From Paid Content:
A court ruled on Saturday that “music locker” ReDigi, which offers consumers a way to resell music they purchased from iTunes, is liable for copyright infringement. The ruling is likely to force the service to shut down and also dims the prospect for a mainstream marketplace for used digital goods.
ReDigi touts itself as a legal source of secondhand music. It works by inviting users to upload iTunes tracks to a cloud-based “locker” where other users can purchase them. When someone buys a track, the song is transfered to the purchaser’s locker and Redigi performs a sweep of the seller’s computer to ensure he or she hasn’t held onto a copy — an arrangement that ReDigi argues makes it akin to a used record store.
Capitol Records sued ReDigi, claiming that the service had sold more than 100 of its copyrighted recordings without permission. After refusing to issue a preliminary injunction in February 2012, a New York federal judge this weekend ultimately sided with Capitol.
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