How Do You Solve A Problem Like ReDigi?

Law360, New York (April 12, 2013, 1:13 PM EDT) -- A federal district court in New York recently ruled against ReDigi, the fledgling, Cambridge, Mass.-based, digital music resale service provider, in a copyright challenge brought by Capital Records. Capitol Records LLC v. ReDigi Inc. (S.D.N.Y, March 30, 2013). Although the result was no surprise, the decision (which will likely be appealed) leaves digital copyright law lagging some distance behind its favored hard copy brother.

The case squarely confronted the issue of whether the "first-sale doctrine" applies with as much force to digital music files downloaded from iTunes as it does to CD's purchased from Amazon.com. That doctrine has been in the...

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