Capitol Records v. ReDigi (2nd Cir. 2018) On December 12, 2018, the Second Circuit affirmed a final judgment of copyright infringement from the U.S. District Court for the Southern District of New York in favor of Plaintiffs (Capitol Records, Capitol Christian Group and Virgin Records) involving digital music files. Defendant ReDigi created a platform designed to enable purchasers of lawful music files to sell those digital files to ReDigi by transferring the files to the ReDigi server. ReDigi’s software simultaneously deletes the music file from the original purchaser’s computer as the music file is transferred to the ReDigi server. ReDigi then hosted resales of the transferred files on its platform. ReDigi argued that their method was protected under the first sale doctrine. The court disagreed, affirming that the transfer of music files from lawful purchaser’s computers to the ReDigi server was a violation of the Plaintiff’s exclusive right to control the reproduction and the distribution of copyrighted work under 17 U.S.C. 106(1). “Therefore, digital files sold through ReDigi, being unlawful reproductions, are not subject to the resale right established by § 109(a), which applies solely to a ‘particular … phonorecord . . . lawfully made.’”
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