SDNY Rules Digital Music NOT Subject to First Sale Doctrine

Judge Richard J. Sullivan granted plaintiff Capitol Records’ motion for summary judgment on its copyright claims against digital music file reseller ReDigi.  ReDigi’s online platform allows users to upload and resell songs purchased from online retailers, and deletes the origin file once a song is posted for sale.  Judge Sullivan held that ReDigi is “distributing reproductions of the copyrighted code” and “the first sale defense does not cover this any more than it covered the sale of cassette tapes.”  The ruling is expected to  have broader consequences in the context of other digital secondary markets for e-books and movies.  ReDigi has announced it will appeal the ruling.