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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Coldplay's new album 'Viva La Vida' looks set to become one of the fastest-selling albums in chart history after selling 125,000 copies on its opening day.
The band's fourth album was released yesterday (June 12th) and is expected to sell upwards of 500,000 copies before the Sunday chart deadline.
The album is seen as a crucial record for the band's record label, EMI, who have lost a host of big name acts since being taken over by private equity company Terra Firma.
The company is one of a number of record labels to be affected by the growing problem of illegal downloading.
As previously reported on Gigiwse, Coldplay's frontman Chris Martin stormed out of an interview to promote the album, which was broadcast on BBC Radio 4 last night.
Martin appeared under pressured when asked about the lyrical content and imagery of the new album.
Click here to read a transcript of the interview.
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