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RIAA Doesn't Like the "Used Digital Music" Business

An anonymous reader writes "Ars Technica reports on the developing story between the RIAA and music reseller ReDigi, 'the world's first online marketplace for used digital music,' who first came online with a beta offering on October 11th, 'allowing users to sell "legally acquired digital music files" and buy them from others "at a fraction of the price currently available on iTunes.'' If the notion of selling 'used' digital content is challenged in court, we may finally receive a judicial ruling on the legality of EULAs that will overturn the previous Vernor v. Autodesk decision."

29 of 300 comments (clear)

  1. This will be interesting by GameboyRMH · · Score: 5, Insightful

    Now the RIAA has flip-flopped by acting as if these digital files are NOT equivalent to physical items...I guess their position will be where the money is, regardless of what's logical or their prior actions.

    --
    "When information is power, privacy is freedom" - Jah-Wren Ryel
    1. Re:This will be interesting by carrier+lost · · Score: 5, Insightful

      The hypocrisy is breathtaking, ain't it?

      For purposes of RIAA propaganda, making a copy of a song you bought is "stealing", just like physical property.

      But for their purpose of destroying the second-hand market, you never really owned the physical property in the first place, so you can't sell it.

    2. Re:This will be interesting by Baloroth · · Score: 4, Insightful

      In the RIAA's view, you never really owned the physical property either and shouldn't have been able to resell that.

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
  2. So this is different from prior attempts how? by Moryath · · Score: 4, Insightful

    They've already been trying to do this.

    In the PC games market, tying games to Steam - I bought Portal 2, and discovered it required me to install Steam to get the install and get the fucking software to run.

    What does this mean? Well, I can make it run. But I can't, when done with it, give the copy (serial and all, uninstalled from my computer) to a family member or friend as a gift.

    iTunes does much the same thing. You can't buy something and then send it to someone else, in a "deleted from your account, credited to theirs instead" transaction.

    The cartels salivate at killing the used market because they think it means more sales.

    1. Re:So this is different from prior attempts how? by GameboyRMH · · Score: 4, Insightful

      The cartels salivate at killing the used market because they think it means more sales.

      It can mean more sales. If used book stores burned every book they bought, the sales of new copies of those books would increase at least a tiny bit...and that sliver is what they're after.

      That's what I'm assuming anyways. If they think that 1 used book sale = 1 lost new book sale, as with piracy they'll be sorely disappointed.

      --
      "When information is power, privacy is freedom" - Jah-Wren Ryel
    2. Re:So this is different from prior attempts how? by Maximum+Prophet · · Score: 5, Interesting

      It can mean more sales. If used book stores burned every book they bought, the sales of new copies of those books would increase at least a tiny bit...and that sliver is what they're after.

      That's what I'm assuming anyways. If they think that 1 used book sale = 1 lost new book sale, as with piracy they'll be sorely disappointed.

      If they thought that, they'd just buy the used books at 30% and destroy them.

      The problem with digital content, is that when properly cared for it doesn't degrade. Vinyl disks wear out with use. Cars rust. Even books get cruddy. Unless a digital recording is released in a higher fidelity, a 20 yo used copy doesn't sound any worse than a new one.

      I'm waiting for a sub-culture, a digital Amish, as it were, of people who only consume media that's at least N years old. People who band together with the latest hardware, but only content that's old and used. Device drivers will have to be open source and blessed by a software shaman. Maybe I'll start it for tax purposes....

      --
      All ideas^H^H^H^H^Hprocesses in this post are Patent Pending. (as well as the process of patenting all postings)
    3. Re:So this is different from prior attempts how? by Baloroth · · Score: 5, Insightful

      So? He bought it in a box, but when he tried to install it found that the box is really just a gift certificate for a game tied to an online ID.

      Just like it says on the back of the box. Kinda hard to see in that picture, I know. It's not like he shouldn't have known exactly what he was buying, had he done due diligence.

      Now, that doesn't address the key point about whether you should be able to resell the games. I can definitely understand Valve's reluctance to allow it, however. For physical objects, used reduces the quality, and can be difficult to find and sell (usually occurs at extremely high premiums - say hi, Gamestop!). Digital copies don't degrade and can be bought and sold easily (instantly, and with no third-part premiums). Basically, it isn't impossible to imagine that a developer would sell only half (actually, that may even be optimistic) as many total copies as they otherwise would. Essentially, it would turn into game renting - except that with a sufficiently established system, the "renting" would be almost free (you could resell the game for, theoretically, exactly or only cents less than what you paid for it).

      It's really hard for me to get angry at Valve for not allowing that, especially with the insanely good sales they have on nearly constantly.

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
    4. Re:So this is different from prior attempts how? by Anonymous Coward · · Score: 5, Insightful

      They've already been trying to do this.

      In the PC games market, tying games to Steam - I bought Portal 2, and discovered it required me to install Steam to get the install and get the fucking software to run.

      What does this mean? Well, I can make it run. But I can't, when done with it, give the copy (serial and all, uninstalled from my computer) to a family member or friend as a gift.

      iTunes does much the same thing. You can't buy something and then send it to someone else, in a "deleted from your account, credited to theirs instead" transaction.

      The cartels salivate at killing the used market because they think it means more sales.

      Gotta be perfectly honest here: Going by volume of whining alone, I'm apparently the single, solitary person left on this planet who doesn't sell every damn thing he owns the very picosecond I get bored with it*. No, seriously. I've never looked at a game I've had and thought to myself, "Man, it's absolutely vital that I get about 10% of the money I paid for this back; I mean, COMPLETELY AND UTTERLY VITAL, to the point where my inability to do so, coupled with my apparent lack of reading comprehension and research and a video gaming mindset stubbornly stuck somewhere in the 16-bit era where it was most convenient for me, renders this purchase nothing but a mistake".

      For me, long before "I MUST SELL THIS BACK VERY VERY SOON TO RECOUP MONEY" comes into my mind, the thought of "I most likely don't need this luxury item in the first place" wakes up and stops me from wasting my apparently precious money on this sort of thing if I need said money that badly.

      But apparently, again going solely on how loud the whining gets, that's just me. Guess I'm a "tool of the cartels", or whatever label the entitled generation wants to attach to me, because I'm actually responsible with my money BEFORE I spend it.

      Hint: Failing to get 10% of the price you paid for a game back by selling it is NOT what is keeping you from being rich, nor is failing to get gifted games a few months after release what is keeping your friends or family from being rich (especially since, given time on Steam, that same game will be around 75% off anyway).

      *: Solely because modern physics has yet to determine if time itself has granularity.

    5. Re:So this is different from prior attempts how? by Jiro · · Score: 4, Informative

      The fact that you personally don't want to sell it (or trade it) is irrelevant. The fact that other people do want to do that affects the market and ultimately the price.

      Also, even if you may not want to sell your games used, you can certainly *buy* your games used. If you want a 10 year old game that's pretty much going to be the only way to get one.

    6. Re:So this is different from prior attempts how? by poemofatic · · Score: 4, Insightful

      But purchasers of books take resale value into account, so destroying the used book market may well mean that demand for books *decreases*:

      I've known people who buy (low brow) books to read once and then re-sell. It is a cost/convenience trade off. They could go to the library, but that's a hassle. Say the hassle is worth $8 bucks to them. They buy a book for $12, read it, and sell it back for $4.

      They are paying $8 in order to not deal with the library.

      Destroy the used book market, and now they need to pay $12 to read that low-brow book once. If it's not worth it, then they don't buy, and overall book demand may decrease. Detroit learned this lesson the hard way when they had the bright idea of building cars that weren't meant to last long enough to have a high re-sale value. The net result was *not* an increased demand for the product.

      --

      When in doubt, have a man come through a door with a gun in his hand.

  3. This is a very important fight for many reasons. by onyxruby · · Score: 5, Insightful

    Lots of considerations should go into this. What happens when someone passes away, does their mutli-thousand dollar music collection somehow become magically worthless? What about someone going through a divorce or a bankruptcy? Can these be considered assets and taken from one person and granted to another?

    The first sale doctrine needs to apply in common sense situations like this. If you buy something, including a license, it is only common sense that you would be able to resell it. That being said if a license is sold the original terms should also be accepted. I'm not advocating simply sharing it, I'm talking about removing it from one place putting it in another.

    People would never tolerate the loss of first sale doctrine in any other aspect of their life as it would be absurd. Can you imagine toyota demanding a transfer fee or the right of first refusal when you want to sell your car?

  4. Don't worry, our President will save us!! by elrous0 · · Score: 4, Funny

    I'm sure he'll be standing up to the RIAA any minute now....

    gonna be soon.....

    he's probably on his way....

    just be patient.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
  5. RIAA wants to have cake, sell it, eat it. by Anonymous Coward · · Score: 5, Insightful

    Either intellectual property is a physical good that can be legally acquired, owned, and resold as a used item, or it is not, in which case stop fucking calling it theft.

    1. Re:RIAA wants to have cake, sell it, eat it. by amoeba1911 · · Score: 5, Funny

      It's like the wave particle duality. The intellectual property exists in two mutually exclusive states.
      1. it is physical good that can be legally acquired, owned, resold, discarded and stolen
      2. it is also intangible, can't be owned, can't be sold, can't be discarded nor stolen.

      Just like the quantum world, the wave function collapses only when you try to make a measurement. Until you try to measure you can't be sure if it's physical or intangible. Until it is measured, it exists in both mutually exclusive states concurrently to maximize profit for the copyright mafia.

      MIND = BLOWN

  6. Re:Honor system by Pope · · Score: 4, Informative

    Ever look at the fine print on an old LP? Same thing applies. You have never "owned" the music, you just have a limited playback license tied to the physical object.

    --
    It doesn't mean much now, it's built for the future.
  7. Re:RIAA Kicking Itself? by TheRaven64 · · Score: 4, Insightful

    No. The hint is in the name: copyright, i.e. the (exclusive) right to make copies of a work. The copyright owner has the right to make copies. When you buy a CD, you may get (either implicitly or explicitly, depending on your jurisdiction) the right to make a single backup copy and the right to copy portions of it into the memory of a playback device as required to listen to it, but you don't get the right to make arbitrary copies. Whether you sell the copy or give it away makes no difference. When you buy a track online, a copy is created, but by someone who is authorised by the copyright holder to make copies.

    It's going to be an interesting legal case because (practically) every 'move' operation on a computer is really a copy-and-delete-the-original operation, so the idea of selling the original doesn't really make sense because the original was an ephemeral copy in your network stack - the version on your hard disk is a copy of that, the version on your media player or on a backup disk is a copy of the copy.

    --
    I am TheRaven on Soylent News
  8. Re:Meaningless by TheRaven64 · · Score: 4, Insightful

    There's no way to stop a user from retaining a copy of the file without yet *another* level of some nasty DRM

    How is this any different from used CDs? There's nothing stopping you from copying the CD and then selling it. In fact, there's nothing stopping you from just downloading the music and skipping the buying step altogether except the idea that you need to own a license to the music, and that license is what they are selling, the file itself is largely irrelevant.

    --
    I am TheRaven on Soylent News
  9. Re:Honor system by carrier+lost · · Score: 5, Informative

    Like reselling a physical CD after ripping it...

    Actually, ReDigi is quite proud of their "forensic" software which authenticates tracks and rejects ones that are ripped.

    From the ARS article:

    "ReDigi says that it does this via its "forensic Verification Engine," which the service says analyzes each upload to make sure it is a legally acquired track—songs ripped from CDs are excluded. "

    In other words, ReDigi is bending over backwards to satisfy the RIAA, but of course, it's not enough.

  10. Re:Honor system by Anonymous Coward · · Score: 5, Insightful

    But how do they determine that I have not kept a copy? That's the crux of this. Who cares if I bought it legally. I still don't have the right to sell it to someone else unless I no longer have a copy. Who can prove this to be true?

  11. Re:This is a very important fight for many reasons by carrier+lost · · Score: 4, Insightful

    What happens when someone passes away, does their mutli-thousand dollar music collection somehow become magically worthless?

    I always thought that it would be instructive for someone to stand in front of congress, hold up an MP3 player or phone and say, "There are 30,000 songs on this device. The Recording Industry insists that every one of those songs is worth at least a dollar. I have a great deal here for some lucky congressperson today - who wants to buy $30,000 worth of music for just five hunnert dollah?

    "Do I have any takers?"

  12. Re:Honor system by Anonymous Coward · · Score: 5, Informative

    That language is illegal under The Clayton Act of 1914. The Clayton Act was an anti trust act that prevents restrictions on reselling and rentals. Trying to control market of used items with an nda is illegal price fixing.

  13. Re:Honor system by Rob+the+Bold · · Score: 5, Funny

    Example? I looked at a few LPs on google images but couldn't see what you're talking about.

    My God, I'm old.

    --
    I am not a crackpot.
  14. Re:Honor system by ILongForDarkness · · Score: 4, Interesting

    I think the RIAA will argue that iTunes, CDs etc are the distribution mechanisms for licensed products. Just because a licensed product exists in physical form doesn't mean that you don't need a license to use it. So sure sell the CD/iTune file but the caveat is that the buyer doesn't have a right to use it since they haven't purchased a license.

  15. Re:Honor system by nabsltd · · Score: 5, Interesting

    I think the RIAA will argue that iTunes, CDs etc are the distribution mechanisms for licensed products.

    They can argue that all they want, but a CD, a downloaded MP3, and a book are all identical as far as copyright law is concerned. All are copies of copyrighted content whose ownership has been transferred to the purchaser. The only part of copyright law that concerns licensing is granting rights to material you have copyrighted to another entity (person, business, etc.). For that, I agree that an iTunes sale can also include licenses for things like making limited multiple copies, transcoding to a different format, etc., and those licenses can be explicitly declared as not transferable in the event of a resale of the actual original copy.

    Just because a licensed product exists in physical form doesn't mean that you don't need a license to use it.

    You have been tricked by the big media companies into believing a lie. Again, there is no license mentioned in copyright law other than the licensing of the exclusive rights of the copyright holder. Once you have a copy of copyrighted material in your possession, you are free to do with it as you wish, as long as you do not violate any of the exclusive rights listed in copyright law, and none of those rights concern simply your personal "using" (reading, listening to, watching, etc.) of the material.

  16. Gotta love Slashdot by rlp · · Score: 4, Funny

    Latest entertainment industry power grab ...
    Slashdot: "Down with the stupid evil corrupt entertainment industry!! Dirty lying evil bastards!!" ...
    They're making a "Dr. Who" feature film ...
    Slashdot: "Oooooh - shiny!!"

    --
    [Insert pithy quote here]
  17. Re:Honor system by Xian97 · · Score: 4, Funny

    When dealing with the RIAA, bending over backwards isn't the position you have to assume...

  18. Re:Honor system by lgw · · Score: 4, Informative

    The law doesn't work the way you want it to, I fear.

    They can argue that all they want, but a CD, a downloaded MP3, and a book are all identical as far as copyright law is concerned

    Wrong. "Phonorecords" are different in copyright. For example, you don't need any special licence to rent out DVDs, but you do for CDs.

    and none of those rights concern simply your personal "using" (reading, listening to, watching, etc.) of the material

    If you cannot consume the media without a copy of it being made (e.g., in the memory of the player), there's plenty of room for weasels in copyright law.

    --
    Socialism: a lie told by totalitarians and believed by fools.
  19. Re:Honor system by msauve · · Score: 4, Informative

    If you cannot consume the media without a copy of it being made (e.g., in the memory of the player),

    Transitory "copies" do not violate copyright. There's case law behind that. See here, for a bit of info.

    Beyond that, I'd argue that any "copying" necessary to reproduce the work as it is obviously intended to be rendered (i.e. audio and/or video playback) would be "fair use," as the work would be useless otherwise.

    --
    "National Security is the chief cause of national insecurity." - Celine's First Law
  20. Re:Honor system by metacell · · Score: 4, Interesting

    Not quite... copyright grants the creator of a work the exclusive right to manufacture copies of it and to perform it in public. Copyright doesn't say anything about using a work. For example, if you buy a book, you don't need permission (license) from the copyright holder to read it, cut up the pages and remix it, lend it to your friends, etc, as long as you don't make any extra copies. The same thing applies to, for example, a music record - the copyright holder has no say over when, how or how often you play the music, or whatever else you wish to do with it, and long as you don't manufacture extra copies or perform it in public.

    A shrink-wrap agreement can restrict what you can do with a product, but that has nothing to do with copyright. The shrink-wrap agreement is considered a part of the purchase agreement. It only applies to the purchaser, not to anyone he gifts or lends the product to. Even if the purchaser is required to apply the same terms to anyone she sells or gifts the product to, there's not much the producer can do if she forgets or ignores it. The producer can sue the first user, but the second and subsequent users are still not bound by the purchase agreement.

    In the case of software, it's generally assumed that you need a license to use it. It's my understanding that this is because using software creates temporary copies of it in the computer's memory, and you need the copyright holders permission to create these temporary copies. To obtain this permission, you need to agree to a license agreement.
    The courts don't seem to agree entirely that the temporary copies in the computer's memory should be considered copies in the context of copyright law, though, so I'm not sure how solid these license agreements are.