eBay Music Dealer Sues UMG

August 6, 2007 - Troy Agusto, an eBay music dealer who sells rare and collectible CDs under the name Roast Beast Music, (RBM) has counter-sued Universal Music Group (UMG) for illegally demanding that he take down his music. Agusto has been legitimately reselling CDs on eBay, however, UMG argues that the CDs were promotional and thus Agusto's sales violated the exclusive property rights of the copyright holders set forth in 17 U.S.C. § 106(3). In principle, UMG's claim is barred by the first sale doctrine set forth in 17 U.S.C. § 109, which states that the owner of a legally purchased copyright-protected item may resell the item without the permission of the copyright holder. Agusto is being represented by Keker & Van Nest LLP and the Electronic Frontier Foundation. You can catch more on the story here.

U.S. Code Title 17