In 2011, ReDigi, Inc., a Massachusetts-based tech company, created the first resale marketplace for lawfully purchased digital music. This "digital resale" platform immediately drew the attention of copyright holders in the music industry. In early 2012, Capitol Records, LLC sued ReDigi, claiming that the service violated Capitol's exclusive rights to reproduction and distribution of their copyrighted words under the Copyright Act of 1976. Ultimately, the United States District Court for the Southern District of New York held in favor of Capitol. This note explains this case and discusses the complex relationships between "secondary digital market" technology and current copyright law. This note then proposes legislative reform that would permit a secondary digital marketplace, such as ReDigi's, to exist in a manner that balances both the interests of consumers and copyright holders.
Digital Music Garage Sale: An Analysis of Capitol Records, LLC v. ReDigi Inc. and a Proposal for Legislative Reform in Copyright Enabling a Secondary Market for Digital Music,
37 Hastings Comm. & Ent.L.J. 135
Available at: https://repository.uchastings.edu/hastings_comm_ent_law_journal/vol37/iss1/5