UMG sues man for selling promo CDs
p2pnet news | Music:- Record labels routinely distribute promo CDs to create buzz for new releases.
In May eBay seller Troy Augusto, aka ‘Roast Beast Music,’ was sued by Universal Music Group (UMG) for listing 26 of its promo discs on eBay.
Now, “At issue is whether the ‘promotional use only, not for resale’ labels on these CDs can trump a consumer’s right to resell copyrighted materials that they own, guaranteed by copyright law’s ‘first sale’ doctrine,” says the EFF, , which, with San Francisco law firm Keker & Van Nest, has filed briefs in federal court on Augusto’s behalf.
UMG stamps its promo CDs with labels declaring the CDs can’t be resold, “and remain the property of UMG,” says the story.
This is, of course, consistent with Warner Music, EMI, Vivendi Universal and Sony BMG’s claims that when someone lays out his or her hard-earned cash for a CD, they don’t actually own it, they only license it for use under terms dictated by the Big 4.
Meanwhile, the first sale doctrine in copyright law, “makes it clear that once the copyright owner sells or gives away a CD, DVD, or book, the recipient is entitled to resell it without needing further permission,” says the EFF, going on:
“The summary judgment brief filed Monday argues that UMG gives up ownership of these promo CDs when it mails them unsolicited to thousands of people without any intention of their return. Accordingly, the first sale doctrine permits purchasers to resell these CDs.”
But, “If UMG is able to stop resale of CDs just by putting ‘not for resale’ labels on them, then there is nothing to stop other restrictive labels from appearing on CDs, books, and DVDs,” says EFF senior intellectual property attorney Fred von Lohmann.
“Record companies are not entitled to strip consumers of their first sale rights simply by putting labels on their products.”
A hearing on the motion for summary judgment is expected in early May 2008.
EFF – Courtroom Showdown for eBay Seller Over Promo CD Sales, April 8, 2008
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April 8th, 2008 at 9:13 am
Wow, I sell a lot of these myself. Have done for years. Hopefully this won’t go anywhere…
April 8th, 2008 at 9:16 am
Jon, you should have quoted the introduction by this lawyer for defendant.
It’s just great and on the point!
“goblins”
LMAO
April 9th, 2008 at 7:28 am
Last sunday at the supermarket they had a cheese promo. Sample were given away. My wife took 2 samples and gave one to me.
I wonder, did we break the law? Stealing?
April 9th, 2008 at 7:29 am
Again, the legal warnings on CD/DVD labels, even the FBI ones, twist the meaning of the law or are plainly wrong. They should be banned, by law.
April 9th, 2008 at 7:30 am
When the songs of a record are still in copyright, the song beneficial owners have rights on the records too. Are these listed as plaintiffs? Are these a necessary party? If not, the lawsuit may be able to take off, if a shrewd lawyer is representing the defendant. After all, maybe the beneficial owner does not object to the reselling of records, whether promo or not.
April 9th, 2008 at 3:17 pm
UMG Lawyers even have better counterarguments now!
If you throw away your CDs you are distributing unlawfully!
And the lawyers are serious with that argument!
http://www.eff.org/deeplinks/2008/04/umg-says-throwing-away-promo-cds-illegal
April 9th, 2008 at 3:21 pm
Hey “Rich”, you got that one wrong!
Of course they only misspoke, didn’t they?
Even RIAA lawyers can’t be so stupid, can they?
April 10th, 2008 at 4:11 am
THE TWILIGTH ZONE
Promos have fallen into the twilight zone. They cannot be sold, given, donated, inherite, destroye, rented, displayed, publicly playe. As a matter of fact they cannot even be promoted unless there is a performance or display license.
When you go, just put them in your casket.