MP3 resale violates copyright law, court rules
However, Judge Sullivan ultimately concluded that digital media can only be resold if permission is granted by the copyright owner.
"Courts have consistently held that the unauthorized duplication of digital music files over the Internet infringes a copyright owner's exclusive right to reproduce," Judge Sullivan wrote. "However, courts have not previously addressed whether the unauthorized transfer of a digital music file over the Internet -- where only one file exists before and after the transfer -- constitutes reproduction within the meaning of the Copyright Act. The court holds that it does."
A ReDigi spokesperson told CNET that the judge's ruling mainly affects the service's 1.0 technology. Further iterations of its service, including 2.0, 3.0, and 4.0, were not considered by Judge Sullivan in his summary judgment and could ultimately be deemed to comply with copyright law.
See the full story here: http://news.cnet.com/8301-1023_3-57577393-93/mp3-resale-violates-copyright-law-court-rules/