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As more and more of our media moves into digital-only formats, we have to wonder our rights are to these virtual goods. Granted, a quick perusal through most End-User License Agreements will make it pretty clear you’re essentially borrowing those songs, games, and movies from the distributor. A ruling by the federal U.S. District Court for the Southern District of New York has sided with the record industry on the issue, potentially putting a halt to iTunes resales.
As reported by AllThingsD, Capitol Records (owned by Universal Music Group) recently filed suit against start-up marketplace ReDigi. The site allows people to resell their iTunes music collection, but according to U.S. District Court Judge Richard Sullivan, the start-up will likely have to stand down.
Frankly, ReDigi does make some valid arguments. Namely, there’s nothing illegal about buying a CD from the record store, listening to it, then reselling the used album for cash. The start-up also attempted to argue the “first sale” doctrine protected its activities, as it does Netflix. But Judge Sullivan didn’t agree, referring back to a lack of action on the part of Congress to alter the copyright rules in regards to virtual goods.
“The Court cannot of its own accord condone the wholesale application of the first sale defense to the digital sphere,” reads Sullivan’s decision. “Particularly when Congress itself has declined to take that step.”
Recently, it was discovered Apple had actually filed for a patent which appears to deal with the company’s ability to resell iTunes goods.
