Feeds

Secondhand MP3 shop can keep trading during EMI trial

Redigi sued by music giant over copyright violations

High performance access to file storage

Redigi has escaped a court injunction that would have prevented it trading throughout the duration of a court battle over alleged copyright infringement.

EMI, one of the world's biggest record companies, has sued Redigi, alleging that the business is infringing its copyrights. Redigi sells legally-downloaded digital music tracks second hand by copying the files from sellers' computers, deleting the original and then selling the copied file to new users.

EMI applied for a preliminary injunction to ban Redigi from operating its business while the court determined whether the company is liable for copyright infringement, but a US district judge rejected the application and said the issue should be determined at trial, according to a report by CNET.

"This is a fascinating issue,” District Judge Richard J Sullivan said, according to a statement on the Redigi website. “It raises a lot of technological and statutory issues," he said.

Redigi chief executive John Ossenmacher said he was "grateful" to the judge for his decision and that the company's technology was "helping consumers unlock billions of dollars of previously unrealized wealth in their digital media collections".

"We hope [the] ruling will help to expedite the trial so that we can get back to our business and providing consumers with access this incredible technology. And we hope [EMI] 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," Ossenmacher said.

EMI said the judge had "accepted our legal arguments on the merits of the dispute" despite not issuing an injunction, according to the CNET report.

"We fully expect that Redigi will ultimately have to answer for its clear acts of infringement," the record company said.

Redigi has claimed that what it does is legal because it is protected by the US' 'first sale' doctrine.

Under US copyright law, copyright owners have exclusive distribution rights to their works, but under the 'first sale doctrine' those who subsequently buy a legitimate copy of a copyrighted work and sell it on are exempt from the original owners' claims of infringement. The doctrine's exemption does not apply to licensing agreements.

Redigi has a system for verifying whether music files have been illegally copied, but has acknowledged that it cannot guarantee that customers do not make copies of their files and store them on other devices before selling them through the company, according to the CNET report.

Claire McCracken, technology law specialist at Pinsent Masons, the law firm behind Out-Law.com, has previously said that what Redigi does is in breach of UK copyright laws.

"It is clear that the service Redigi offers through its website would break UK laws," McCracken said. "The act of copying a digital music file for sale, even if the original was lawfully obtained from a download service such as iTunes, is copyright infringement under current UK legislation. UK laws are changing to make some copying of files legal, but even under this planned relaxation, the resale of lawfully purchased MP3s will not be allowed in the UK."

Copyright © 2012, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

High performance access to file storage

More from The Register

next story
Android engineer: We DIDN'T copy Apple OR follow Samsung's orders
Veep testifies for Samsung during Apple patent trial
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Big Content goes after Kim Dotcom
Six studios sling sueballs at dead download destination
Alphadex fires back at British Gas with overcharging allegation
Brit colo outfit says it paid for 347KVA, has been charged for 1940KVA
Jack the RIPA: Blighty cops ignore law, retain innocents' comms data
Prime minister: Nothing to see here, go about your business
Singapore decides 'three strikes' laws are too intrusive
When even a prurient island nation thinks an idea is dodgy it has problems
Banks slap Olympus with £160 MEEELLION lawsuit
Scandal hit camera maker just can't shake off its past
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.