Universal Music Group v. Augusto

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Universal Music Group v. Augusto is a lawsuit filed by Universal Music Group against Troy Augusto, a man who sold promotional CDs on eBay. UMG claims that their promotional CDs marked "promotional use only" are their property for eternity and cannot be resold.

Augusto deceives potential eBay buyers by speciously claiming that he has the right, under U.S. copyright law, to sell the "Promo CDs" under the "first sale doctrine" embodied in 17 U.S.C. § 109. (In fact, since "Promo CDs" are never sold, only licensed, that doctrine simply does not apply.)^[1]

The Electronic Frontier Foundation has stepped in on behalf of Augusto and claimed that Augusto has the right to resell the CDs under the first sale doctrine.

Augusto admits that under 17 U.S.C. § 109 he is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of CDs he owns, including the CDs at issue in this action. Augusto admits that the limitation on a copyright holder’s distribution right set forth in 17 U.S.C. § 109 is sometimes referred to as the “first sale doctrine.” Augusto admits that he has cited 17 U.S.C. § 109 from time to time in his auction descriptions. Augusto denies the remaining allegations in this paragraph.^[2]