Capitol Records, LLC v. ReDigi Inc. (2018)

“Digital resale of copyrighted music without authorization is infringement, even if the original file is legally purchased.”

Short Description:

The court held that the resale of digital music files violates copyright law, distinguishing between physical and digital ownership. Buying a digital copy does not grant the right to distribute it.

Facts:

ReDigi allowed users to resell legally purchased digital music files via its platform. Capitol Records sued, claiming that ReDigi’s resale violated the distribution right under the Copyright Act. ReDigi argued that resale should be protected under the first sale doctrine.

Findings / Reasoning:

The court ruled that first sale doctrine applies only to tangible copies. Digital files are reproduced during transfer, which constitutes infringement. Thus, ReDigi’s platform violated copyright by enabling distribution of duplicated copies, even though the user legally purchased the original files.

Suggestions / Observations:

Digital goods require different legal treatment than physical goods. Ownership of a digital copy does not allow unlimited distribution. Platforms enabling digital resale must obtain proper licensing.

Judgment & Date:

Judgment in favor of Capitol Records, LLC.

Date: March 29, 2018.