US Federal Court Okays Re-Selling of CD Promos
A US federal district court has ruled that selling promo CDs on eBay does not infringe copyright. The court ruled against Universal Music Group which had sued Troy Augusto, who regularly sells promo CDs on eBay.
The Electronic Frontier Foundation (EFF) and the San Francisco law firm of Keker & Van Nest took Augusto's case to fight for the proposition that a copyright owner can't take away a consumer's first sale rights just by putting a 'promotional use only' label on a CD. His lawyers argued that "first sale" guidelines allow him to resell the material without permission from the copyright holder.