Universal Music Group have failed in a bid to stop an eBay seller from reselling promotional CDs.
Troy Augusto began trading by purchasing rare promos from second hand shops and then selling them on the popular online auction website eBay.
Universal claimed that Augusto was infringing copyright because some of the promotional CDs were not authorised for public sale.
However, a judge in America dismissed the case, saying that the trader had a right to sell the CDs because he was protected by the copyright law.
According to the 'First Sale' element of the law, once the copyright owner gives a CD away the recipient is entitled to sell it on.
The ruling appears to conflict with record companies claims that they continue to own the copyright of material and can ask for it to be returned at any time.
The judge told the court that such labelling as 'Promo Copy, Not For Resale', which is often attached by record companies, does not alter the copyright law.
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