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Apple Responds To iTunes "First Sale" Question
atallah writes "It looks like Apple has come out and explained its position on resale of songs. It is interesting that they didn't flat-out reject the idea.
Check out this Business Week article."
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Legal considerations are beside the point; it is very near impossible at this time to sell an iTunes song without also selling your Mac...and your credit card. There's always ripping from a CD burn, but at that point it isn't an iTunes song, it's a below-quality CD rip.
that's because apple wanted to see what they could *really* charge for online music
Apple comes out looking like they (a) understand copyright restrictions and took that into account already, and (b) still don't want to be the RIAA and crack down on this sort of thing. This is called "design". They made it difficult enough to sell iTunes songs that they don't need to worry about reselling, even if it is legal. That said, someone's going to find a way around it eventually, if current trends hold.
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They keep saying it's impractical to sell the songs...well, how about trading songs with other iTunes users? I'm sure there is some right somewhere where you can give stuff away that you bought a copy of. (Basically sell it for $0). So...the real question is...why can't i just forward my legally purchased songs to Jim Bob the same way i could hand him my physical CD.
Apple says it's impractical because a song is $.99. However, what happens in a few years when someone has 100 songs that they no longer listen too. Wouldn't it be practical to sell that lot of 100 songs for $50?
So basically Apple has said that it may or may not be legal to resell a song, but it would be technically difficult to do so, and it only cost 99 cents in the first place so why would you want to? Thanks for not answering the question! Maybe I do want to resell a song. Maybe I want to sell my entire iTunes music collection. Maybe I'm clever enough to overcome the technical difficulties. Would it be legal or wouldn't it? And if Apple established that it was, wouldn't I feel better about buying from the iTunes music store?
Technical issues could be overcome with an addition to the Apple Music Store authorization system that let you give your song to someone else, deauthorizing you in the process. No major technical difficulties there. The real problem comes in verification that you have not made copies for yourself. If you have, then the "re-sale" is simply a fraud. The only way they could do this is have every computer that is authorized on the account report back whenever the song is burnt to a musics CD - it would be worthless as a data file (unless you manually drop it on your iPod...), only allowing you to sell songs you have never duplicated. However, I don't think Apple wants to keep track of everyone's CD burning, and people are just as unlikely to be interested in the prospect.
Of couse, you could get around this by using a program that grabs the audio stream during playback and acheive the same end result.
I understand Apple's position. Even if it isn't the greatest solution, they have stated that they believe in the "first sale" right, even though it isn't practical to implement. Their stance can be noted when the time comes that support for those rights is needed.
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Ultimately, what I would like to see is the free distribution of music files through the Internet. The idea of a used copy is silly (I'm sure you know that but the RIAA probably wouldn't get it) and the only cost at that point is the bandwidth required to share files. I would like to see the whole business model that currently exists go the way of the dodo. The government funds the arts. If that were expanded, people could have music for free (by paying taxes) and artists could receive money. Artists can also receive money by giving concerts. I've had enough of people in suits getting money because some guy with long hair who plays a mean guitar is locked into a death grip with the RIAA.
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They seem to be handling this pretty responsibly. Most companies (and people as well) will go on the attack when this sort of thing happens. The MMORPG companies have been particularly mean about this sort of stuff when they probably could have done things in a much more responsible way. I'm really not a fan of Apple, but it's nice to see that somebody keeps doing things right when everyone else seems to be sueing, legislating, lying, bribing, bombing, terrorizing, and so on.
-dbc
This seems to be exactly what the Ebay guy wanted to challenge. Is Apple not violating a buyer's right to sell their property under the First Sale Doctrine if they prevent the user (maybe through the DMCA) from transferring it? I would say they are. Obviously, this challenge could also be applied to alternative forms of legitimate digital media and clearly shows the extent to how much the DMCA tramples consumer rights.
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And they are entirely right.
Just as a bookseller in no way has to help you sell the book when you are done with it.
How the song you bought would be delivered, and waht mechanisms apple provided for you to do things with it were CLEARLY spelled out by Apple beforehand, as this is a logical question to anyone who wants to download stuff.
Apple is entirely right.. they are not getting in the middle of it.. why should they? They were clear about what they offered, and what it cost.. and you took it.
Serious collectors frequent estate sales. They're good places to find collections which are of no interest to the survivors of the deceased. Books and music are often overlooked.
The Apple spokesman dismissed the resale potential of a 99 cent download. He overlooked the value of a 1000 song collection, where transfering the license keys would be well worth the effort.
They would create an ebay like system directly in iTunes that would allow me to sell my music to other people. Both music I created and music I've purchased from itms. They provide the audience, I provide the bandwidth and content, Apple would get a cut which would go towards paying the artists and record label if one were involved. The rest goes to me, and lets say for each sale of an individual song the overhead of label costs would decrease for each time the song is sold. Obviously the centralized listing of sellers would have to be seperate from itms, but I think it could work. Think napster with a twist.
Please show the court the object you purchased.
The doctrine of first sale doesn't apply just to copyright.. it applies to everything. You can only sell something once.. then it's not yours anymore.. the same goes for a book.
Apple isn't weaseling out of anything.. they are merely showing that something is not their problem to solve.. they were up front about what you were paying them for. The rest is up to you.
I often download iTunes songs, burn them to CD, and then rip them. The quality sounds fine to me. I don't personally do it for resale or illegal copying; I'm a jazz musician, and when I want to practice and memorize a new song, I make versions of it that are electronically sped up and slowed down so that it's in 6 or 7 different keys, so that I can practice playing along with it in all those different keys. This of course falls under the personal use exception to copyright, not the doctine of first sale.
The cool thing is that when you have a digital technology that doesn't have a bunch of plastic padlocks built into it, different people can do different things with it, and they don't have to say "Mother may I."
It was interesting that the article claims there are legal decisions from the copyright office saying first sale doesn't apply to digital stuff -- that's the first I'd of heard that. Can't say I really care, though: Congress gave me the right of first sale, the personal use exception, and the fair use doctrine, so a bunch of unelected bureaucrats can take them away from me when they pry them from my cold, dead hands.
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The article has pretty much highlighted that Apple has a flat head. Nothing more, nothing less. I think it's pretty fair for them to say that "It may be legal (or illegal), but it's pretty darn impractical!" Sure it would be much nicer if there was an easy way to re-sell the music files, and I do believe that it's legal, provided you follow a few common-sense steps such as not retaining a copy after the sale.
A lot of slashdotters are probably gonna complain that Apple needs to create a method for transfering ownership, and all I can say is, no they don't. I have every right to sell my DVD collection to a friend in England. (I live in Japan.) He has every right to go out and buy a DVD player that can play them, or modify his own, since it's a different region DVD. Yeah, it's a pain in the ass and almost evil to have region coding, but that has nothing to do with the copyright of the DVD in question.
The only difference with the DVD and iTunes file is that with DVD's, the "impracticality" was put there on purpose, which in my mind means the organization(s) responsible for the region coding are a bunch of assholes. As for the iTunes file, the copy protection method was put there so that Apple could manage to
1) strike a deal with the labels,
3) deliver what the consumer wants (downloadable legal music), and
2) still manage to maximize consumer rights. (CD-R burning.)
(And yes, 4: profit!, but there's nothing inherently wrong with that.)
I'd say Apple did a damn good job at it, even if it's not perfect. Truth is, the reason it isn't perfect is more or less the record label/RIAA's fault and not Apple's. If you don't like it, don't buy it.
I'm speculating a lot here, but I get this feeling that if you made a CD from the iTunes file, and sold the iTunes file AND the CD together, Apple could care less. Apple is merely providing a SERVICE in exchange for a small percentage of the sales. It may be legal grey zone, but it isn't damaging Apple's sales (as long as you're honest and delete your own copy after sale). Hell, it probably isn't even damaging the RIAA member's that much either, and is within the owner's rights. (And if it's within the owner's right, then it isn't even "damage" any longer.) But for some reason they make a fuss over it.
So what we have here is a very odd scene, really. "Holy shit, a large corporation using common sense! It must be a conspiracy!!" And it just as well may be, except it's a conspiracy that is backfiring on the RIAA and in return making Apple look pretty slick.
C'mon guys/gals, it's just common sense.
Yeah! That's what surprised me too. I have never heard the "Right of First Sale" doctrine questioned before when it comes to digital works.
If this is, indeed, the case - and the courts do decide that digital works aren't covered by it, that really opens up a whole can of worms.
Among other things, it means Microsoft is right after all, when they want to stop you from reselling unopened/unused OEM versions of their operating systems that were originally bundled with new PCs. (First Sale doctrine is the main argument people had in their favor, when trying to recoup money lost when they were forced to buy their new laptop or desktop system with Windows pre-loaded on it.)
Even the "personal use" exception seems to be under fire these days, as the publishers of digital works keep trying to find more ways to milk extra $'s from people (DMCA, etc.).
Unless things change, one of these days, you just might find it has become illegal to practice existing music without paying for a "musician's license" from the recording industry. (We're sorry, but without a license issued by the original copyright holder - you're simply engaging in attempted illegal reproduction of our copyrighted works, Mr. Musician!)