTunes cannot resell them. The Court of Appeals for the Second Circuit sided with record companies in ruling that sales of this kind infringe the rights of copyright holders.
ReDigi, which operates a service for the resale of purchased music files, had argued that its platform enabled the transfer of music without duplicating original files. However, the court said that the transaction created duplicate copies and so were illegal.
Capitol Records and Virgin Records originally brought the copyright infringement suit against ReDigi to court in 2012, eventually winning $3.5m damages, with ReDigi ordered to cease operating its reselling service.
The company appealed that decision, arguing that its business was lawful under ‘first sale’ doctrine, by which the purchaser of a copyrighted product retains the right to sell that item.