Feeds

Secondhand MP3 shop can keep trading during EMI trial

Redigi sued by music giant over copyright violations

Combat fraud and increase customer satisfaction

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.

SANS - Survey on application security programs

More from The Register

next story
EU: Let's cost financial traders $400m a day, because EVIL BANKERS. Right?
Wait 'til this one hits your pension fund where it hurts
Systems meltdown plunges US immigration courts into pen-and-paper stone age
Massive outage could last four weeks, sources claim
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
UK.gov chucks £28m at F1 tech for buses and diggers plan
Well, not really F1 but who's heard of LMP and VLN*?
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Edward Snowden on his Putin TV appearance: 'Why all the criticism?'
Denies Q&A cameo was meant to slam US, big-up Russia
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Judge halts spread of zombie Nortel patents to Texas in Google trial
Epic Rockstar patent war to be waged in California
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
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.
Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.