CEO John Ossenmacher and CTO Larry Rudolph can't escape an ongoing copyright lawsuit
Remember ReDigi, the upstart digital company that stirred excitement with a business model around letting consumers buy and sell previously purchased tracks on iTunes? There's more bad news for the company from a federal judge on Tuesday.
In April 2013, U.S. District Judge Richard Sullivan handed the company a great legal defeat by rejecting the company's arguments on summary judgment. ReDigi pointed to the "first sale" doctrine -- which limits a copyright owner from exerting authority on second-hand items -- but the judge pointed to the physical impossibility of transmitting the same "material object" over the Internet. "The embodiment of a digital music file on a new hard disk is a reproduction," wrote the judge.
Nevertheless, at the time of the ruling, ReDigi put out a statement that it now had more advanced technology. The company's website is still live. As is the case brought by Capitol Records.