ReDigi strikes a deal to avoid facing Capitol Records at trial next week, but now, it gets really interesting.
For those who have amassed an extensive iTunes collection of songs and movies, is there any hope of reselling these works?
Back in 2011, a company called ReDigi attempted to give consumers just such a pipe dream. The idea was to take advantage of the "first sale" doctrine, which gives those who purchase copies of copyrighted work the right to sell, display or otherwise dispose of that particular copy notwithstanding the interests of the copyright holder. ReDigi provided cloud storage and a market for "used" songs bought off of iTunes. Naturally, the record industry wasn't happy, which led to a lawsuit and a big ruling in April 2013.
The federal judge in the case concluded that "the first-sale defense is limited to material items, like records, that the copyright owner put into the stream of commerce," further examining what happens when digital copies get transferred over the Internet, and deeming ReDigi's system not to be a transfer of the same "material object" but rather a "reproduction."