[Infowarrior] - Universal: Throwing Promo CDs away is illegal

[Richard Forno]

....you can't make this tripe up.....  --rf

http://www.eff.org/deeplinks/2008/04/umg-says-throwing-away-promo-cds-illega
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April 8th, 2008
UMG Says Throwing Away Promo CDs is Illegal
Posted by Fred von Lohmann

In a brief filed in federal court yesterday, Universal Music Group (UMG)
states that, when it comes to the millions of promotional CDs ("promo CDs")
that it has sent out to music reviewers, radio stations, DJs, and other
music industry insiders, throwing them away is "an unauthorized
distribution" that violates copyright law. Yes, you read that right -- if
you've ever received a promo CD from UMG, and you don't still have it, UMG
thinks you're a pirate.

This revelation came in a brief for summary judgment filed by UMG against
Troy Augusto. Augusto (aka Roast Beast Music Collectibles, eBay handle
roastbeastmusic) buys collectible promo CDs at used record stores around Los
Angeles and resells them on eBay. UMG sued him last year, claiming that the
"promotional use only" labels on the CDs mean that UMG owns them forever and
that any resale infringes copyright. EFF 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 label on a CD (after all, the Supreme Court
first recognized the first sale doctrine when a book publisher tried the
same thing with a label stating "may not be sold for less than one dollar,"
and we've seen patent owners trying the same trick on printer cartridges).
In other words, EFF believes that if you bought it, or if someone gave it to
you, you own it.

UMG seems to think that the "promotional use only" label somehow gives it
"eternal ownership" over the CD. While this might make sense to a goblin
living in Harry Potter's world, it's not the law under the Copyright Act.
According to the first sale doctrine, once a copyright owner has parted with
ownership of a CD, book, or DVD, whether by sale, gift, or other
disposition, they may not control further dispositions of that particular
copy (including throwing it away). It's thanks to the first sale doctrine
that libraries can lend books, video rental stores can rent DVDs, and you
can give a CD to a friend for their birthday. It's also the reason you can
throw away any CD that you own.

For EFF's view of the reality of "promo CDs," and why it's absurd for UMG to
claim to still own them, years after they mailed them out and deleted all
records of who they were sent to, read our summary judgment brief on behalf
of Augusto, also filed yesterday.