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News
Universal Says Promotional CDs Sent in the Mail Belong to Them
Wednesday, April 9th, 2008 at 4:00 PM - by John Martellaro
Universal has claimed that free, promotional CDs sent via the U.S. Mail remain licensed to them, cant be sold or even given away, according to ars technica on Wednesday. However, the EFF, who has come to the rescue of a man sued by Universal, claims that items sent free come under the "first sale" doctrine and can be sold, given away, or disposed of. There is ample case history to support the EFF response.
What got Universals attention was that Troy Augusto, who runs a music collectibles business, was selling the free CDs on eBay, according to Nate Anderson at ars technica. Mt. Augusto has been making good money. Universal claims the CDs belong to them and wants him to stop.
The Electronic Frontier Foundation (EFF) has come to Mr. Augustos defense and says the dispute is serious because Universal is trying to bypass the "first sale" doctrine. If that practice continued, no one could ever throw away or sell a DVD, Book or video game, likely to be "festooned with notices," according to the EFF.
As a result, the EFF is defending Mr. Augusto, and hes filed a counter claim which says Universal is interfering with his business and falsely issued a DMCA takedown notice to eBay.
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