Court allows transfer of promotional CDs

Published: June 16, 2008, 12:45 pm

Tags: aapl, apple, ebay, itunes, troy augusto, troyaugusto, umg, universal music group, universalmusicgroup

Filed under: Products and services, Consumer experience, Apple Inc (AAPL), eBay (EBAY), Marketing and advertisingBillboard reported last Thursday that a federal District Court in Los Angeles has denied a motion by Universal Music Group to find an eBay Inc. (NASDAQ: EBAY) seller who sold promotional CDs the label claims are its property (and thus not eligible for sale) liable for copyright infringement. UMG argued in its motion that a label printed on the discs stating they "were promotional and could not be sold" gives the holders of the CDs the right to listen only and not sell the CDs. According to the BBC, the motion from UMG was first filed against eBay seller Troy Augusto in May 2007 and resulted in the cancellation of an auction and threats from eBay.The federal court argued that the label could not prevent that sale, and Billboard added that copyright law states "once the legal title to a lawfully made copy of a copyrighted work is transferred, then the person who obtains that

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