UMG v. Augusto

Online CD Seller Fights Universal's Bogus Infringement Allegations Record Industry Claims Would Undermine Right of 'First Sale'

An eBay seller is taking on Universal Music Group (UMG) in court after the record industry giant targeted his online music sales with false claims of copyright infringement. EFF and the San Francisco law firm of Keker & Van Nest LLP are representing Troy Augusto, whose online auctions included sales of promotional CDs distributed by Universal. Copyright law's "first sale" doctrine makes it clear that the owner of a CD is entitled to resell it without the permission of the copyright holder. Nevertheless, Universal claims that CDs marked as "promotional use only" remain the property of Universal and thus can never be resold.