2nd Circ. Rules Digital Music Resales Are Illegal

Law360 (December 12, 2018, 4:35 PM EST) -- Online services can’t resell digital music the same way used record stores resell albums, the Second Circuit ruled Wednesday, saying such resales involve illegally reproducing copyrighted works.

Ruling against a service called ReDigi Inc., the appeals court said second-hand MP3 sales were not protected by the so-called first-sale doctrine — the rule that allows the resale of individual books, albums and other copyrighted works.

Siding with Capitol Records, the Second Circuit affirmed an earlier ruling that ReDigi was technically creating new digital files, not merely transferring an existing song to a new user.

“None of [ReDigi's] arguments negates the crucial fact...

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