The resale of promotional CDs — those distributed by record labels for marketing purposes — doesn’t violate copyright laws, the Ninth Circuit U.S. Court of Appeals ruled today.
A three-judge panel said music giant UMG has no meaningful control over its promotional copies after they’re out the door, making the recipients the rightful owners. The court distinguished the case, UMG v. Augusto , from other first-sale doctrine cases, such as Autodesk v. Vernor , in which the court sided with software companies who argued that consumers license, and don’t own, the software they purchase.
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