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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."

57 of 252 comments (clear)

  1. The EFF sure taught the industry a lesson! by Anonymous Coward · · Score: 4, Insightful

    I'm sure in the future they will modify their labels to require the return of promo materials.

    Go go EFF!

    1. Re:The EFF sure taught the industry a lesson! by despe666 · · Score: 5, Interesting

      Let them try. If they write that on that label, they will no doubt have to prove they actually recover the CDs they send, and it's not just there to get around the other judgement. And if the CD is sent unsolicited, then they will have to pay for the return fee or expose themselves to extortion lawsuits or something. Let them try to deal with that logistic nightmare.

    2. Re:The EFF sure taught the industry a lesson! by Volante3192 · · Score: 5, Insightful

      If the CD is sent unsolicited (through USPS at least) and they try to get it back, they get slammed for mail fraud.

      That'll be a trick even for their kettle of lawyers to get out of.

    3. Re:The EFF sure taught the industry a lesson! by Ungrounded+Lightning · · Score: 5, Informative

      And if the CD is sent unsolicited, then they will have to pay for the return fee or expose themselves to extortion lawsuits or something.

      As I understand it: If it's unsolicited (and not the result of a shipping error or a fraudulent order by some third party) there is no obligation to return it, no matter what is printed on it.

      --
      Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    4. Re:The EFF sure taught the industry a lesson! by adolf · · Score: 5, Insightful

      Maybe.

      Here's the thing:

      If [insert RIAA member here] notices that I am a program director at a radio station and sends me a promo CD in the mail with my name on it, then it's mine. I can listen to it, sell it, throw it out, give it away, copy it to my iPod, dupe it for the car stereo, and set it on fire. About the only thing I can't legally do is give a copy to a third party (in violation of copyright law).

      Merely receiving something in the mail does not obligate me to do anything that the sender asks. If the sender wants it returned, that's fine; they can want it all week and it'll still never happen.

      I mean, imagine it if you will, AC: Suppose I sent you a CD with a label on it which said "Please return to avoid a $250,000 fine, 5 years in jail, or both." Worse, suppose such a CD gets lost in the mail.

      Either way, you don't have to do a thing. Were things any other way, we'd see huge numbers of positively ugly scams circulating the USPS, where by inaction alone, simple homeowners would be victimized by their own fucking mail.

      (I'm sure that one of Slashdot's resident lawyers can come up with some fancy polysyllabic Latin verbiage to exactly describe this non-problem, but for now you'll all have to grasp this concept without it having any specific title.)

    5. Re:The EFF sure taught the industry a lesson! by gclef · · Score: 4, Funny

      postman hoc, propter hoc?

    6. Re:The EFF sure taught the industry a lesson! by dreamword · · Score: 5, Informative

      I like it!

      But actually, it doesn't have a fancy latin name: it's just called "mailing of unordered merchandise". The federal statute is 39 U.S.C. 3009, and it was cited and analyzed at length in the judge's opinion (linked to from the EFF press release). The statute is designed to combat exactly this sort of scam: a company sends you something you didn't ask for, then imposes conditions on your ownership of it (like saying you can't sell it, or saying you have to pay for it).

      Joe Gratz
      (attorney for the defendant in UMG v. Augusto, but speaking here only for himself)

    7. Re:The EFF sure taught the industry a lesson! by Shetan · · Score: 2, Informative

      The judge says that they do not indicate an expectation of their return. Since there is no expectation at all he doesn't need to bother dealing with what would indicate a reasonable expectation. The next lawsuit will get to deal with the reasonableness of the expectation after the record companies print "Must be returned" on the sample discs.

    8. Re:The EFF sure taught the industry a lesson! by Omestes · · Score: 2, Informative

      How so?

      I remember the old "get 5 free, if you buy 300 more for grossly inflated prices" deal, and I think that those are legal, since you sign a contract beforehand. Scientific American has adds for a scheme like that in their mag, for the "scientific book club" or such, so its still legal.

      It would be applicable if they send you a CD, and then told you need to buy 10 more, or pay for it. Unsolicited, of course.

      --
      A patriot must always be ready to defend his country against his government. -edward abbey
    9. Re:The EFF sure taught the industry a lesson! by KDR_11k · · Score: 2, Insightful

      I'm trying to remember what, if any obligation the recipient has if, e.g., the sender also sends a self addressed, postage paid return envelope.

      Probably not much or it would be possible to DoS a company (or person) by bombarding them with "return this or get sued" mail and putting so much workload on them that they fail to keep up.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    10. Re:The EFF sure taught the industry a lesson! by adolf · · Score: 2, Interesting

      Nope.

      Requiring me to properly dispose of something I received in the mail, unordered, is also not something that a sender can do.

      For that matter, requiring people to do anything at all, ever, is pretty much a non-starter unless you're collecting taxes, serving a warrant, or issuing a summons.

      It costs me money to get rid of trash, and it takes time for me to throw it away. (Yes, yes. Not very bloody much money, and not very much time. But an infinite multiple of zero, nonetheless.)

      Imagine, if you will: Suppose I send you a package in the mail. It has a label on the outside with several paragraphs of terms and conditions, followed by "If you don't agree to these terms, you must properly dispose of this package immediately or face a fine of up to $250,000 and 5 years in jail."

      Hazardous waste disposal just got a lot easier...

    11. Re:The EFF sure taught the industry a lesson! by Lunarsight · · Score: 2, Informative

      I've listened to several of these indie bands, even gotten a lot of their stuff from waffles, but all in all it just doesn't seem up to par with most of the other music i enjoy (stones, zep, floyd, etc). The production values don't seem to be as good, and in general just not my style. Yeah - there are independent acts with bad production values.

      However - to play devil's advocate, there are plenty of RIAA-affiliated acts that sound like their album was produced inside of a septic tank. The loudness war has really taken its toll on the quality of modern recordings. (In order to compete with each other for attention, they often compress the heck out of the audio, robbing it of its dynamics.)

      Furthermore, there are a lot of acts [either independent or on non-RIAA labels] that are talented and do have strong production values. Some genres are better represented than others, obviously.

      I'm a big fan of metal and progressive rock, and I haven't had any problem finding bands not on RIAA-affiliated labels to listen to. (The Inside Out and Magna Carta labels are very good.)

      For electronica, there's Jamendo (www.jamendo.com). Not only is the electronica here as good as what you'd find on large record labels, a lot of it is better, IMHO. (It's not as dumbed down for the masses.)

  2. If I were to donate to any tech foundation by TheDarkener · · Score: 5, Insightful

    it would DEFINITELY be to the EFF. What heroes they are, in today's world!

    --
    It is pitch black. You are likely to be eaten by a grue.
    1. Re:If I were to donate to any tech foundation by JustinOpinion · · Score: 4, Insightful

      "If" ??

      Why don't you donate?

      Seriously, if you live in the US and you care at all about electronic freedom, then you should really do your part by helping the EFF fight the good fight. Discussing/complaining on Slashdot is great and all, but if we ever want things to change, we have to actually do something... or at least fund people who are doing something.

      I donate to the EFF yearly. You should consider doing the same.

    2. Re:If I were to donate to any tech foundation by ivan256 · · Score: 3, Informative

      They make it really easy too. They can charge your card monthly.

    3. Re:If I were to donate to any tech foundation by gsutter · · Score: 2, Informative

      Just email membership@eff.org and ask!

    4. Re:If I were to donate to any tech foundation by Excelcia · · Score: 4, Insightful

      Even if you don't live in the US donating is a good idea. Before I joined the Canadian Forces, I made several donations to the EFF. American law, as the recently proposed copyright law here shows, tends to lead to extreme pressure on Canada to "conform to international (read American) standards". If the nastiness can be confined at the source, it has less chance of making it North. Pull the teeth on the American laws before they spread.

    5. Re:If I were to donate to any tech foundation by javaxjb · · Score: 2, Informative
      Well, if you really want answers either ask the EFF (they are a 501(c)(3) and are required to file with the IRS annually and could probably send you an annual report as well). Or go to http://www.guidestar.org/pqShowGsReport.do?gotoNext=/reports/partners/guidestar/showDpLink.jsp&npoId=561625 sign up (for free) and look at their filings. Plus you can search for many other charities that may interest you. Pay for an account and get more detail (if you really need it that badly).

      As an aside, I notice they have no legal expenses.

      --
      Programmers in mirror are brighter than they appear
    6. Re:If I were to donate to any tech foundation by Jherek+Carnelian · · Score: 2, Interesting

      They make it really easy too. They can charge your card monthly. Or, for those who aren't keen on giving a charity your personal information for fear that they will abuse it (resell it to other charities or just regularly hound you for more money), you can show up with a wad of cash at one of their offices and they'll take it no questions asked (well at least nothing personal recorded.)

      Yes, I know this from personal experience from a few years back.
    7. Re:If I were to donate to any tech foundation by ntk · · Score: 5, Informative

      We operate internationally, including in Canada -- see http://www.eff.org/issues/international . A large number of EFF members live outside the US and our work reflects that (there are three of us who work on these topics full time, plus three interns currently:I'm British, our international legal director is Australian; we work at groups like WIPO and arenas like the European Parliament).

      As an aside, if there are any digital rights issues in your country that you think should get wider coverage, or need advice on how to tackle, or technical and logistical support, get in touch with me, danny@eff.org or mail info@eff.org. It really helps us to get feedback and news from our supporters.

    8. Re:If I were to donate to any tech foundation by ntk · · Score: 5, Informative

      (Cut and pasted from the last annual report -- mail info@eff.org if you'd like a copy, or have any questions. Guidestar is a good place to start to make comparisons with other groups)

      Profit and Loss Standard - January through December, 2006

      Ordinary Income/Expense

      Income
      Corporation Contributions $215,229.72
      Event Income 57,630.10
      Foundation Grants 466,858.36
      Individual Major Contributions 1,423,444.26
      Interest Income 18,161.86
      Litigation 430,545.00
      Matching Gifts 35,426.34
      Membership Income 882,710.89
      Combined Federal Campaign (CFC) 10,354.40
      Minor Donations 9,739.50
      Honorarium/Awards 1,300.00
      Fiscal Sponsorship 156,225.89
      Miscellaneous Income 19.50
      Total Income 3,707,645.82

      Expense
      Salaries & Benefits 1,865,393.06
      Building Expenses 192,684.57
      Corporate Insurance 35,645.71
      Office Expenses 153,142.46
      Membership Expenses 48,258.50
      Court Filing and Fees 20,557.99
      Bank & Merchant Fees 31,236.87
      Consultants 82,622.52
      Staff & Board Enrichment 24,150.06
      Travel & Entertainment 66,092.38
      EFF Events 23,216.94
      Grassroots Campaigning 41,868.30
      Taxes 410.00
      Fiscal Sponsorship Expense 189,899.23
      Total Expense 2,775,178.59

      Net Ordinary Income $932,467.23

      Other Income/Expense

      Other Income
      Unrealized Gain or Loss 108,618.85
      Total Other Income 108,618.85
      Net Other Income 108,618.85
      Net Income $1,041,086.08

      2006 was a particularly good fundraising year for us. In early 2007, we
      transferred $1 million of our 2006 net income into EFF's Endowment Fund
      for Digital Civil Liberties, to ensure the long term sustainability of
      the organization. We do not anticipate having a similar surplus of
      operating funds in 2007.

  3. And books? by TenBrothers · · Score: 5, Interesting

    Will this then apply to books who have had their cover torn off and returned to the publisher? Most of those books carry a "if the cover is missing this book cannot be resold" blurb. Booksellers who can't sell a quantity of trade paperbacks return the front cover in lieu of the entire book for a refund. It saves on shipping and the publisher doesn't want the unsold books back anyway. So would these be considered 'gifts' to the bookseller, and presumably under this ruling also viable for resale?

    1. Re:And books? by Eivind · · Score: 4, Informative

      Nope. The paperbacks didn't afterall, turn up unsolicited in the mail of the bookstore. (if they did, they WOULD be gifts)

      What allows the booksellers to rip and return the cover, destruct the rest of the book and get a refund is a CONTRACT they entered into with the publisher, in this contract they promised to destruct books whose cover they return. Thus if they return covers yet fail to destruct the books they're in violation of contracts, and will be held responsible for any damages arising from that.

    2. Re:And books? by ivan256 · · Score: 5, Insightful

      There are two distinct situations here:

        - A bookseller signs a sales contract with terms before books are sent to said bookseller. These terms prohibit sale of books who's covers have been removed for refund. If the contract actually says "made not suitable for resale", the publisher would (successfully) argue that if any customer found the refunded book to have any value, the bookseller didn't sufficiently render it unsuitable for sale.

        - A radio station receives an unsolicited CD in the mail from a record label; the label hopes the radio station will play said CD on the air. The front of the CD says "Not for resale"

      In the first case, there is a legally binding contract that the bookseller entered into requiring them to destroy the coverless book or pay the wholesale price of the book to the publisher.

      In the second case, under US law the record label has used the US mail to give the CD to the radio station as a gift. The radio station is free to do whatever they want with it, as they are not bound by any contract, no matter what is printed on the outside of the disc.

    3. Re:And books? by johnw · · Score: 3, Informative

      What allows the booksellers to rip and return the cover, destruct the rest of the book and get a refund is a CONTRACT they entered into with the publisher, in this contract they promised to destruct books whose cover they return. The verb for which you are hunting in vain is *destroy*, not "destruct".

      HTH
    4. Re:And books? by vux984 · · Score: 4, Informative

      Will this then apply to books who have had their cover torn off and returned to the publisher? Most of those books carry a "if the cover is missing this book cannot be resold" blurb. Booksellers who can't sell a quantity of trade paperbacks return the front cover in lieu of the entire book for a refund. It saves on shipping and the publisher doesn't want the unsold books back anyway. So would these be considered 'gifts' to the bookseller, and presumably under this ruling also viable for resale?

      Yes and No. Mostly No.

      Think about how that process works. You buy up a bunch of inventory. You then don't sell it and want to return it to get your money back. The publisher could just say screw you, you bought it, its your problem to sell. (And that's the case with a lot of books... and why there are those bins with hard covers for $1.00 in them.)

      But some publishers with some titles for a number of reasons, give you the option to return the book for full or partial credit if it doesn't sell within a time frame. Of course, they don't really want the book back and it costs a bundle to ship heavy books around so instead they simply require you to destroy the book and they compensate you. The whole 'tear off and send in the covers' is just part of the 'auditing and accounting processes' to ensure disreputable dealers don't just claim they destroyed them and ask for piles of money back while selling the books. Plus by tearing the covers off and having the disclaimer in the book it renders the books nearly worthless even if they aren't destroyed, because a) the cover is missing, and b) consumers know that someone got paid to destroy these books and now is trying to sell them.

      The book seller was essentially paid to destroy and discard them, if they didn't destroy them then they are in violation of their contract and liable to be sued etc. Its no different than you contract a company to come to your office to shred your documents, and then instead they take your documents and sell them on ebay, they are in serious violation of the contract. Same deal here.

      So in most cases if you came into possession of such a book it would mean that the contract was not fulfilled and the publisher could seek damages from the book seller that was supposed to have destroyed it. If you worked at a book store and just kept copies for yourself, it gets messy, those copies could legally amount to stolen, and reselling them would amount to selling stolen property. If your being paid to destroy or discard something and you keep it, the question of whether its theft or not is complicated. Normally it would be ok... like if your boss said throw that printer away and you took it home instead. But if your boss said destroy this book of customer contact and account information and you took it home instead... that would be theft.

      But here the illegality has really nothing to do with the cover being missing, or the disclaimer on the book, and everything to do with the fact that the publisher paid for these books to be destroyed and they weren't.

      HOWEVER. ALL THAT SAID.

      If you somehow legally came into possession of a book with its cover ripped off, you can sell it. You are not bound by any contract. Nor are you bound by the disclaimer on the first page about the missing cover.

      If you bought a book and then tore its cover off for example you'd still be able to sell it without question. Or if you found it on the street that would be fine.

      If you pulled it out of a dumpster that would really depend on the circumstances. It would probably be legal in most cases of simple dumpster diving... but illegal theft if it were a more systematic enterprise, especially if you were involved or related to the bookstore putting them there.

    5. Re:And books? by sorcerykid · · Score: 2, Interesting

      In the second case, under US law the record label has used the US mail to give the CD to the radio station as a gift. The radio station is free to do whatever they want with it, as they are not bound by any contract, no matter what is printed on the outside of the disc.

      So if there is a printed copyright notice on the disc stating "unauthorized reproduction, distribution, adaptation, public performance is prohibited" then obviously that is a contract to which the radio station owner is not bound according to this ruling because he received the phonorecord as a gift.

      Does that suggest that the radio station owner obtains the intellectual property rights to the sound recording and the musical work, as well as all of the printed materials, including lyrics and images, not to mention the trademarks of the record company and the publisher which are imprinted on the disc? Admittedly, those are not "material assets," but they were technically included as an integral part of the gift, and ownership of the item was clearly transfered in whole not in part.

      --Randall

    6. Re:And books? by Drgnkght · · Score: 2, Interesting

      So if there is a printed copyright notice on the disc stating "unauthorized reproduction, This is covered by copyright, not by physical ownership of the disc, so no.

      distribution, As long as they are only distributing the original disc (one time only obviously), yes.

      adaptation, Not sure about this one, however I'd speculate that as long as you stayed within fair use it doesn't matter much.

      public performance is prohibited" This is the one I'm personally interested in. If they didn't want you to perform it in public then why send the disc to a radio station? It would be interesting to hear a lawyer's opinion on this point as it relates to the main article.

      then obviously that is a contract to which the radio station owner is not bound according to this ruling because he received the phonorecord as a gift. Not so much a contract as a reminder of rights, legitimate or otherwise.

      Does that suggest that the radio station owner obtains the intellectual property rights to the sound recording and the musical work, as well as all of the printed materials, including lyrics and images, not to mention the trademarks of the record company and the publisher which are imprinted on the disc? Admittedly, those are not "material assets," but they were technically included as an integral part of the gift, and ownership of the item was clearly transfered in whole not in part. No, you just get a free copy, though as I stated above the public performance angle might be interesting to pursue.
      IANAL, etc., etc.
  4. Please return this post ... or I'll sue you! by trolltalk.com · · Score: 2, Funny

    The judge ruled that the doctrine does apply because the discs were gifts. The labels indicate no expectation of their return

    We can now expect to see them add a little "please return this CD to us when you're finished with it" to each promo disk.

    1. Re:Please return this post ... or I'll sue you! by j00r0m4nc3r · · Score: 3, Funny

      I don't think even that is enforceable. If you give something to someone unsolicited it's a gift and the recipient can do whatever they want with it regardless of whatever BS sticker it attached to it. I mean, why not put a sticker on it that says "Return after 30 days, along with $1000"?

    2. Re:Please return this post ... or I'll sue you! by uniquename72 · · Score: 4, Informative
      Often, these promotional copies aren't sent out until AFTER release. When I was a lowly music store manager, labels fell all over themselves to shower me and my staff with promotional copies of just about anything that came out. This accomplished 3 things from the labels perspective:
      1. We'd use the CDs for in-store play, thus generating customer interest.
      2. Word of mouth advertising from our employees.
      3. Often, in exchange for free copies of the CDs, we'd let a label representative make a small in-store display of that or other recent/new/upcoming releases from that label.
      I left that job with thousands of discs, which I sold at used stores for $1-$4 a piece -- nice severance package, if you can get it.

      It's always struck me as funny that record companies get pissed about free music being available online, when they happily send music stores multiple free copies of nearly every new CD that comes out. I've often wondered how many tens of thousands of free copies of each major release get sent out. (I understand the logic -- quid pro quo and all that -- but it's still a strange practice.)
    3. Re:Please return this post ... or I'll sue you! by Znork · · Score: 2, Interesting

      It's always struck me as funny that record companies get pissed about free music being available online

      Because they need someone to pay for all the free copies they send to the stores. It's not that strange really, it gets put in the 'marketing' budget, probably costs more money than they give to the actual artists (if it isnt just outright deducted from the artists part of the revenue), and then they can whine about how expensive it is to produce and distribute music.

      Of course, this kind of waste only makes sense when you have monopoly rights; if there was actual competition they'd get undersold in a heartbeat and the practice would disappear or at the very least get minimized. But when you dont have significant pricing pressure then spending like this is useful. And with music it also has several further effects; if cd's get sent to dj's and stores will be reluctant to pay for music to play. If dj's, radios and stores expect to get their music for free then unsigned artists cant afford to compete.

      So you get the consumers to pay for the limiting of their choices. Way to go for the promotion of the arts, eh.

    4. Re:Please return this post ... or I'll sue you! by vidarh · · Score: 2, Informative

      If you get them to mail it to you, and you truly did nothing to solicit it, then yes, you'd be legally protected. Which doesn't sound very likely.

  5. Aww the EFF Won? by CogDissident · · Score: 5, Funny

    I'm actually a bit sad that the EFF won on this case. Because if it hadn't of been overturned, you could label "anything" as no-resale and send it to someone. Like, you know, that giant pile of bricks or the entire output of a nuclear reactor and mail it to the RIAA.

    Because, with the policy they were trying to establish precedent for, you could do so, mark it as no-sale and no-disposal, and force them to build warehouses to store the random crap you send them.

    1. Re:Aww the EFF Won? by Paranatural · · Score: 5, Funny

      As fun as that would be, I could see a few problems with it:

      1) I'd lose my job - The warehouse would start to question why I always had my Jeep full of boxes and barrels to ship out to CA, and would complain about the shipping charges.

      2) I'd be arrested - After plundering every Goodwill dropoff area (a.k.a. 'Round back') for weeks on end for used underwear and rugs that have seen more cat urine than most litter boxes.

      3) The ASPCA would track me down - After stealing several monkeys, which I would train to fill buckets full of monkey semen to send to the offices of the lawyers for the RIAA. Imagine hundreds of barrels of monkey semen, all no-resale and no-disposal. Think about it.

      I am.

      And I need a bucket.

    2. Re:Aww the EFF Won? by gEvil+(beta) · · Score: 3, Insightful

      1) I'd lose my job - The warehouse would start to question why I always had my Jeep full of boxes and barrels to ship out to CA, and would complain about the shipping charges.

      Why would you be shipping them out to California? The RIAA is located in DC.

      --
      This guy's the limit!
  6. Good news by Anita+Coney · · Score: 3, Informative

    I used to work at a music store in my youth and selling promo CDs is what got me through college.

    --
    If someone says he and his monkey have nothing to hide, they almost certainly do.
  7. Re:Sheesh. by herring0 · · Score: 4, Interesting

    Maybe I'm just overly hopeful, but it certainly seems to me that people in the legal system are begining to see just how ridiculous many of these 'flimsy' shrinkwrap/EULA/itsnotyoursitsreallyalicense type arguements are.

    Wish in one hand...and you'll soon be washing them both

  8. What do you do with them? by Thelasko · · Score: 2, Informative

    I worked at my high school's radio station. We received tons of promo CD's. Very few of them turned out to be hits. We had stockpiles of CD's nobody wanted. They just piled up for years. We were always worried that the record companies were going to ask for them back, so we had to keep them.

    Ultimately, we decided that the record companies weren't going to ask for the really old ones, so we gave away as many as we could, and threw the rest away. It was kinda sad to see all of that waste.

    --
    One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
  9. Re:So, they're gonna start asking for the discs ba by Ungrounded+Lightning · · Score: 3, Insightful

    There goes promotional copies of CDs that reviewers keep, I guess.

    Not if they want a good review. B-)

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  10. Comment removed by account_deleted · · Score: 4, Funny

    Comment removed based on user account deletion

  11. Already happens. by igorthefiend · · Score: 2, Informative

    They already do. I have a number of promotional CDs which explicitly state "This CD remains the property of MUSICCOMPANY and we can request that you return it at any time." In practical terms, they never actually do ask for it back, but presumably it gives them the option.

    1. Re:Already happens. by Kadin2048 · · Score: 2, Informative

      It really doesn't give them that option, except insofar as it might make someone think they have that option, which is the whole point.

      I think they would run squarely into this issue ("you don't own this Victrola, we do, and we're just leasing it to you, so you have to do whatever we say").

      It's easy to print scary notices on things; it's harder for them to actually be valid.

      --
      "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
  12. Finally! by spun · · Score: 4, Funny

    Now I know what to do with all my dead monkeys!

    --
    - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
  13. you're forgetting option 3, of course by Reality+Master+201 · · Score: 2, Interesting

    Get congress to "fix" the law so that they can send promo copies which are not presumed to be gifts.

    Yay!

  14. Significance of this case? by seanadams.com · · Score: 2, Informative

    OK, so common sense prevailed and the EFF won. That's great, but what is the significance of this case? Is there actually a big problem with people getting hassled for giving/selling promo CDs, or am I missing some other broader implication as a result of this decision?

  15. Re:ok, this one's idiotic for a change by robo_mojo · · Score: 3, Insightful

    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.
    If you had such a technical solution, you could become a multi-billionaire overnight (or killed, perhaps).

    But such a technical solution doesn't exist. In any case there must be a strict trust relationship from both sides for it to work. Either that, or rabid lawyers threatening each other into submission.

    Otherwise, without such a technique, the world becomes a very different place.
    Different, how? It is the world we live in, now. In this world, DRM is inherently a failure, and you can't tell people how to use the CDs you mail them. That's the way it must be.

  16. Exactly Wrong by Fieryphoenix · · Score: 3, Informative

    The law is clear. If you choose to mail something to someone that they did not ask for, it becomes their property. End of discussion. Done. Sending it through the mail, unsolicted makes it a gift.

    Whatever idea you had in your head that prompted you to mail it makes no difference to the law. The recepient didn't ask you for it, you sent it anyway for whatever reason. Bing bam boom, it's theirs now. It doesn't matter if they want it or not. It doesn't matter if it's cross-promotional.

    There is a way to send something to someone without sending it to the world. You contact them and say "If you agree to my conditions, I will send it to you." Then, if they agree, you send it, if they don't, you can't send it anyway and bind them to your wishes. I can't emphasize how fundamentally important that is... no one can force someone else into a contract.

    1. Re:Exactly Wrong by holophrastic · · Score: 2, Interesting

      Yeah, I hear that, and you're certainly correct. But it's one of those scenarios that doesn't scale well. In a world of dissemination, you can't call the receiver, and reach someone who is capable of agreeing to those terms (as in they don't represent the company), and get that agreement within a reasonable time-frame so as to not render the transmission obsolete.

      I imagine the law was built in a time where you spent months or years developing something, a few days with the agreement, and a few days with the transmission. So if the agreement took one day or five days, it was inconsequential to the entire multi-month process.

      Today, we're talking about days or weeks to develop something, a few weeks with the agreement, and a few seconds with the transmission. Now the agreement being one versus five days is a huge ordeal, and weeks makes it the most substantial portion of the process. That's why the law, or the way that the law is followed, needs to be adjusted. Perhaps with nothing more than highly-publicised standardized agreements, that are accepted or declined upon delivery. I don't know.

      For example, my corporation is developing a kiosk -- whatever a copmuter in a box. We have to meet, among other things, electrical safety laws. One of which is that no one even close to human should be able to stick a finger through an opening and reach anything of any decent voltage -- we actually have to stop people from intentionally commiting suicide by breaking the box open with any reasonable amount of force. That's all fine.

      But we can't even use standard computer fans -- because they aren't impedence protected. That means that where Dell gets to use $3.00 fans, we have to use $25.00 fans. Dell gets to certify their million dollar factory. We have to have individual units evaluated (because our quantities are not anywhere near high enough to warrant destructive testing).

      The law is from 1976.

      2008 represents an interesting age in human history. We're at that point where industries evolve and turn over faster than laws can be matured to meet those industries. As a result, my kiosk industry is actually built on the basis of companies not following the law. For example, your CSA-certified Dell computer is no longer CSA-certified when you replace a fan, or a power supply. That's fine when you do it. But when Future Shop does it for you, it's illegal unless they have a government inspector evaluate the machine in its entirety after the repair. Do you think they do it? If they don't, it's entirely illegal for you to even plug it into the city power grid, and it's also illegal for Future Shop to give it back to you.

      1976.

    2. Re:Exactly Wrong by dlapine · · Score: 3, Insightful

      That's nice. But what do your troubles with some outdated regulation about individual kiosks have to do with First Sale doctrine?

      We're talking about the sale of items that don't require inspection.

      We're talking about the sale of items that require the protection of copyright, as they are trival to copy, and the value of the item lies in it's wide distribution.

      We're talking about items that do have a specific time value on that distribution, unlike your kiosks, which require a significant amount of time to fabric and distribute.

      We're talking about items that have not been ordered by the receipient.

      In short, your example here isn't relevant to the discussion. Do you have a better one?

      Now, the usefulness of being to send out an advance copy of a book, a cd, a press release or something similar with the expectation that the item will not be further distributed is a subject which might be worthy of discussion. I would submit to you that such usefulness is of relative little use to the general population, and as such, is not worthy of any new laws or regulation. I might suggest that those entities which would find value in such restrictions prepare contracts in advance with parties that would receive these items so that the owners' current copyrights are upheld.

      I find no value in suggestions that the public good is enhanced by automatic restrictions on redistribution. Can you provide an example or a case in which the public good is better served by such changes? If not, then why suggest that the court has made a mistake in this court?

      --
      The Internet has no garbage collection
    3. Re:Exactly Wrong by bit01 · · Score: 2, Insightful

      i.e. not requiring a team of lawyers to be involved before I can talk to you.

      That's called spam.

      You are completely ignoring the fact that all communications have costs for both the sender and the recipient. The current status quo is that a sender has to verify with a low overhead communication before they send a high overhead communication. This appears to be an appropriate balance. You want to increase costs for a recipient doing nothing more than minding their own business.

      Sorry, but f*k you. You are being just another marketing parasite.

      In your world it would be worthwhile for your "great billboard designer" could spam their content to ten thousand "Mazda"'s. The overhead for the designer is low, but that's only because he's managed to transfer most of his costs to the recipients. All unsolicited mass marketing does that; spam is just an extreme example.

      Try to get your head around the fact that it is possible to have too much unsolicited communication, as well as too little, before you suggest any more harebrained, parasitic schemes.

      Most unsolicited mass marketers really are parasites; it's no accident that they're almost always selling crappy products (good products sell themselves) and they rate very low on respect surveys (because all of the time and attention they've stolen with no recourse from others).

      ---

      Marketing talk is not just cheap, it has negative value. Free speech can be compromised just as much by too much noise as too little signal.

  17. Re:ok, this one's idiotic for a change by holophrastic · · Score: 2, Interesting

    I didn't mean a technical solution, I meant a legal one. Something as simple as a well-publicized phrase that simply entitles the receiver to use it but not sell it. I'm thinking of consumer-level comman legal contracts in the same way that the GPL's brought common legal contracts to software development.

    As for "it's the world we live in now" I disagree. We've only had there DRM problems for a few years, we're not locked into this situation yet. I don't want to see us wind up in exactly the situation that you're describing, but as a long-term problem.

    In general, I think that's the solution to 95% of consumer-level legal problems -- to simply have a collection of well-publicized legal agreements, also for small business-to-business relationships, with very standard phrases, interests, causes, and solutions. Along with that comes very standard ways of enforcing them. Basically expanding the concepts of "small claims court" into something that covers basic contract agreements.

  18. Re:The EFF in 100 years by digitrev · · Score: 2, Insightful

    Yes, but in the legal world, it's easy to convolute things to the point where you need Captain Obvious to point things out. I know for a fact that I've overcomplicated things by thinking too hard, when the answer was right in front of me. And the real issue isn't that their victories are so blindingly obvious, it's that if they lost these issues, we'd live in a world where things were incredibly obscure and difficult to navigate. A spade is a spade, and we need to call it that, especially when there are people calling it a "manual earth removal and placement device". Plugging up these loopholes makes it so that the law can be obvious, especially in the places it needs to be.

    --
    Cynical Idealist
  19. Re:Sheesh. by TheStonepedo · · Score: 2, Funny

    What an eloquent way to say "FR!ST P0$T!!1!!11!" while remaining on-topic. Well played, sir.

    --
    I'll be your candy shop of infinite deliciousity if you'll be my discotheque of endless rump-shaking.
  20. Re:Sheesh. by Kadin2048 · · Score: 5, Informative

    Not really. The music industry has pretty much tested, since its very inception, the outer bounds of what the legal system would allow.

    The whole idea of "licensing" or "leasing" music rather than selling it isn't a new one. The Victrola Company attempted all sorts of shenanigans with its records, including invalidating your right to play the record if you bought it for less than $1 (that's from 1906!). They attempted to back this up not only with contract law, but with patents as well. Their attempts at price-fixing via this method, both on records but even more significantly on machines, went all the way to the Supreme Court ("STRAUS v. VICTOR TALKING MACH. CO. , 243 U.S. 490").

    So this is really nothing new at all. It's just the music industry playing screw-the-consumer in the same manner they have always done.

    --
    "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
  21. Re:What? by oahazmatt · · Score: 5, Funny

    The RIAA didn't walk away from the case and then try to re-sue using a different judge this time? They would have, but the defense slapped a sticker on the paperwork stating "not for re-trial".
    --
    Those who believe the Internet is private,
    find their privates are on the Internet.
  22. Public performance right by sorcerykid · · Score: 2, Informative

    I appreciate your taking the time to explain.

    Regarding the exclusive right of public performance, that is superceded by the ASCAP, BMI, and SESAC blanket license agreements. In the case of a digital broadcast (such as satellite radio, cable radio, or Internet radio), the Section 114 and Section 112 statutory licenses also take precedence.

    Such a notice applies to only the unauthorized public performance. It is essentially no different than stating "All Rights Reserved," which covers the gamut of the copyright in the sound recording and/or musical work. Radio stations and nightclubs, however, are authorized to publicly perform musical works, and hence are provided the exemption.

    --Randall