A Setback For Resellers Of Digital Products
ReDigi is a company that came up with the idea of reselling digital media. Their platform allows customers to resell digital copies of music they bought from sites like iTunes, and resell them online, creating a digital secondary market. Record companies accepted this business idea until Capitol Records sued ReDigi in early 2012 for copyright infringement. Because this case’s decision would determine the profitability of a new market, many spectators paid attention to its progress. Unfortunately, a New York judge ruled that the reselling of digital media is illegal because the copy is not “used” and does not fall under the first sale doctrine. Book authors also agree with this decision because prices in the primary market would drop if this was legal.
This decision has made it more difficult for bigger companies like Apple and Amazon to sell digital copies through their websites. On the other hand, if the judge approved ReDigi’s business idea, the music industry may continue to decline because the Internet has given people easy access to digital media already.
Written By: Melody Mark
Sisario, Ben. “A Setback for Resellers of Digital Products.” New York Times. The New York Times Company, 1 Apr. 2013. Web. 2 Apr. 2013.