eBay Seller and EFF Taking Aim at Universal Music over takedown of CD!
In what could be a landmark case for eBay sellers, Troy Augusto had posted a promotional CD under the ID Roast Beef Music for sale on eBay. Universal Music Group then VERO'd (filed papers to have eBay remove the item) claiming that since it's a "promotional copy" that it wasn't covered under Copyright Law's "First Sale Doctrine". The First Sale Doctrine gives rights to the owner of a CD entitlement to resell it without the permission of the copyright holder. The Electronic Frontier Foundation (EFF) has taken up the cause on behalf of the suspended eBay seller.
In May UMG filed a copyright infringement lawsuit against Augusto, and the EFF has answered the complaint with a counter suit, for sending bogus "takedown" notices to eBay, that resulted in the unwarranted suspension of Augusto's eBay account. The outcome of this case will affect thousands of eBayers who sell promotional Cd's.
http://www.eff.org/news/archives/2007_08.php#005393
In fact one of eBay's top sellers JayandMarie state in their auctions " Our CD's are in New or Like-New condition, often marked by our suppliers with a holepunch through the barcode, a slit in the jewelcase or a pen mark or other marking on the package itself to prevent their resale at full price. These marks do not affect play in any way".
Most people are understanding that these types of CD's are promotional. Yet I wonder why UMG didn't go after the big sellers on eBay- or are they just trying to make an example with this small eBay seller?
eBay of course NEVER wants to get in the middle of disputes with Intellectual property owners. Trust Me on this one!
Note: I formerly sold CD's and Video Tapes on eBay, and over a 18 month period, 5 were removed by the copyright holder, after they reported to eBay that the item was a violation of their copyrights. I was suspended for 3 days in 2003 for the infractions.

This is crazy. I have a lot of dj friends that make and sell promotional mixtapes with rappers and some are sold on ebay. Back in the day they would use instrumentals from hip hop tracks but now they produce their own copyright free beats. I tried selling some and VERO took them down because a couple of beats violated copyright laws.
Posted by: Armando Filoteo | August 09, 2007 at 02:45 PM
Armando, its the right holder that is VEROing the item. Everyone who sells on eBay should be watching this suit- as if UMG wins- it will give ammunition to anyone who owns intellectual property.
Take care.
RC
Posted by: Richard Chemel | August 09, 2007 at 03:15 PM