In Capitol Records v. ReDigi, the U.S. District Court for the Southern District of New York was called upon to resolve a dispute arising out of the sale of digital music files and the protections afforded the relevant copyright owners. In particular, the court was tasked with deciding, as a matter of first impression, whether copyright infringement occurs where one party transfers a pre-owned digital music file to another party, such that no two copies exist at the same time. The court ultimately ruled that defendant ReDigi Inc.’s transfer of such files violated plaintiff Capitol Records LLC’s copyright protections and that the first-sale defense was generally inapplicable to the transfer of digital music files.
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