Can promotional CDs be resold in the open market? Last year, Universal Music Group sued Troy Augusto for reselling its promotional discs, arguing that advance CDs remain the property of the issuing company. Labels traditionally affix printing onto promotional discs that warn against resale, though the case raised serious questions about the first sale doctrine.
Earlier this week, a federal judge ruled against Universal Music Group. "Augusto's actions are protected under the first sale doctrine," opined US District judge S. James Otero. The case was dismissed in summary judgment, a quick-and-dirty end to the matter.
Augusto was backed by the Electronic Frontier Foundation, which joined the case alongside law firm Keker & Van Nest. "The right of first sale also protects libraries, used bookstores, and businesses that rent movies and video games," explained EFF staff attorney Corynne McSherry. "This ruling affirms and protects the traditional balance between the rights of copyright owners and the rights of the public."

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