''Universal Music Group v. Augusto'' was a federal court case filed by

Universal Music Group Universal Music Group N.V. (often abbreviated as UMG and referred to as just Universal Music) is a Dutch–American multinational music corporation under Dutch law. UMG's corporate headquarters are located in Hilversum, Netherlands and its ...

against Troy Augusto, a man who sold promotional CDs on

eBay eBay Inc. ( ) is an American multinational e-commerce company based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995 and became ...

. UMG claimed that the CDs were their property, and Augusto's sales constituted copyright infringement. On January 4, 2011, the Ninth Circuit sided with Augusto, holding that "UMG's distribution of the promotional CDs under the circumstances effected a sale (transfer of title) of the CDs to the recipients. Further sale of those copies was therefore permissible without UMG's authorization."

Background

UMG claimed that their promotional CDs marked "promotional use only" are their property for eternity and cannot be resold.

Augusto deceives potential eBay buyers by speciously claiming that he has the right, under U.S. copyright law, to sell the "Promo CDs" under the "first sale doctrine" embodied in . (In fact, since "Promo CDs" are never sold, only licensed, that doctrine simply does not apply.)

The

Electronic Frontier Foundation The Electronic Frontier Foundation (EFF) is an international non-profit digital rights group based in San Francisco, California. The foundation was formed on 10 July 1990 by John Gilmore, John Perry Barlow and Mitch Kapor to promote Internet ...

stepped in on behalf of Augusto and claimed that Augusto has the right to resell the CDs under the

first sale doctrine The first-sale doctrine (also sometimes referred to as the "right of first sale" or the "first sale rule") is an American legal concept that limits the rights of an intellectual property owner to control resale of products embodying its intellec ...

. Joe Gratz of Durie Tangri represented Augusto.

Augusto admits that under he is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of CDs he owns, including the CDs at issue in this action. Augusto admits that the limitation on a copyright holder's distribution right set forth in is sometimes referred to as the "first sale doctrine." Augusto admits that he has cited from time to time in his auction descriptions. Augusto denies the remaining allegations in this paragraph.

Augusto argued that he owned title to the CD copies he sold under three theories. # The printed licenses on the promo CDs were invalid # The original recipients were allowed to treat the CDs as a gift according to federal law # The CDs were abandoned by UMG according to California law If any one of these were upheld by the court, Augusto would win. The court supported both 1 and 2 but rejected 3, and thus ruled that UMG transferred title of the CDs to the original recipients. Therefore, Augusto was the owner of the CDs when he sold them and was not violating UMG's rights. Augusto had also counter-sued UMG for the obstruction of his business.

Ruling

In a court order issued June 10, 2008, the

United States District Court for the Central District of California The United States District Court for the Central District of California (in case citations, C.D. Cal.; commonly referred to as the CDCA or CACD) is a Federal trial court that serves over 19 million people in Southern and Central California, ...

established that the

is indeed valid in this case. The court rejected the counter-suit claim, finding that UMG acted in good faith when claiming their copyright. Augusto appealed this decision to the

Ninth Circuit Court of Appeals The United States Court of Appeals for the Ninth Circuit (in case citations, 9th Cir.) is the U.S. federal court of appeals that has appellate jurisdiction over the U.S. district courts in the following federal judicial districts: * District ...

, which affirmed the decision.
on ca9.uscourts.gov

References

External links

UMG v. Augusto

Court order of June 10, 2008
* * * * * * {{DEFAULTSORT:Universal Music Group V. Augusto Lawsuits Universal Music Group Electronic Frontier Foundation litigation United States copyright case law United States Court of Appeals for the Ninth Circuit cases United States District Court for the Central District of California cases

Background

Ruling

See also

References

External links