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EFF Wins Promo CD Resale Case
DJMajah writes "Universal Music Group's case against Troy Augusto, fought by the Electronic Frontier Foundation, has been dismissed by a federal judge. UMG sued Augusto, the owner of Roast Beast Music, over 26 eBay listings of promotional CDs. UMG argued that promo CDs distributed for free to radio stations, DJs and other industry insiders could not be resold; the discs usually carry a label reading 'For promotional use only, not for resale.' UMG asserted the doctrine of first sale does not apply, as the discs were not actually sold and therefore remained UMG's property. The judge ruled that the doctrine does apply because the discs were gifts. The labels indicate no expectation of their return."
I'm all for being able to sell what you have. First sale is important and generally a good thing. This time, the law went the wrong way.
The reason the discs were sent out was not as a gift. It was sent as cross-promotional material -- something that both the sender and the receiver desires. Radio stations play them to attract listeners to ads. It's cross-promotional always. The radio doesn't have to play it, and by all means destroy it if you like. But selling something that's clearly meant for bi-directional corporate benefit is just plain bad for society.
The reason the discs weren't marked with instructions for tehir return is because they were on disposable media. The media being nothing more than a conveyance. And in this world of electronic distribution, there is nothing tangible to be returned.
There needs to be some way to send something to someone without sending it to the world. I don't care what that technique is, just tell me what it is. Some way for me to send my recording to you, without giving you the right to profit from it, or to publicize it.
Otherwise, without such a technique, the world becomes a very different place. Initially better for consumers and worse for businesses, then worse for employees and better for employers then better for businesses and worse for consumers. As is the general cycle of things. Now I'm an employer and a business owner (actually two businesses now). I'll be happy in the long run, but I don't want to suffer through that initial phase.