Capitol Records, LLC v. ReDigi Inc.
By Charlie Stiernberg – Edited by Andrew Crocker
Capitol Records, LLC v. ReDigi Inc., No. 12 Civ. 95 (RJS) (S.D.N.Y. Mar. 30, 2013)
Internet startup ReDigi—“the world’s first and only online marketplace for digital used music”—recently suffered a setback in the rollout of its digital music resale platform. Capitol Records, LLC v. ReDigi Inc., No. 12 Civ. 95 (RJS), slip op. at 1 (S.D.N.Y. Mar. 30, 2013). Judge Sullivan for the District Court for the Southern District of New York granted plaintiff Capitol Records’ motion for partial summary judgment on its claims for defendant ReDigi’s direct, contributory, and vicarious infringement of its exclusive distribution and reproduction rights under the 1976 Copyright Act. The court held, in a case of first impression, that the first sale doctrine,17 U.S.C. § 109(a), does not permit the resale of a digital music file, and that uploading to and downloading from the cloud “incident to a sale” falls outside the scope of the fair use defense, 17 U.S.C. § 107.
The New York Times provides a summary of the case and places it in the context of a broader debate over digital secondary markets, including books and movies. The Electronic Frontier Foundation expresses frustration over the court’s decision not to “bring the first sale doctrine into the 21st century.” Billboard notes that unlike iTunes sales, record labels do not get any proceeds from ReDigi sales of “perfect digital copies of ‘pre-owned’ music.” (more…)