Recently, a judge ruled that the online resale company Redigi was in violation of copyright law. The company established in 2011 was operating under the premise that it would buy used digital downloads and resell them. Capitol Records took the company to court and won a judgement against Redigi for infringement.
According to Redigi, the software used to upload a users used digital file did not result in a copy being made, and that it deleted the old file once the upload proved successful. This turned out not to be the case. Uploaded files were being copied to Redigi's servers and not deleted on the users computer. Redigi stated that this was a flaw in the first version of their software. They claimed that the problem had been solved in version 2.0 and that it, in effect acted like a transporter, ala, "Star Trek."
This judgement brings the digital resale business to a standstill. The only way that digital re-sellers could move forward at this point is by either getting permission from the copyright holder or acquiring a license.
While the idea of a used mp3 might appear as a welcome alternative to the purchase of a new one, since both files would be identical there would actually be no such thing. The only thing that would change is who possesses the file. If both Redigi and the first owner both retain a copy, then this would amount to nothing more than file sharing, with the exception that the seller and Redigi would be making money without any consideration for those who made, packaged and originally distributed the file.
If this sounds like I'm not in favor of digital resale it's because, in my opinion it sounds like an open door for a good dose of piracy. And, it appears that Capital Records just stepped in and brought a halt to things before the legal waters became too murky. As an independent, it's not often that I would side with a major company, but digital resale without permission could ultimately affect everyone who produces and distributes music in the digital market place.
I think that this is the same argument that music makers have been presenting since the days of Napster. But, that's just my opinion. I could be wrong.
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