By David Kravets - February 7, 2012 (wired)
A one-of-a-kind website enabling the online sale of pre-owned digital-music files got a major legal boost late Monday when a federal judge refused to shutter it at the request of Capitol Records.
ReDigi which opened in October, says it’s a modern-day, used-record store that provides account holders with a platform to buy and sell used MP3s that were purchased lawfully through iTunes. The platform’s technology does not support other digital files such as those purchased from Amazon or ripped from a CD.
The brief ruling (.pdf) by U.S. District Judge Richard Sullivan of New York did not clearly outline the reason for the decision. But among other things, the legal questions before him included the first-sale doctrine, the legal theory that people in lawful possession of copyrighted material have the right to sell it.
Sullivan’s decision means that the case is still headed to trial, where Capitol will attempt to prove its allegations that ReDigi facilitates wanton copyright infringement and is not protected by the first-sale doctrine.
ohn Ossenmacher, ReDigi’s founder, blasted Capitol in a statement. “We hope Capitol can get back to their business and find a way to catch up to the times instead of trying to stop the innovation process, denying rights to their paying customers along the way,” he said.
Richard Mandel, Capitol’s attorney, said in a telephone interview that “We are confident we will prevail at trial.” Sullivan said at a hearing on Monday that Capitol had a strong “‘likelihood of success on the merits,’” Mandel said.
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