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Second Circuit Affirms 'ReDigi': No 'Resale' of Digital Music Files
The U.S. Court of Appeals for the Second Circuit recently issued a long-awaited ruling in Capitol Records LLC v. ReDigi Inc., 910 F.3d 649, affirming summary judgment in favor of Capitol Records and its record label co-plaintiffs in a case that raised issues of first impression concerning first sale and fair use in the age of digital music distribution.
The defendant ReDigi developed technology that allowed buyers of authorized digital music files, such as downloaded songs from iTunes, to re-sell those files in a manner intended to mimic the resale of physical LPs or CDs. Both the Southern District of New York and the Second Circuit, however, found ReDigi's technology was not shielded by either the first sale doctrine under §109(a) of the Copyright Act, or the fair use doctrine under §107.
Section 109(a) provides: “Notwithstanding [the copyright owner's distribution right], the owner of a particular copy or phonorecord lawfully made under this title, … is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of that copy or phonorecord.”
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